Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | JPMORGAN CHASE & CO | ||
Entity Central Index Key | 19,617 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 319,702,076,316 | ||
Entity Common Stock, Shares Outstanding | 3,431,958,491 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Revenue | ||||
Investment banking fees | $ 7,248 | $ 6,448 | $ 6,751 | |
Principal transactions | 11,347 | 11,566 | 10,408 | |
Lending- and deposit-related fees | 5,933 | 5,774 | 5,694 | |
Asset management, administration and commissions | 15,377 | 14,591 | 15,509 | |
Securities gains/(losses) | (66) | 141 | 202 | |
Mortgage fees and related income | 1,616 | 2,491 | 2,513 | |
Card income | 4,433 | 4,779 | 5,924 | |
Other income | 3,639 | 3,795 | 3,032 | |
Noninterest revenue | 49,527 | 49,585 | 50,033 | |
Interest income | 64,372 | 55,901 | 50,973 | |
Interest expense | 14,275 | 9,818 | 7,463 | |
Net interest income | 50,097 | 46,083 | 43,510 | |
Total net revenue | 99,624 | 95,668 | 93,543 | |
Provision for credit losses | 5,290 | 5,361 | 3,827 | |
Noninterest expense | ||||
Compensation expense | 31,009 | 29,979 | 29,750 | |
Occupancy expense | 3,723 | 3,638 | 3,768 | |
Technology, communications and equipment expense | 7,706 | 6,846 | 6,193 | |
Professional and outside services | 6,840 | 6,655 | 7,002 | |
Marketing | 2,900 | 2,897 | 2,708 | |
Other expense | 6,256 | 5,756 | 9,593 | |
Total noninterest expense | 58,434 | 55,771 | 59,014 | |
Income before income tax expense | 35,900 | 34,536 | 30,702 | |
Income tax expense | 11,459 | 9,803 | 6,260 | |
Net income | 24,441 | 24,733 | 24,442 | |
Net income applicable to common stockholders | [1] | $ 22,567 | $ 22,834 | $ 22,651 |
Net income per common share data | ||||
Basic earnings per share (in dollars per share) | $ 6.35 | $ 6.24 | $ 6.05 | |
Diluted earnings per share (in dollars per share) | $ 6.31 | $ 6.19 | $ 6 | |
Weighted-average basic shares (in shares) | [1] | 3,551.6 | 3,658.8 | 3,741.2 |
Weighted-average diluted shares (in shares) | [1] | 3,576.8 | 3,690 | 3,773.6 |
Cash dividends declared per common share (in dollars per share) | $ 2.12 | $ 1.88 | $ 1.72 | |
[1] | The prior period amounts have been revised to conform with the current period presentation. The revision had no impact on the Firm’s reported earnings per share. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 24,441 | $ 24,733 | $ 24,442 |
Other comprehensive income/(loss), after–tax | |||
Unrealized gains/(losses) on investment securities | 640 | (1,105) | (2,144) |
Translation adjustments, net of hedges | (306) | (2) | (15) |
Cash flow hedges | 176 | (56) | 51 |
Defined benefit pension and OPEB plans | 738 | (28) | 111 |
DVA on fair value option elected liabilities | (192) | (330) | 0 |
Total other comprehensive income/(loss), after–tax | 1,056 | (1,521) | (1,997) |
Comprehensive income | $ 25,497 | $ 23,212 | $ 22,445 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Assets | |||
Cash and due from banks | $ 25,827 | $ 23,873 | |
Deposits with banks | 404,294 | 365,762 | |
Federal funds sold and securities purchased under resale agreements (included $14,732 and $21,506 at fair value) | 198,422 | 229,967 | |
Securities borrowed (included $3,049 and $0 at fair value) | 105,112 | 96,409 | |
Trading assets (included assets pledged of $110,061 and $115,847) | 381,844 | 372,130 | |
Securities (included $202,225 and $238,891 at fair value and assets pledged of $17,969 and $16,115) | 249,958 | 289,059 | |
Loans (included $2,508 and $2,230 at fair value) | 930,697 | 894,765 | |
Allowance for loan losses | (13,604) | (13,776) | |
Loans, net of allowance for loan losses | 917,093 | 880,989 | |
Accrued interest and accounts receivable | 67,729 | 52,330 | |
Premises and equipment | 14,159 | 14,131 | |
Goodwill, MSRs and other intangible assets | 54,392 | 54,246 | |
Other assets (included $16,128 and $7,557 at fair value and assets pledged of $1,526 and $1,603) | 114,770 | 112,076 | |
Total assets | [1] | 2,533,600 | 2,490,972 |
Liabilities | |||
Deposits (included $21,321 and $13,912 at fair value) | 1,443,982 | 1,375,179 | |
Federal funds purchased and securities loaned or sold under repurchase agreements (included $697 and $687 at fair value) | 158,916 | 165,666 | |
Short-term borrowings (included $9,191 and $9,105 at fair value) | 51,802 | 34,443 | |
Trading liabilities | 123,663 | 136,659 | |
Accounts payable and other liabilities (included $9,208 and $9,120 at fair value) | 189,383 | 190,543 | |
Beneficial interests issued by consolidated VIEs (included $45 and $120 at fair value) | 26,081 | 39,047 | |
Long-term debt (included $47,519 and $37,686 at fair value) | 284,080 | 295,245 | |
Total liabilities | [1] | 2,277,907 | 2,236,782 |
Commitments and contingencies (see Notes 27, 28 and 29) | |||
Stockholders’ equity | |||
Preferred stock ($1 par value; authorized 200,000,000 shares: issued 2,606,750 shares) | 26,068 | 26,068 | |
Common stock ($1 par value; authorized 9,000,000,000 shares; issued 4,104,933,895 shares) | 4,105 | 4,105 | |
Additional paid-in capital | 90,579 | 91,627 | |
Retained earnings | 177,676 | 162,440 | |
Accumulated other comprehensive income | (119) | (1,175) | |
Shares held in restricted stock units (“RSU”) trust, at cost (472,953 shares) | (21) | (21) | |
Treasury stock, at cost (679,635,064 and 543,744,003 shares) | (42,595) | (28,854) | |
Total stockholders’ equity | 255,693 | 254,190 | |
Total liabilities and stockholders’ equity | 2,533,600 | 2,490,972 | |
VIEs consolidated by the Firm | |||
Assets | |||
Trading assets (included assets pledged of $110,061 and $115,847) | 1,449 | 3,185 | |
Loans (included $2,508 and $2,230 at fair value) | 68,995 | 75,614 | |
Other assets (included $16,128 and $7,557 at fair value and assets pledged of $1,526 and $1,603) | 2,674 | 3,321 | |
Total assets | 73,118 | 82,120 | |
Liabilities | |||
Beneficial interests issued by consolidated VIEs (included $45 and $120 at fair value) | 26,081 | 39,047 | |
All other liabilities | 349 | 490 | |
Total liabilities | $ 26,430 | $ 39,537 | |
[1] | The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at December 31, 2017 and 2016. The difference between total VIE assets and liabilities represents the Firm’s interests in those entities, which were eliminated in consolidation.December 31, (in millions)2017 2016Assets Trading assets$1,449 $3,185Loans68,995 75,614All other assets2,674 3,321Total assets$73,118 $82,120Liabilities Beneficial interests issued by consolidated VIEs$26,081 $39,047All other liabilities349 490Total liabilities$26,430 $39,537The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests do not have recourse to the general credit of JPMorgan Chase. At December 31, 2017 and 2016, the Firm provided limited program-wide credit enhancement of $2.7 billion and $2.4 billion, respectively, related to its Firm-administered multi-seller conduits, which are eliminated in consolidation. For further discussion, see Note 14. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Assets pledged | $ 129,600 | $ 133,600 |
Securities | 202,225 | 238,891 |
Loans | $ 2,508 | $ 2,230 |
Stockholders’ equity | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Preferred stock, shares issued (in shares) | 2,606,750 | 2,606,750 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 9,000,000,000 | 9,000,000,000 |
Common stock, shares issued (in shares) | 4,104,933,895 | 4,104,933,895 |
Shares held in Trust, shares (in shares) | 472,953 | 472,953 |
Treasury stock, shares (in shares) | 679,635,064 | 543,744,003 |
Limited program wide credit enhancement | $ 2,700 | $ 2,400 |
Trading assets | ||
Assets | ||
Assets pledged | 110,061 | 115,847 |
Securities | ||
Assets | ||
Assets pledged | 17,969 | 16,115 |
Other assets | ||
Assets | ||
Assets pledged | 1,526 | 1,603 |
Recurring | ||
Assets | ||
Federal funds sold and securities purchased under resale agreements | 14,732 | 21,506 |
Securities borrowed | 3,049 | 0 |
Securities | 202,225 | 238,891 |
Loans | 2,508 | 2,230 |
Liabilities | ||
Deposits | 21,321 | 13,912 |
Federal funds purchased and securities loaned or sold under repurchase agreements | 697 | 687 |
Short term borrowings, fair value | 9,191 | 9,105 |
Accounts payable and other liabilities | 9,208 | 9,120 |
Beneficial interests issued by consolidated VIEs | 45 | 120 |
Long-term debt | 47,519 | 37,686 |
Recurring | Other assets | ||
Assets | ||
Other assets | $ 16,128 | $ 7,557 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Millions | Total | Preferred stock | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income | Shares held in RSU Trust, at cost | Treasury stock, at cost |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect of change in accounting principle | $ 0 | $ 0 | ||||||
Beginning balance at Dec. 31, 2014 | $ 20,063 | $ 4,105 | $ 93,270 | 129,977 | 2,189 | $ (21) | $ (17,856) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance | 6,005 | |||||||
Redemption | 0 | |||||||
Shares issued and commitments to issue common stock for employee share-based compensation awards | (436) | |||||||
Other | (334) | |||||||
Net income | $ 24,442 | 24,442 | ||||||
Dividends declared: | ||||||||
Preferred stock | (1,515) | |||||||
Common stock ($2.12, $1.88 and $1.72 per share for 2017, 2016 and 2015, respectively) | (6,484) | |||||||
Other comprehensive income/(loss) | (1,997) | (1,997) | ||||||
Repurchase | (5,616) | (5,616) | ||||||
Reissuance | 1,781 | |||||||
Ending balance at Dec. 31, 2015 | 247,573 | 26,068 | 4,105 | 92,500 | 146,420 | 192 | (21) | (21,691) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect of change in accounting principle | 154 | (154) | 154 | |||||
Issuance | 0 | |||||||
Redemption | 0 | |||||||
Shares issued and commitments to issue common stock for employee share-based compensation awards | (334) | |||||||
Other | (539) | |||||||
Net income | 24,733 | 24,733 | ||||||
Dividends declared: | ||||||||
Preferred stock | (1,647) | |||||||
Common stock ($2.12, $1.88 and $1.72 per share for 2017, 2016 and 2015, respectively) | (6,912) | |||||||
Other comprehensive income/(loss) | (1,521) | (1,521) | ||||||
Repurchase | (9,082) | (9,082) | ||||||
Reissuance | 1,919 | |||||||
Ending balance at Dec. 31, 2016 | 254,190 | 26,068 | 4,105 | 91,627 | 162,440 | (1,175) | (21) | (28,854) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Cumulative effect of change in accounting principle | 0 | 0 | ||||||
Issuance | 1,258 | |||||||
Redemption | (1,258) | |||||||
Shares issued and commitments to issue common stock for employee share-based compensation awards | (734) | |||||||
Other | (314) | |||||||
Net income | 24,441 | 24,441 | ||||||
Dividends declared: | ||||||||
Preferred stock | (1,663) | |||||||
Common stock ($2.12, $1.88 and $1.72 per share for 2017, 2016 and 2015, respectively) | (7,542) | |||||||
Other comprehensive income/(loss) | 1,056 | 1,056 | ||||||
Repurchase | (15,410) | (15,410) | ||||||
Reissuance | 1,669 | |||||||
Ending balance at Dec. 31, 2017 | $ 255,693 | $ 26,068 | $ 4,105 | $ 90,579 | $ 177,676 | $ (119) | $ (21) | $ (42,595) |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock, dividends declared (in dollars per share) | $ 2.12 | $ 1.88 | $ 1.72 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities | |||
Net income | $ 24,441 | $ 24,733 | $ 24,442 |
Adjustments to reconcile net income to net cash provided by/(used in) operating activities: | |||
Provision for credit losses | 5,290 | 5,361 | 3,827 |
Depreciation and amortization | 6,179 | 5,478 | 4,940 |
Deferred tax expense | 2,312 | 4,651 | 1,333 |
Other | 2,136 | 1,799 | 1,785 |
Originations and purchases of loans held-for-sale | (94,628) | (61,107) | (48,109) |
Proceeds from sales, securitizations and paydowns of loans held-for-sale | 93,270 | 60,196 | 49,363 |
Net change in: | |||
Trading assets | 5,673 | (20,007) | 62,212 |
Securities borrowed | (8,653) | 2,313 | 12,165 |
Accrued interest and accounts receivable | (15,868) | (5,815) | 22,664 |
Other assets | 4,318 | (4,517) | (3,701) |
Trading liabilities | (26,256) | 5,198 | (28,972) |
Accounts payable and other liabilities | (8,518) | 3,740 | (23,361) |
Other operating adjustments | 7,803 | (1,827) | (5,122) |
Net cash provided by/(used in) operating activities | (2,501) | 20,196 | 73,466 |
Net change in: | |||
Deposits with banks | (38,532) | (25,747) | 144,462 |
Federal funds sold and securities purchased under resale agreements | 31,448 | (17,468) | 3,190 |
Held-to-maturity securities: | |||
Proceeds from paydowns and maturities | 4,563 | 6,218 | 6,099 |
Purchases | (2,349) | (143) | (6,204) |
Available-for-sale securities: | |||
Proceeds from paydowns and maturities | 56,117 | 65,950 | 76,448 |
Proceeds from sales | 90,201 | 48,592 | 40,444 |
Purchases | (105,309) | (123,959) | (70,804) |
Proceeds from sales and securitizations of loans held-for-investment | 15,791 | 15,429 | 18,604 |
Other changes in loans, net | (61,650) | (80,996) | (108,962) |
All other investing activities, net | (563) | (2,825) | 3,703 |
Net cash provided by/(used in) investing activities | (10,283) | (114,949) | 106,980 |
Net change in: | |||
Deposits | 57,022 | 97,336 | (88,678) |
Federal funds purchased and securities loaned or sold under repurchase agreements | (6,739) | 13,007 | (39,415) |
Short-term borrowings | 16,540 | (2,461) | (57,828) |
Beneficial interests issued by consolidated VIEs | (1,377) | (5,707) | (5,632) |
Proceeds from long-term borrowings | 56,271 | 83,070 | 79,611 |
Payments of long-term borrowings | (83,079) | (68,949) | (67,247) |
Proceeds from issuance of preferred stock | 1,258 | 0 | 5,893 |
Redemption of preferred stock | 1,258 | 0 | 0 |
Treasury stock repurchased | (15,410) | (9,082) | (5,616) |
Dividends paid | (8,993) | (8,476) | (7,873) |
All other financing activities, net | 407 | (467) | (726) |
Net cash provided by/(used in) financing activities | 14,642 | 98,271 | (187,511) |
Effect of exchange rate changes on cash and due from banks | 96 | (135) | (276) |
Net increase/(decrease) in cash and due from banks | 1,954 | 3,383 | (7,341) |
Cash and due from banks at the beginning of the period | 23,873 | 20,490 | 27,831 |
Cash and due from banks at the end of the period | 25,827 | 23,873 | 20,490 |
Cash interest paid | 14,153 | 9,508 | 7,220 |
Cash income taxes paid, net | $ 4,325 | $ 2,405 | $ 9,423 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of presentation JPMorgan Chase & Co. (“ JPMorgan Chase ” or the “Firm”), a financial holding company incorporated under Delaware law in 1968, is a leading global financial services firm and one of the largest banking institutions in the U.S., with operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small business, commercial banking, financial transaction processing and asset management. For a discussion of the Firm’s business segments, see Note 31 . 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. Certain amounts reported in prior periods have been reclassified to conform with the current presentation. Consolidation The Consolidated Financial Statements include the accounts of JPMorgan Chase and other entities in which the Firm has a controlling financial interest. All material intercompany balances and transactions have been eliminated. Assets held for clients in an agency or fiduciary capacity by the Firm are not assets of JPMorgan Chase and are not included on the Consolidated balance sheets. The Firm determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity. Voting Interest Entities Voting interest entities are entities that have sufficient equity and provide the equity investors voting rights that enable them to make significant decisions relating to the entity’s operations. For these types of entities, the Firm’s determination of whether it has a controlling interest is primarily based on the amount of voting equity interests held. Entities in which the Firm has a controlling financial interest, through ownership of the majority of the entities’ voting equity interests, or through other contractual rights that give the Firm control, are consolidated by the Firm. Investments in companies in which the Firm has significant influence over operating and financing decisions (but does not own a majority of the voting equity interests) are accounted for (i) in accordance with the equity method of accounting (which requires the Firm to recognize its proportionate share of the entity’s net earnings), or (ii) at fair value if the fair value option was elected. These investments are generally included in other assets, with income or loss included in other income. Certain Firm -sponsored asset management funds are structured as limited partnerships or certain limited liability companies. For many of these entities, the Firm is the general partner or managing member, but the non-affiliated partners or members have the ability to remove the Firm as the general partner or managing member without cause (i.e., kick-out rights), based on a simple majority vote, or the non-affiliated partners or members have rights to participate in important decisions. Accordingly, the Firm does not consolidate these voting interest entities. However, in the limited cases where the non-managing partners or members do not have substantive kick-out or participating rights, the Firm evaluates the funds as VIEs and consolidates if it is the general partner or managing member and has a potentially significant interest. The Firm’s investment companies have investments in both publicly-held and privately-held entities , including investments in buyouts, growth equity and venture opportunities. These investments are accounted for under investment company guidelines and accordingly, irrespective of the percentage of equity ownership interests held, are carried on the Consolidated balance sheets at fair value, and are recorded in other assets, with income or loss included in noninterest revenue. Variable Interest Entities VIEs are entities that, by design, either (1) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) have equity investors that do not have the ability to make significant decisions relating to the entity’s operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. The most common type of VIE is a n SPE. SPEs are commonly used in securitization transactions in order to isolate certain assets and distribute the cash flows from those assets to investors. The basic SPE structure involves a company selling assets to the SPE; the SPE funds the purchase of those assets by issuing securities to investors. The legal documents that govern the transaction specify how the cash earned on the assets must be allocated to the SPE’s investors and other parties that have rights to those cash flows. SPEs are generally structured to insulate investors from claims on the SPE’s assets by creditors of other entities, including the creditors of the seller of the assets. The primary beneficiary of a VIE (i.e., the party that has a controlling financial interest) is required to consolidate the assets and liabilities of the VIE. The primary beneficiary is the party that has both (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and (2) through its interests in the VIE, the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. To assess whether the Firm has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, the Firm considers all the facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes, first, identifying the activities that most significantly impact the VIE’s economic performance; and second, identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE (such as asset managers, collateral managers, servicers, or owners of call options or liquidation rights over the VIE’s assets) or have the right to unilaterally remove those decision-makers are deemed to have the power to direct the activities of a VIE. To assess whether the Firm has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Firm considers all of its economic interests, including debt and equity investments, servicing fees, and derivatives or other arrangements deemed to be variable interests in the VIE. This assessment requires that the Firm apply judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE’s capital structure; and the reasons why the interests are held by the Firm. The Firm performs on-going reassessments of: (1) whether entities previously evaluated under the majority voting-interest framework have become VIEs, based on certain events, and are therefore subject to the VIE consolidation framework; and (2) whether changes in the facts and circumstances regarding the Firm’s involvement with a VIE cause the Firm’s consolidation conclusion to change. Use of estimates in the preparation of consolidated financial statements The preparation of the Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expense, and disclosures of contingent assets and liabilities. Actual results could be different from these estimates. Foreign currency translation JPMorgan Chase revalues assets, liabilities, revenue and expense denominated in non-U.S. currencies into U.S. dollars using applicable exchange rates. Gains and losses relating to translating functional currency financial statements for U.S. reporting are included in OCI within stockholders’ equity. Gains and losses relating to nonfunctional currency transactions, including non-U.S. operations where the functional currency is the U.S. dollar, are reported in the Consolidated statements of income. 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 sold and purchased under repurchase agreements and securities borrowed or loaned under securities loan agreements to be presented net when specified conditions are met, including the existence of a legally enforceable master netting agreement. The Firm has elected to net such balances when the specified conditions are met. The Firm uses master netting agreements to mitigate counterparty credit risk in certain transactions, including derivative, securities repurchase and reverse repurchase, and securities loaned and borrow transactions. A master netting agreement is 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). Upon the exercise of derivatives termination rights by the non-defaulting party (i) all transactions are terminated, (ii) all transactions are valued and the positive values of “in the money” transactions are netted against the negative values of “out of the money” transactions and (iii) the only remaining payment obligation is of one of the parties to pay the netted termination amount. Upon exercise of default rights under repurchase agreements and securities loan agreements in general (i) all transactions are terminated and accelerated, (ii) all values of securities or cash held or to be delivered are calculated, and all such sums are netted against each other and (iii) the only remaining payment obligation is of one of the parties to pay the netted termination amount. Typical master netting agreements for these types of transactions also often contain a collateral/margin agreement that provides for a security interest in, or title transfer of, securities or cash collateral/margin to the party that has the right to demand margin (the “demanding party”). The collateral/margin agreement typically requires a party to transfer collateral/margin to the demanding party with a value equal to the amount of the margin deficit on a net basis across all transactions governed by the master netting agreement, less any threshold. The collateral/margin agreement grants to the demanding party, upon default by the counterparty, the right to set-off any amounts payable by the counterparty against any posted collateral or the cash equivalent of any posted collateral/margin. It also grants to the demanding party the right to liquidate collateral/margin and to apply the proceeds to an amount payable by the counterparty. For further discussion of the Firm’s derivative instruments, see Note 5 . For further discussion of the Firm’s repurchase and reverse repurchase agreements, and securities borrowing and lending agreements, see Note 11 . Statements of cash flows For JPMorgan Chase’s Consolidated statements of cash flows, cash is defined as those amounts included in cash and due from banks. Significant accounting policies The following table identifies JPMorgan Chase’s other significant accounting policies and the Note and page where a detailed description of each policy can be found. Fair value measurement Note 2 Page 155 Fair value option Note 3 Page 174 Derivative instruments Note 5 Page 179 Noninterest revenue Note 6 Page 192 Interest income and interest expense Note 7 Page 195 Pension and other postretirement employee benefit plans Note 8 Page 195 Employee share-based incentives Note 9 Page 201 Securities Note 10 Page 203 Securities financing activities Note 11 Page 208 Loans Note 12 Page 211 Allowance for credit losses Note 13 Page 231 Variable interest entities Note 14 Page 236 Goodwill and Mortgage servicing rights Note 15 page 244 Premises and equipment Note 16 page 248 Long-term debt Note 19 page 249 Income taxes Note 24 page 255 Off–balance sheet lending-related financial instruments, guarantees and other commitments Note 27 page 261 Litigation Note 29 page 268 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair value measurement JPMorgan Chase carries a portion of its assets and liabilities at fair value. These assets and liabilities are predominantly carried at fair value on a recurring basis (i.e., assets and liabilities that are measured and reported at fair value on the Firm’s Consolidated balance sheets). Certain assets (e.g., held-for-sale loans), liabilities and unfunded lending-related commitments are measured at fair value on a nonrecurring basis; that is, they are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is based on quoted market prices or inputs, where available. If prices or quotes are not available, fair value is based on valuation models and other valuation techniques that consider relevant transaction characteristics (such as maturity) and use as inputs observable or unobservable market parameters, including yield curves, interest rates, volatilities, equity or debt prices, foreign exchange rates and credit curves. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value, as described below. The level of precision 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 different methodologies or assumptions by other market participants compared with those used by the Firm could result in the Firm deriving a different estimate of fair value at the reporting date. Valuation process Risk-taking functions are responsible for providing fair value estimates for assets and liabilities carried on the Consolidated balance sheets at fair value. The Firm’s VCG , which is part of the Firm’s Finance function and independent of the risk-taking functions, is responsible for verifying these estimates and determining any fair value adjustments that may be required to ensure that the Firm’s positions are recorded at fair value. The VGF is composed of senior finance and risk executives and is responsible for overseeing the management of risks arising from valuation activities conducted across the Firm. The VGF is chaired by the Firmwide head of the VCG (under the direction of the Firm’s Controller), and includes sub-forums covering the CIB, CCB, CB, AWM and certain corporate functions including Treasury and CIO. Price verification process The VCG verifies fair value estimates provided by the risk-taking functions by leveraging independently derived prices, valuation inputs and other market data, where available. Where independent prices or inputs are not available, the VCG performs additional review to ensure the reasonableness of the estimates. The additional review may include evaluating the limited market activity including client unwinds, benchmarking valuation inputs to those used for similar instruments, decomposing the valuation of structured instruments into individual components, comparing expected to actual cash flows, reviewing profit and loss trends, and reviewing trends in collateral valuation. There are also additional levels of management review for more significant or complex positions. The VCG determines any valuation adjustments that may be required to the estimates provided by the risk-taking functions. No adjustments to quoted prices are applied for instruments classified within level 1 of the fair value hierarchy (see below for further information on the fair value hierarchy). For other positions, judgment is required to assess the need for valuation adjustments to appropriately reflect liquidity considerations, unobservable parameters, and, for certain portfolios that meet specified criteria, the size of the net open risk position. The determination of such adjustments follows a consistent framework across the Firm: • Liquidity valuation adjustments are considered where an observable external price or valuation parameter exists but is of lower reliability, potentially due to lower market activity. Liquidity valuation adjustments are applied and determined based on current market conditions. Factors that may be considered in determining the liquidity adjustment include analysis of: (1) the estimated bid-offer spread for the instrument being traded; (2) alternative pricing points for similar instruments in active markets; and (3) the range of reasonable values that the price or parameter could take. • The Firm manages certain portfolios of financial instruments on the basis of net open risk exposure and, as permitted by U.S. GAAP, has elected to estimate the fair value of such portfolios on the basis of a transfer of the entire net open risk position in an orderly transaction. Where this is the case, valuation adjustments may be necessary to reflect the cost of exiting a larger-than-normal market-size net open risk position. Where applied, such adjustments are based on factors that a relevant market participant would consider in the transfer of the net open risk position, including the size of the adverse market move that is likely to occur during the period required to reduce the net open risk position to a normal market-size. • Unobservable parameter valuation adjustments may be made when positions are valued using prices or input parameters to valuation models that are unobservable due to a lack of market activity or because they cannot be implied from observable market data. Such prices or parameters must be estimated and are, therefore, subject to management judgment. Unobservable parameter valuation adjustments are applied to reflect the uncertainty inherent in the resulting valuation estimate. • Where appropriate, the Firm also applies adjustments to its estimates of fair value in order to appropriately reflect counterparty credit quality (CVA), the Firm’s own creditworthiness (DVA) and the impact of funding ( FVA ), using a consistent framework across the Firm. For more information on such adjustments see Credit and funding adjustments on page 171 of this Note. Valuation model review and approval If prices or quotes are not available for an instrument or a similar instrument, fair value is generally determined using valuation models that consider relevant transaction data such as maturity and use as inputs market-based or independently sourced parameters. Where this is the case the price verification process described above is applied to the inputs to those models. Under the Firm’s Estimations and Model Risk Management Policy, the Model Risk function reviews and approves new models, as well as material changes to existing models, prior to implementation in the operating environment. In certain circumstances, the head of the Model Risk function may grant exceptions to the Firm’s policy to allow a model to be used prior to review or approval. The Model Risk function may also require the user to take appropriate actions to mitigate the model risk if it is to be used in the interim. These actions will depend on the model and may include, for example, limitation of trading activity. Valuation hierarchy A three-level valuation hierarchy has been established under U.S. GAAP for disclosure of fair value measurements. The valuation hierarchy is based on the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows. • Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 – one or more inputs to the valuation methodology are unobservable and significant to the fair value measurement. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following table describes the valuation methodologies generally used by the Firm to measure its significant products/instruments at fair value, including the general classification of such instruments pursuant to the valuation hierarchy. Product/instrument Valuation methodology Classifications in the valuation hierarchy Securities financing agreements Valuations are based on discounted cash flows, which consider: Predominantly level 2 • Derivative features: for further information refer to the discussion of derivatives below. • Market rates for the respective maturity • Collateral characteristics Loans and lending-related commitments — wholesale Loans carried at fair value (e.g., trading loans and non-trading loans) and associated lending-related commitments Where observable market data is available, valuations are based on: Level 2 or 3 • Observed market prices (circumstances are infrequent) • Relevant broker quotes • Observed market prices for similar instruments Where observable market data is unavailable or limited, valuations are based on discounted cash flows, which consider the following: • Credit spreads derived from the cost of CDS; or benchmark credit curves developed by the Firm, by industry and credit rating • Prepayment speed • Collateral characteristics Loans held-for-investment and associated lending-related commitments Valuations are based on discounted cash flows, which consider: Predominantly level 3 • Credit spreads, derived from the cost of CDS; or benchmark credit curves developed by the Firm, by industry and credit rating • Prepayment speed Lending-related commitments are valued similarly to loans and reflect the portion of an unused commitment expected, based on the Firm’s average portfolio historical experience, to become funded prior to an obligor default. For information regarding the valuation of loans measured at collateral value, see Note 12. Loans — consumer Held-for-investment consumer loans, excluding credit card Valuations are based on discounted cash flows, which consider: Predominantly level 2 • Credit losses – which consider expected and current default rates, and loss severity • Prepayment speed • Discount rates • Servicing costs For information regarding the valuation of loans measured at collateral value, see Note 12. Held-for-investment credit card receivables Valuations are based on discounted cash flows, which consider: Level 3 • Credit costs - the allowance for loan losses is considered a reasonable proxy for the credit cost • Projected interest income, late-fee revenue and loan repayment rates • Discount rates • Servicing costs Trading loans — conforming residential mortgage loans expected to be sold (CCB, CIB) Fair value is based on observable prices for mortgage-backed securities with similar collateral and incorporates adjustments to these prices to account for differences between the securities and the value of the underlying loans, which include credit characteristics, portfolio composition, and liquidity. Predominantly level 2 Product/instrument Valuation methodology, inputs and assumptions Classifications in the valuation hierarchy Investment and trading securities Quoted market prices are used where available. Level 1 In the absence of quoted market prices, securities are valued based on: Level 2 or 3 • Observable market prices for similar securities • Relevant broker quotes • Discounted cash flows In addition, the following inputs to discounted cash flows are used for the following products: Mortgage- and asset-backed securities specific inputs: • Collateral characteristics • Deal-specific payment and loss allocations • Current market assumptions related to yield, prepayment speed, conditional default rates and loss severity Collateralized loan obligations (“CLOs”) specific inputs: • Collateral characteristics • Deal-specific payment and loss allocations • Expected prepayment speed, conditional default rates, loss severity • Credit spreads • Credit rating data Physical commodities Valued using observable market prices or data. Predominantly level 1 and 2 Derivatives Exchange-traded derivatives that are actively traded and valued using the exchange price. Level 1 Derivatives that are valued using models such as the Black-Scholes option pricing model, simulation models, or a combination of models that may use observable or unobservable valuation inputs as well as considering the contractual terms. The key valuation inputs used will depend on the type of derivative and the nature of the underlying instruments and may include equity prices, commodity prices, interest rate yield curves, foreign exchange rates, volatilities, correlations, CDS spreads and recovery rates. Additionally, the credit quality of the counterparty and of the Firm as well as market funding levels may also be considered. Level 2 or 3 In addition, specific inputs used for derivatives that are valued based on models with significant unobservable inputs are as follows: Structured credit derivatives specific inputs include: • CDS spreads and recovery rates • Credit correlation between the underlying debt instruments Equity option specific inputs include: • Equity volatilities • Equity correlation • Equity-FX correlation • Equity-IR correlation Interest rate and FX exotic options specific inputs include: • Interest rate spread volatility • Interest rate correlation • Foreign exchange correlation • Interest rate-FX correlation Commodity derivatives specific inputs include: • Commodity volatility • Forward commodity price Additionally, adjustments are made to reflect counterparty credit quality (CVA) and the impact of funding (FVA). See page 171 of this Note. Product/instrument Valuation methodology, inputs and assumptions Classification in the valuation hierarchy Mortgage servicing rights See Mortgage servicing rights in Note 15. Level 3 Private equity direct investments Fair value is estimated using all available information; the range of potential inputs include: Level 2 or 3 • Transaction prices • Trading multiples of comparable public companies • Operating performance of the underlying portfolio company • Adjustments as required, since comparable public companies are not identical to the company being valued, and for company-specific issues and lack of liquidity. • Additional available inputs relevant to the investment. Fund investments (e.g., mutual/collective investment funds, private equity funds, hedge funds, and real estate funds) Net asset value • NAV is supported by the ability to redeem and purchase at the NAV level. Level 1 • Adjustments to the NAV as required, for restrictions on redemption (e.g., lock-up periods or withdrawal limitations) or where observable activity is limited. Level 2 or 3 (a) Beneficial interests issued by consolidated VIEs Valued using observable market information, where available. Level 2 or 3 In the absence of observable market information, valuations are based on the fair value of the underlying assets held by the VIE. Long-term debt, not carried at fair value Valuations are based on discounted cash flows, which consider: Predominantly level 2 • Market rates for respective maturity Structured notes (included in deposits, short-term borrowings and long-term debt) • Valuations are based on discounted cash flow analyses that consider the embedded derivative and the terms and payment structure of the note. • The embedded derivative features are considered using models such as the Black-Scholes option pricing model, simulation models, or a combination of models that may use observable or unobservable valuation inputs, depending on the embedded derivative. The specific inputs used vary according to the nature of the embedded derivative features, as described in the discussion above regarding derivatives valuation. Adjustments are then made to this base valuation to reflect the Firm’s own credit risk (DVA). See page 171 of this Note. Level 2 or 3 (a) Excludes certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient. The following table presents the assets and liabilities reported at fair value as of December 31, 2017 and 2016 , by major product category and fair value hierarchy. Assets and liabilities measured at fair value on a recurring basis Fair value hierarchy December 31, 2017 (in millions) Level 1 Level 2 Level 3 Derivative netting adjustments Total fair value Federal funds sold and securities purchased under resale agreements $ — $ 14,732 $ — $ — $ 14,732 Securities borrowed — 3,049 — — 3,049 Trading assets: Debt instruments: Mortgage-backed securities: U.S. government agencies (a) — 41,515 307 — 41,822 Residential – nonagency — 1,835 60 — 1,895 Commercial – nonagency — 1,645 11 — 1,656 Total mortgage-backed securities — 44,995 378 — 45,373 U.S. Treasury and government agencies (a) 30,758 6,475 1 — 37,234 Obligations of U.S. states and municipalities — 9,067 744 — 9,811 Certificates of deposit, bankers’ acceptances and commercial paper — 226 — — 226 Non-U.S. government debt securities 28,887 28,831 78 — 57,796 Corporate debt securities — 24,146 312 — 24,458 Loans (b) — 35,242 2,719 — 37,961 Asset-backed securities — 3,284 153 — 3,437 Total debt instruments 59,645 152,266 4,385 — 216,296 Equity securities 87,346 197 295 — 87,838 Physical commodities (c) 4,924 1,322 — — 6,246 Other — 14,197 690 — 14,887 Total debt and equity instruments (d) 151,915 167,982 5,370 — 325,267 Derivative receivables: Interest rate 181 314,107 1,704 (291,319 ) 24,673 Credit — 21,995 1,209 (22,335 ) 869 Foreign exchange 841 158,834 557 (144,081 ) 16,151 Equity — 37,722 2,318 (32,158 ) 7,882 Commodity — 19,875 210 (13,137 ) 6,948 Total derivative receivables (e)(f) 1,022 552,533 5,998 (503,030 ) 56,523 Total trading assets (g) 152,937 720,515 11,368 (503,030 ) 381,790 Available-for-sale securities: Mortgage-backed securities: U.S. government agencies (a) — 70,280 — — 70,280 Residential – nonagency — 11,366 1 — 11,367 Commercial – nonagency — 5,025 — — 5,025 Total mortgage-backed securities — 86,671 1 — 86,672 U.S. Treasury and government agencies (a) 22,745 — — — 22,745 Obligations of U.S. states and municipalities — 32,338 — — 32,338 Certificates of deposit — 59 — — 59 Non-U.S. government debt securities 18,140 9,154 — — 27,294 Corporate debt securities — 2,757 — — 2,757 Asset-backed securities: Collateralized loan obligations — 20,720 276 — 20,996 Other — 8,817 — — 8,817 Equity securities 547 — — — 547 Total available-for-sale securities 41,432 160,516 277 — 202,225 Loans — 2,232 276 — 2,508 Mortgage servicing rights — — 6,030 — 6,030 Other assets (g) 13,795 343 1,265 — 15,403 Total assets measured at fair value on a recurring basis $ 208,164 $ 901,387 $ 19,216 $ (503,030 ) $ 625,737 Deposits $ — $ 17,179 $ 4,142 $ — $ 21,321 Federal funds purchased and securities loaned or sold under repurchase agreements — 697 — — 697 Short-term borrowings — 7,526 1,665 — 9,191 Trading liabilities: Debt and equity instruments (d) 64,664 21,183 39 — 85,886 Derivative payables: Interest rate 170 282,825 1,440 (277,306 ) 7,129 Credit — 22,009 1,244 (21,954 ) 1,299 Foreign exchange 794 154,075 953 (143,349 ) 12,473 Equity — 39,668 5,727 (36,203 ) 9,192 Commodity — 21,017 884 (14,217 ) 7,684 Total derivative payables (e)(f) 964 519,594 10,248 (493,029 ) 37,777 Total trading liabilities 65,628 540,777 10,287 (493,029 ) 123,663 Accounts payable and other liabilities 9,074 121 13 — 9,208 Beneficial interests issued by consolidated VIEs — 6 39 — 45 Long-term debt — 31,394 16,125 — 47,519 Total liabilities measured at fair value on a recurring basis $ 74,702 $ 597,700 $ 32,271 $ (493,029 ) $ 211,644 Fair value hierarchy December 31, 2016 (in millions) Level 1 Level 2 Level 3 Derivative netting adjustments Total fair value Federal funds sold and securities purchased under resale agreements $ — $ 21,506 $ — $ — $ 21,506 Securities borrowed — — — — — Trading assets: Debt instruments: Mortgage-backed securities: U.S. government agencies (a) 13 40,586 392 — 40,991 Residential – nonagency — 1,552 83 — 1,635 Commercial – nonagency — 1,321 17 — 1,338 Total mortgage-backed securities 13 43,459 492 — 43,964 U.S. Treasury and government agencies (a) 19,554 5,201 — — 24,755 Obligations of U.S. states and municipalities — 8,403 649 — 9,052 Certificates of deposit, bankers’ acceptances and commercial paper — 1,649 — — 1,649 Non-U.S. government debt securities 28,443 23,076 46 — 51,565 Corporate debt securities — 22,751 576 — 23,327 Loans (b) — 28,965 4,837 — 33,802 Asset-backed securities — 5,250 302 — 5,552 Total debt instruments 48,010 138,754 6,902 — 193,666 Equity securities 96,759 281 231 — 97,271 Physical commodities (c) 5,341 1,620 — — 6,961 Other — 9,341 761 — 10,102 Total debt and equity instruments (d) 150,110 149,996 7,894 — 308,000 Derivative receivables: Interest rate 715 602,747 2,501 (577,661 ) 28,302 Credit — 28,256 1,389 (28,351 ) 1,294 Foreign exchange 812 231,743 870 (210,154 ) 23,271 Equity — 34,032 908 (30,001 ) 4,939 Commodity 158 18,360 125 (12,371 ) 6,272 Total derivative receivables (e) 1,685 915,138 5,793 (858,538 ) 64,078 Total trading assets (g) 151,795 1,065,134 13,687 (858,538 ) 372,078 Available-for-sale securities: Mortgage-backed securities: U.S. government agencies (a) — 64,005 — — 64,005 Residential – nonagency — 14,442 1 — 14,443 Commercial – nonagency — 9,104 — — 9,104 Total mortgage-backed securities — 87,551 1 — 87,552 U.S. Treasury and government agencies (a) 44,072 29 — — 44,101 Obligations of U.S. states and municipalities — 31,592 — — 31,592 Certificates of deposit — 106 — — 106 Non-U.S. government debt securities 22,793 12,495 — — 35,288 Corporate debt securities — 4,958 — — 4,958 Asset-backed securities: Collateralized loan obligations — 26,738 663 — 27,401 Other — 6,967 — — 6,967 Equity securities 926 — — — 926 Total available-for-sale securities 67,791 170,436 664 — 238,891 Loans — 1,660 570 — 2,230 Mortgage servicing rights — — 6,096 — 6,096 Other assets (g) 4,357 — 2,223 — 6,580 Total assets measured at fair value on a recurring basis $ 223,943 $ 1,258,736 $ 23,240 $ (858,538 ) $ 647,381 Deposits $ — $ 11,795 $ 2,117 $ — $ 13,912 Federal funds purchased and securities loaned or sold under repurchase agreements — 687 — — 687 Short-term borrowings — 7,971 1,134 — 9,105 Trading liabilities: Debt and equity instruments (d) 68,304 19,081 43 — 87,428 Derivative payables: Interest rate 539 569,001 1,238 (559,963 ) 10,815 Credit — 27,375 1,291 (27,255 ) 1,411 Foreign exchange 902 231,815 2,254 (214,463 ) 20,508 Equity — 35,202 3,160 (30,222 ) 8,140 Commodity 173 20,079 210 (12,105 ) 8,357 Total derivative payables (e) 1,614 883,472 8,153 (844,008 ) 49,231 Total trading liabilities 69,918 902,553 8,196 (844,008 ) 136,659 Accounts payable and other liabilities 9,107 — 13 — 9,120 Beneficial interests issued by consolidated VIEs — 72 48 — 120 Long-term debt — 24,836 (h) 12,850 (h) — 37,686 Total liabilities measured at fair value on a recurring basis $ 79,025 $ 947,914 (h) $ 24,358 (h) $ (844,008 ) $ 207,289 (a) At December 31, 2017 and 2016 , included total U.S. government-sponsored enterprise obligations of $78.0 billion and $80.6 billion , respectively, which were predominantly mortgage-related. (b) At December 31, 2017 and 2016 , included within trading loans were $11.4 billion and $16.5 billion , respectively, of residential first-lien mortgages, and $4.2 billion and $3.3 billion , respectively, of commercial first-lien mortgages. Residential mortgage loans include conforming mortgage loans originated with the intent to sell to U.S. government agencies of $5.7 billion and $11.0 billion , respectively, and reverse mortgages of $836 million and $2.0 billion , respectively. (c) Physical commodities inventories are generally accounted for at the lower of cost or net realizable value. “Net realizable value” is a term defined in U.S. GAAP as not exceeding fair value less costs to sell (“transaction costs”). Transaction costs for the Firm’s physical commodities inventories are either not applicable or immaterial to the value of the inventory. Therefore, net realizable value approximates fair value for the Firm’s physical commodities inventories. When fair value hedging has been applied (or when net realizable value is below cost), the carrying value of physical commodities approximates fair value, because under fair value hedge accounting, the cost basis is adjusted for changes in fair value. For a further discussion of the Firm’s hedge accounting relationships, see Note 5 . To provide consistent fair value disclosure information, all physical commodities inventories have been included in each period presented. (d) Balances reflect the reduction of securities owned (long positions) by the amount of identical securities sold but not yet purchased (short positions). (e) As permitted under U.S. GAAP, the Firm has elected to net derivative receivables and derivative payables and the related cash collateral received and paid when a legally enforceable master netting agreement exists. For purposes of the tables above, the Firm does not reduce derivative receivables and derivative payables balances for this netting adjustment, either within or across the levels of the fair value hierarchy, as such netting is not relevant to a presentation based on the transparency of inputs to the valuation of an asset or liability. The level 3 balances would be reduced if netting were applied, including the netting benefit associated with cash collateral. (f) Reflects the Firm’s adoption of rulebook changes made by two CCPs that require or allow the Firm to treat certain OTC-cleared derivative transactions as daily settled. For further information, see Note 5 . (g) 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 December 31, 2017 and 2016 , the fair values of these investments, which include certain hedge funds, private equity funds, real estate and other funds, were $779 million and $1.0 billion , respectively. Included in these balances at December 31, 2017 and 2016 , were trading assets of $54 million and $52 million , respectively, and other assets of $725 million and $977 million , respectively. (h) The prior period amounts have been revised to conform with the current period presentation. Transfers between levels for instruments carried at fair value on a recurring basis For the years ended December 31, 2017 and 2016, there were no significant transfers between levels 1 and 2. During the year ended December 31, 2017 , transfers from level 3 to level 2 included the following: • $1.5 billion of trading loans driven by an increase in observability. • $1.2 billion of gross equity derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs. During the year ended December 31, 2017 , transfers from level 2 to level 3 included the following: • $ 1.0 billion of gross equity derivative receivables and $ 2.5 billion of gross equity derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs. • $1.7 billion of long-term debt driven by a decrease in observability and an increase in the significance of unobservable inputs for certain structured notes. During the year ended December 31, 2016, transfers from level 3 to level 2 included the following: • $1.4 billion of long-term debt driven by an increase in observability and a reduction in the significance of unobservable inputs for certain structured notes. During the year ended December 31, 2016, transfers from level 2 to level 3 included the following: • $1.1 billion of gross equity derivative receivables and $1.0 billion of gross equity derivative payables as a result of an decrease in observability and an increase in the significance of unobservable inputs. • $1.0 billion of trading loans driven by a decrease in observability. During the year ended December 31, 2015, transfers from level 3 to level 2 included the following: • $3.1 billion of long-term debt and $1.0 billion of deposits driven by an increase in observability on certain structured notes with embedded interest rate and FX derivatives and a reduction in the significance of unobservable inputs for certain structured notes with embedded equity derivatives. • $2.1 billion of gross equity derivatives for both receivables and payables as a result of an increase in observability and a decrease in the significance of unobservable inputs; partially offset by transfers into level 3 resulting in net transfers of approximately $1.2 billion for both receivables and payables. • $2.8 billion of trading loans driven by an increase in observability of certain collateralized financing transactions. • $2.4 billion of corporate debt driven by a decrease in the significance of unobservable inputs and an increase in observability for certain structured products. During the year ended December 31, 2015, there were no significant transfers from level 2 to level 3. All transfers are assumed to occur at the beginning of the quarterly reporting period in which they occur. Level 3 valuations The Firm has established well-structured processes for determining fair value, including for instruments where fair value is estimated using significant unobservable inputs (level 3). For further information on the Firm’s valuation process and a detailed discussion of the determination of fair value for individual financial instruments, see pages 155–159 of this Note. 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 fair 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, due to the lack of observability of significant inputs, management must assess all relevant empirical data in deriving valuation inputs including transaction details, yield curves, interest rates, prepayment speed, default rates, volatilities, correlations, equity or debt prices, valuations of comparable instruments, foreign exchange rates and credit curves. The following table presents the Firm’s primary level 3 financial instruments, the valuation techniques used to measure the fair value of those financial instruments, the significant unobservable inputs, the range of values for those inputs and, for certain instruments, the weighted averages of such inputs. While the determination to classify an instrument within level 3 is based on the significance of the unobservable inputs to the overall fair value measurement, level 3 financial instruments typically include observable components (that is, components that are actively quoted and can be validated to external sources) in addition to the unobservable components. The level 1 and/or level 2 inputs are not included in the table. In addition, the Firm manages the risk of the observable components of level 3 financial instruments using securities and derivative positions that are classified within levels 1 or 2 of the fair value hierarchy. The range of values presented in the table is representative of the highest and lowest level input used to value the significant groups of instruments within a product/instrument classification. Where provided, the weighted averages of the input values presented in the table are calculated based on the fair value of the instruments that the input is being used to value. In the |
Fair Value Option
Fair Value Option | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Option [Abstract] | |
Fair Value Option | 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 elected were previously 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 arrangements with an embedded derivative and/or a maturity of greater than one year • 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, which are predominantly financial instruments that contain embedded derivatives, that are issued as part of CIB’s 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 years ended December 31, 2017 , 2016 and 2015 , 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. 2017 2016 2015 December 31, (in millions) Principal transactions All other income Total changes in fair value recorded Principal transactions All other income Total changes in fair value recorded Principal transactions All other income Total changes in fair value recorded Federal funds sold and securities purchased under resale agreements $ (97 ) $ — $ (97 ) $ (76 ) $ — $ (76 ) $ (38 ) $ — $ (38 ) Securities borrowed 50 — 50 1 — 1 (6 ) — (6 ) Trading assets: Debt and equity instruments, excluding loans 1,943 2 (c) 1,945 120 (1 ) (c) 119 756 (10 ) (c) 746 Loans reported as trading assets: Changes in instrument-specific credit risk 330 14 (c) 344 461 43 (c) 504 138 41 (c) 179 Other changes in fair value 217 747 (c) 964 79 684 (c) 763 232 818 (c) 1,050 Loans: Changes in instrument-specific credit risk (1 ) — (1 ) 13 — 13 35 — 35 Other changes in fair value (12 ) 3 (c) (9 ) (7 ) — (7 ) 4 — 4 Other assets 11 (55 ) (d) (44 ) 20 62 (d) 82 79 (1 ) (d) 78 Deposits (a) (533 ) — (533 ) (134 ) — (134 ) 93 — 93 Federal funds purchased and securities loaned or sold under repurchase agreements 11 — 11 19 — 19 8 — 8 Short-term borrowings (a) (747 ) — (747 ) (236 ) — (236 ) 1,996 — 1,996 Trading liabilities (1 ) — (1 ) 6 — 6 (20 ) — (20 ) Beneficial interests issued by consolidated VIEs — — — 23 — 23 49 — 49 Long-term debt (a)(b) (2,022 ) — (2,022 ) (773 ) — (773 ) 1,388 — 1,388 (a) Unrealized gains/(losses) due to instrument-specific credit risk (DVA) for liabilities for which the fair value option has been elected is recorded in OCI, while realized gains/(losses) are recorded in principal transactions revenue. DVA for 2015 was included in principal transactions revenue, and 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 subsequent to issuance. See Notes 2 and 23 for further information. Realized gains/(losses) due to instrument-specific credit risk recorded in principal transaction revenue were not material for the years ended December 31, 2017 and 2016. (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. Determination of instrument-specific credit risk for items for which a fair value election was made The following describes how the gains and losses that are attributable to changes in instrument-specific credit risk, were determined. • Loans and lending-related commitments: For floating-rate instruments, all changes in value are attributed to instrument-specific credit risk. For fixed-rate instruments, an allocation of the changes in value for the period is made between those changes in value that are interest rate-related and changes in value that are credit-related. Allocations are generally based on an analysis of borrower-specific credit spread and recovery information, where available, or benchmarking to similar entities or industries. • Long-term debt: Changes in value attributable to instrument-specific credit risk were derived principally from observable changes in the Firm’s credit spread . • Resale and repurchase agreements, securities borrowed agreements and securities lending agreements: Generally, for these types of agreements, there is a requirement that collateral be maintained with a market value equal to or in excess of the principal amount loaned; as a result, there would be no adjustment or an immaterial adjustment for instrument-specific credit risk related to these agreements. 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 December 31, 2017 and 2016 , for loans, long-term debt and long-term beneficial interests for which the fair value option has been elected. 2017 2016 December 31, (in millions) Contractual principal outstanding Fair value Fair value over/(under) contractual principal outstanding Contractual principal outstanding Fair value Fair value over/(under) contractual principal outstanding Loans (a) Nonaccrual loans Loans reported as trading assets $ 4,219 $ 1,371 $ (2,848 ) $ 3,338 $ 748 $ (2,590 ) Loans 39 — (39 ) — — — Subtotal 4,258 1,371 (2,887 ) 3,338 748 (2,590 ) All other performing loans Loans reported as trading assets 38,157 36,590 (1,567 ) 35,477 33,054 (2,423 ) Loans 2,539 2,508 (31 ) 2,259 2,228 (31 ) Total loans $ 44,954 $ 40,469 $ (4,485 ) $ 41,074 $ 36,030 $ (5,044 ) Long-term debt Principal-protected debt $ 26,297 (c) $ 23,848 $ (2,449 ) $ 21,602 (c) $ 19,195 $ (2,407 ) Nonprincipal-protected debt (b) NA 23,671 NA NA 18,491 NA Total long-term debt NA $ 47,519 NA NA $ 37,686 NA Long-term beneficial interests Nonprincipal-protected debt NA $ 45 NA NA $ 120 NA Total long-term beneficial interests NA $ 45 NA NA $ 120 NA (a) There were no performing loans that were ninety days or more past due as of December 31, 2017 and 2016 . (b) Remaining contractual principal is not applicable to nonprincipal-protected notes. Unlike principal-protected structured notes, for which the Firm is obligated to return a stated amount of principal at the maturity of the note, nonprincipal-protected structured notes do not obligate the Firm to return a stated amount of principal at maturity, but 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. (c) Where the Firm issues principal-protected zero-coupon or discount notes, the balance reflects the contractual principal payment at maturity or, if applicable, the contractual principal payment at the Firm’s next call date. At December 31, 2017 and 2016 , the contractual amount of lending-related commitments for which the fair value option was elected was $7.4 billion and $4.6 billion respectively, with a corresponding fair value of $(76) million and $(118) million , respectively. For further information regarding off-balance sheet lending-related financial instruments, see Note 27 . Structured note products by balance sheet classification and risk component The following table presents the fair value of the structured notes issued by the Firm, by balance sheet classification and the primary risk type. December 31, 2017 December 31, 2016 (in millions) Long-term debt Short-term borrowings Deposits Total Long-term debt Short-term borrowings Deposits Total Risk exposure Interest rate $ 22,056 $ 69 $ 8,058 $ 30,183 $ 16,296 $ 184 $ 4,296 $ 20,776 Credit 4,329 1,312 — 5,641 3,267 225 — 3,492 Foreign exchange 2,841 147 38 3,026 2,365 135 6 2,506 Equity 17,581 7,106 6,548 31,235 14,831 8,234 5,481 28,546 Commodity 230 15 4,468 4,713 488 37 1,811 2,336 Total structured notes $ 47,037 $ 8,649 $ 19,112 $ 74,798 $ 37,247 $ 8,815 $ 11,594 $ 57,656 |
Credit Risk Concentrations
Credit Risk Concentrations | 12 Months Ended |
Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Credit Risk Concentrations | Credit risk concentrations Concentrations of credit risk arise when a number of clients, counterparties or customers are engaged in similar business activities or activities in the same geographic region, or when they have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. JPMorgan Chase regularly monitors various segments of its credit portfolios to assess potential credit risk concentrations and to obtain additional collateral when deemed necessary and permitted under the Firm’s agreements. Senior management is significantly involved in the credit approval and review process, and risk levels are adjusted as needed to reflect the Firm’s risk appetite. In the Firm’s consumer portfolio, concentrations are evaluated primarily by product and by U.S. geographic region, with a key focus on trends and concentrations at the portfolio level, where potential credit risk concentrations can be remedied through changes in underwriting policies and portfolio guidelines. In the wholesale portfolio, credit risk concentrations are evaluated primarily by industry and monitored regularly on both an aggregate portfolio level and on an individual client or counterparty basis. The Firm’s wholesale exposure is managed through loan syndications and participations, loan sales, securitizations, credit derivatives, master netting agreements, collateral and other risk-reduction techniques. For additional information on loans, see Note 12 . The Firm does not believe that its exposure to any particular loan product (e.g., option ARMs), or industry segment (e.g., real estate), or its exposure to residential real estate loans with high LTV ratios, results in a significant concentration of credit risk. Terms of loan products and collateral coverage are included in the Firm’s assessment when extending credit and establishing its allowance for loan losses. The table below presents both on–balance sheet and off–balance sheet consumer and wholesale-related credit exposure by the Firm’s three credit portfolio segments as of December 31, 2017 and 2016 . In 2017 the Firm revised its methodology for the assignment of industry classifications, to better monitor and manage concentrations. This largely resulted in the re-assignment of holding companies from Other to the industry of risk category based on the primary business activity of the holding company's underlying entities. In the tables and industry discussions below, the prior period amounts have been revised to conform with the current period presentation. 2017 2016 Credit exposure (f) On-balance sheet Off-balance sheet (g) Credit exposure On-balance sheet Off-balance sheet (g) December 31, (in millions) Loans Derivatives Loans Derivatives Consumer, excluding credit card $ 421,234 $ 372,681 $ — $ 48,553 $ 417,891 $ 364,644 $ — $ 53,247 (h) Receivables from customers (a) 133 — — — 120 — — — Total Consumer, excluding credit card 421,367 372,681 — 48,553 418,011 364,644 — 53,247 (h) Credit Card 722,342 149,511 — 572,831 695,707 141,816 — 553,891 Total consumer-related 1,143,709 522,192 — 621,384 1,113,718 506,460 — 607,138 (h) Wholesale-related (b) Real Estate 139,409 113,648 153 25,608 134,287 105,802 207 28,278 Consumer & Retail 87,679 31,044 1,114 55,521 84,804 29,929 1,082 53,793 Technology, Media & Telecommunications 59,274 13,665 2,265 43,344 63,324 14,063 1,293 47,968 Healthcare 55,997 16,273 2,191 37,533 49,445 15,545 2,280 31,620 Industrials 55,272 18,161 1,163 35,948 55,733 17,295 1,658 36,780 Banks & Finance Cos 49,037 25,879 6,816 16,342 48,393 22,714 12,257 13,422 Oil & Gas 41,317 12,621 1,727 26,969 40,367 13,253 1,878 25,236 Asset Managers 32,531 11,480 7,998 13,053 33,201 10,339 10,820 12,042 Utilities 29,317 6,187 2,084 21,046 29,672 7,208 888 21,576 State & Municipal Govt (c) 28,633 12,134 2,888 13,611 28,263 12,416 2,096 13,751 Central Govt 19,182 3,375 13,937 1,870 20,408 3,964 14,235 2,209 Chemicals & Plastics 15,945 5,654 208 10,083 15,043 5,292 271 9,480 Transportation 15,797 6,733 977 8,087 19,096 8,996 751 9,349 Automotive 14,820 4,903 342 9,575 16,736 4,964 1,196 10,576 Metals & Mining 14,171 4,728 702 8,741 13,419 4,350 439 8,630 Insurance 14,089 1,411 2,804 9,874 13,510 1,119 3,382 9,009 Financial Markets Infrastructure 5,036 351 3,499 1,186 8,732 347 3,884 4,501 Securities Firms 4,113 952 1,692 1,469 4,211 1,059 1,913 1,239 All other (d) 147,900 113,699 3,963 30,238 137,238 105,135 3,548 28,555 Subtotal 829,519 402,898 56,523 370,098 815,882 383,790 64,078 368,014 Loans held-for-sale and loans at fair value 5,607 5,607 — — 4,515 4,515 — — Receivables from customers and other (a) 26,139 — — — 17,440 — — — Total wholesale-related 861,265 408,505 56,523 370,098 837,837 388,305 64,078 368,014 Total exposure (e)(f) $ 2,004,974 $ 930,697 $ 56,523 $ 991,482 $ 1,951,555 $ 894,765 $ 64,078 $ 975,152 (h) (a) Receivables from customers primarily represent held-for-investment margin loans to brokerage customers (Prime Services in CIB, AWM and CCB) that are collateralized through assets maintained in the clients' brokerage accounts, as such no allowance is held against these receivables. These receivables are reported within accrued interest and accounts receivable on the Firm's Consolidated balance sheets. (b) The industry rankings presented in the table as of December 31, 2016 , are based on the industry rankings of the corresponding exposures at December 31, 2017 , not actual rankings of such exposures at December 31, 2016 . (c) In addition to the credit risk exposure to states and municipal governments (both U.S. and non-U.S.) at December 31, 2017 and 2016 , noted above, the Firm held: $9.8 billion and $9.1 billion , respectively, of trading securities; $32.3 billion and $31.6 billion , respectively, of AFS securities; and $14.4 billion and $14.5 billion , respectively, of HTM securities, issued by U.S. state and municipal governments. For further information, see Note 2 and Note 10 . (d) All other includes: individuals; SPEs; and private education and civic organizations. For more information on exposures to SPEs, see Note 14 . (e) Excludes cash placed with banks of $421.0 billion and $380.2 billion , at December 31, 2017 and 2016 , 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 used in credit portfolio management activities held against derivative receivables or loans and liquid securities and other cash collateral held against derivative receivables. (g) Represents lending-related financial instruments. (h) The prior period amounts have been revised to conform with the current period presentation. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative instruments Derivative contracts derive their value from underlying asset prices, indices, reference rates, other inputs or a combination of these factors and may expose counterparties to risks and rewards of an underlying asset or liability without having to initially invest in, own or exchange the asset or liability. JPMorgan Chase makes markets in derivatives for clients and also uses derivatives to hedge or manage its own risk exposures. Predominantly all of the Firm’s derivatives are entered into for market-making or risk management purposes. Market-making derivatives The majority of the Firm’s derivatives are entered into for market-making purposes. Clients use derivatives to mitigate or modify interest rate, credit, foreign exchange, equity and commodity risks. The Firm actively manages the risks from its exposure to these derivatives by entering into other derivative transactions or by purchasing or selling other financial instruments that partially or fully offset the exposure from client derivatives. Risk management derivatives The Firm manages certain market and credit risk exposures using derivative instruments, including derivatives in hedge accounting relationships and other derivatives that are used to manage risks associated with specified assets and liabilities. Interest rate contracts are used to minimize fluctuations in earnings that are caused by changes in interest rates. Fixed-rate assets and liabilities appreciate or depreciate in market value as interest rates change. Similarly, interest income and expense increases or decreases as a result of variable-rate assets and liabilities resetting to current market rates, and as a result of the repayment and subsequent origination or issuance of fixed-rate assets and liabilities at current market rates. Gains or losses on the derivative instruments that are related to such assets and liabilities are expected to substantially offset this variability in earnings. The Firm generally uses interest rate swaps, forwards and futures to manage the impact of interest rate fluctuations on earnings. Foreign currency forward contracts are used to manage the foreign exchange risk associated with certain foreign currency–denominated (i.e., non-U.S. dollar) assets and liabilities and forecasted transactions, as well as the Firm’s net investments in certain non-U.S. subsidiaries or branches whose functional currencies are not the U.S. dollar. As a result of fluctuations in foreign currencies, the U.S. dollar–equivalent values of the foreign currency–denominated assets and liabilities or the forecasted revenues or expenses increase or decrease. Gains or losses on the derivative instruments related to these foreign currency–denominated assets or liabilities, or forecasted transactions, are expected to substantially offset this variability. Commodities contracts are used to manage the price risk of certain commodities inventories. Gains or losses on these derivative instruments are expected to substantially offset the depreciation or appreciation of the related inventory. Credit derivatives are used to manage the counterparty credit risk associated with loans and lending-related commitments. Credit derivatives compensate the purchaser when the entity referenced in the contract experiences a credit event, such as bankruptcy or a failure to pay an obligation when due. Credit derivatives primarily consist of CDS. For a further discussion of credit derivatives, see the discussion in the Credit derivatives section on pages 189–191 of this Note. For more information about risk management derivatives, see the risk management derivatives gains and losses table on page 189 of this Note, and the hedge accounting gains and losses tables on pages 187–189 of this Note. Derivative counterparties and settlement types The Firm enters into OTC derivatives , which are negotiated and settled bilaterally with the derivative counterparty. The Firm also enters into, as principal, certain ETD such as futures and options, and OTC-cleared derivative contracts with CCPs. ETD contracts are generally standardized contracts traded on an exchange and cleared by the CCP, which is the Firm’s counterparty from the inception of the transactions. OTC-cleared derivatives are traded on a bilateral basis and then novated to the CCP for clearing. Derivative clearing services The Firm provides clearing services for clients in which the Firm acts as a clearing member at certain derivative exchanges and clearing houses. The Firm does not reflect the clients’ derivative contracts in its Consolidated Financial Statements. For further information on the Firm’s clearing services, see Note 27 . Accounting for derivatives All free-standing derivatives that the Firm executes for its own account are required to be recorded on the Consolidated balance sheets at fair value. As permitted under U.S. GAAP , the Firm nets derivative assets and liabilities, and the related cash collateral receivables and payables, when a legally enforceable master netting agreement exists between the Firm and the derivative counterparty. For further discussion of the offsetting of assets and liabilities, see Note 1 . The accounting for changes in value of a derivative depends on whether or not the transaction has been designated and qualifies for hedge accounting. Derivatives that are not designated as hedges are reported and measured at fair value through earnings. The tabular disclosures on pages 183–189 of this Note provide additional information on the amount of, and reporting for, derivative assets, liabilities, gains and losses. For further discussion of derivatives embedded in structured notes, see Notes 2 and 3 . Derivatives designated as hedges The Firm applies hedge accounting to certain derivatives executed for risk management purposes – generally interest rate, foreign exchange and commodity derivatives. However, JPMorgan Chase does not seek to apply hedge accounting to all of the derivatives involved in the Firm’s risk management activities. For example, the Firm does not apply hedge accounting to purchased CDS used to manage the credit risk of loans and lending-related commitments, because of the difficulties in qualifying such contracts as hedges. For the same reason, the Firm does not apply hedge accounting to certain interest rate , foreign exchange , and commodity derivatives used for risk management purposes. To qualify for hedge accounting, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. In addition, for a derivative to be designated as a hedge, the risk management objective and strategy must be documented. Hedge documentation must identify the derivative hedging instrument, the asset or liability or forecasted transaction and type of risk to be hedged, and how the effectiveness of the derivative is assessed prospectively and retrospectively. To assess effectiveness, the Firm uses statistical methods such as regression analysis, as well as nonstatistical methods including dollar-value comparisons of the change in the fair value of the derivative to the change in the fair value or cash flows of the hedged item. The extent to which a derivative has been, and is expected to continue to be, effective at offsetting changes in the fair value or cash flows of the hedged item must be assessed and documented at least quarterly. Any hedge ineffectiveness (i.e., the amount by which the gain or loss on the designated derivative instrument does not exactly offset the change in the hedged item attributable to the hedged risk) must be reported in current-period earnings. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued. There are three types of hedge accounting designations: fair value hedges, cash flow hedges and net investment hedges. JPMorgan Chase uses fair value hedges primarily to hedge fixed-rate long-term debt, AFS securities and certain commodities inventories. For qualifying fair value hedges, the changes in the fair value of the derivative, and in the value of the hedged item for the risk being hedged, are recognized in earnings. If the hedge relationship is terminated, then the adjustment to the hedged item continues to be reported as part of the basis of the hedged item, and for benchmark interest rate hedges, is amortized to earnings as a yield adjustment. Derivative amounts affecting earnings are recognized consistent with the classification of the hedged item – primarily net interest income and principal transactions revenue. JPMorgan Chase uses cash flow hedges primarily to hedge the exposure to variability in forecasted cash flows from floating-rate assets and liabilities and foreign currency–denominated revenue and expense. For qualifying cash flow hedges, the effective portion of the change in the fair value of the derivative is recorded in OCI and recognized in the Consolidated statements of income when the hedged cash flows affect earnings. Derivative amounts affecting earnings are recognized consistent with the classification of the hedged item – primarily interest income, interest expense, noninterest revenue and compensation expense. The ineffective portions of cash flow hedges are immediately recognized in earnings. If the hedge relationship is terminated, then the value of the derivative recorded in AOCI is recognized in earnings when the cash flows that were hedged affect earnings. For hedge relationships that are discontinued because a forecasted transaction is not expected to occur according to the original hedge forecast, any related derivative values recorded in AOCI are immediately recognized in earnings. JPMorgan Chase uses net investment hedges to protect the value of the Firm’s net investments in certain non-U.S. subsidiaries or branches whose functional currencies are not the U.S. dollar. For foreign currency qualifying net investment hedges, changes in the fair value of the derivatives are recorded in the translation adjustments account within AOCI. The following table outlines the Firm’s primary uses of derivatives and the related hedge accounting designation or disclosure category. Type of Derivative Use of Derivative Designation and disclosure Affected segment or unit Page reference Manage specifically identified risk exposures in qualifying hedge accounting relationships: • Interest rate Hedge fixed rate assets and liabilities Fair value hedge Corporate 187 • Interest rate Hedge floating-rate assets and liabilities Cash flow hedge Corporate 188 • Foreign exchange Hedge foreign currency-denominated assets and liabilities Fair value hedge Corporate 187 • Foreign exchange Hedge foreign currency-denominated forecasted revenue and expense Cash flow hedge Corporate 188 • Foreign exchange Hedge the value of the Firm’s investments in non-U.S. dollar functional currency entities Net investment hedge Corporate 189 • Commodity Hedge commodity inventory Fair value hedge CIB 187 Manage specifically identified risk exposures not designated in qualifying hedge accounting relationships: • Interest rate Manage the risk of the mortgage pipeline, warehouse loans and MSRs Specified risk management CCB 189 • Credit Manage the credit risk of wholesale lending exposures Specified risk management CIB 189 • Commodity Manage the risk of certain commodities-related contracts and investments Specified risk management CIB 189 • Interest rate and foreign exchange Manage the risk of certain other specified assets and liabilities Specified risk management Corporate 189 Market-making derivatives and other activities: • Various Market-making and related risk management Market-making and other CIB 189 • Various Other derivatives Market-making and other CIB, Corporate 189 Notional amount of derivative contracts The following table summarizes the notional amount of derivative contracts outstanding as of December 31, 2017 and 2016 . Notional amounts (b) December 31, (in billions) 2017 2016 Interest rate contracts Swaps $ 21,043 $ 22,000 Futures and forwards 4,904 5,289 Written options 3,576 3,091 Purchased options 3,987 3,482 Total interest rate contracts 33,510 33,862 Credit derivatives (a) 1,522 2,032 Foreign exchange contracts Cross-currency swaps 3,953 3,359 Spot, futures and forwards 5,923 5,341 Written options 786 734 Purchased options 776 721 Total foreign exchange contracts 11,438 10,155 Equity contracts Swaps 367 258 Futures and forwards 90 59 Written options 531 417 Purchased options 453 345 Total equity contracts 1,441 1,079 Commodity contracts Swaps 116 102 Spot, futures and forwards 168 130 Written options 98 83 Purchased options 93 94 Total commodity contracts 475 409 Total derivative notional amounts $ 48,386 $ 47,537 (a) For more information on volumes and types of credit derivative contracts, see the Credit derivatives discussion on pages 189–191 . (b) Represents the sum of gross long and gross short third-party notional derivative contracts. While the notional amounts disclosed above give an indication of the volume of the Firm’s derivatives activity, the notional amounts significantly exceed, in the Firm’s view, the possible losses that could arise from such transactions. For most derivative transactions, the notional amount is not exchanged; it is used simply as a reference to calculate payments. Impact of derivatives on the Consolidated balance sheets The following table summarizes information on derivative receivables and payables (before and after netting adjustments) that are reflected on the Firm’s Consolidated balance sheets as of December 31, 2017 and 2016 , by accounting designation (e.g., whether the derivatives were designated in qualifying hedge accounting relationships or not) and contract type. Gross derivative balances as of December 31, 2017, reflect the Firm’s adoption of rulebook changes made by two CCPs, that require or allow the Firm to treat certain OTC-cleared derivative transactions with that CCP as settled each day. If such rulebook changes had been in effect as of December 31, 2016, the impact would have been a reduction in gross derivative receivables and payables of $227.1 billion and $224.7 billion , respectively, and a corresponding decrease in amounts netted, with no impact to the Consolidated balance sheets. Free-standing derivative receivables and payables (a) Gross derivative receivables Gross derivative payables December 31, 2017 Not designated as hedges Designated as hedges Total derivative receivables Net derivative receivables (b) Not designated as hedges Designated as hedges Total derivative payables Net derivative payables (b) Trading assets and liabilities Interest rate $ 313,276 $ 2,716 $ 315,992 $ 24,673 $ 283,092 $ 1,344 $ 284,436 $ 7,129 Credit 23,205 — 23,205 869 23,252 — 23,252 1,299 Foreign exchange 159,740 491 160,231 16,151 154,601 1,221 155,822 12,473 Equity 40,040 — 40,040 7,882 45,395 — 45,395 9,192 Commodity 20,066 19 20,085 6,948 21,498 403 21,901 7,684 Total fair value of trading assets and liabilities $ 556,327 $ 3,226 $ 559,553 $ 56,523 $ 527,838 $ 2,968 $ 530,806 $ 37,777 Gross derivative receivables Gross derivative payables December 31, 2016 Not designated as hedges Designated as hedges Total derivative receivables Net derivative receivables (b) Not designated as hedges Designated as hedges Total derivative payables Net derivative payables (b) Trading assets and liabilities Interest rate $ 601,557 $ 4,406 $ 605,963 $ 28,302 $ 567,894 $ 2,884 $ 570,778 $ 10,815 Credit 29,645 — 29,645 1,294 28,666 — 28,666 1,411 Foreign exchange 232,137 1,289 233,426 23,271 233,823 1,148 234,971 20,508 Equity 34,940 — 34,940 4,939 38,362 — 38,362 8,140 Commodity 18,505 137 18,642 6,272 20,283 179 20,462 8,357 Total fair value of trading assets and liabilities $ 916,784 $ 5,832 $ 922,616 $ 64,078 $ 889,028 $ 4,211 $ 893,239 $ 49,231 (a) Balances exclude structured notes for which the fair value option has been elected. See 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. Derivatives netting The following tables present, as of December 31, 2017 and 2016 , gross and net derivative receivables and payables by contract and settlement type. Derivative receivables and payables, as well as the related cash collateral from the same counterparty, have been netted on the Consolidated balance sheets where the Firm has obtained an appropriate legal opinion with respect to the master netting agreement. Where such a legal opinion has not been either sought or obtained, amounts are not eligible for netting on the Consolidated balance sheets, and those derivative receivables and payables are shown separately in the tables below. In addition to the cash collateral received and transferred that is presented on a net basis with derivative receivables and payables, the Firm receives and transfers additional collateral (financial instruments and cash). These amounts mitigate counterparty credit risk associated with the Firm’s derivative instruments, but are not eligible for net presentation: • collateral that consists of non-cash financial instruments (generally U.S. government and agency securities and other G7 government securities) and cash collateral held at third party custodians, which are shown separately as “Collateral not nettable on the Consolidated balance sheets” in the tables below, up to the fair value exposure amount. • the amount of collateral held or transferred that exceeds the fair value exposure at the individual counterparty level, as of the date presented, which is excluded from the tables below; and • collateral held or transferred that relates to derivative receivables or payables where an appropriate legal opinion has not been either sought or obtained with respect to the master netting agreement, which is excluded from the tables below. 2017 2016 December 31, (in millions) Gross derivative receivables Amounts netted on the Consolidated balance sheets Net derivative receivables Gross derivative receivables Amounts netted on the Consolidated balance sheets Net derivative receivables U.S. GAAP nettable derivative receivables Interest rate contracts: Over-the-counter (“OTC”) $ 305,569 $ (284,917 ) $ 20,652 $ 365,227 $ (342,173 ) $ 23,054 OTC–cleared 6,531 (6,318 ) 213 235,399 (235,261 ) 138 Exchange-traded (a) 185 (84 ) 101 241 (227 ) 14 Total interest rate contracts 312,285 (291,319 ) 20,966 600,867 (577,661 ) 23,206 Credit contracts: OTC 15,390 (15,165 ) 225 23,130 (22,612 ) 518 OTC–cleared 7,225 (7,170 ) 55 5,746 (5,739 ) 7 Total credit contracts 22,615 (22,335 ) 280 28,876 (28,351 ) 525 Foreign exchange contracts: OTC 155,289 (142,420 ) 12,869 226,271 (208,962 ) 17,309 OTC–cleared 1,696 (1,654 ) 42 1,238 (1,165 ) 73 Exchange-traded (a) 141 (7 ) 134 104 (27 ) 77 Total foreign exchange contracts 157,126 (144,081 ) 13,045 227,613 (210,154 ) 17,459 Equity contracts: OTC 22,024 (19,917 ) 2,107 20,868 (20,570 ) 298 Exchange-traded (a) 14,188 (12,241 ) 1,947 11,439 (9,431 ) 2,008 Total equity contracts 36,212 (32,158 ) 4,054 32,307 (30,001 ) 2,306 Commodity contracts: OTC 10,903 (4,436 ) 6,467 11,571 (5,605 ) 5,966 Exchange-traded (a) 8,854 (8,701 ) 153 6,794 (6,766 ) 28 Total commodity contracts 19,757 (13,137 ) 6,620 18,365 (12,371 ) 5,994 Derivative receivables with appropriate legal opinion 547,995 (503,030 ) (b) 44,965 908,028 (858,538 ) (b) 49,490 Derivative receivables where an appropriate legal opinion has not been either sought or obtained 11,558 11,558 14,588 14,588 Total derivative receivables recognized on the Consolidated balance sheets $ 559,553 $ 56,523 $ 922,616 $ 64,078 Collateral not nettable on the Consolidated balance sheets (c)(d) (13,363 ) (18,638 ) Net amounts $ 43,160 $ 45,440 2017 2016 December 31, (in millions) Gross derivative payables Amounts netted on the Consolidated balance sheets Net derivative payables Gross derivative payables Amounts netted on the Consolidated balance sheets Net derivative payables U.S. GAAP nettable derivative payables Interest rate contracts: OTC $ 276,960 $ (271,294 ) $ 5,666 $ 338,502 $ (329,325 ) $ 9,177 OTC–cleared 6,004 (5,928 ) 76 230,464 (230,463 ) 1 Exchange-traded (a) 127 (84 ) 43 196 (175 ) 21 Total interest rate contracts 283,091 (277,306 ) 5,785 569,162 (559,963 ) 9,199 Credit contracts: OTC 16,194 (15,170 ) 1,024 22,366 (21,614 ) 752 OTC–cleared 6,801 (6,784 ) 17 5,641 (5,641 ) — Total credit contracts 22,995 (21,954 ) 1,041 28,007 (27,255 ) 752 Foreign exchange contracts: OTC 150,966 (141,789 ) 9,177 228,300 (213,296 ) 15,004 OTC–cleared 1,555 (1,553 ) 2 1,158 (1,158 ) — Exchange-traded (a) 98 (7 ) 91 328 (9 ) 319 Total foreign exchange contracts 152,619 (143,349 ) 9,270 229,786 (214,463 ) 15,323 Equity contracts: OTC 28,193 (23,969 ) 4,224 24,688 (20,808 ) 3,880 Exchange-traded (a) 12,720 (12,234 ) 486 10,004 (9,414 ) 590 Total equity contracts 40,913 (36,203 ) 4,710 34,692 (30,222 ) 4,470 Commodity contracts: OTC 12,645 (5,508 ) 7,137 12,885 (5,252 ) 7,633 Exchange-traded (a) 8,870 (8,709 ) 161 7,099 (6,853 ) 246 Total commodity contracts 21,515 (14,217 ) 7,298 19,984 (12,105 ) 7,879 Derivative payables with appropriate legal opinion 521,133 (493,029 ) (b) 28,104 881,631 (844,008 ) (b) 37,623 Derivative payables where an appropriate legal opinion has not been either sought or obtained 9,673 9,673 11,608 11,608 Total derivative payables recognized on the Consolidated balance sheets $ 530,806 $ 37,777 $ 893,239 $ 49,231 Collateral not nettable on the Consolidated balance sheets (c)(d) (4,180 ) (8,925 ) Net amounts $ 33,597 $ 40,306 (a) Exchange-traded derivative balances that relate to futures contracts are settled daily. (b) Net derivatives receivable included cash collateral netted of $55.5 billion and $71.9 billion at December 31, 2017 and 2016 , respectively. Net derivatives payable included cash collateral netted of $45.5 billion and $57.3 billion related to OTC and OTC-cleared derivatives at December 31, 2017 and 2016 , respectively. (c) Represents liquid security collateral as well as 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. (d) Derivative collateral relates only to OTC and OTC-cleared derivative instruments. Liquidity risk and credit-related contingent features In addition to the specific market risks introduced by each derivative contract type, derivatives expose JPMorgan Chase to credit risk — the risk that derivative counterparties may fail to meet their payment obligations under the derivative contracts and the collateral, if any, held by the Firm proves to be of insufficient value to cover the payment obligation. It is the policy of JPMorgan Chase to actively pursue, where possible, the use of legally enforceable master netting arrangements and collateral agreements to mitigate derivative counterparty credit risk. The amount of derivative receivables reported on the Consolidated balance sheets is the fair value of the derivative contracts after giving effect to legally enforceable master netting agreements and cash collateral held by the Firm. While derivative receivables expose the Firm to credit risk, derivative payables expose the Firm to liquidity risk, as the derivative contracts typically require the Firm to post cash or securities collateral with counterparties as the fair value of the contracts moves in the counterparties’ favor or upon specified downgrades in the Firm’s and its subsidiaries’ respective credit ratings. Certain derivative contracts also provide for termination of the contract, generally upon a downgrade of either the Firm or the counterparty, at the fair value of the 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 December 31, 2017 and 2016 . OTC and OTC-cleared derivative payables containing downgrade triggers December 31, (in millions) 2017 2016 Aggregate fair value of net derivative payables $ 11,916 $ 21,550 Collateral posted 9,973 19,383 The following table shows the impact of a single-notch and two-notch downgrade of the long-term issuer ratings of JPMorgan Chase & Co. and its subsidiaries , predominantly JPMorgan Chase Bank, National Association (“JPMorgan Chase Bank, N.A.”), at December 31, 2017 and 2016 , 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 derivatives 2017 2016 December 31, (in millions) Single-notch downgrade Two-notch downgrade Single-notch downgrade Two-notch downgrade Amount of additional collateral to be posted upon downgrade (a) $ 79 $ 1,989 $ 560 $ 2,497 Amount required to settle contracts with termination triggers upon downgrade (b) 320 650 606 1,049 (a) Includes the additional collateral to be posted for initial margin. (b) Amounts represent fair values of derivative payables, and do not reflect collateral posted. Derivatives executed in contemplation of a sale of the underlying financial asset In certain instances the Firm enters into transactions in which it transfers financial assets but maintains the economic exposure to the transferred assets by entering into a derivative with the same counterparty in contemplation of the initial transfer. The Firm generally accounts for such transfers as collateralized financing transactions as described in Note 11 , but in limited circumstances they may qualify to be accounted for as a sale and a derivative under U.S. GAAP. There were no such transfers accounted for as a sale where the associated derivative was outstanding at December 31, 2017 , and such transfers at December 31, 2016 were not material. 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 years ended December 31, 2017 , 2016 and 2015 , respectively. The Firm includes gains/(losses) on the hedging derivative and the related hedged item in the same line item in the Consolidated statements of income. Gains/(losses) recorded in income Income statement impact due to: Year ended December 31, 2017 (in millions) Derivatives Hedged items Total income statement impact Hedge ineffectiveness (e) Excluded components (f) Contract type Interest rate (a)(b) $ (481 ) $ 1,359 $ 878 $ (18 ) $ 896 Foreign exchange (c) (3,509 ) 3,507 (2 ) — (2 ) Commodity (d) (1,275 ) 1,348 73 29 44 Total $ (5,265 ) $ 6,214 $ 949 $ 11 $ 938 Gains/(losses) recorded in income Income statement impact due to: Year ended December 31, 2016 (in millions) Derivatives Hedged items Total income statement impact Hedge ineffectiveness (e) Excluded components (f) Contract type Interest rate (a)(b) $ (482 ) $ 1,338 $ 856 $ 6 $ 850 Foreign exchange (c) 2,435 (2,261 ) 174 — 174 Commodity (d) (536 ) 586 50 (9 ) 59 Total $ 1,417 $ (337 ) $ 1,080 $ (3 ) $ 1,083 Gains/(losses) recorded in income Income statement impact due to: Year ended December 31, 2015 (in millions) Derivatives Hedged items Total income statement impact Hedge ineffectiveness (e) Excluded components (f) Contract type Interest rate (a)(b) $ 38 $ 911 $ 949 $ 3 $ 946 Foreign exchange (c) 6,030 (6,006 ) 24 — 24 Commodity (d) 1,153 (1,142 ) 11 (13 ) 24 Total $ 7,221 $ (6,237 ) $ 984 $ (10 ) $ 994 (a) Primarily consists of hedges of the benchmark (e.g., London Interbank Offered Rate (“LIBOR”)) interest rate risk of fixed-rate long-term debt and AFS securities. Gains and losses were recorded in net interest income. (b) Excludes the amortization expense associated with the inception hedge accounting adjustment applied to the hedged item. This expense is recorded in net interest income and substantially offsets the income statement impact of the excluded components. (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, were recorded primarily in principal transactions revenue and net interest income. (d) Consists of overall fair value hedges of physical commodities inventories that are generally carried at the lower of cost or net realizable value (net realizable value approximates fair value). Gains and losses were recorded in principal transactions revenue. (e) Hedge ineffectiveness is the amount by which the gain or loss on the designated derivative instrument does not exactly offset the gain or loss on the hedged item attributable to the hedged risk. (f) The assessment of hedge effectiveness excludes certain components of the changes in fair values of the derivatives and hedged items such as forward points on foreign exchange forward contracts and time values. 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 years ended December 31, 2017 , 2016 and 2015 , respectively. The Firm includes the gain/(loss) on the hedging derivative and the change in cash flows on the hedged item in the same line item in the Consolidated statements of income. Gains/(losses) recorded in income and other comprehensive income/(loss) Year ended December 31, 2017 (in millions) Derivatives – effective portion reclassified from AOCI to income Hedge ineffectiveness recorded directly in income (c) Total income statement impact Derivatives – effective portion recorded in OCI Total change in OCI for period Contract type Interest rate (a) $ (17 ) $ — $ (17 ) $ 12 $ 29 Foreign exchange (b) (117 ) — (117 ) 135 252 Total $ (134 ) $ — $ (134 ) $ 147 $ 281 Gains/(losses) recorded in income and other comprehensive income/(loss) Year ended December 31, 2016 (in millions) Derivatives – effective portion reclassified from AOCI to income Hedge ineffectiveness recorded directly in income (c) Total income statement impact Derivatives – effective portion recorded in OCI Total change Contract type Interest rate (a) $ (74 ) $ — $ (74 ) $ (55 ) $ 19 Foreign exchange (b) (286 ) — (286 ) (395 ) (109 ) Total $ (360 ) $ — $ (360 ) $ (450 ) $ (90 ) Gains/(losses) recorded in income and other comprehensive income/(loss) Year ended December 31, 2015 (in millions) Derivatives – effective portion reclassified from AOCI to income Hedge ineffectiveness recorded directly in income (c) Total income statement impact Derivatives – effective portion recorded in OCI Total change Contract type Interest rate (a) $ (99 ) $ — $ (99 ) $ (44 ) $ 55 Foreign exchange (b) (81 ) — (81 ) (53 ) 28 Total $ (180 ) $ — $ (180 ) $ (97 ) $ 83 (a) Primarily consists of benchmark interest rate hedges of LIBOR-indexed floating-rate assets and floating-rate liabilities. Gains and losses were recorded in net interest income. (b) Primarily consists of hedges of the foreign currency risk of non-U.S. dollar-denomin |
Noninterest Revenue and Noninte
Noninterest Revenue and Noninterest Expense | 12 Months Ended |
Dec. 31, 2017 | |
Noninterest Income (Expense) [Abstract] | |
Noninterest Revenue and Noninterest Expense | Noninterest revenue and noninterest expense Investment banking fees This revenue category includes debt and equity underwriting and advisory fees. As an underwriter, the Firm helps clients raise capital via public offering and private placement of various types of debt instruments and equity securities. Underwriting fees are primarily based on the issuance price and quantity of the underlying instruments, and are recognized as revenue typically upon execution of the client’s transaction. The Firm also manages and syndicates loan arrangements. Credit arrangement and syndication fees, included within debt underwriting fees, are recorded as revenue after satisfying certain retention, timing and yield criteria. The Firm also provides advisory services, assisting its clients with mergers and acquisitions, divestitures, restructuring and other complex transactions. Advisory fees are recognized as revenue typically upon execution of the client’s transaction. Year ended December 31, 2017 2016 2015 Underwriting Equity $ 1,394 $ 1,146 $ 1,408 Debt 3,710 3,207 3,232 Total underwriting 5,104 4,353 4,640 Advisory 2,144 2,095 2,111 Total investment banking fees $ 7,248 $ 6,448 $ 6,751 Investment banking fees are earned primarily by CIB. See Note 31 for segment results. Principal transactions 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 the realized (as a result of the sale of instruments, closing out or termination of transactions, or interim cash payments) and unrealized (as a result of changes in valuation) gains and losses on financial and other instruments (including those accounted for under the fair value option) primarily used in client-driven market-making activities and on private equity investments. In connection with its client-driven market-making activities, the Firm transacts in debt and equity instruments, derivatives and commodities (including physical commodities inventories and financial instruments that reference commodities). Principal transactions revenue also includes certain realized and unrealized gains and losses related to hedge accounting and specified risk-management activities, including: (a) certain derivatives designated in qualifying hedge accounting relationships (primarily fair value hedges of commodity and foreign exchange risk), (b) certain derivatives used for specific risk management purposes, primarily to mitigate credit risk , foreign exchange risk and commodity risk , and (c) other derivatives. For further information on the income statement classification of gains and losses from derivatives activities, see Note 5 . In the financial commodity markets, the Firm transacts in OTC derivatives (e.g., swaps, forwards, options) and ETD that reference a wide range of underlying commodities. In the physical commodity markets, the Firm primarily purchases and sells precious and base metals and may hold other commodities inventories under financing and other arrangements with clients. 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. See Note 7 for further information on interest income and interest expense. Trading revenue is presented primarily by instrument type. The Firm’s client-driven market-making businesses generally utilize a variety of instrument types in connection with their market-making and related risk-management activities; accordingly, the trading revenue presented in the table below is not representative of the total revenue of any individual line of business. Year ended December 31, 2017 2016 2015 Trading revenue by instrument type Interest rate $ 2,479 $ 2,325 $ 1,933 Credit 1,329 2,096 1,735 Foreign exchange 2,746 2,827 2,557 Equity 3,873 2,994 2,990 Commodity 661 1,067 842 Total trading revenue 11,088 11,309 10,057 Private equity gains 259 257 351 Principal transactions $ 11,347 $ 11,566 $ 10,408 Principal transactions revenue is earned primarily by CIB. See Note 31 for segment results. Lending- and deposit-related fees Lending-related fees include fees earned from loan commitments, standby letters of credit, financial guarantees, and other loan-servicing activities. Deposit-related fees include fees earned in lieu of compensating balances, and fees earned from performing cash management activities and other deposit account services. Lending- and deposit-related fees in this revenue category are recognized over the period in which the related service is provided. Year ended December 31, (in millions) 2017 2016 2015 Lending-related fees $ 1,110 $ 1,114 $ 1,148 Deposit-related fees 4,823 4,660 4,546 Total lending- and deposit-related fees $ 5,933 $ 5,774 $ 5,694 Lending- and deposit-related fees are earned by CCB, CIB, CB, and AWM. See Note 31 for segment results. Asset management, administration and commissions This revenue category includes fees from investment management and related services, custody, brokerage services and other products. The Firm manages assets on behalf of its clients, including investors in Firm -sponsored funds and owners of separately managed investment accounts. Management fees are typically based on the value of assets under management and are collected and recognized at the end of each period over which the management services are provided and the value of the managed assets is known. The Firm also receives performance-based management fees, which are earned based on exceeding certain benchmarks or other performance targets and are accrued and recognized when the probability of reversal is remote, typically at the end of the related billing period. The Firm has contractual arrangements with third parties to provide distribution and other services in connection with its asset management activities. Amounts paid to third-party service providers are recorded in professional and outside services expense. Year ended December 31, (in millions) 2017 2016 2015 Asset management fees Investment management fees $ 9,526 $ 8,865 $ 9,403 All other asset management fees (a) 294 336 352 Total asset management fees 9,820 9,201 9,755 Total administration fees (b) 2,029 1,915 2,015 Commissions and other fees Brokerage commissions (c) 2,239 2,151 2,304 All other commissions and fees 1,289 1,324 1,435 Total commissions and fees 3,528 3,475 3,739 Total asset management, administration and commissions $ 15,377 $ 14,591 $ 15,509 (a) The Firm receives other asset management fees for services that are ancillary to investment management services, including commissions earned on sales or distribution of mutual funds to clients. These fees are recorded as revenue at the time the service is rendered or, in the case of certain distribution fees based on the underlying fund’s asset value and/or investor redemption, recorded over time as the investor remains in the fund or upon investor redemption. (b) The Firm receives administrative fees predominantly from custody, securities lending, fund services and securities clearance fees. These fees are recorded as revenue over the period in which the related service is provided. (c) The Firm acts as a broker, facilitating its clients’ purchase and sale of securities and other financial instruments. It collects and recognizes brokerage commissions as revenue upon occurrence of the client transaction. The Firm reports certain costs paid to third-party clearing houses and exchanges net against commission revenue. Asset management, administration and commissions are earned primarily by AWM, CIB, CCB, and CB. See Note 31 for segment results. Mortgage fees and related income This revenue category primarily reflects CCB’s Home Lending production and servicing revenue, including fees and income derived from mortgages originated with the intent to sell; mortgage sales and servicing including losses related to the repurchase of previously sold loans; the impact of risk-management activities associated with the mortgage pipeline, warehouse loans and MSRs; and revenue related to any residual interests held from mortgage securitizations. This revenue category also includes gains and losses on sales and lower of cost or fair value adjustments for mortgage loans held-for-sale, as well as changes in fair value for mortgage loans originated with the intent to sell and measured at fair value under the fair value option. Changes in the fair value of MSRs are reported in mortgage fees and related income. For a further discussion of MSRs, see Note 15 . Net interest income from mortgage loans is recorded in interest income. Card income This revenue category includes interchange income from credit and debit cards and fees earned from processing card transactions for merchants, both of which are recognized when purchases are made by a cardholder. Card income also includes annual and other lending fees and costs, which are deferred and recognized on a straight-line basis over a 12 -month period. Certain Chase credit card products offer the cardholder the ability to earn points based on account activity, which the cardholder can choose to redeem for cash and non-cash rewards. The cost to the Firm related to these proprietary rewards programs varies based on multiple factors including the terms and conditions of the rewards programs, cardholder activity, cardholder reward redemption rates and cardholder reward selections. The Firm maintains a liability for its obligations under its rewards programs and reports the current-period cost as a reduction of card income. Credit card revenue sharing agreements The Firm has contractual agreements with numerous co-brand partners that grant the Firm exclusive rights to issue co-branded credit card products and market them to the customers of such partners. These partners endorse the co-brand credit card programs and provide their customer or member lists to the Firm. The partners may also conduct marketing activities and provide rewards redeemable under their own loyalty programs that the Firm will grant to co-brand credit cardholders based on account activity. The terms of these agreements generally range from five to ten years. The Firm typically makes payments to the co-brand credit card partners based on the cost of partners' marketing activities and loyalty program rewards provided to credit cardholders, new account originations and sales volumes. Payments to partners based on marketing efforts undertaken by the partners are expensed by the Firm as incurred and reported as noninterest expense. Payments for partner rewards are reported as a reduction of card income when incurred. Payments to partners based on new credit card account originations are accounted for as direct loan origination costs and are deferred and recognized as a reduction of card income on a straight-line basis over a 12 -month period. Payments to partners based on sales volumes are reported as a reduction of card income when the related interchange income is earned. Card income is earned primarily by CCB and CB. See Note 31 for segment results. Other income Other income on the Firm’s Consolidated statements of income included the following: Year ended December 31, (in millions) 2017 2016 2015 Operating lease income $ 3,613 $ 2,724 $ 2,081 Operating lease income is recognized on a straight–line basis over the lease term. Noninterest expense Other expense Other expense on the Firm’s Consolidated statements of income included the following: Year ended December 31, 2017 2016 2015 Legal expense/(benefit) $ (35 ) $ (317 ) $ 2,969 FDIC-related expense 1,492 1,296 1,227 |
Interest Income and Interest Ex
Interest Income and Interest Expense | 12 Months Ended |
Dec. 31, 2017 | |
Interest Income (Expense), Net [Abstract] | |
Interest Income and Interest Expense | Interest income and Interest expense Interest income and interest expense are recorded in the Consolidated statements of income and classified based on the nature of the underlying asset or liability. The following table presents the components of interest income and interest expense: Year ended December 31, (in millions) 2017 2016 2015 Interest Income Loans $ 41,008 $ 36,634 $ 33,134 Taxable securities 5,535 5,538 6,550 Non-taxable securities (a) 1,847 1,766 1,706 Total securities 7,382 7,304 8,256 Trading assets 7,610 7,292 6,621 Federal funds sold and securities purchased under resale agreements 2,327 2,265 1,592 Securities borrowed (b) (37 ) (332 ) (532 ) Deposits with banks 4,219 1,863 1,250 All other interest-earning assets (c) 1,863 875 652 Total interest income $ 64,372 $ 55,901 $ 50,973 Interest expense Interest bearing deposits $ 2,857 $ 1,356 $ 1,252 Federal funds purchased and securities loaned or sold under repurchase agreements 1,611 1,089 609 Short-term borrowings (d) 481 203 175 Trading liabilities - debt and all other interest-bearing liabilities (e) 2,070 1,102 557 Long-term debt 6,753 5,564 4,435 Beneficial interest issued by consolidated VIEs 503 504 435 Total interest expense $ 14,275 $ 9,818 $ 7,463 Net interest income $ 50,097 $ 46,083 $ 43,510 Provision for credit losses 5,290 5,361 3,827 Net interest income after provision for credit losses $ 44,807 $ 40,722 $ 39,683 (a) Represents securities that are tax-exempt for U.S. federal income tax purposes. (b) Negative interest income is related to client-driven demand for certain securities combined with the impact of low interest rates. This is matched book activity and the negative interest expense on the corresponding securities loaned is recognized in interest expense. (c) Includes held-for-investment margin loans, which are classified in accrued interest and accounts receivable, and all other interest-earning assets included in other assets. (d) Includes commercial paper. (e) Other interest-bearing liabilities include brokerage customer payables. Interest income and interest expense includes the current-period interest accruals for financial instruments measured at fair value, except for derivatives and financial instruments containing embedded derivatives that would be separately accounted for in accordance with U.S. GAAP, absent the fair value option election; for those instruments, all changes in fair value including any interest elements, are reported in principal transactions revenue. For financial instruments that are not measured at fair value, the related interest is included within interest income or interest expense, as applicable. For further information on accounting for interest income and interest expense related to loans, securities, securities financing (i.e. securities purchased or sold under resale or repurchase agreements; securities borrowed; and securities loaned) and long-term debt, see Notes 12 , 10 , 11 and 19 , respectively. |
Pension and Other Postretiremen
Pension and Other Postretirement Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Employee Benefit Plans | Pension and other postretirement employee benefit plans The Firm has various defined benefit pension plans and OPEB plans that provide benefits to its employees. The Firm has a qualified noncontributory U.S. defined benefit pension plan that provides benefits to substantially all U.S. employees. The Firm also has defined benefit pension plans that are offered in certain non-U.S. locations based on factors such as eligible compensation, age and/or years of service. It is the Firm’s policy to fund the pension plans in amounts sufficient to meet the requirements under applicable laws. The Firm does not anticipate at this time any contribution to the U.S. defined benefit pension plan in 2018. The 2018 contributions to the non-U.S. defined benefit pension plans are expected to be $46 million of which $30 million are contractually required. The Firm also has a number of nonqualified noncontributory defined benefit pension plans that are unfunded. These plans provide supplemental defined pension benefits to certain employees. The Firm currently provides two qualified defined contribution plans in the U.S. and maintains other similar arrangements in certain non-U.S. locations. The Firm offers postretirement medical and life insurance benefits to certain U.S. retirees and postretirement medical benefits to qualifying U.S. and U.K. employees. The Firm defrays the cost of its U.S. OPEB obligation through corporate-owned life insurance (“COLI”) purchased on the lives of eligible employees and retirees. While the Firm owns the COLI policies, COLI proceeds (death benefits, withdrawals and other distributions) may be used only to reimburse the Firm for its net postretirement benefit claim payments and related administrative expense. The Firm has generally funded its postretirement benefit obligations through contributions to the relevant trust on a pay-as-you go basis. On December 21, 2017, the Firm contributed $600 million of cash to the trust as a prefunding of a portion of its postretirement benefit obligations. The U.K. OPEB plan is unfunded. Pension and OPEB accounting generally requires that the difference between plan assets at fair value and the benefit obligation be measured and recorded on the balance sheet. Plans that are overfunded (excess of plan assets over benefit obligation) are recorded in other assets and plans that are underfunded (excess benefit obligation over plan assets) are recorded within other liabilities. Gains or losses resulting from changes in the benefit obligation and the value of plan assets are recorded in other comprehensive income (“OCI”) and recognized as part of the net periodic benefit cost over subsequent periods as discussed in the Gains and losses section of this Note. Additionally, service cost, interest cost, and investment returns that would otherwise be classified separately are aggregated and reported net within compensation expense. The following table presents the changes in benefit obligations, plan assets, the net funded status, and the pretax pension and OPEB amounts recorded in AOCI on the Consolidated balance sheets for the Firm’s defined benefit pension and OPEB plans, and the weighted-average actuarial annualized assumptions for the projected and accumulated postretirement benefit obligations. As of or for the year ended December 31, Defined benefit OPEB plans (f) (in millions) 2017 2016 2017 2016 Change in benefit obligation Benefit obligation, beginning of year $ (15,594 ) $ (15,259 ) $ (708 ) $ (744 ) Benefits earned during the year (330 ) (332 ) — — Interest cost on benefit obligations (598 ) (629 ) (28 ) (31 ) Employee contributions (7 ) (7 ) (16 ) (19 ) Net gain/(loss) (721 ) (743 ) (4 ) 4 Benefits paid 841 851 76 76 Plan settlements 30 21 — — Expected Medicare Part D subsidy receipts NA NA (1 ) — Foreign exchange impact and other (321 ) 504 (3 ) 6 Benefit obligation, end of year (a) $ (16,700 ) $ (15,594 ) $ (684 ) $ (708 ) Change in plan assets Fair value of plan assets, beginning of year $ 17,703 $ 17,636 $ 1,956 $ 1,855 Actual return on plan assets 2,356 1,375 233 131 Firm contributions 78 86 602 2 Employee contributions 7 7 — — Benefits paid (841 ) (851 ) (34 ) (32 ) Plan settlements (30 ) (21 ) — — Foreign exchange impact and other 330 (529 ) — — Fair value of plan assets, end of year (a)(b)(c) $ 19,603 $ 17,703 $ 2,757 $ 1,956 Net funded status (d) $ 2,903 $ 2,109 $ 2,073 $ 1,248 Accumulated benefit obligation, end of year $ (16,530 ) $ (15,421 ) NA NA Pretax pension and OPEB amounts recorded in AOCI Net gain/(loss) $ (2,800 ) $ (3,667 ) $ 271 $ 138 Prior service credit/(loss) 6 42 — — Accumulated other comprehensive income/(loss), pretax, end of year $ (2,794 ) $ (3,625 ) $ 271 $ 138 Weighted-average actuarial assumptions used to determine benefit obligations Discount Rate (e) 0.60 - 3.70% 0.60 - 4.30% 3.70 % 4.20 % Rate of compensation increase (e) 2.25 – 3.00 2.25 – 3.00 NA NA Health care cost trend rate: Assumed for next year NA NA 5.00 5.00 Ultimate NA NA 5.00 5.00 Year when rate will reach ultimate NA NA 2018 2017 (a) At December 31, 2017 and 2016, included non-U.S. benefit obligations of $(3.8) billion and $(3.4) billion , and plan assets of $3.9 billion and $3.4 billion , respectively, predominantly in the U.K. (b) At December 31, 2017 and 2016, approximately $302 million and $390 million , respectively, of U.S. defined benefit pension plan assets included participation rights under participating annuity contracts. (c) At December 31, 2017 and 2016, defined benefit pension plan amounts that were not measured at fair value included $377 million and $130 million , respectively, of accrued receivables, and $587 million and $224 million , respectively, of accrued liabilities, for U.S. plans. (d) Represents plans with an aggregate overfunded balance of $5.6 billion and $4.0 billion at December 31, 2017 and 2016, respectively, and plans with an aggregate underfunded balance of $612 million and $639 million at December 31, 2017 and 2016, respectively. (e) For the U.S. defined benefit pension plans, the discount rate assumption is 3.70% and 4.30% , and the rate of compensation increase is 2.30% and 2.30% , for 2017 and 2016 respectively. (f) Includes an unfunded postretirement benefit obligation of $32 million and $35 million at December 31, 2017 and 2016, respectively, for the U.K. plan. Gains and losses For the Firm’s defined benefit pension plans, fair value is used to determine the expected return on plan assets. Amortization of net gains and losses is included in annual net periodic benefit cost if, as of the beginning of the year, the net gain or loss exceeds 10% of the greater of the PBO or the fair value of the plan assets. Any excess is amortized over the average future service period of defined benefit pension plan participants, which for the U.S. defined benefit pension plan is currently eight years and for the non-U.S. defined benefit pension plans is the period appropriate for the affected plan. In addition, prior service costs are amortized over the average remaining service period of active employees expected to receive benefits under the plan when the prior service cost is first recognized. The average remaining amortization period for the U.S. defined benefit pension plan for current prior service costs is three years . For the Firm’s OPEB plans, a calculated value that recognizes changes in fair value over a five -year period is used to determine the expected return on plan assets. This value is referred to as the market-related value of assets. Amortization of net gains and losses, adjusted for gains and losses not yet recognized, is included in annual net periodic benefit cost if, as of the beginning of the year, the net gain or loss exceeds 10% of the greater of the accumulated postretirement benefit obligation or the market-related value of assets. Any excess net gain or loss is amortized over the average expected lifetime of retired participants, which is currently eleven years ; however, prior service costs resulting from plan changes are amortized over the average years of service remaining to full eligibility age, which is currently two years . 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, and in other comprehensive income for the defined benefit pension and OPEB plans, and the weighted-average annualized actuarial assumptions for the net periodic benefit cost. Pension plans OPEB plans Year ended December 31, (in millions) 2017 2016 2015 2017 2016 2015 Components of net periodic benefit cost Benefits earned during the year $ 330 $ 332 $ 377 $ — $ — $ 1 Interest cost on benefit obligations 598 629 610 28 31 31 Expected return on plan assets (968 ) (1,030 ) (1,079 ) (97 ) (105 ) (106 ) Amortization: Net (gain)/loss 250 257 282 — — — Prior service cost/(credit) (36 ) (36 ) (36 ) — — — Special termination benefits — — 1 — — — Settlement loss 2 4 — — Net periodic defined benefit cost $ 176 $ 156 $ 155 $ (69 ) $ (74 ) $ (74 ) Other defined benefit pension plans (a) 24 25 24 NA NA NA Total defined benefit plans $ 200 $ 181 $ 179 $ (69 ) $ (74 ) $ (74 ) Total defined contribution plans 814 789 769 NA NA NA Total pension and OPEB cost included in compensation expense $ 1,014 $ 970 $ 948 $ (69 ) $ (74 ) $ (74 ) Changes in plan assets and benefit obligations recognized in other comprehensive income Net (gain)/loss arising during the year $ (669 ) $ 395 $ (50 ) $ (133 ) $ (29 ) $ 21 Amortization of net loss (250 ) (257 ) (282 ) — — — Amortization of prior service (cost)/credit 36 36 36 — — — Settlement loss (2 ) (4 ) — — — — Foreign exchange impact and other 54 (77 ) (33 ) — — — Total recognized in other comprehensive income $ (831 ) $ 93 $ (329 ) $ (133 ) $ (29 ) $ 21 Total recognized in net periodic benefit cost and other comprehensive income $ (655 ) $ 249 $ (174 ) $ (202 ) $ (103 ) $ (53 ) Weighted-average assumptions used to determine net periodic benefit costs Discount rate (b) 0.60 - 4.30 % 0.90 – 4.50% 1.00 – 4.00% 4.20 % 4.40 % 4.10 % Expected long-term rate of return on plan assets (b) 0.70 - 6.00 0.80 – 6.50 0.90 – 6.50 5.00 5.75 6.00 Rate of compensation increase (b) 2.25 - 3.00 2.25 – 4.30 2.75 – 4.20 NA NA NA Health care cost trend rate Assumed for next year NA NA NA 5.00 5.50 6.00 Ultimate NA NA NA 5.00 5.00 5.00 Year when rate will reach ultimate NA NA NA 2017 2017 2017 (a) Includes various defined benefit pension plans which are individually immaterial. (b) The rate assumptions for the U.S. defined benefit pension plans are at the upper end of the range, except for the rate of compensation increase, which is 2.30% for 2017 and 3.50% for 2016 and 2015, respectively. The estimated pretax amounts that will be amortized from AOCI into net periodic benefit cost in 2018 are as follows. (in millions) Defined benefit pension plans Net loss/(gain) $ 106 Prior service cost/(credit) $ (25 ) Total $ 81 Plan assumptions JPMorgan Chase’s expected long-term rate of return for defined benefit pension and OPEB plan assets is a blended weighted average, by asset allocation of the projected long-term returns for the various asset classes, taking into consideration local market conditions and the specific allocation of plan assets. Returns on asset classes are developed using a forward-looking approach and are not strictly based on historical returns. Consideration is also given to current market conditions and the short-term portfolio mix of each plan. The discount rate used in determining the benefit obligation under the U.S. defined benefit pension and OPEB plans was provided by the Firm’s actuaries. This rate was selected by reference to the yields on portfolios of bonds with maturity dates and coupons that closely match each of the plan’s projected cash flows. The discount rate for the U.K. defined benefit pension plan represents a rate of appropriate duration from the analysis of yield curves provided by the Firm’s actuaries. At December 31, 2017, the Firm decreased the discount rates used to determine its benefit obligations for the U.S. defined benefit pension and OPEB plans in light of current market interest rates, which will increase expense by approximately $66 million in 2018. The 2018 expected long-term rate of return on U.S. defined benefit pension plan assets and U.S. OPEB plan assets are 5.50% and 4.00% , respectively. As of December 31, 2017, the interest crediting rate assumption remained at 5.00% . As of December 31, 2017, the effect of a one-percentage-point increase or decrease in the assumed health care cost trend rate is not material to the accumulated postretirement benefit obligation or total service and interest cost. The following table represents the effect of a 25-basis point decline in the three listed rates below on estimated 2018 defined benefit pension and OPEB plan expense, as well as the effect on the postretirement benefit obligations. (in millions) Defined benefit pension and OPEB plan expense Benefit obligation Expected long-term rate of return $ 54 NA Discount rate $ 59 $ 583 Interest crediting rate for U.S. plans $ (41 ) $ (193 ) Investment strategy and asset allocation The assets of the Firm’s defined benefit pension plans are held in various trusts and are invested in well-diversified portfolios of equity and fixed income securities, cash and cash equivalents, and alternative investments (e.g., hedge funds, private equity, real estate and real assets). The trust-owned assets of the Firm's U.S. OPEB plan are invested in cash and cash equivalents. COLI policies used to defray the cost of the Firm's U.S. OPEB plan are invested in separate accounts of an insurance company and are allocated to investments intended to replicate equity and fixed income indices. The investment policies for the assets of the Firm’s defined benefit pension plans are to optimize the risk-return relationship as appropriate to the needs and goals of each plan using a global portfolio of various asset classes diversified by market segment, economic sector, and issuer. Assets are managed by a combination of internal and external investment managers. The Firm regularly reviews the asset allocations and asset managers, as well as other factors that impact the portfolios, which are rebalanced when deemed necessary. Investments held by the plans include financial instruments which are exposed to various risks such as interest rate, market and credit risks. Exposure to a concentration of credit risk is mitigated by the broad diversification of both U.S. and non-U.S. investment instruments. Additionally, the investments in each of the common/collective trust funds and/or registered investment companies are further diversified into various financial instruments. As of December 31, 2017, assets held by the Firm's defined benefit pension and OPEB plans do not include JPMorgan Chase common stock, except through indirect exposures through investments in third-party stock-index funds. The plans hold investments in funds that are sponsored or managed by affiliates of JPMorgan Chase in the amount of $6.0 billion and $4.6 billion , as of December 31, 2017 and 2016, respectively. The following table presents the weighted-average asset allocation of the fair values of total plan assets at December 31 for the years indicated, as well as the respective approved asset allocation ranges by asset class. Defined benefit pension plans OPEB plan (c) Asset % of plan assets Asset % of plan assets December 31, Allocation 2017 2016 Allocation 2017 (d) 2016 Asset class Debt securities (a) 0-80% 42 % 35 % 30-70% 61 % 50 % Equity securities 0-85 42 47 30-70 39 50 Real estate 0-10 3 4 — — — Alternatives (b) 0-35 13 14 — — — Total 100 % 100 % 100 % 100 % 100 % 100 % (a) Debt securities primarily include cash, corporate debt, U.S. federal, state, local and non-U.S. government, and mortgage-backed securities. (b) Alternatives primarily include limited partnerships. (c) Represents the U.S. OPEB plan only, as the U.K. OPEB plan is unfunded. (d) Change in percentage of plan assets due to the contribution to the U.S. OPEB plan. Fair value measurement of the plans’ assets and liabilities For information on fair value measurements, including descriptions of level 1, 2, and 3 of the fair value hierarchy and the valuation methods employed by the Firm, see Note 2 . Pension and OPEB plan assets and liabilities measured at fair value Defined benefit pension plans 2017 2016 December 31 , (in millions) Level 1 Level 2 Level 3 Total fair value Level 1 Level 2 Level 3 Total fair value Cash and cash equivalents $ 173 $ 1 $ — $ 174 $ 196 $ 2 $ — $ 198 Equity securities 6,407 194 2 6,603 6,158 166 2 6,326 Mutual funds 325 — — 325 — — — — Common/collective trust funds (a) 778 — — 778 384 — — 384 Limited partnerships (b) 60 — — 60 62 — — 62 Corporate debt securities (c) — 2,644 4 2,648 — 2,506 4 2,510 U.S. federal, state, local and non-U.S. government debt securities 1,096 784 — 1,880 1,139 804 — 1,943 Mortgage-backed securities 92 100 2 194 42 75 — 117 Derivative receivables — 203 — 203 — 243 — 243 Other (d) 2,353 60 302 2,715 1,497 53 390 1,940 Total assets measured at fair value (e) $ 11,284 $ 3,986 $ 310 $ 15,580 $ 9,478 $ 3,849 $ 396 $ 13,723 Derivative payables $ — $ (141 ) $ — $ (141 ) $ — $ (208 ) $ — $ (208 ) Total liabilities measured at fair value (e) $ — $ (141 ) $ — $ (141 ) $ — $ (208 ) $ — $ (208 ) (a) At December 31, 2017 and 2016, common/collective trust funds primarily included a mix of short-term investment funds, domestic and international equity investments (including index) and real estate funds. (b) Unfunded commitments to purchase limited partnership investments for the plans were $605 million and $735 million for 2017 and 2016, respectively. (c) Corporate debt securities include debt securities of U.S. and non-U.S. corporations. (d) Other consists primarily of money market funds and participating and non-participating annuity contracts. Money market funds are primarily classified within level 1 of the fair value hierarchy given they are valued using market observable prices. Participating and non-participating annuity contracts are classified within level 3 of the fair value hierarchy due to a lack of market mechanisms for transferring each policy and surrender restrictions. (e) At December 31, 2017 and 2016, excludes $4.4 billion and $4.2 billion of certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient, which are not required to be classified in the fair value hierarchy, $377 million and $130 million of defined benefit pension plan receivables for investments sold and dividends and interest receivables, $561 million and $203 million of defined benefit pension plan payables for investments purchased, and $26 million and $21 million of other liabilities, respectively. The assets of the U.S. OPEB plan consisted of $600 million and $0 million in cash and cash equivalents classified in level 1 of the valuation hierarchy and $2.2 billion and $2.0 billion of COLI policies classified in level 3 of the valuation hierarchy at December 31, 2017 and 2016, respectively. Changes in level 3 fair value measurements using significant unobservable inputs (in millions) Fair value, Beginning balance Actual return on plan assets Purchases, sales and settlements, net Transfers in and/or out of level 3 Fair value, Ending balance Realized gains/(losses) Unrealized gains/(losses) Year ended December 31, 2017 U.S. defined benefit pension plan Annuity contracts and other (a) $ 396 $ — $ 1 $ (87 ) $ — $ 310 U.S. OPEB plan COLI policies $ 1,957 $ — $ 200 $ — $ — $ 2,157 Year ended December 31, 2016 U.S. defined benefit pension plan Annuity contracts and other (a) $ 539 $ — $ (157 ) $ — $ 14 $ 396 U.S. OPEB plan COLI policies $ 1,855 $ — $ 102 $ — $ — $ 1,957 (a) Substantially all are participating and non-participating annuity contracts. Estimated future benefit payments The following table presents benefit payments expected to be paid, which include the effect of expected future service, for the years indicated. The OPEB medical and life insurance payments are net of expected retiree contributions. Year ended December 31, (in millions) Defined benefit pension plans OPEB before Medicare Part D subsidy Medicare Part D subsidy 2018 $ 926 $ 65 $ 1 2019 922 63 1 2020 927 60 1 2021 944 57 — 2022 960 55 — Years 2023–2027 4,925 235 2 |
Employee Share-Based Incentives
Employee Share-Based Incentives | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Share-Based Incentives | Employee share-based incentives Employee share-based awards In 2017 , 2016 and 2015 , JPMorgan Chase granted long-term share-based awards to certain employees under its LTIP, as amended and restated effective May 19, 2015. Under the terms of the LTIP, as of December 31, 2017 , 67 million shares of common stock were available for issuance through May 2019. The LTIP is the only active plan under which the Firm is currently granting share-based incentive awards. In the following discussion, the LTIP, plus prior Firm plans and plans assumed as the result of acquisitions, are referred to collectively as the “LTI Plans,” and such plans constitute the Firm’s share-based incentive plans. RSUs are awarded at no cost to the recipient upon their grant. Generally, RSUs are granted annually and vest at a rate of 50% after two years and 50% after three years and are converted into shares of common stock as of the vesting date. In addition, RSUs typically include full-career eligibility provisions, which allow employees to continue to vest upon voluntary termination based on age or service-related requirements, subject to post-employment and other restrictions. All RSU awards are subject to forfeiture until vested and contain clawback provisions that may result in cancellation under certain specified circumstances. Generally, RSUs entitle the recipient to receive cash payments equivalent to any dividends paid on the underlying common stock during the period the RSUs are outstanding and, as such, are considered participating securities as discussed in Note 22 . In January 2017 and 2016, the Firm’s Board of Directors approved the grant of performance share units (“PSUs”) to members of the Firm’s Operating Committee under the variable compensation program for performance years 2016 and 2015. PSUs are subject to the Firm’s achievement of specified performance criteria over a three-year period. The number of awards that vest can range from zero to 150% of the grant amount. The awards vest and are converted into shares of common stock in the quarter after the end of the performance period, which is generally three years. In addition, dividends are notionally reinvested in the Firm’s common stock and will be delivered only in respect of any earned shares. Once the PSUs have vested, the shares of common stock that are delivered, after applicable tax withholding, must be held for an additional two-year period, typically for a total combined vesting and holding period of five years from the grant date. Under the LTI Plans, stock options and stock appreciation rights (“SARs”) have generally been granted with an exercise price equal to the fair value of JPMorgan Chase’s common stock on the grant date. The Firm periodically grants employee stock options to individual employees. There were no material grants of stock options or SARs in 2017, 2016 and 2015. SARs generally expire ten years after the grant date. The Firm separately recognizes compensation expense for each tranche of each award, net of estimated forfeitures, as if it were a separate award with its own vesting date. Generally, for each tranche granted, compensation expense is recognized on a straight-line basis from the grant date until the vesting date of the respective tranche, provided that the employees will not become full-career eligible during the vesting period. For awards with full-career eligibility provisions and awards granted with no future substantive service requirement, the Firm accrues the estimated value of awards expected to be awarded to employees as of the grant date without giving consideration to the impact of post-employment restrictions. For each tranche granted to employees who will become full-career eligible during the vesting period, compensation expense is recognized on a straight-line basis from the grant date until the earlier of the employee’s full-career eligibility date or the vesting date of the respective tranche. The Firm’s policy for issuing shares upon settlement of employee share-based incentive awards is to issue either new shares of common stock or treasury shares. During 2017 , 2016 and 2015 , the Firm settled all of its employee share-based awards by issuing treasury shares. In January 2008, the Firm awarded to its Chairman and Chief Executive Officer up to 2 million SARs. The terms of this award are distinct from, and more restrictive than, other equity grants regularly awarded by the Firm. On July 15, 2014, the Compensation & Management Development Committee and Board of Directors determined that all requirements for the vesting of the 2 million SAR awards had been met and thus, the awards became exercisable. The SARs, which had an expiration date of January 2018, were exercised by Mr. Dimon in October 2017 at the exercise price of $39.83 per share (the price of JPMorgan Chase common stock on the date of grant). RSUs, PSUs, employee stock options and SARs activity Generally, compensation expense for RSUs and PSUs is measured based on the number of units granted multiplied by the stock price at the grant date, and for employee stock options and SARs, is measured at the grant date using the Black-Scholes valuation model. Compensation expense for these awards is recognized in net income as described previously. The following table summarizes JPMorgan Chase ’s RSUs, PSUs, employee stock options and SARs activity for 2017 . RSUs/PSUs Options/SARs Year ended December 31, 2017 Number of units Weighted-average grant date fair value Number of awards Weighted-average exercise price Weighted-average remaining contractual life (in years) Aggregate intrinsic value (in thousands, except weighted-average data, and where otherwise stated) Outstanding, January 1 81,707 $ 57.15 30,267 $ 40.65 Granted 26,017 84.30 109 90.94 Exercised or vested (32,961 ) 57.80 (12,816 ) 40.50 Forfeited (2,030 ) 63.34 (54 ) 55.82 Canceled NA NA (13 ) 405.47 Outstanding, December 31 72,733 $ 66.36 17,493 $ 40.76 3.4 $ 1,169,470 Exercisable, December 31 NA NA 15,828 40.00 3.3 1,070,212 The total fair value of RSUs that vested during the years ended December 31, 2017 , 2016 and 2015 , was $2.9 billion , $ 2.2 billion and $2.8 billion , respectively. The total intrinsic value of options exercised during the years ended December 31, 2017 , 2016 and 2015 , was $651 million , $338 million and $335 million , respectively. Compensation expense The Firm recognized the following noncash compensation expense related to its various employee share-based incentive plans in its Consolidated statements of income. Year ended December 31, (in millions) 2017 2016 2015 Cost of prior grants of RSUs, PSUs and SARs that are amortized over their applicable vesting periods $ 1,125 $ 1,046 $ 1,109 Accrual of estimated costs of share-based awards to be granted in future periods including those to full-career eligible employees 945 894 878 Total noncash compensation expense related to employee share-based incentive plans $ 2,070 $ 1,940 $ 1,987 At December 31, 2017 , approximately $704 million (pretax) of compensation expense related to unvested awards had not yet been charged to net income. That cost is expected to be amortized into compensation expense over a weighted-average period of 1 year. The Firm does not capitalize any compensation expense related to share-based compensation awards to employees. Cash flows and tax benefits Effective January 1, 2016, the Firm adopted new accounting guidance related to employee share-based payments. As a result of the adoption of this new guidance, all excess tax benefits (including tax benefits from dividends or dividend equivalents) on share-based payment awards are recognized within income tax expense in the Consolidated statements of income. In prior years these tax benefits were recorded as increases to additional paid-in capital. Income tax benefits related to share-based incentive arrangements recognized in the Firm’s Consolidated statements of income for the years ended December 31, 2017 , 2016 and 2015 , were $1.0 billion , $916 million and $746 million , respectively. The following table sets forth the cash received from the exercise of stock options under all share-based incentive arrangements, and the actual income tax benefit related to tax deductions from the exercise of the stock options. Year ended December 31, (in millions) 2017 2016 2015 Cash received for options exercised $ 18 $ 26 $ 20 Tax benefit 190 70 64 |
Securities
Securities | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities Securities are classified as trading, AFS or HTM. 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 December 31, 2017 , the investment securities portfolio consisted of debt securities with an average credit rating of AA+ (based upon external ratings where available, and where not available, based primarily upon internal ratings which correspond to ratings as defined by S&P and Moody’s). AFS securities are carried at fair value on the Consolidated balance sheets. Unrealized gains and losses, after any applicable hedge accounting adjustments, are reported as net increases or decreases to AOCI. The specific identification method is used to determine realized gains and losses on AFS securities, which are included in securities gains/(losses) on the Consolidated statements of income. HTM debt securities, which management has the intent and ability to hold until maturity, are carried at amortized cost on the Consolidated balance sheets. For both AFS and HTM debt securities, purchase discounts or premiums are generally amortized into interest income over the contractual life of the security. The amortized cost and estimated fair value of the investment securities portfolio were as follows for the dates indicated. 2017 2016 December 31, (in millions) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Amortized cost Gross unrealized gains Gross unrealized losses Fair value Available-for-sale debt securities Mortgage-backed securities: U.S. government agencies (a) $ 69,879 $ 736 $ 335 $ 70,280 $ 63,367 $ 1,112 $ 474 $ 64,005 Residential: U.S (b) 8,193 185 14 8,364 8,171 100 28 8,243 Non-U.S. 2,882 122 1 3,003 6,049 158 7 6,200 Commercial 4,932 98 5 5,025 9,002 122 20 9,104 Total mortgage-backed securities 85,886 1,141 355 86,672 86,589 1,492 529 87,552 U.S. Treasury and government agencies (a) 22,510 266 31 22,745 44,822 75 796 44,101 Obligations of U.S. states and municipalities 30,490 1,881 33 32,338 30,284 1,492 184 31,592 Certificates of deposit 59 — — 59 106 — — 106 Non-U.S. government debt securities 26,900 426 32 27,294 34,497 836 45 35,288 Corporate debt securities 2,657 101 1 2,757 4,916 64 22 4,958 Asset-backed securities: Collateralized loan obligations 20,928 69 1 20,996 27,352 75 26 27,401 Other 8,764 77 24 8,817 6,950 62 45 6,967 Total available-for-sale debt securities 198,194 3,961 477 201,678 235,516 4,096 1,647 237,965 Available-for-sale equity securities 547 — — 547 914 12 — 926 Total available-for-sale securities 198,741 3,961 477 202,225 236,430 4,108 1,647 238,891 Held-to-maturity debt securities Mortgage-backed securities U.S. government agencies (c) 27,577 558 40 28,095 29,910 638 37 30,511 Commercial 5,783 1 74 5,710 5,783 — 129 5,654 Total mortgage-backed securities 33,360 559 114 33,805 35,693 638 166 36,165 Obligations of U.S. states and municipalities 14,373 554 80 14,847 14,475 374 125 14,724 Total held-to-maturity debt securities 47,733 1,113 194 48,652 50,168 1,012 291 50,889 Total securities $ 246,474 $ 5,074 $ 671 $ 250,877 $ 286,598 $ 5,120 $ 1,938 $ 289,780 (a) Includes total U.S. government-sponsored enterprise obligations with a fair value of $45.8 billion for the years ended December 31, 2017 and 2016 , which were predominantly mortgage-related. (b) Prior period amounts have been revised to conform with the current period presentation. (c) Included total U.S. government-sponsored enterprise obligations with amortized cost of $22.0 billion and $25.6 billion at December 31, 2017 and 2016 , respectively, which were mortgage-related. Securities impairment The following tables present the fair value and gross unrealized losses for the investment securities portfolio by aging category at December 31, 2017 and 2016 . Securities with gross unrealized losses Less than 12 months 12 months or more December 31, 2017 (in millions) Fair value Gross unrealized losses Fair value Gross unrealized losses Total fair value Total gross unrealized losses Available-for-sale debt securities Mortgage-backed securities: U.S. government agencies $ 36,037 $ 139 $ 7,711 $ 196 $ 43,748 $ 335 Residential: U.S 1,112 5 596 9 1,708 14 Non-U.S. — — 266 1 266 1 Commercial 528 4 335 1 863 5 Total mortgage-backed securities 37,677 148 8,908 207 46,585 355 U.S. Treasury and government agencies 1,834 11 373 20 2,207 31 Obligations of U.S. states and municipalities 949 7 1,652 26 2,601 33 Certificates of deposit — — — — — — Non-U.S. government debt securities 6,500 15 811 17 7,311 32 Corporate debt securities — — 52 1 52 1 Asset-backed securities: Collateralized loan obligations — — 276 1 276 1 Other 3,521 20 720 4 4,241 24 Total available-for-sale debt securities 50,481 201 12,792 276 63,273 477 Available-for-sale equity securities — — — — — — Held-to-maturity securities Mortgage-backed securities U.S. government securities 4,070 38 205 2 4,275 40 Commercial 3,706 41 1,882 33 5,588 74 Total mortgage-backed securities 7,776 79 2,087 35 9,863 114 Obligations of U.S. states and municipalities 584 9 2,131 71 2,715 80 Total held-to-maturity securities 8,360 88 4,218 106 12,578 194 Total securities with gross unrealized losses $ 58,841 $ 289 $ 17,010 $ 382 $ 75,851 $ 671 Securities with gross unrealized losses Less than 12 months 12 months or more December 31, 2016 (in millions) Fair value Gross unrealized losses Fair value Gross unrealized losses Total fair value Total gross unrealized losses Available-for-sale debt securities Mortgage-backed securities: U.S. government agencies $ 29,856 $ 463 $ 506 $ 11 $ 30,362 $ 474 Residential: U.S. (a) 1,373 6 1,073 22 2,446 28 Non-U.S. — — 886 7 886 7 Commercial 2,328 17 1,078 3 3,406 20 Total mortgage-backed securities 33,557 486 3,543 43 37,100 529 U.S. Treasury and government agencies 23,543 796 — — 23,543 796 Obligations of U.S. states and municipalities 7,215 181 55 3 7,270 184 Certificates of deposit — — — — — — Non-U.S. government debt securities 4,436 36 421 9 4,857 45 Corporate debt securities 797 2 829 20 1,626 22 Asset-backed securities: Collateralized loan obligations 766 2 5,263 24 6,029 26 Other 739 6 1,992 39 2,731 45 Total available-for-sale debt securities 71,053 1,509 12,103 138 83,156 1,647 Available-for-sale equity securities — — — — — — Held-to-maturity debt securities Mortgage-backed securities U.S. government agencies 3,129 37 — — 3,129 37 Commercial 5,163 114 441 15 5,604 129 Total mortgage-backed securities 8,292 151 441 15 8,733 166 Obligations of U.S. states and municipalities 4,702 125 — — 4,702 125 Total held-to-maturity securities 12,994 276 441 15 13,435 291 Total securities with gross unrealized losses $ 84,047 $ 1,785 $ 12,544 $ 153 $ 96,591 $ 1,938 (a) Prior period amounts have been revised to conform with the current period presentation. Gross unrealized losses The Firm has recognized unrealized losses on securities that it intends to sell as OTTI. The Firm does not intend to sell any of the remaining securities with an unrealized loss in AOCI as of December 31, 2017, and it is not likely that the Firm will be required to sell these securities before recovery of their amortized cost basis. Except for the securities for which credit losses have been recognized in income, the Firm believes that the securities with an unrealized loss in AOCI are not other-than-temporarily impaired as of December 31, 2017. Other-than-temporary impairment AFS debt and equity securities and HTM debt securities in unrealized loss positions are analyzed as part of the Firm’s ongoing assessment of OTTI. For most types of debt securities, the Firm considers a decline in fair value to be other-than-temporary when the Firm does not expect to recover the entire amortized cost basis of the security. For beneficial interests in securitizations that are rated below “AA” at their acquisition, or that can be contractually prepaid or otherwise settled in such a way that the Firm would not recover substantially all of its recorded investment, the Firm considers an impairment to be other-than-temporary when there is an adverse change in expected cash flows. For AFS equity securities, the Firm considers a decline in fair value to be other-than-temporary if it is probable that the Firm will not recover its cost basis. Potential OTTI is considered using a variety of factors, including the length of time and extent to which the market value has been less than cost; adverse conditions specifically related to the industry, geographic area or financial condition of the issuer or underlying collateral of a security; payment structure of the security; changes to the rating of the security by a rating agency; the volatility of the fair value changes; and the Firm’s intent and ability to hold the security until recovery. For AFS debt securities, the Firm recognizes OTTI losses in earnings if the Firm has the intent to sell the debt security, or if it is more likely than not that the Firm will be required to sell the debt security before recovery of its amortized cost basis. In these circumstances the impairment loss is equal to the full difference between the amortized cost basis and the fair value of the securities. For debt securities in an unrealized loss position that the Firm has the intent and ability to hold, the expected cash flows to be received from the securities are evaluated to determine if a credit loss exists. In the event of a credit loss, only the amount of impairment associated with the credit loss is recognized in income. Amounts relating to factors other than credit losses are recorded in OCI. The Firm’s cash flow evaluations take into account the factors noted above and expectations of relevant market and economic data as of the end of the reporting period. For securities issued in a securitization, the Firm estimates cash flows considering underlying loan-level data and structural features of the securitization, such as subordination, excess spread, overcollateralization or other forms of credit enhancement, and compares the losses projected for the underlying collateral (“pool losses”) against the level of credit enhancement in the securitization structure to determine whether these features are sufficient to absorb the pool losses, or whether a credit loss exists. The Firm also performs other analyses to support its cash flow projections, such as first-loss analyses or stress scenarios. For equity securities, OTTI losses are recognized in earnings if the Firm intends to sell the security. In other cases the Firm considers the relevant factors noted above, as well as the Firm’s intent and ability to retain its investment for a period of time sufficient to allow for any anticipated recovery in market value, and whether evidence exists to support a realizable value equal to or greater than the cost basis. Any impairment loss on an equity security is equal to the full difference between the cost basis and the fair value of the security. Securities gains and losses The following table presents realized gains and losses and OTTI from AFS securities that were recognized in income. Year ended December 31, 2017 2016 2015 Realized gains $ 1,013 $ 401 $ 351 Realized losses (1,072 ) (232 ) (127 ) OTTI losses (a) (7 ) (28 ) (22 ) Net securities gains/(losses) (66 ) 141 202 OTTI losses Credit losses recognized in income — (1 ) (1 ) Securities the Firm intends to sell (a) (7 ) (27 ) (21 ) Total OTTI losses recognized in income $ (7 ) $ (28 ) $ (22 ) (a) Excludes realized losses on securities sold of $6 million , $24 million and $5 million for the years ended December 31, 2017 , 2016 and 2015 , respectively that had been previously reported as an OTTI loss due to the intention to sell the securities. Changes in the credit loss component of credit-impaired debt securities The cumulative credit loss component, including any changes therein, of OTTI losses that have been recognized in income related to AFS debt securities was not material as of and during the years ended December 31, 2017 , 2016 and 2015 . Contractual maturities and yields The following table presents the amortized cost and estimated fair value at December 31, 2017 , of JPMorgan Chase ’s investment securities portfolio by contractual maturity. By remaining maturity December 31, 2017 (in millions) Due in one year or less Due after one year through five years Due after five years through 10 years Due after 10 years (c) Total Available-for-sale debt securities Mortgage-backed securities (a) Amortized cost $ 3 $ 698 $ 6,134 $ 79,051 $ 85,886 Fair value 3 708 6,294 79,667 86,672 Average yield (b) 4.76 % 2.10 % 3.10 % 3.35 % 3.32 % U.S. Treasury and government agencies Amortized cost $ 60 $ — $ 17,437 $ 5,013 $ 22,510 Fair value 60 — 17,542 5,143 22,745 Average yield (b) 1.72 % — % 1.96 % 1.76 % 1.91 % Obligations of U.S. states and municipalities Amortized cost $ 73 $ 750 $ 1,265 $ 28,402 $ 30,490 Fair value 72 765 1,324 30,177 32,338 Average yield (b) 1.78 % 3.28 % 5.40 % 5.50 % 5.43 % Certificates of deposit Amortized cost $ 59 $ — $ — $ — $ 59 Fair value 59 — — — 59 Average yield (b) 0.50 % — % — % — % 0.50 % Non-U.S. government debt securities Amortized cost $ 5,020 $ 13,665 $ 8,215 $ — $ 26,900 Fair value 5,022 13,845 8,427 — 27,294 Average yield (b) 3.09 % 1.55 % 1.19 % — % 1.73 % Corporate debt securities Amortized cost $ 150 $ 1,159 $ 1,203 $ 145 $ 2,657 Fair value 151 1,197 1,255 154 2,757 Average yield (b) 3.07 % 3.60 % 3.58 % 3.22 % 3.54 % Asset-backed securities Amortized cost $ — $ 3,372 $ 13,046 $ 13,274 $ 29,692 Fair value — 3,353 13,080 13,380 29,813 Average yield (b) — % 2.14 % 2.58 % 2.36 % 2.43 % Total available-for-sale debt securities Amortized cost $ 5,365 $ 19,644 $ 47,300 $ 125,885 $ 198,194 Fair value 5,367 19,868 47,922 128,521 201,678 Average yield (b) 3.03 % 1.86 % 2.28 % 3.66 % 3.14 % Available-for-sale equity securities Amortized cost $ — $ — $ — $ 547 $ 547 Fair value — — — 547 547 Average yield (b) — % — % — % 0.71 % 0.71 % Total available-for-sale securities Amortized cost $ 5,365 $ 19,644 $ 47,300 $ 126,432 $ 198,741 Fair value 5,367 19,868 47,922 129,068 202,225 Average yield (b) 3.03 % 1.86 % 2.28 % 3.65 % 3.13 % Held-to-maturity debt securities Mortgage-backed securities (a) Amortized Cost $ — $ — $ 49 $ 33,311 $ 33,360 Fair value — — 49 33,756 33,805 Average yield (b) — % — % 2.88 % 3.27 % 3.27 % Obligations of U.S. states and municipalities Amortized cost $ — $ 66 $ 2,019 $ 12,288 $ 14,373 Fair value — 65 2,067 12,715 14,847 Average yield (b) — % 4.74 % 4.30 % 4.72 % 4.66 % Total held-to-maturity securities Amortized cost $ — $ 66 $ 2,068 $ 45,599 $ 47,733 Fair value — 65 2,116 46,471 48,652 Average yield (b) — % 4.75 % 4.26 % 3.66 % 3.69 % (a) As of December 31, 2017 , mortgage-backed securities issued by Fannie Mae exceeded 10% of JPMorgan Chase’s total stockholders’ equity; the amortized cost and fair value of such securities was $ 55.1 billion and $ 56.0 billion , respectively . (b) Average yield is computed using the effective yield of each security owned at the end of the period, weighted based on the amortized cost of each security. The effective yield considers the contractual coupon, amortization of premiums and accretion of discounts, and the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable and reflect the estimated impact of the enactment of the Tax Cuts and Jobs Act (“TCJA”). The effective yield excludes unscheduled principal prepayments; and accordingly, actual maturities of securities may differ from their contractual or expected maturities as certain securities may be prepaid. (c) Includes securities with no stated maturity. Substantially all of the Firm’s U.S. residential MBS and collateralized mortgage obligations are due in 10 years or more, based on contractual maturity. The estimated weighted-average life, which reflects anticipated future prepayments, is approximately six years for agency residential MBS, three years for agency residential collateralized mortgage obligations and three years for nonagency residential collateralized mortgage obligations. |
Securities Financing Activities
Securities Financing Activities | 12 Months Ended |
Dec. 31, 2017 | |
Securities Financing Transactions Disclosures [Abstract] | |
Securities Financing Activities | Securities financing activities JPMorgan Chase enters into resale agreements, repurchase agreements, securities borrowed transactions and securities loaned transactions (collectively, “securities financing agreements”) primarily to finance the Firm’s inventory positions, acquire securities to cover short positions, accommodate customers’ financing needs, and settle other securities obligations . Securities financing agreements are treated as collateralized financings on the Firm’s Consolidated balance sheets. Resale and repurchase agreements are generally carried at the amounts at which the securities will be subsequently sold or repurchased. Securities borrowed and securities loaned transactions are generally carried at the amount of cash collateral advanced or received. Where appropriate under applicable accounting guidance, resale and repurchase agreements with the same counterparty are reported on a net basis. For further discussion of the offsetting of assets and liabilities, see Note 1 . Fees received and paid in connection with securities financing agreements are recorded in interest income and interest expense on the Consolidated statements of income. The Firm has elected the fair value option for certain securities financing agreements. For further information regarding the fair value option, see Note 3 . The securities financing agreements for which the fair value option has been elected are reported within securities purchased under resale agreements, securities loaned or sold under repurchase agreements, and securities borrowed on the Consolidated balance sheets. Generally, for agreements carried at fair value, current-period interest accruals are recorded within interest income and interest expense, with changes in fair value reported in principal transactions revenue. However, for financial instruments containing embedded derivatives that would be separately accounted for in accordance with accounting guidance for hybrid instruments, all changes in fair value, including any interest elements, are reported in principal transactions revenue. Securities financing transactions expose the Firm primarily to credit and liquidity risk. To manage these risks, the Firm monitors the value of the underlying securities (predominantly high-quality securities collateral, including government-issued debt and agency MBS) that it has received from or provided to its counterparties compared to the value of cash proceeds and exchanged collateral, and either requests additional collateral or returns securities or collateral when appropriate. Margin levels are initially established based upon the counterparty, the type of underlying securities, and the permissible collateral, and are monitored on an ongoing basis. In resale agreements and securities borrowed transactions, the Firm is exposed to credit risk to the extent that the value of the securities received is less than initial cash principal advanced and any collateral amounts exchanged. In repurchase agreements and securities loaned transactions, credit risk exposure arises to the extent that the value of underlying securities exceeds the value of the initial cash principal advanced, and any collateral amounts exchanged. Additionally, the Firm typically enters into master netting agreements and other similar arrangements with its counterparties, which provide for the right to liquidate the underlying securities and any collateral amounts exchanged in the event of a counterparty default. It is also the Firm’s policy to take possession, where possible, of the securities underlying resale agreements and securities borrowed transactions. For further information regarding assets pledged and collateral received in securities financing agreements, see Note 28 . As a result of the Firm’s credit risk mitigation practices with respect to resale and securities borrowed agreements as described above, the Firm did not hold any reserves for credit impairment with respect to these agreements as of December 31, 2017 and 2016. The table below summarizes the gross and net amounts of the Firm’s securities financing agreements, as of December 31, 2017, and 2016. When the Firm has obtained an appropriate legal opinion with respect to the master netting agreement with a counterparty and where other relevant netting criteria under U.S. GAAP are met, the Firm nets, on the Consolidated balance sheets, the balances outstanding under its securities financing agreements with the same counterparty. In addition, the Firm exchanges securities and/or cash collateral with its counterparties; this collateral also reduces the economic exposure with the counterparty. Such collateral, along with securities financing balances that do not meet all these relevant netting criteria under U.S. GAAP, is presented as “Amounts not nettable on the Consolidated balance sheets,” and reduces the “Net amounts” presented below, if the Firm has an appropriate legal opinion with respect to the master netting agreement with the counterparty. Where a legal opinion has not been either sought or obtained, the securities financing balances are presented gross in the “Net amounts” below, and related collateral does not reduce the amounts presented. 2017 December 31, (in millions) Gross amounts Amounts netted on the Consolidated balance sheets Amounts presented on the Consolidated balance sheets (b) Amounts not nettable on the Consolidated balance sheets (c) Net amounts (d) Assets Securities purchased under resale agreements $ 448,608 $ (250,505 ) $ 198,103 $ (188,502 ) $ 9,601 Securities borrowed 113,926 (8,814 ) 105,112 (76,805 ) 28,307 Liabilities Securities sold under repurchase agreements $ 398,218 $ (250,505 ) $ 147,713 $ (129,178 ) $ 18,535 Securities loaned and other (a) 27,228 (8,814 ) 18,414 (18,151 ) 263 2016 December 31, (in millions) Gross amounts Amounts netted on the Consolidated balance sheets Amounts presented on the Consolidated balance sheets (b) Amounts not nettable on the Consolidated balance sheets (c) Net amounts (d) Assets Securities purchased under resale agreements $ 480,735 $ (250,832 ) $ 229,903 $ (222,413 ) $ 7,490 Securities borrowed 96,409 — 96,409 (66,822 ) 29,587 Liabilities Securities sold under repurchase agreements $ 402,465 $ (250,832 ) $ 151,633 $ (133,300 ) $ 18,333 Securities loaned and other (a) 22,451 — 22,451 (22,177 ) 274 (a) Includes securities-for-securities lending transactions of $9.2 billion and $9.1 billion at December 31, 2017 and 2016 , respectively, accounted for at fair value, where the Firm is acting as lender. These amounts are presented within accounts payable and other liabilities in the Consolidated balance sheets. (b) Includes securities financing agreements accounted for at fair value. At December 31, 2017 and 2016 , included securities purchased under resale agreements of $14.7 billion and $21.5 billion , respectively, and securities sold under agreements to repurchase of $697 million and $687 million , respectively. There were $3.0 billion of securities borrowed at December 31, 2017 and there were no securities borrowed at December 31, 2016 . There were no securities loaned accounted for at fair value in either period. (c) In some cases, collateral exchanged with a counterparty exceeds the net asset or liability balance with that counterparty. In such cases, the amounts reported in this column are limited to the related asset or liability with that counterparty. (d) Includes securities financing agreements that provide collateral rights, but where an appropriate legal opinion with respect to the master netting agreement has not been either sought or obtained. At December 31, 2017 and 2016 , included $7.5 billion and $4.8 billion , respectively, of securities purchased under resale agreements; $25.5 billion and $27.1 billion , respectively, of securities borrowed; $16.5 billion and $15.9 billion , respectively, of securities sold under agreements to repurchase; and $29 million and $90 million , respectively, of securities loaned and other. The tables below present as of December 31, 2017 and 2016 the types of financial assets pledged in securities financing agreements and the remaining contractual maturity of the securities financing agreements. Gross liability balance 2017 2016 December 31, (in millions) Securities sold under repurchase agreements Securities loaned and other (b) Securities sold under repurchase agreements Securities loaned and other (b) Mortgage-backed securities: U.S. government agencies (a) $ 13,100 $ — $ 14,034 $ — Residential - nonagency 2,972 — 6,224 — Commercial - nonagency 1,594 — 4,173 — U.S. Treasury and government agencies (a) 177,581 14 185,145 — Obligations of U.S. states and municipalities 1,557 — 2,491 — Non-U.S. government debt 170,196 2,485 149,008 1,279 Corporate debt securities 14,231 287 18,140 108 Asset-backed securities 3,508 — 7,721 — Equity securities 13,479 24,442 15,529 21,064 Total $ 398,218 $ 27,228 $ 402,465 $ 22,451 Remaining contractual maturity of the agreements Overnight and continuous Greater than 90 days 2017 (in millions) Up to 30 days 30 – 90 days Total Total securities sold under repurchase agreements $ 166,425 $ 156,434 $ 41,611 $ 33,748 $ 398,218 Total securities loaned and other (b) 22,876 375 2,328 1,649 27,228 Remaining contractual maturity of the agreements Overnight and continuous Greater than 90 days 2016 (in millions) Up to 30 days 30 – 90 days Total Total securities sold under repurchase agreements $ 140,318 $ 157,860 $ 55,621 $ 48,666 $ 402,465 Total securities loaned and other (b) 13,586 1,371 2,877 4,617 22,451 (a) Prior period amounts were revised to conform with the current period presentation. (b) Includes securities-for-securities lending transactions of $9.2 billion and $9.1 billion at December 31, 2017 and 2016 , respectively, accounted for at fair value, where the Firm is acting as lender. These amounts are presented within accounts payable and other liabilities on the Consolidated balance sheets. Transfers not qualifying for sale accounting At December 31, 2017 and 2016 , the Firm held $1.5 billion and $5.9 billion , respectively, of financial assets for which the rights have been transferred to third parties; however, the transfers did not qualify as a sale in accordance with U.S. GAAP. These transfers have been recognized as collateralized financing transactions. The transferred assets are recorded in trading assets and loans, and the corresponding liabilities are recorded predominantly in short-term borrowings on the Consolidated balance sheets. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Loans | Loans Loan accounting framework The accounting for a loan depends on management’s strategy for the loan, and on whether the loan was credit-impaired at the date of acquisition. The Firm accounts for loans based on the following categories: • Originated or purchased loans held-for-investment (i.e., “retained”), other than PCI loans • Loans held-for-sale • Loans at fair value • PCI loans held-for-investment The following provides a detailed accounting discussion of these loan categories: Loans held-for-investment (other than PCI loans) Originated or purchased loans held-for-investment, other than PCI loans, are recorded at the principal amount outstanding, net of the following: charge-offs; interest applied to principal (for loans accounted for on the cost recovery method); unamortized discounts and premiums; and net deferred loan fees or costs. Credit card loans also include billed finance charges and fees net of an allowance for uncollectible amounts. Interest income Interest income on performing loans held-for-investment, other than PCI loans, is accrued and recognized as interest income at the contractual rate of interest. Purchase price discounts or premiums, as well as net deferred loan fees or costs, are amortized into interest income over the contractual life of the loan to produce a level rate of return. Nonaccrual loans Nonaccrual loans are those on which the accrual of interest has been suspended. Loans (other than credit card loans and certain consumer loans insured by U.S. government agencies) are placed on nonaccrual status and considered nonperforming 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. A loan is determined to be past due when the minimum payment is not received from the borrower by the contractually specified due date or for certain loans (e.g., residential real estate loans), when a monthly payment is due and unpaid for 30 days or more. Finally, collateral-dependent loans are typically maintained on nonaccrual status. On the date a loan is placed on nonaccrual status, all interest accrued but not collected is reversed against interest income. In addition, the amortization of deferred amounts is suspended. Interest income on nonaccrual loans may be recognized as cash interest payments are received (i.e., on a cash basis) if the recorded loan balance is deemed fully collectible; however, if there is doubt regarding the ultimate collectibility of the recorded loan balance, all interest cash receipts are applied to reduce the carrying value of the loan (the cost recovery method). For consumer loans, application of this policy typically results in the Firm recognizing interest income on nonaccrual consumer loans on a cash basis. A loan may be returned to accrual status when repayment is reasonably assured and there has been demonstrated performance under the terms of the loan or, if applicable, the terms of the restructured loan. As permitted by regulatory guidance, credit card loans are generally exempt from being placed on nonaccrual status; accordingly, interest and fees related to credit card loans continue to accrue until the loan is charged off or paid in full. However, the Firm separately establishes an allowance, which is offset against loans and charged to interest income, for the estimated uncollectible portion of accrued and billed interest and fee income on credit card loans. The allowance is established with a charge to interest income and is reported as an offset to loans. Allowance for loan losses The allowance for loan losses represents the estimated probable credit losses inherent in the held-for-investment loan portfolio at the balance sheet date and is recognized on the balance sheet as a contra asset, which brings the recorded investment to the net carrying value. Changes in the allowance for loan losses are recorded in the provision for credit losses on the Firm’s Consolidated statements of income. See Note 13 for further information on the Firm’s accounting policies for the allowance for loan losses. Charge-offs Consumer loans, other than risk-rated business banking and auto loans, and PCI loans, are generally charged off or charged down to the net realizable value of the underlying collateral (i.e., fair value less costs to sell), with an offset to the allowance for loan losses, upon reaching specified stages of delinquency in accordance with standards established by the FFIEC. Residential real estate loans and non-modified credit card loans are generally charged off no later than 180 days past due. Scored auto, student and modified credit card loans are charged off no later than 120 days past due. Certain consumer loans will be charged off or charged down to their net realizable value earlier than the FFIEC charge-off standards in certain circumstances as follows: • Loans modified in a TDR that are determined to be collateral-dependent. • Loans to borrowers who have experienced an event that suggests a loss is either known or highly certain are subject to accelerated charge-off standards (e.g., residential real estate and auto loans are charged off within 60 days of receiving notification of a bankruptcy filing). • Auto loans upon repossession of the automobile. Other than in certain limited circumstances, the Firm typically does not recognize charge-offs on government-guaranteed loans. Wholesale loans, risk-rated business banking loans and risk-rated auto loans are charged off when it is highly certain that a loss has been realized, including situations where a loan is determined to be both impaired and collateral-dependent. The determination of whether to recognize a charge-off includes many factors, including the prioritization of the Firm’s claim in bankruptcy, expectations of the workout/restructuring of the loan and valuation of the borrower’s equity or the loan collateral. When a loan is charged down to the estimated net realizable value, the determination of the fair value of the collateral depends on the type of collateral (e.g., securities, real estate). In cases where the collateral is in the form of liquid securities, the fair value is based on quoted market prices or broker quotes. For illiquid securities or other financial assets, the fair value of the collateral is estimated using a discounted cash flow model. For residential real estate loans, collateral values are based upon external valuation sources. When it becomes likely that a borrower is either unable or unwilling to pay, the Firm obtains a broker’s price opinion of the home based on an exterior-only valuation (“exterior opinions”), which is then updated at least every six months thereafter. As soon as practicable after the Firm receives the property in satisfaction of a debt (e.g., by taking legal title or physical possession), the Firm generally obtains an appraisal based on an inspection that includes the interior of the home (“interior appraisals”). Exterior opinions and interior appraisals are discounted based upon the Firm’s experience with actual liquidation values as compared with the estimated values provided by exterior opinions and interior appraisals, considering state-specific factors. For commercial real estate loans, collateral values are generally based on appraisals from internal and external valuation sources. Collateral values are typically updated every six to twelve months , either by obtaining a new appraisal or by performing an internal analysis, in accordance with the Firm’s policies. The Firm also considers both borrower- and market-specific factors, which may result in obtaining appraisal updates or broker price opinions at more frequent intervals. Loans held-for-sale Held-for-sale loans are measured at the lower of cost or fair value, with valuation changes recorded in noninterest revenue. For consumer loans, the valuation is performed on a portfolio basis. For wholesale loans, the valuation is performed on an individual loan basis. Interest income on loans held-for-sale is accrued and recognized based on the contractual rate of interest. Loan origination fees or costs and purchase price discounts or premiums are deferred in a contra loan account until the related loan is sold. The deferred fees or costs and discounts or premiums are an adjustment to the basis of the loan and therefore are included in the periodic determination of the lower of cost or fair value adjustments and/or the gain or loss recognized at the time of sale. Held-for-sale loans are subject to the nonaccrual policies described above. Because held-for-sale loans are recognized at the lower of cost or fair value, the Firm’s allowance for loan losses and charge-off policies do not apply to these loans. Loans at fair value Loans used in a market-making strategy or risk managed on a fair value basis are measured at fair value, with changes in fair value recorded in noninterest revenue. Interest income on these loans is accrued and recognized based on the contractual rate of interest. Changes in fair value are recognized in noninterest revenue. Loan origination fees are recognized upfront in noninterest revenue. Loan origination costs are recognized in the associated expense category as incurred. Because these loans are recognized at fair value, the Firm’s allowance for loan losses and charge-off policies do not apply to these loans. See Note 3 for further information on the Firm’s elections of fair value accounting under the fair value option. See Note 2 and Note 3 for further information on loans carried at fair value and classified as trading assets. PCI loans PCI loans held-for-investment are initially measured at fair value. PCI loans have evidence of credit deterioration since the loan’s origination date and therefore it is probable, at acquisition, that all contractually required payments will not be collected. Because PCI loans are initially measured at fair value, which includes an estimate of future credit losses, no allowance for loan losses related to PCI loans is recorded at the acquisition date. See page 223 of this Note for information on accounting for PCI loans subsequent to their acquisition. Loan classification changes Loans in the held-for-investment portfolio that management decides to sell are transferred to the held-for-sale portfolio at the lower of cost or fair value on the date of transfer. Credit-related losses are charged against the allowance for loan losses; non-credit related losses such as those due to changes in interest rates or foreign currency exchange rates are recognized in noninterest revenue. In the event that management decides to retain a loan in the held-for-sale portfolio, the loan is transferred to the held-for-investment portfolio at the lower of cost or fair value on the date of transfer. These loans are subsequently assessed for impairment based on the Firm’s allowance methodology. For a further discussion of the methodologies used in establishing the Firm’s allowance for loan losses, see Note 13 . Loan modifications The Firm seeks to modify certain loans in conjunction with its loss-mitigation activities. Through the modification, JPMorgan Chase grants one or more concessions to a borrower who is experiencing financial difficulty in order to minimize the Firm’s economic loss and avoid foreclosure or repossession of the collateral, and to ultimately maximize payments received by the Firm from the borrower. The concessions granted vary by program and by borrower-specific characteristics, and may include interest rate reductions, term extensions, payment deferrals, principal forgiveness, or the acceptance of equity or other assets in lieu of payments. Such modifications are accounted for and reported as TDRs. A loan that has been modified in a TDR is generally considered to be impaired until it matures, is repaid, or is otherwise liquidated, regardless of whether the borrower performs under the modified terms. In certain limited cases, the effective interest rate applicable to the modified loan is at or above the current market rate at the time of the restructuring. In such circumstances, and assuming that the loan subsequently performs under its modified terms and the Firm expects to collect all contractual principal and interest cash flows, the loan is disclosed as impaired and as a TDR only during the year of the modification; in subsequent years, the loan is not disclosed as an impaired loan or as a TDR so long as repayment of the restructured loan under its modified terms is reasonably assured. Loans, except for credit card loans, modified in a TDR are generally placed on nonaccrual status, although in many cases such loans were already on nonaccrual status prior to modification. These loans may be returned to performing status (the accrual of interest is resumed) if the following criteria are met: (i) the borrower has performed under the modified terms for a minimum of six months and/or six payments, and (ii) the Firm has an expectation that repayment of the modified loan is reasonably assured based on, for example, the borrower’s debt capacity and level of future earnings, collateral values, LTV ratios, and other current market considerations. In certain limited and well-defined circumstances in which the loan is current at the modification date, such loans are not placed on nonaccrual status at the time of modification. Because loans modified in TDRs are considered to be impaired, these loans are measured for impairment using the Firm’s established asset-specific allowance methodology, which considers the expected re-default rates for the modified loans. A loan modified in a TDR generally remains subject to the asset-specific allowance methodology throughout its remaining life, regardless of whether the loan is performing and has been returned to accrual status and/or the loan has been removed from the impaired loans disclosures (i.e., loans restructured at market rates). For further discussion of the methodology used to estimate the Firm’s asset-specific allowance, see Note 13 . Foreclosed property The Firm acquires property from borrowers through loan restructurings, workouts, and foreclosures. Property acquired may include real property (e.g., residential real estate, land, and buildings) and commercial and personal property (e.g., automobiles, aircraft, railcars, and ships). The Firm recognizes foreclosed property upon receiving assets in satisfaction of a loan (e.g., by taking legal title or physical possession). For loans collateralized by real property, the Firm generally recognizes the asset received at foreclosure sale or upon the execution of a deed in lieu of foreclosure transaction with the borrower. Foreclosed assets are reported in other assets on the Consolidated balance sheets and initially recognized at fair value less costs to sell. Each quarter the fair value of the acquired property is reviewed and adjusted, if necessary, to the lower of cost or fair value. Subsequent adjustments to fair value are charged/credited to noninterest revenue. Operating expense, such as real estate taxes and maintenance, are charged to other expense. Loan portfolio The Firm’s loan portfolio is divided into three portfolio segments, which are the same segments used by the Firm to determine the allowance for loan losses: Consumer, excluding credit card; Credit card; and Wholesale. Within each portfolio segment the Firm monitors and assesses the credit risk in the following classes of loans, based on the risk characteristics of each loan class. Consumer, excluding credit card (a) Credit card Wholesale (f) Residential real estate – excluding PCI • Residential mortgage (b) • Home equity (c) Other consumer loans • Auto (d) • Consumer & Business Banking (d)(e) • Student Residential real estate – PCI • Home equity • Prime mortgage • Subprime mortgage • Option ARMs • Credit card loans • Commercial and industrial • Real estate • Financial institutions • Government agencies • Other (g) (a) Includes loans held in CCB, prime mortgage and home equity loans held in AWM and prime mortgage loans held in Corporate . (b) Predominantly includes prime (including option ARMs) and subprime loans. (c) Includes senior and junior lien home equity loans. (d) Includes certain business banking and auto dealer risk-rated loans that apply the wholesale methodology for determining the allowance for loan losses; these loans are managed by CCB, and therefore, for consistency in presentation, are included with the other consumer loan classes. (e) Predominantly includes Business Banking loans. (f) Includes loans held in CIB, CB, AWM and Corporate. Excludes prime mortgage and home equity loans held in AWM and prime mortgage loans held in Corporate. Classes are internally defined and may not align with regulatory definitions. (g) Includes loans to: individuals; SPEs; and private education and civic organizations. For more information on SPEs, see Note 14 . The following tables summarize the Firm’s loan balances by portfolio segment. December 31, 2017 Consumer, excluding credit card Credit card (a) Wholesale Total (in millions) Retained $ 372,553 $ 149,387 $ 402,898 $ 924,838 (b) Held-for-sale 128 124 3,099 3,351 At fair value — — 2,508 2,508 Total $ 372,681 $ 149,511 $ 408,505 $ 930,697 December 31, 2016 Consumer, excluding credit card Credit card (a) Wholesale Total (in millions) Retained $ 364,406 $ 141,711 $ 383,790 $ 889,907 (b) Held-for-sale 238 105 2,285 2,628 At fair value — — 2,230 2,230 Total $ 364,644 $ 141,816 $ 388,305 $ 894,765 (a) Includes accrued interest and fees net of an allowance for the uncollectible portion of accrued interest and fee income. (b) Loans (other than PCI loans and 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 December 31, 2017 and 2016 . The following table provides information about the carrying value of retained loans purchased, sold and reclassified to held-for-sale during the periods indicated. This table excludes loans recorded at fair value. The Firm manages its exposure to credit risk on an ongoing basis. Selling loans is one way that the Firm reduces its credit exposures. 2017 Year ended December 31, Consumer, excluding credit card Credit card Wholesale Total Purchases $ 3,461 (a)(b) $ — $ 1,799 $ 5,260 Sales 3,405 — 11,063 14,468 Retained loans reclassified to held-for-sale 6,340 (c) — 1,229 7,569 2016 Year ended December 31, Consumer, excluding credit card Credit card Wholesale Total Purchases $ 4,116 (a)(b) $ — $ 1,448 $ 5,564 Sales 6,368 — 8,739 15,107 Retained loans reclassified to held-for-sale 321 — 2,381 2,702 2015 Year ended December 31, Consumer, excluding credit card Credit card Wholesale Total Purchases $ 5,279 (a)(b) $ — $ 2,154 $ 7,433 Sales 5,099 — 9,188 14,287 Retained loans reclassified to held-for-sale 1,514 79 642 2,235 (a) Purchases predominantly represent the Firm’s voluntary repurchase of certain delinquent loans from loan pools as permitted by Government National Mortgage Association (“Ginnie Mae”) guidelines. The Firm typically elects to repurchase these delinquent loans as it continues to service them and/or manage the foreclosure process in accordance with applicable requirements of Ginnie Mae, FHA, RHS, and/or VA. (b) Excludes purchases of retained loans sourced through the correspondent origination channel and underwritten in accordance with the Firm’s standards. Such purchases were $23.5 billion , $30.4 billion and $50.3 billion for the years ended December 31, 2017 , 2016 and 2015 , respectively. (c) Includes the Firm’s student loan portfolio which was sold in 2017. The following table provides information about gains and losses on loan sales, including lower of cost or fair value adjustments, on loan sales by portfolio segment. Year ended December 31, (in millions) 2017 2016 2015 Net gains/(losses) on sales of loans (including lower of cost or fair value adjustments) (a) Consumer, excluding credit card (b) $ (126 ) $ 231 $ 305 Credit card (8 ) (12 ) 1 Wholesale 41 26 34 Total net gains/(losses) on sales of loans (including lower of cost or fair value adjustments) $ (93 ) $ 245 $ 340 (a) Excludes sales related to loans accounted for at fair value. (b) Includes amounts related to the Firm’s student loan portfolio which was sold in 2017. Consumer, excluding credit card, loan portfolio Consumer loans, excluding credit card loans, consist primarily of residential mortgages, home equity loans and lines of credit, auto loans, consumer and business banking loans and student 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 table below provides information about retained consumer loans, excluding credit card, by class. In 2017, the Firm sold its student loan portfolio. December 31, (in millions) 2017 2016 Residential real estate – excluding PCI Residential mortgage (a) $ 216,496 $ 192,486 Home equity 33,450 39,063 Other consumer loans Auto 66,242 65,814 Consumer & Business Banking (a) 25,789 24,307 Student (a) — 7,057 Residential real estate – PCI Home equity 10,799 12,902 Prime mortgage 6,479 7,602 Subprime mortgage 2,609 2,941 Option ARMs 10,689 12,234 Total retained loans $ 372,553 $ 364,406 (a) Certain loan portfolios have been reclassified. The prior period amounts have been revised to conform with the current period presentation. Delinquency rates are a primary credit quality indicator for consumer loans. Loans that are more than 30 days past due provide an early warning of borrowers who may be experiencing financial difficulties and/or who may be unable or unwilling to repay the loan. As the loan continues to age, it becomes more clear whether the borrower is likely either unable or unwilling to pay. In the case of residential real estate loans, late-stage delinquencies (greater than 150 days past due) are a strong indicator of loans that will ultimately result in a foreclosure or similar liquidation transaction. In addition to delinquency rates, other credit quality indicators for consumer loans vary based on the class of loan, as follows: • For residential real estate loans, including both non-PCI and PCI portfolios, the current estimated LTV ratio, or the combined LTV ratio in the case of junior lien loans, is an indicator of the potential loss severity in the event of default. Additionally, LTV or combined LTV ratios can provide insight into a borrower’s continued willingness to pay, as the delinquency rate of high-LTV loans tends to be greater than that for loans where the borrower has equity in the collateral. The geographic distribution of the loan collateral also provides insight as to the credit quality of the portfolio, as factors such as the regional economy, home price changes and specific events such as natural disasters, will affect credit quality. The borrower’s current or “refreshed” FICO score is a secondary credit-quality indicator for certain loans, as FICO scores are an indication of the borrower’s credit payment history. Thus, a loan to a borrower with a low FICO score (less than 660 ) is considered to be of higher risk than a loan to a borrower with a higher FICO score. Further, a loan to a borrower with a high LTV ratio and a low FICO score is at greater risk of default than a loan to a borrower that has both a high LTV ratio and a high FICO score. • For scored auto and scored business banking loans, geographic distribution is an indicator of the credit performance of the portfolio. Similar to residential real estate loans, geographic distribution provides insights into the portfolio performance based on regional economic activity and events. • Risk-rated business banking and auto loans are similar to wholesale loans in that the primary credit quality indicators are the risk rating that is assigned to the loan and whether the loans are considered to be criticized and/or nonaccrual. Risk ratings are reviewed on a regular and ongoing basis by Credit Risk Management and are adjusted as necessary for updated information about borrowers’ ability to fulfill their obligations. For further information about risk-rated wholesale loan credit quality indicators, see page 228 of this Note. Residential real estate — excluding PCI loans The following table provides information by class for residential real estate — excluding retained PCI loans. Residential real estate – excluding PCI loans December 31, (in millions, except ratios) Residential mortgage (g) Home equity Total residential real estate – excluding PCI 2017 2016 2017 2016 2017 2016 Loan delinquency (a) Current $ 208,713 $ 184,133 $ 32,391 $ 37,941 $ 241,104 $ 222,074 30–149 days past due 4,234 3,828 671 646 4,905 4,474 150 or more days past due 3,549 4,525 388 476 3,937 5,001 Total retained loans $ 216,496 $ 192,486 $ 33,450 $ 39,063 $ 249,946 $ 231,549 % of 30+ days past due to total retained loans (b) 0.77 % 0.75 % 3.17 % 2.87 % 1.09 % 1.11 % 90 or more days past due and government guarantee d (c) $ 4,172 $ 4,858 — — $ 4,172 $ 4,858 Nonaccrual loans 2,175 2,256 1,610 1,845 3,785 4,101 Current estimated LTV ratios (d)(e) Greater than 125% and refreshed FICO scores: Equal to or greater than 660 $ 37 $ 30 $ 10 $ 70 $ 47 $ 100 Less than 660 19 48 3 15 22 63 101% to 125% and refreshed FICO scores: Equal to or greater than 660 36 135 296 668 332 803 Less than 660 88 177 95 221 183 398 80% to 100% and refreshed FICO scores: Equal to or greater than 660 4,369 4,026 1,676 2,961 6,045 6,987 Less than 660 483 718 569 945 1,052 1,663 Less than 80% and refreshed FICO scores: Equal to or greater than 660 194,758 169,579 25,262 27,317 220,020 196,896 Less than 660 6,952 6,759 3,850 4,380 10,802 11,139 No FICO/LTV available 1,259 1,650 1,689 2,486 2,948 4,136 U.S. government-guaranteed 8,495 9,364 — — 8,495 9,364 Total retained loans $ 216,496 $ 192,486 $ 33,450 $ 39,063 $ 249,946 $ 231,549 Geographic region California $ 68,855 $ 59,802 $ 6,582 $ 7,644 $ 75,437 $ 67,446 New York 27,473 24,916 6,866 7,978 34,339 32,894 Illinois 14,501 13,126 2,521 2,947 17,022 16,073 Texas 12,508 10,772 2,021 2,225 14,529 12,997 Florida 9,598 8,395 1,847 2,133 11,445 10,528 New Jersey 7,142 6,374 1,957 2,253 9,099 8,627 Washington 6,962 5,451 1,026 1,229 7,988 6,680 Colorado 7,335 6,306 632 677 7,967 6,983 Massachusetts 6,323 5,834 295 371 6,618 6,205 Arizona 4,109 3,595 1,439 1,772 5,548 5,367 All other (f) 51,690 47,915 8,264 9,834 59,954 57,749 Total retained loans $ 216,496 $ 192,486 $ 33,450 $ 39,063 $ 249,946 $ 231,549 (a) Individual delinquency classifications include mortgage loans insured by U.S. government agencies as follows: current included $2.4 billion and $2.5 billion ; 30 – 149 days past due included $3.2 billion and $3.1 billion ; and 150 or more days past due included $2.9 billion and $3.8 billion at December 31, 2017 and 2016 , respectively. (b) At December 31, 2017 and 2016 , residential mortgage loans excluded mortgage loans insured by U.S. government agencies of $6.1 billion and $6.9 billion , respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee. (c) These balances, which are 90 days or more past due, were excluded from nonaccrual loans as the loans are guaranteed by U.S government agencies. Typically the principal balance of the loans is insured and interest is guaranteed at a specified reimbursement rate subject to meeting agreed-upon servicing guidelines. At December 31, 2017 and 2016 , these balances included $1.5 billion and $2.2 billion , respectively, of loans that are no longer accruing interest based on the agreed-upon servicing guidelines. For the remaining balance, interest is being accrued at the guaranteed reimbursement rate. There were no loans that were not guaranteed by U.S. government agencies that are 90 or more days past due and still accruing interest at December 31, 2017 and 2016 . (d) Represents the aggregate unpaid principal balance of loans divided by the estimated current property value. Current property values are estimated, at a minimum, quarterly, based on home valuation models using nationally recognized home price index valuation estimates incorporating actual data to the extent available and forecasted data where actual data is not available. These property values do not represent actual appraised loan level collateral values; as such, the resulting ratios are necessarily imprecise and should be viewed as estimates. Current estimated combined LTV for junior lien home equity loans considers all available lien positions, as well as unused lines, related to the property. (e) Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis. (f) At December 31, 2017 and 2016 , included mortgage loans insured by U.S. government agencies of $8.5 billion and $9.4 billion , respectively. (g) Certain loan portfolios have been reclassified. The prior period amounts have been revised to conform with the current period presentation. The following table represent s the Firm’s delinquency statistics for junior lien home equity loans and lines as of December 31, 2017 and 2016 . Total loans Total 30+ day delinquency rate December 31, (in millions except ratios) 2017 2016 2017 2016 HELOCs: (a) Within the revolving period (b) $ 6,363 $ 10,304 0.50 % 1.27 % Beyond the revolving period 13,532 13,272 3.56 3.05 HELOANs 1,371 1,861 3.50 2.85 Total $ 21,266 $ 25,437 2.64 % 2.32 % (a) These HELOCs are predominantly revolving loans for a 10 -year period, after which time the HELOC converts to a loan with a 20 -year amortization period, but also include HELOCs that allow interest-only payments beyond the revolving period. (b) The Firm manages the risk of HELOCs during their revolving period by closing or reducing the undrawn line to the extent permitted by law when borrowers are experiencing financial difficulty. HELOCs beyond the revolving period and HELOANs have higher delinquency rates than HELOCs within the revolving period. That is primarily because the fully-amortizing payment that is generally required for those products is higher than the minimum payment options available for HELOCs within the revolving period. The higher delinquency rates associated with amortizing HELOCs and HELOANs are factored into the Firm’s allowance for loan losses. Impaired loans The table below sets forth information about the Firm’s residential real estate impaired loans, excluding PCI loans. These loans are considered to be impaired as they have been modified in a TDR. All impaired loans are evaluated for an asset-specific allowance as described in Note 13 . December 31, (in millions) Residential mortgage Home equity Total residential real estate – excluding PCI 2017 2016 2017 2016 2017 2016 Impaired loans With an allowance $ 4,407 $ 4,689 $ 1,236 $ 1,266 $ 5,643 $ 5,955 Without an allowance (a) 1,213 1,343 882 998 2,095 2,341 Total impaired loans (b)(c) $ 5,620 $ 6,032 $ 2,118 $ 2,264 $ 7,738 $ 8,296 Allowance for loan losses related to impaired loans $ 62 $ 68 $ 111 $ 121 $ 173 $ 189 Unpaid principal balance of impaired loans (d) 7,741 8,285 3,701 3,847 11,442 12,132 Impaired loans on nonaccrual status (e) 1,743 1,755 1,032 1,116 2,775 2,871 (a) Represents collateral-dependent residential real estate loans that are charged off 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 December 31, 2017 , Chapter 7 residential real estate loans included approximately 12% of home equity and 15% of residential mortgages that were 30 days or more past due. (b) At December 31, 2017 and 2016 , $3.8 billion and $3.4 billion , respectively, of loans modified subsequent to repurchase from Ginnie Mae in accordance with the standards of the appropriate government agency (i.e., FHA, VA, RHS) are not included in the table above. When such loans perform subsequent to modification in accordance with Ginnie Mae guidelines, they are generally sold back into Ginnie Mae loan pools. Modified loans that do not re-perform become subject to f |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2017 | |
Allowance for Credit Losses [Abstract] | |
Allowance for Credit Losses | Allowance for credit losses JPMorgan Chase ’s allowance for loan losses represents management’s estimate of probable credit losses inherent in the Firm’s retained loan portfolio, which consists of the two consumer portfolio segments (primarily scored) and the wholesale portfolio segment (risk-rated). The allowance for loan losses includes a formula-based component, an asset-specific component, and a component related to PCI loans, as described below. Management also estimates an allowance for wholesale and certain consumer lending-related commitments using methodologies similar to those used to estimate the allowance on the underlying loans. During the second quarter of 2017, the Firm refined its credit loss estimates relating to the wholesale portfolio by incorporating the use of internal historical data versus external credit rating agency default statistics to estimate PD. In addition, an adjustment to the statistical calculation for wholesale lending-related commitments was incorporated similar to the adjustment applied for wholesale loans. The impacts of these refinements were not material to the allowance for credit losses. The Firm’s policies used to determine its allowance for credit losses are described in the following paragraphs. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the loan portfolio, in light of the factors then prevailing, may result in significant changes in the allowances for loan losses and lending-related commitments in future periods. At least quarterly, the allowance for credit losses is reviewed by the CRO, the CFO and the Controller of the Firm and discussed with the DRPC and the Audit Committee . As of December 31, 2017, JPMorgan Chase deemed the allowance for credit losses to be appropriate (i.e., sufficient to absorb probable credit losses inherent in the portfolio). Formula-based component The formula-based component is based on a statistical calculation to provide for incurred credit losses in all consumer loans and performing risk-rated loans. All loans restructured in TDRs as well as any impaired risk-rated loans have an allowance assessed as part of the asset-specific component, while PCI loans have an allowance assessed as part of the PCI component. See Note 12 for more information on TDRs, Impaired loans and PCI loans. Formula-based component - Consumer loans and certain lending-related commitments The formula-based allowance for credit losses for the consumer portfolio segments is calculated by applying statistical credit loss factors (estimated PD and loss severities) to the recorded investment balances or loan-equivalent amounts of pools of loan exposures with similar risk characteristics over a loss emergence period to arrive at an estimate of incurred credit losses. Estimated loss emergence periods may vary by product and may change over time; management applies judgment in estimating loss emergence periods, using available credit information and trends. In addition, management applies judgment to the statistical loss estimates for each loan portfolio category, using delinquency trends and other risk characteristics to estimate the total incurred credit losses in the portfolio. Management uses additional statistical methods and considers actual portfolio performance, including actual losses recognized on defaulted loans and collateral valuation trends, to review the appropriateness of the primary statistical loss estimate. The economic impact of potential modifications of residential real estate loans is not included in the statistical calculation because of the uncertainty regarding the type and results of such modifications. The statistical calculation is then adjusted to take into consideration model imprecision, external factors and current economic events that have occurred but that are not yet reflected in the factors used to derive the statistical calculation; these adjustments are accomplished in part by analyzing the historical loss experience for each major product segment. However, it is difficult to predict whether historical loss experience is indicative of future loss levels. Management applies judgment in making this adjustment, taking into account uncertainties associated with current macroeconomic and political conditions, quality of underwriting standards, borrower behavior, and other relevant internal and external factors affecting the credit quality of the portfolio. In certain instances, the interrelationships between these factors create further uncertainties. The application of different inputs into the statistical calculation, and the assumptions used by management to adjust the statistical calculation, are subject to management judgment, and emphasizing one input or assumption over another, or considering other inputs or assumptions, could affect the estimate of the allowance for credit losses for the consumer credit portfolio. Overall, the allowance for credit losses for consumer portfolios is sensitive to changes in the economic environment (e.g., unemployment rates), delinquency rates, the realizable value of collateral (e.g., housing prices), FICO scores, borrower behavior and other risk factors. While all of these factors are important determinants of overall allowance levels, changes in the various factors may not occur at the same time or at the same rate, or changes may be directionally inconsistent such that improvement in one factor may offset deterioration in another. In addition, changes in these factors would not necessarily be consistent across all geographies or product types. Finally, it is difficult to predict the extent to which changes in these factors would ultimately affect the frequency of losses, the severity of losses or both. Formula-based component - Wholesale loans and lending-related commitments The Firm’s methodology for determining the allowance for loan losses and the allowance for lending-related commitments involves the early identification of credits that are deteriorating. The formula-based component of the allowance for wholesale loans and lending-related commitments is calculated by applying statistical credit loss factors (estimated PD and LGD) to the recorded investment balances or loan-equivalent over a loss emergence period to arrive at an estimate of incurred credit losses in the portfolio. Estimated loss emergence periods may vary by funded versus unfunded status of the instrument and may change over time. The Firm assesses the credit quality of its borrower or counterparty and assigns a risk rating. Risk ratings are assigned at origination or acquisition, and if necessary, adjusted for changes in credit quality over the life of the exposure. In assessing the risk rating of a particular loan or lending-related commitment, among the factors considered are the obligor’s debt capacity and financial flexibility, the level of the obligor’s earnings, the amount and sources for repayment, the level and nature of contingencies, management strength, and the industry and geography in which the obligor operates. These factors are based on an evaluation of historical and current information and involve subjective assessment and interpretation. Determining risk ratings involves significant judgment; emphasizing one factor over another or considering additional factors could affect the risk rating assigned by the Firm. A PD estimate is determined based on the Firm’s history of defaults over more than one credit cycle. LGD estimate is a judgment-based estimate assigned to each loan or lending-related commitment. The estimate represents the amount of economic loss if the obligor were to default. The type of obligor, quality of collateral, and the seniority of the Firm’s lending exposure in the obligor’s capital structure affect LGD. The Firm applies judgment in estimating PD, LGD, loss emergence period and loan-equivalent used in calculating the allowance for credit losses. Estimates of PD, LGD, loss emergence period and loan-equivalent used are subject to periodic refinement based on any changes to underlying external or Firm- specific historical data. Changes to the time period used for PD and LGD estimates could also affect the allowance for credit losses. The use of different inputs, estimates or methodologies could change the amount of the allowance for credit losses determined appropriate by the Firm. In addition to the statistical credit loss estimates applied to the wholesale portfolio, management applies its judgment to adjust the statistical estimates for wholesale loans and lending-related commitments, taking into consideration model imprecision, external factors and economic events that have occurred but are not yet reflected in the loss factors. Historical experience of both LGD and PD are considered when estimating these adjustments. Factors related to concentrated and deteriorating industries also are incorporated where relevant. These estimates are based on management’s view of uncertainties that relate to current macroeconomic conditions, quality of underwriting standards and other relevant internal and external factors affecting the credit quality of the current portfolio. Asset-specific component The asset-specific component of the allowance relates to loans considered to be impaired, which includes loans that have been modified in TDRs as well as risk-rated loans that have been placed on nonaccrual status. To determine the asset-specific component of the allowance, larger risk-rated loans (primarily loans in the wholesale portfolio segment) are evaluated individually, while smaller loans (both risk-rated and scored) are evaluated as pools using historical loss experience for the respective class of assets. The Firm generally measures the asset-specific allowance as the difference between the recorded investment in the loan and the present value of the cash flows expected to be collected, discounted at the loan’s original effective interest rate. Subsequent changes in impairment are reported as an adjustment to the allowance for loan losses. In certain cases, the asset-specific allowance is determined using an observable market price, and the allowance is measured as the difference between the recorded investment in the loan and the loan’s fair value. Collateral-dependent loans are charged down to the fair value of collateral less costs to sell. For any of these impaired loans, the amount of the asset-specific allowance required to be recorded, if any, is dependent upon the recorded investment in the loan (including prior charge-offs), and either the expected cash flows or fair value of collateral. See Note 12 for more information about charge-offs and collateral-dependent loans. The asset-specific component of the allowance for impaired loans that have been modified in TDRs (including forgone interest, principal forgiveness, as well as other concessions) incorporates the effect of the modification on the loan’s expected cash flows, which considers the potential for redefault. For residential real estate loans modified in TDRs, the Firm develops product-specific probability of default estimates, which are applied at a loan level to compute expected losses. In developing these probabilities of default, the Firm considers the relationship between the credit quality characteristics of the underlying loans and certain assumptions about home prices and unemployment, based upon industry-wide data. The Firm also considers its own historical loss experience to-date based on actual redefaulted modified loans. For credit card loans modified in TDRs, expected losses incorporate projected redefaults based on the Firm’s historical experience by type of modification program. For wholesale loans modified in TDRs, expected losses incorporate management’s expectation of the borrower’s ability to repay under the modified terms. Estimating the timing and amounts of future cash flows is highly judgmental as these cash flow projections rely upon estimates such as loss severities, asset valuations, default rates (including redefault rates on modified loans), the amounts and timing of interest or principal payments (including any expected prepayments) or other factors that are reflective of current and expected market conditions. These estimates are, in turn, dependent on factors such as the duration of current overall economic conditions, industry-, portfolio-, or borrower-specific factors, the expected outcome of insolvency proceedings as well as, in certain circumstances, other economic factors, including the level of future home prices. All of these estimates and assumptions require significant management judgment and certain assumptions are highly subjective. PCI loans In connection with the acquisition of certain PCI loans, which are accounted for as described in Note 12 , the allowance for loan losses for the PCI portfolio is based on quarterly estimates of the amount of principal and interest cash flows expected to be collected over the estimated remaining lives of the loans. These cash flow projections are based on estimates regarding default rates (including redefault rates on modified loans), loss severities, the amounts and timing of prepayments and other factors that are reflective of current and expected future market conditions. These estimates are dependent on assumptions regarding the level of future home prices, and the duration of current overall economic conditions, among other factors. These estimates and assumptions require significant management judgment and certain assumptions are highly subjective. Allowance for credit losses and related information The table below summarizes information about the allowances for loan losses and lending-relating commitments, and includes a breakdown of loans and lending-related commitments by impairment methodology. 2017 Year ended December 31, (in millions) Consumer, excluding credit card Credit card Wholesale Total Allowance for loan losses Beginning balance at January 1, $ 5,198 $ 4,034 $ 4,544 $ 13,776 Gross charge-offs 1,779 4,521 212 6,512 Gross recoveries (634 ) (398 ) (93 ) (1,125 ) Net charge-offs 1,145 4,123 119 5,387 Write-offs of PCI loans (a) 86 — — 86 Provision for loan losses 613 4,973 (286 ) 5,300 Other (1 ) — 2 1 Ending balance at December 31, $ 4,579 $ 4,884 $ 4,141 $ 13,604 Allowance for loan losses by impairment methodology Asset-specific (b) $ 246 $ 383 (c) $ 461 $ 1,090 Formula-based 2,108 4,501 3,680 10,289 PCI 2,225 — — 2,225 Total allowance for loan losses $ 4,579 $ 4,884 $ 4,141 $ 13,604 Loans by impairment methodology Asset-specific $ 8,036 $ 1,215 $ 1,867 $ 11,118 Formula-based 333,941 148,172 401,028 883,141 PCI 30,576 — 3 30,579 Total retained loans $ 372,553 $ 149,387 $ 402,898 $ 924,838 Impaired collateral-dependent loans Net charge-offs $ 64 $ — $ 31 $ 95 Loans measured at fair value of collateral less cost to sell 2,133 — 233 2,366 Allowance for lending-related commitments Beginning balance at January 1, $ 26 $ — $ 1,052 $ 1,078 Provision for lending-related commitments 7 — (17 ) (10 ) Other — — — — Ending balance at December 31, $ 33 $ — $ 1,035 $ 1,068 Allowance for lending-related commitments by impairment methodology Asset-specific $ — $ — $ 187 $ 187 Formula-based 33 — 848 881 Total allowance for lending-related commitments $ 33 $ — $ 1,035 $ 1,068 Lending-related commitments by impairment methodology Asset-specific $ — $ — $ 731 $ 731 Formula-based 48,553 572,831 369,367 990,751 Total lending-related commitments $ 48,553 $ 572,831 $ 370,098 $ 991,482 (a) Write-offs of PCI loans are recorded against the allowance for loan losses when actual losses for a pool exceed estimated losses that were recorded as purchase accounting adjustments at the time of acquisition. A write-off of a PCI loan is recognized when the underlying loan is removed from a pool. (b) Includes risk-rated loans that have been placed on nonaccrual status and all loans that have been modified in a TDR. (c) The asset-specific credit card allowance for loan losses is related to loans that have been modified in a TDR; such allowance is calculated based on the loans’ original contractual interest rates and does not consider any incremental penalty rates. (d) The prior period amounts have been revised to conform with the current period presentation. (table continued from previous page) 2016 2015 Consumer, excluding credit card Credit card Wholesale Total Consumer, excluding credit card Credit card Wholesale Total $ 5,806 $ 3,434 $ 4,315 $ 13,555 $ 7,050 $ 3,439 $ 3,696 $ 14,185 1,500 3,799 398 5,697 1,658 3,488 95 5,241 (591 ) (357 ) (57 ) (1,005 ) (704 ) (366 ) (85 ) (1,155 ) 909 3,442 341 4,692 954 3,122 10 4,086 156 — — 156 208 — — 208 467 4,042 571 5,080 (82 ) 3,122 623 3,663 (10 ) — (1 ) (11 ) — (5 ) 6 1 $ 5,198 $ 4,034 $ 4,544 $ 13,776 $ 5,806 $ 3,434 $ 4,315 $ 13,555 $ 308 $ 358 (c) $ 342 $ 1,008 $ 364 $ 460 (c) $ 274 $ 1,098 2,579 3,676 4,202 10,457 2,700 2,974 4,041 9,715 2,311 — — 2,311 2,742 — — 2,742 $ 5,198 $ 4,034 $ 4,544 $ 13,776 $ 5,806 $ 3,434 $ 4,315 $ 13,555 $ 8,940 $ 1,240 $ 2,017 $ 12,197 $ 9,606 $ 1,465 $ 1,024 $ 12,095 319,787 140,471 381,770 842,028 293,751 129,922 356,022 779,695 35,679 — 3 35,682 40,998 — 4 41,002 $ 364,406 $ 141,711 $ 383,790 $ 889,907 $ 344,355 $ 131,387 $ 357,050 $ 832,792 $ 98 $ — $ 7 $ 105 $ 104 $ — $ 16 $ 120 2,391 — 300 2,691 2,566 — 283 2,849 $ 14 $ — $ 772 $ 786 $ 13 $ — $ 609 $ 622 — — 281 281 1 — 163 164 12 — (1 ) 11 — — — — $ 26 $ — $ 1,052 $ 1,078 $ 14 $ — $ 772 $ 786 $ — $ — $ 169 $ 169 $ — $ — $ 73 $ 73 26 — 883 909 14 — 699 713 $ 26 $ — $ 1,052 $ 1,078 $ 14 $ — $ 772 $ 786 $ — $ — $ 506 $ 506 $ — $ — $ 193 $ 193 53,247 (d) 553,891 367,508 974,646 (d) 56,865 (d) 515,518 366,206 938,589 (d) $ 53,247 (d) $ 553,891 $ 368,014 $ 975,152 (d) $ 56,865 (d) $ 515,518 $ 366,399 $ 938,782 (d) |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2017 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable interest entities For a further description of JPMorgan Chase’s accounting policies regarding consolidation of VIEs, see Note 1 . The following table summarizes the most significant types of Firm -sponsored VIEs by business segment. The Firm considers a “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 Business Transaction Type Activity Annual Report page references CCB Credit card securitization trusts Securitization of originated credit card receivables 236-237 Mortgage securitization trusts Servicing and securitization of both originated and purchased residential mortgages 237-239 CIB Mortgage and other securitization trusts Securitization of both originated and purchased residential and commercial mortgages and other consumer loans 237-239 Multi-seller conduits Assist clients in accessing the financial markets in a cost-efficient manner and structures transactions to meet investor needs 239 Municipal bond vehicles Financing of municipal bond investments 239-240 The Firm’s other business segments are also involved with VIEs (both third-party and Firm -sponsored), but to a lesser extent, as follows: • Asset & Wealth Management: AWM sponsors and manages certain funds that are deemed VIEs. As asset manager of the funds, AWM earns a fee based on assets managed; the fee varies with each fund’s investment objective and is competitively priced. For fund entities that qualify as VIEs, AWM’s interests are, in certain cases, considered to be significant variable interests that result in consolidation of the financial results of these entities. • Commercial Banking: CB provides financing and lending-related services to a wide spectrum of clients, including certain third party-sponsored entities that may meet the definition of a VIE. CB does not control the activities of these entities and does not consolidate these entities. CB’s maximum loss exposure, regardless of whether the entity is a VIE, is generally limited to loans and lending-related commitments which are reported and disclosed in the same manner as any other third-party transaction. • Corporate : Corporate is involved with entities that may meet the definition of VIEs; however these entities are generally subject to specialized investment company accounting, which does not require the consolidation of investments, including VIEs. In addition, Treasury and CIO invest in securities generally issued by third parties which may meet the definition of VIEs (e.g., issuers of asset-backed securities). In general, the Firm does not have the power to direct the significant activities of these entities and therefore does not consolidate these entities. See Note 10 for further information on the Firm’s investment securities portfolio. In addition, CIB also invests in and provides financing and other services to VIEs sponsored by third parties. See pages 241-242 of this Note for more information on the VIEs sponsored by third parties. Significant Firm-sponsored variable interest entities Credit card securitizations CCB’s Card business securitizes originated credit card loans, primarily through the Chase Issuance Trust (the “Trust”). The Firm’s continuing involvement in credit card securitizations includes servicing the receivables, retaining an undivided seller’s interest in the receivables, retaining certain senior and subordinated securities and maintaining escrow accounts. The Firm is considered to be the primary beneficiary of these Firm-sponsored credit card securitization trusts based on the Firm’s ability to direct the activities of these VIEs through its servicing responsibilities and other duties, including making decisions as to the receivables that are transferred into those trusts and as to any related modifications and workouts. Additionally, the nature and extent of the Firm’s other continuing involvement with the trusts, as indicated above, obligates the Firm to absorb losses and gives the Firm the right to receive certain benefits from these VIEs that could potentially be significant. The underlying securitized credit card receivables and other assets of the securitization trusts are available only for payment of the beneficial interests issued by the securitization trusts; they are not available to pay the Firm’s other obligations or the claims of the Firm’s creditors. The agreements with the credit card securitization trusts require the Firm to maintain a minimum undivided interest in the credit card trusts (generally 5% ). As of December 31, 2017 and 2016 , the Firm held undivided interests in Firm-sponsored credit card securitization trusts of $15.8 billion and $8.9 billion , respectively. The Firm maintained an average undivided interest in principal receivables owned by those trusts of approximately 26% and 16% for the years ended December 31, 2017 and 2016 . As of both December 31, 2017 and 2016 , the Firm did not retain any senior securities and retained $4.5 billion and $5.3 billion of subordinated securities in certain of its credit card securitization trusts as of December 31, 2017 and 2016 , respectively. The Firm’s undivided interests in the credit card trusts and securities retained are eliminated in consolidation. 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. The following table presents the total unpaid principal amount of assets held in Firm -sponsored private-label securitization entities, including those in which the Firm has continuing involvement, and those that are consolidated by the Firm. Continuing involvement includes servicing the loans, holding senior interests or subordinated interests (including amounts required to be held pursuant to credit risk retention rules), recourse or guarantee arrangements, and derivative transactions. In certain instances, the Firm’s only continuing involvement is servicing the loans. See Securitization activity on page 242 of this Note for further information regarding the Firm’s cash flows with and interests retained in nonconsolidated VIEs, and page 243 of this Note for information on the Firm’s loan sales to U.S. government agencies. Principal amount outstanding JPMorgan Chase interest in securitized assets in nonconsolidated VIEs (c)(d)(e) December 31, 2017 (in millions) Total assets held by securitization VIEs Assets held in consolidated securitization VIEs Assets held in nonconsolidated securitization VIEs with continuing involvement Trading assets Securities Other financial assets Total interests held by JPMorgan Chase Securitization-related (a) Residential mortgage: Prime/Alt-A and option ARMs $ 68,874 $ 3,615 $ 52,280 $ 410 $ 943 $ — $ 1,353 Subprime 18,984 7 17,612 93 — — 93 Commercial and other (b) 94,905 63 63,411 745 1,133 157 2,035 Total $ 182,763 $ 3,685 $ 133,303 $ 1,248 $ 2,076 $ 157 $ 3,481 Principal amount outstanding JPMorgan Chase interest in securitized assets in nonconsolidated VIEs (c)(d)(e) December 31, 2016(in millions) Total assets held by securitization VIEs Assets held in consolidated securitization VIEs Assets held in nonconsolidated securitization VIEs with continuing involvement Trading assets Securities Other financial assets Total interests held by JPMorgan Chase Securitization-related (a) Residential mortgage: Prime/Alt-A and option ARMs $ 76,789 $ 4,209 $ 57,543 $ 226 $ 1,334 $ — $ 1,560 Subprime 21,542 — 19,903 76 — — 76 Commercial and other (b) 101,265 107 71,464 509 2,064 — 2,573 Total $ 199,596 $ 4,316 $ 148,910 $ 811 $ 3,398 $ — $ 4,209 (a) Excludes U.S. government agency securitizations and re-securitizations, which are not Firm-sponsored. See page 243 of this Note for information on the Firm’s loan sales to U.S. government agencies. (b) Consists of securities backed by commercial loans (predominantly real estate) and non-mortgage-related consumer receivables purchased from third parties. (c) Excludes the following: retained servicing (see Note 15 for a discussion of MSRs); securities retained from loan sales to U.S. government agencies; interest rate and foreign exchange derivatives primarily used to manage interest rate and foreign exchange risks of securitization entities (See Note 5 for further information on derivatives); senior and subordinated securities of $88 million and $48 million , respectively, at December 31, 2017 , and $180 million and $49 million , respectively, at December 31, 2016 , which the Firm purchased in connection with CIB’s secondary market-making activities. (d) Includes interests held in re-securitization transactions. (e) As of December 31, 2017 and 2016 , 61% and 61% , respectively, of the Firm’s retained securitization interests, which are predominantly carried at fair value and include amounts required to be held pursuant to credit risk retention rules, were risk-rated “A” or better, on an S&P-equivalent basis. The retained interests in prime residential mortgages consisted of $1.3 billion and $1.5 billion of investment-grade and $48 million and $77 million of noninvestment-grade retained interests at December 31, 2017 and 2016 , respectively. The retained interests in commercial and other securitizations trusts consisted of $1.6 billion and $2.4 billion of investment-grade and $412 million and $210 million of noninvestment-grade retained interests at December 31, 2017 and 2016 , respectively. Residential mortgage The Firm securitizes residential mortgage loans originated by CCB, as well as residential mortgage loans purchased from third parties by either CCB or CIB. CCB generally retains servicing for all residential mortgage loans it originated or purchased , and for certain mortgage loans purchased by CIB. For securitizations of loans serviced by CCB, the Firm has the power to direct the significant activities of the VIE because it is responsible for decisions related to loan modifications and workouts. CCB may also retain an interest upon securitization. In addition, CIB engages in underwriting and trading activities involving securities issued by Firm -sponsored securitization trusts. As a result, CIB at times retains senior and/or subordinated interests (including residual interests and amounts required to be held pursuant to credit risk retention rules) in residential mortgage securitizations at the time of securitization, and/or reacquires positions in the secondary market in the normal course of business. In certain instances, as a result of the positions retained or reacquired by CIB or held by CCB, when considered together with the servicing arrangements entered into by CCB, the Firm is deemed to be the primary beneficiary of certain securitization trusts. See the table on page 241 of this Note for more information on consolidated residential mortgage securitizations. The Firm does not consolidate a residential mortgage securitization (Firm -sponsored or third-party-sponsored) when it is not the servicer (and therefore does not have the power to direct the most significant activities of the trust) or does not hold a beneficial interest in the trust that could potentially be significant to the trust. See the table on page 241 of this Note for more information on the consolidated residential mortgage securitizations, and the table on the previous page of this Note for further information on interests held in nonconsolidated residential mortgage securitizations. Commercial mortgages and other consumer securitizations CIB originates and securitizes commercial mortgage loans, and engages in underwriting and trading activities involving the securities issued by securitization trusts. CIB may retain unsold senior and/or subordinated interests (including amounts required to be held pursuant to credit risk retention rules) in commercial mortgage securitizations at the time of securitization but, generally, the Firm does not service commercial loan securitizations. For commercial mortgage securitizations the power to direct the significant activities of the VIE generally is held by the servicer or investors in a specified class of securities (“controlling class”). The Firm generally does not retain an interest in the controlling class in its sponsored commercial mortgage securitization transactions. See the table on page 241 of this Note for more information on the consolidated commercial mortgage securitizations, and the table on the previous page of this Note for further information on interests held in nonconsolidated securitizations. Re-securitizations The Firm engages in certain re-securitization transactions in which debt securities are transferred to a VIE in exchange for new beneficial interests. These transfers occur in connection with both agency (Federal National Mortgage Association (“Fannie Mae”), Federal Home Loan Mortgage Corporation (“Freddie Mac”) and Government National Mortgage Association (“Ginnie Mae”)) and nonagency (private-label) sponsored VIEs, which may be backed by either residential or commercial mortgages. The Firm’s consolidation analysis is largely dependent on the Firm’s role and interest in the re-securitization trusts. The following table presents the principal amount of securities transferred to re-securitization VIEs. Year ended December 31, 2017 2016 2015 Transfers of securities to VIEs Firm-sponsored private-label $ — $ 647 $ 777 Agency $ 12,617 $ 11,241 $ 21,908 Most re-securitizations with which the Firm is involved are client-driven transactions in which a specific client or group of clients is seeking a specific return or risk profile. For these transactions, the Firm has concluded that the decision-making power of the entity is shared between the Firm and its clients, considering the joint effort and decisions in establishing the re-securitization trust and its assets, as well as the significant economic interest the client holds in the re-securitization trust; therefore the Firm does not consolidate the re-securitization VIE. In more limited circumstances, the Firm creates a nonagency re-securitization trust independently and not in conjunction with specific clients. In these circumstances, the Firm is deemed to have the unilateral ability to direct the most significant activities of the re-securitization trust because of the decisions made during the establishment and design of the trust; therefore, the Firm consolidates the re-securitization VIE if the Firm holds an interest that could potentially be significant. Additionally, the Firm may invest in beneficial interests of third-party re-securitizations and generally purchases these interests in the secondary market. In these circumstances, the Firm does not have the unilateral ability to direct the most significant activities of the re-securitization trust, either because it was not involved in the initial design of the trust, or the Firm is involved with an independent third-party sponsor and demonstrates shared power over the creation of the trust; therefore, the Firm does not consolidate the re-securitization VIE. The following table presents information on nonconsolidated re-securitization VIEs. Year ended December 31, (in millions) 2017 2016 Firm-sponsored private-label Assets held in VIEs with continuing involvement (a) 783 875 Interest in VIEs 29 43 Agency Interest in VIEs 2,250 1,986 (a) Represents the principal amount and includes the notional amount of interest-only securities. As of December 31, 2017 and 2016 , the Firm did not consolidate any agency re-securitizations or any Firm-sponsored private-label re-securitizations. Multi-seller conduits Multi-seller conduit entities are separate bankruptcy remote entities that provide secured financing, collateralized by pools of receivables and other financial assets, to customers of the Firm. The conduits fund their financing facilities through the issuance of highly rated commercial paper. The primary source of repayment of the commercial paper is the cash flows from the pools of assets. In most instances, the assets are structured with deal-specific credit enhancements provided to the conduits by the customers (i.e., sellers) or other third parties. Deal-specific credit enhancements are generally structured to cover a multiple of historical losses expected on the pool of assets, and are typically in the form of overcollateralization provided by the seller. The deal-specific credit enhancements mitigate the Firm’s potential losses on its agreements with the conduits. To ensure timely repayment of the commercial paper, and to provide the conduits with funding to provide financing to customers in the event that the conduits do not obtain funding in the commercial paper market, each asset pool financed by the conduits has a minimum 100% deal-specific liquidity facility associated with it provided by JPMorgan Chase Bank, N.A. JPMorgan Chase Bank, N.A. also provides the multi-seller conduit vehicles with uncommitted program-wide liquidity facilities and program-wide credit enhancement in the form of standby letters of credit. The amount of program-wide credit enhancement required is based upon commercial paper issuance and approximates 10% of the outstanding balance of commercial paper. The Firm consolidates its Firm -administered multi-seller conduits, as the Firm has both the power to direct the significant activities of the conduits and a potentially significant economic interest in the conduits. As administrative agent and in its role in structuring transactions, the Firm makes decisions regarding asset types and credit quality, and manages the commercial paper funding needs of the conduits. The Firm’s interests that could potentially be significant to the VIEs include the fees received as administrative agent and liquidity and program-wide credit enhancement provider, as well as the potential exposure created by the liquidity and credit enhancement facilities provided to the conduits. See page 241 of this Note for further information on consolidated VIE assets and liabilities. 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 $20.4 billion and $21.2 billion of the commercial paper issued by the Firm -administered multi-seller conduits at December 31, 2017 and 2016 , 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 $8.8 billion and $7.4 billion at December 31, 2017 and 2016 , respectively, and are reported as off-balance sheet lending-related commitments. For more information on off-balance sheet lending-related commitments, see Note 27 . Municipal bond vehicles Municipal bond vehicles or tender option bond (“TOB”) trusts allow institutions to finance their municipal bond investments at short-term rates. In a typical TOB transaction, the trust purchases highly rated municipal bond(s) of a single issuer and funds the purchase by issuing two types of securities: (1) puttable floating-rate certificates (“Floaters”) and (2) inverse floating-rate residual interests (“Residuals”). The Floaters are typically purchased by money market funds or other short-term investors and may be tendered, with requisite notice, to the TOB trust. The Residuals are retained by the investor seeking to finance its municipal bond investment. TOB transactions where the Residual is held by a third party investor are typically known as Customer TOB trusts, and Non-Customer TOB trusts are transactions where the Residual is retained by the Firm. Customer TOB trusts are sponsored by a third party; see page 242 on this Note for further information. The Firm serves as sponsor for all Non-Customer TOB transactions. The Firm may provide various services to a TOB trust, including remarketing agent, liquidity or tender option provider, and/or sponsor. J.P. Morgan Securities LLC may serve as a remarketing agent on the Floaters for TOB trusts. The remarketing agent is responsible for establishing the periodic variable rate on the Floaters, conducting the initial placement and remarketing tendered Floaters. The remarketing agent may, but is not obligated to, make markets in Floaters. The Firm held an insignificant amount of Floaters during 2017 and 2016 . JPMorgan Chase Bank, N.A. or J.P. Morgan Securities LLC often serves as the sole liquidity or tender option provider for the TOB trusts. The liquidity provider’s obligation to perform is conditional and is limited by certain events (“Termination Events”), which include bankruptcy or failure to pay by the municipal bond issuer or credit enhancement provider, an event of taxability on the municipal bonds or the immediate downgrade of the municipal bond to below investment grade. In addition, the liquidity provider’s exposure is typically further limited by the high credit quality of the underlying municipal bonds, the excess collateralization in the vehicle, or, in certain transactions, the reimbursement agreements with the Residual holders. Holders of the Floaters may “put,” or tender, their Floaters to the TOB trust. If the remarketing agent cannot successfully remarket the Floaters to another investor, the liquidity provider either provides a loan to the TOB trust for the TOB trust’s purchase of the Floaters, or it directly purchases the tendered Floaters. TOB trusts are considered to be variable interest entities. The Firm consolidates Non-Customer TOB trusts because as the Residual holder, the Firm has the right to make decisions that significantly impact the economic performance of the municipal bond vehicle, and it has the right to receive benefits and bear losses that could potentially be significant to the municipal bond vehicle. See page 241 of this Note for further information on consolidated municipal bond vehicles. Consolidated VIE assets and liabilities The following table presents information on assets and liabilities related to VIEs consolidated by the Firm as of December 31, 2017 and 2016 . Assets Liabilities December 31, 2017 (in millions) Trading assets Loans Other (d) Total (e) Beneficial interests in (f) Other (g) Total VIE program type (a) Firm-sponsored credit card trusts $ — $ 41,923 $ 652 $ 42,575 $ 21,278 $ 16 $ 21,294 Firm-administered multi-seller conduits — 23,411 48 23,459 3,045 28 3,073 Municipal bond vehicles 1,278 — 3 1,281 1,265 2 1,267 Mortgage securitization entities (b) 66 3,661 55 3,782 359 199 558 Student loan securitization entities (c) — — — — — — — Other 105 — 1,916 2,021 134 104 238 Total $ 1,449 $ 68,995 $ 2,674 $ 73,118 $ 26,081 $ 349 $ 26,430 Assets Liabilities December 31, 2016 (in millions) Trading assets Loans Other (d) Total (e) Beneficial interests in (f) Other (g) Total VIE program type (a) Firm-sponsored credit card trusts $ — $ 45,919 $ 790 $ 46,709 $ 31,181 $ 18 $ 31,199 Firm-administered multi-seller conduits — 23,760 43 23,803 2,719 33 2,752 Municipal bond vehicles 2,897 — 8 2,905 2,969 2 2,971 Mortgage securitization entities (b) 143 4,246 103 4,492 468 313 781 Student loan securitization entities (c) — 1,689 59 1,748 1,527 4 1,531 Other 145 — 2,318 2,463 183 120 303 Total $ 3,185 $ 75,614 $ 3,321 $ 82,120 $ 39,047 $ 490 $ 39,537 (a) Excludes intercompany transactions, which are eliminated in consolidation. (b) Includes residential and commercial mortgage securitizations. (c) The Firm deconsolidated the student loan securitization entities in the second quarter of 2017 as it no longer had a controlling financial interest in these entities as a result of the sale of the student loan portfolio. (d) Includes assets classified as cash and other assets on the Consolidated balance sheets. (e) The assets of the consolidated VIEs included in the program types above are used to settle the liabilities of those entities. The difference between total assets and total liabilities recognized for consolidated VIEs represents the Firm’s interest in the consolidated VIEs for each program type. (f) The interest-bearing beneficial interest liabilities issued by consolidated VIEs are classified in the line item on the Consolidated balance sheets titled, “Beneficial interests issued by consolidated variable interest entities.” The holders of these beneficial interests do not have recourse to the general credit of JPMorgan Chase . Included in beneficial interests in VIE assets are long-term beneficial interests of $21.8 billion and $33.4 billion at December 31, 2017 and 2016 , respectively. For additional information on interest bearing long-term beneficial interest, see Note 19 . (g) Includes liabilities classified as accounts payable and other liabilities on the Consolidated balance sheets. VIEs sponsored by third parties The Firm enters into transactions with VIEs structured by other parties. These include, for example, acting as a derivative counterparty, liquidity provider, investor, underwriter, placement agent, remarketing agent, trustee or custodian. These transactions are conducted at arm’s-length, and individual credit decisions are based on the analysis of the specific VIE, taking into consideration the quality of the underlying assets. Where the Firm does not have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, or a variable interest that could potentially be significant, the Firm generally does not consolidate the VIE, but it records and reports these positions on its Consolidated balance sheets in the same manner it would record and report positions in respect of any other third-party transaction. Tax credit vehicles The Firm holds investments in unconsolidated tax credit vehicles, which are limited partnerships and similar entities that construct, own and operate affordable housing , wind , solar and other alternative energy projects. These entities are primarily considered VIEs. A third party is typically the general partner or managing member and has control over the significant activities of the tax credit vehicles, and accordingly the Firm does not consolidate tax credit vehicles. The Firm generally invests in these partnerships as a limited partner and earns a return primarily through the receipt of tax credits allocated to the projects. The maximum loss exposure, represented by equity investments and funding commitments, was $13.4 billion and $14.8 billion , of which $3.2 billion and $3.8 billion was unfunded at December 31, 2017 and 2016 respectively. In order to reduce the risk of loss, the Firm assesses each project and withholds varying amounts of its capital investment until qualification of the project for tax credits. See Note 24 for further information on affordable housing tax credits. For more information on off-balance sheet lending-related commitments, see Note 27. 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 December 31, 2017 and 2016 , was $5.3 billion and $5.0 billion , respectively. The fair value of assets held by such VIEs at December 31, 2017 and 2016 was $9.2 billion and $8.9 billion , respectively. For more information on off-balance sheet lending-related commitments, see Note 27. Loan securitizations The Firm has securitized and sold a variety of loans, including residential mortgage, credit card, student and commercial (primarily related to real estate) loans, as well as debt securities. The purposes of these securitization transactions were to satisfy investor demand and to generate liquidity for the Firm. For loan securitizations in which the Firm is not required to consolidate the trust, the Firm records the transfer of the loan receivable to the trust as a sale when all of the following accounting criteria for a sale are met: (1) the transferred financial assets are legally isolated from the Firm’s creditors; (2) the transferee or beneficial interest holder can pledge or exchange the transferred financial assets; and (3) the Firm does not maintain effective control over the transferred financial assets (e.g., the Firm cannot repurchase the transferred assets before their maturity and it does not have the ability to unilaterally cause the holder to return the transferred assets). For loan securitizations accounted for as a sale, the Firm recognizes a gain or loss based on the difference between the value of proceeds received (including cash, beneficial interests, or servicing assets received) and the carrying value of the assets sold. Gains and losses on securitizations are reported in noninterest revenue. Securitization activity The following table provides information related to the Firm’s securitization activities for the years ended December 31, 2017 , 2016 and 2015 , 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. 2017 2016 2015 Year ended December 31, (in millions, except rates) Residential mortgage (d) Commercial and other (e) Residential mortgage (d) Commercial and other (e) Residential mortgage (d) Commercial and other (e) Principal securitized $ 5,532 $ 10,252 $ 1,817 $ 8,964 $ 3,008 $ 11,933 All cash flows during the period: (a) Proceeds received from loan sales as financial instruments (b) $ 5,661 $ 10,340 $ 1,831 $ 9,094 $ 3,022 $ 12,011 Servicing fees collected 525 3 477 3 528 3 Purchases of previously transferred financial assets (or the underlying collateral) (c) 1 — 37 — 3 — Cash flows received on interests 463 918 482 1,441 407 597 (a) Excludes re-securitization transactions. (b) Predominantly includes Level 2 assets. (c) Includes cash paid by the Firm to reacquire assets from off–balance sheet, nonconsolidated entities – for example, loan repurchases due to representation and warranties and servicer “clean-up” calls. (d) Includes prime/Alt-A, subprime, and option ARMs. Excludes certain loan securitization transactions entered into with Ginnie Mae, Fannie Mae and Freddie Mac. (e) Includes commercial mortgage and other consumer loans. Key assumptions used to value retained interests originated during the year are shown in the table below. Year ended December 31, 2017 2016 2015 Residential mortgage retained interest: Weighted-average life (in years) 4.8 4.5 4.2 Weighted-average discount rate 2.9 % 4.2 % 2.9 % Commercial mortgage retained interest: Weighted-average life (in years) 7.1 6.2 6.2 Weighted-average discount rate 4.4 % 5.8 % 4.1 % Loans and excess MSRs sold to U.S. government-sponsored enterprises, loans in securitization transactions pursuant to Ginnie Mae guidelines, and other third-party-sponsored securitization entities In addition to the amounts reported in the securitization activity tables above, the Firm, in the normal course of business, sells originated and purchased mortgage loans and certain originated excess MSRs on a nonrecourse basis, |
Goodwill and Mortgage Servicing
Goodwill and Mortgage Servicing Rights | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Mortgage Servicing Rights | Goodwill and Mortgage servicing rights Goodwill Goodwill is recorded upon completion of a business combination as the difference between the purchase price and the fair value of the net assets acquired. Subsequent to initial recognition, goodwill is not amortized but 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 there may be impairment. The goodwill associated with each business combination is allocated to the related reporting units, which are determined based on how the Firm’s businesses are managed and how they are reviewed by the Firm’s Operating Committee. The following table presents goodwill attributed to the business segments. December 31, (in millions) 2017 2016 2015 Consumer & Community Banking $ 31,013 $ 30,797 $ 30,769 Corporate & Investment Bank 6,776 6,772 6,772 Commercial Banking 2,860 2,861 2,861 Asset & Wealth Management 6,858 6,858 6,923 Total goodwill $ 47,507 $ 47,288 $ 47,325 The following table presents changes in the carrying amount of goodwill. Year ended December 31, (in millions) 2017 2016 2015 Balance at beginning of period $ 47,288 $ 47,325 $ 47,647 Changes during the period from: Business combinations (a) 199 — 28 Dispositions (b) — (72 ) (160 ) Other (c) 20 35 (190 ) Balance at December 31, $ 47,507 $ 47,288 $ 47,325 (a) For 2017, represents CCB goodwill in connection with an acquisition. (b) For 2016, represents AWM goodwill, which was disposed of as part of an AWM sales transaction. For 2015 includes $101 million of Private Equity goodwill, which was disposed of as part of the Private Equity sale. (c) Includes foreign currency translation adjustments and other tax-related adjustments. Impairment testing The Firm’s goodwill was not impaired at December 31, 2017 , 2016 , and 2015 . The goodwill impairment test is performed in two steps. In the first step, the current fair value of each reporting unit is compared with its carrying value, including goodwill and other intangible assets. If the fair value is in excess of the carrying value, then the reporting unit’s goodwill is considered to be not impaired. If the fair value is less than the carrying value, then a second step is performed. In the second step, the implied current fair value of the reporting unit’s goodwill is determined by comparing the fair value of the reporting unit (as determined in step one) to the fair value of the net assets of the reporting unit, as if the reporting unit were being acquired in a business combination. The resulting implied current fair value of goodwill is then compared with the carrying value of the reporting unit’s goodwill. If the carrying value of the goodwill exceeds its implied current fair value, then an impairment charge is recognized for the excess. If the carrying value of goodwill is less than its implied current fair value, then no goodwill impairment is recognized. The Firm uses the reporting units’ allocated capital plus goodwill and other intangible assets capital as a proxy for the carrying values of equity for the reporting units in the goodwill impairment testing. Reporting unit equity is determined on a similar basis as the allocation of capital to the Firm’s lines of business, which takes into consideration the capital the business segment would require if it were operating independently, incorporating sufficient capital to address regulatory capital requirements (including Basel III) and capital levels for similarly rated peers. Proposed line of business equity levels are incorporated into the Firm’s annual budget process, which is reviewed by the Firm’s Board of Directors. Allocated capital is further reviewed on a periodic basis and updated as needed. The primary method the Firm uses to estimate the fair value of its reporting units is the income approach. This approach projects cash flows for the forecast period and uses the perpetuity growth method to calculate terminal values. These cash flows and terminal values are then discounted using an appropriate discount rate. Projections of cash flows are based on the reporting units’ earnings forecasts which are reviewed with senior management of the Firm. The discount rate used for each reporting unit represents an estimate of the cost of equity for that reporting unit and is determined considering the Firm’s overall estimated cost of equity (estimated using the Capital Asset Pricing Model), as adjusted for the risk characteristics specific to each reporting unit (for example, for higher levels of risk or uncertainty associated with the business or management’s forecasts and assumptions). To assess the reasonableness of the discount rates used for each reporting unit management compares the discount rate to the estimated cost of equity for publicly traded institutions with similar businesses and risk characteristics. In addition, the weighted average cost of equity (aggregating the various reporting units) is compared with the Firms’ overall estimated cost of equity to ensure reasonableness. The valuations derived from the discounted cash flow analysis are then compared with market-based trading and transaction multiples for relevant competitors. Trading and transaction comparables are used as general indicators to assess the general reasonableness of the estimated fair values, although precise conclusions generally cannot be drawn due to the differences that naturally exist between the Firm’s businesses and competitor institutions. Management also takes into consideration a comparison between the aggregate fair values of the Firm’s reporting units and JPMorgan Chase’s market capitalization. In evaluating this comparison, management considers several factors, including (i) a control premium that would exist in a market transaction, (ii) factors related to the level of execution risk that would exist at the firmwide level that do not exist at the reporting unit level and (iii) short-term market volatility and other factors that do not directly affect the value of individual reporting units. Declines in business performance, increases in credit losses, increases in capital requirements, as well as deterioration in economic or market conditions, estimates of adverse regulatory or legislative changes or increases in the estimated market cost of equity, could cause the estimated fair values of the Firm’s reporting units or their associated goodwill to decline in the future, which could result in a material impairment charge to earnings in a future period related to some portion of the associated goodwill. Mortgage servicing rights MSRs represent the fair value of expected future cash flows for performing servicing activities for others. The fair value considers estimated future servicing fees and ancillary revenue, offset by estimated costs to service the loans, and generally declines over time as net servicing cash flows are received, effectively amortizing the MSR asset against contractual servicing and ancillary fee income. MSRs are either purchased from third parties or recognized upon sale or securitization of mortgage loans if servicing is retained. As permitted by U.S. GAAP, the Firm has elected to account for its MSRs at fair value. The Firm treats its MSRs as a single class of servicing assets based on the availability of market inputs used to measure the fair value of its MSR asset and its treatment of MSRs as one aggregate pool for risk management purposes. The Firm estimates the fair value of MSRs using an option-adjusted spread (“OAS”) model, which projects MSR cash flows over multiple interest rate scenarios in conjunction with the Firm’s prepayment model, and then discounts these cash flows at risk-adjusted rates. The model considers portfolio characteristics, contractually specified servicing fees, prepayment assumptions, delinquency rates, costs to service, late charges and other ancillary revenue, and other economic factors. The Firm compares fair value estimates and assumptions to observable market data where available, and also considers recent market activity and actual portfolio experience. The fair value of MSRs is sensitive to changes in interest rates, including their effect on prepayment speeds. MSRs typically decrease in value when interest rates decline because declining interest rates tend to increase prepayments and therefore reduce the expected life of the net servicing cash flows that comprise the MSR asset. Conversely, securities (e.g., mortgage-backed securities), principal-only certificates and certain derivatives (i.e., those for which the Firm receives fixed-rate interest payments) increase in value when interest rates decline. JPMorgan Chase uses combinations of derivatives and securities to manage the risk of changes in the fair value of MSRs. The intent is to offset any interest-rate related changes in the fair value of MSRs with changes in the fair value of the related risk management instruments. The following table summarizes MSR activity for the years ended December 31, 2017 , 2016 and 2015 . As of or for the year ended December 31, (in millions, except where otherwise noted) 2017 2016 2015 Fair value at beginning of period $ 6,096 $ 6,608 $ 7,436 MSR activity: Originations of MSRs 1,103 679 550 Purchase of MSRs — — 435 Disposition of MSRs (a) (140 ) (109 ) (486 ) Net additions 963 570 499 Changes due to collection/realization of expected cash flows (797 ) (919 ) (922 ) Changes in valuation due to inputs and assumptions: Changes due to market interest rates and other (b) (202 ) (72 ) (160 ) Changes in valuation due to other inputs and assumptions: Projected cash flows (e.g., cost to service) (102 ) (35 ) (112 ) Discount rates (19 ) 7 (10 ) Prepayment model changes and other (c) 91 (63 ) (123 ) Total changes in valuation due to other inputs and assumptions (30 ) (91 ) (245 ) Total changes in valuation due to inputs and assumptions (232 ) (163 ) (405 ) Fair value at December 31, $ 6,030 $ 6,096 $ 6,608 Change in unrealized gains/(losses) included in income related to MSRs held at December 31, $ (232 ) $ (163 ) $ (405 ) Contractual service fees, late fees and other ancillary fees included in income 1,886 2,124 2,533 Third-party mortgage loans serviced at December 31, (in billions) 555.0 593.3 677.0 Servicer advances, net of an allowance for uncollectible amounts, at December 31, (in billions) (d) 4.0 4.7 6.5 (a) Includes excess MSRs transferred to agency-sponsored trusts in exchange for stripped mortgage backed securities (“SMBS”). In each transaction, a portion of the SMBS was acquired by third parties at the transaction date; the Firm acquired the remaining balance of those SMBS as trading securities. (b) Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments. (c) Represents changes in prepayments other than those attributable to changes in market interest rates. (d) Represents amounts the Firm pays as the servicer (e.g., scheduled principal and interest, taxes and insurance), which will generally be reimbursed within a short period of time after the advance from future cash flows from the trust or the underlying loans. The Firm’s credit risk associated with these servicer advances is minimal because reimbursement of the advances is typically senior to all cash payments to investors. In addition, the Firm maintains the right to stop payment to investors if the collateral is insufficient to cover the advance. However, certain of these servicer advances may not be recoverable if they were not made in accordance with applicable rules and agreements. The following table presents the components of mortgage fees and related income (including the impact of MSR risk management activities) for the years ended December 31, 2017 , 2016 and 2015 . Year ended December 31, 2017 2016 2015 CCB mortgage fees and related income Net production revenue $ 636 $ 853 $ 769 Net mortgage servicing revenue: Operating revenue: Loan servicing revenue 2,014 2,336 2,776 Changes in MSR asset fair value due to collection/realization of expected cash flows (795 ) (916 ) (917 ) Total operating revenue 1,219 1,420 1,859 Risk management: Changes in MSR asset fair value (a) (202 ) (72 ) (160 ) Other changes in MSR asset fair value due to other inputs and assumptions in model (b) (30 ) (91 ) (245 ) Change in derivative fair value and other (10 ) 380 288 Total risk management (242 ) 217 (117 ) Total net mortgage servicing revenue 977 1,637 1,742 Total CCB mortgage fees and related income 1,613 2,490 2,511 All other 3 1 2 Mortgage fees and related income $ 1,616 $ 2,491 $ 2,513 (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 December 31, 2017 and 2016 , and outlines the sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below. December 31, (in millions, except rates) 2017 2016 Weighted-average prepayment speed assumption (“CPR”) 9.35 % 9.41 % Impact on fair value of 10% adverse change $ (221 ) $ (231 ) Impact on fair value of 20% adverse change (427 ) (445 ) Weighted-average option adjusted spread 9.04 % 8.55 % Impact on fair value of 100 basis points adverse change $ (250 ) $ (248 ) Impact on fair value of 200 basis points adverse change (481 ) (477 ) CPR: Constant prepayment rate. Changes in fair value based on variation in assumptions generally cannot be easily extrapolated, because the relationship of the change in the assumptions to the change in fair value are often highly interrelated and may not be linear. In this table, the effect that a change in a particular assumption may have on the fair value is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which would either magnify or counteract the impact of the initial change. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and equipment Premises and equipment, including leasehold improvements, are carried at cost less accumulated depreciation and amortization. JPMorgan Chase computes depreciation using the straight-line method over the estimated useful life of an asset. For leasehold improvements, the Firm uses the straight-line method computed over the lesser of the remaining term of the leased facility or the estimated useful life of the leased asset. JPMorgan Chase capitalizes certain costs associated with the acquisition or development of internal-use software. Once the software is ready for its intended use, these costs are amortized on a straight-line basis over the software’s expected useful life and reviewed for impairment on an ongoing basis. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Deposits | Deposits At December 31, 2017 and 2016 , noninterest-bearing and interest-bearing deposits were as follows. December 31, (in millions) 2017 2016 U.S. offices Noninterest-bearing $ 393,645 $ 400,831 Interest-bearing (included $14,947, and $12,245 at fair value) (a) 793,618 737,949 Total deposits in U.S. offices 1,187,263 1,138,780 Non-U.S. offices Noninterest-bearing 15,576 14,764 Interest-bearing (included $6,374 and $1,667 at fair value) (a) 241,143 221,635 Total deposits in non-U.S. offices 256,719 236,399 Total deposits $ 1,443,982 $ 1,375,179 (a) Includes structured notes classified as deposits for which the fair value option has been elected. For further discussion, see Note 3 . At December 31, 2017 and 2016 , time deposits in denominations of $250,000 or more were as follows. December 31, (in millions) 2017 2016 U.S. offices $ 30,671 $ 26,180 Non-U.S. offices (a) 29,049 29,652 Total (a) $ 59,720 $ 55,832 (a) The prior period amounts have been revised to conform with the current period presentation. At December 31, 2017 , the maturities of interest-bearing time deposits were as follows. December 31, 2017 (in millions) U.S. Non-U.S. Total 2018 $ 37,645 $ 27,621 $ 65,266 2019 3,487 349 3,836 2020 2,332 22 2,354 2021 4,275 26 4,301 2022 2,297 443 2,740 After 5 years 3,391 1,697 5,088 Total $ 53,427 $ 30,158 $ 83,585 |
Accounts Payable and Other Liab
Accounts Payable and Other Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Other Liabilities | Accounts payable and other liabilities Accounts payable and other liabilities consist of brokerage payables, which includes payables to customers, dealers and clearing organizations, and payables from security purchases that did not settle; accrued expenses, including income tax payables and credit card rewards liability; and all other liabilities, including obligations to return securities received as collateral and litigation reserves. The following table details the components of accounts payable and other liabilities. December 31, (in millions) 2017 2016 Brokerage payables $ 102,727 $ 109,842 Other payables and liabilities (a) 86,656 80,701 Total accounts payable and other liabilities $ 189,383 $ 190,543 (a) Includes credit card rewards liability of $4.9 billion and $3.8 billion at December 31, 2017 and 2016 , respectively. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term debt JPMorgan Chase issues long-term debt denominated in various currencies, predominantly U.S. dollars, with both fixed and variable interest rates. Included in senior and subordinated debt below are various equity-linked or other indexed instruments, which the Firm has elected to measure at fair value. Changes in fair value are recorded in principal transactions revenue in the Consolidated statements of income, except for unrealized gains/(losses) due to DVA which are recorded in OCI. The following table is a summary of long-term debt carrying values (including unamortized premiums and discounts, issuance costs, valuation adjustments and fair value adjustments, where applicable) by remaining contractual maturity as of December 31, 2017 . By remaining maturity at December 31, (in millions, except rates) 2017 2016 Under 1 year 1-5 years After 5 years Total Total Parent company Senior debt: Fixed rate $ 15,084 $ 53,939 $ 72,528 $ 141,551 $ 128,967 Variable rate 5,547 12,802 8,112 26,461 34,766 Interest rates (a) 0.38-7.25% 0.16-6.30% 0.45-6.40% 0.16-7.25% 0.09-7.25% Subordinated debt: Fixed rate $ — $ 149 $ 14,497 $ 14,646 $ 16,811 Variable rate — — 9 9 1,245 Interest rates (a) — % 8.53% 3.38-8.00% 3.38-8.53% 0.82-8.53% Subtotal $ 20,631 $ 66,890 $ 95,146 $ 182,667 $ 181,789 Subsidiaries Federal Home Loan Banks advances: Fixed rate $ 4 $ 34 $ 129 $ 167 $ 179 Variable rate 12,450 37,000 11,000 60,450 79,340 Interest rates (a) 1.58-1.75% 1.46-2.00% 1.18-1.47% 1.18-2.00% 0.41-1.21% Senior debt: Fixed rate $ 1,122 $ 3,970 $ 6,898 $ 11,990 $ 8,329 Variable rate 8,967 13,287 3,964 26,218 19,379 Interest rates (a) 0.22-7.50% 1.65-7.50% 1.00-7.50% 0.22-7.50% 0.00-7.50% Subordinated debt: Fixed rate $ — $ — $ 313 $ 313 $ 3,884 Variable rate — — — — Interest rates (a) — % — % 8.25% 8.25% 6.00-8.25% Subtotal $ 22,543 $ 54,291 $ 22,304 $ 99,138 $ 111,111 Junior subordinated debt (b) : Fixed rate $ — $ — $ 690 $ 690 $ 706 Variable rate — — 1,585 1,585 1,639 Interest rates (a) — % — % 1.88-8.75% 1.88-8.75% 1.39-8.75% Subtotal $ — $ — $ 2,275 $ 2,275 $ 2,345 Total long-term debt (c)(d)(e) $ 43,174 $ 121,181 $ 119,725 $ 284,080 (g)(h) $ 295,245 Long-term beneficial interests: Fixed rate $ 5,927 $ 7,652 $ — $ 13,579 $ 18,678 Variable rate 3,399 4,472 321 8,192 14,681 Interest rates 1.10-2.50% 1.27-6.54% 0.00-3.75% 0.00-6.54% 0.39-7.87% Total long-term beneficial interests (f) $ 9,326 $ 12,124 $ 321 $ 21,771 $ 33,359 (a) The interest rates shown are the range of contractual rates in effect at December 31, 2017 and 2016, respectively, including non-U.S. dollar fixed- and variable-rate issuances, which excludes the effects of the associated derivative instruments used in hedge accounting relationships, if applicable. The use of these derivative instruments modifies the Firm’s exposure to the contractual interest rates disclosed in the table above. Including the effects of the hedge accounting derivatives, the range of modified rates in effect at December 31, 2017 , for total long-term debt was (0.19)% to 8.88% , versus the contractual range of 0.16% to 8.75% presented in the table above. The interest rate ranges shown exclude structured notes accounted for at fair value. (b) As of December 31, 2017, includes $0.7 billion of fixed rate junior subordinated debentures issued to an issuer trust and $1.6 billion of variable rate junior subordinated debentures distributed pro rata to the holders of the $1.6 billion of trust preferred securities which were cancelled on December 18, 2017. (c) Included long-term debt of $63.5 billion and $82.2 billion secured by assets totaling $208.4 billion and $205.6 billion at December 31, 2017 and 2016 , respectively. The amount of long-term debt secured by assets does not include amounts related to hybrid instruments. (d) Included $47.5 billion and $37.7 billion of long-term debt accounted for at fair value at December 31, 2017 and 2016 , respectively. (e) Included $10.3 billion and $7.5 billion of outstanding zero-coupon notes at December 31, 2017 and 2016 , respectively. The aggregate principal amount of these notes at their respective maturities is $33.5 billion and $25.1 billion , respectively. The aggregate principal amount reflects the contractual principal payment at maturity, which may exceed the contractual principal payment at the Firm’s next call date, if applicable. (f) Included on the Consolidated balance sheets in beneficial interests issued by consolidated VIEs. Also included $45 million and $120 million accounted for at fair value at December 31, 2017 and 2016 , respectively. Excluded short-term commercial paper and other short-term beneficial interests of $4.3 billion and $5.7 billion at December 31, 2017 and 2016 , respectively. (g) At December 31, 2017 , long-term debt in the aggregate of $111.2 billion was redeemable at the option of JPMorgan Chase, in whole or in part, prior to maturity, based on the terms specified in the respective instruments. (h) The aggregate carrying values of debt that matures in each of the five years subsequent to 2017 is $43.2 billion in 2018, $34.7 billion in 2019, $39.3 billion in 2020, $33.8 billion in 2021 and $13.4 billion in 2022. The weighted-average contractual interest rates for total long-term debt excluding structured notes accounted for at fair value were 2.87% and 2.49% as of December 31, 2017 and 2016 , respectively. In order to modify exposure to interest rate and currency exchange rate movements, JPMorgan Chase utilizes derivative instruments, primarily interest rate and cross-currency interest rate swaps, in conjunction with some of its debt issuances. The use of these instruments modifies the Firm’s interest expense on the associated debt. The modified weighted-average interest rates for total long-term debt, including the effects of related derivative instruments, were 2.56% and 2.01% as of December 31, 2017 and 2016 , respectively. JPMorgan Chase & Co. has guaranteed certain long-term debt of its subsidiaries, including both long-term debt and structured notes . These guarantees rank on parity with the Firm’s other unsecured and unsubordinated indebtedness. The amount of such guaranteed long-term debt and structured notes was $7.9 billion and $3.9 billion at December 31, 2017 and 2016 , respectively. The Firm’s unsecured debt does not contain requirements that would call for an acceleration of payments, maturities or changes in the structure of the existing debt, provide any limitations on future borrowings or require additional collateral, based on unfavorable changes in the Firm’s credit ratings, financial ratios , earnings or stock price. Junior subordinated deferrable interest debentures At December 31, 2016, the Firm had outstanding eight wholly-owned Delaware statutory business trusts (“issuer trusts”) that had issued trust preferred securities. On December 18, 2017, seven of the eight issuer trusts were liquidated, $1.6 billion of trust preferred and $56 million of common securities originally issued by those trusts were cancelled, and the junior subordinated debentures previously held by each trust issuer were distributed pro rata to the holders of the corresponding series of trust preferred and common securities. Beginning in 2014, the junior subordinated debentures issued to the issuer trusts by the Firm, less the common capital securities of the issuer trusts, began being phased out from inclusion as Tier 1 capital under Basel III and they were fully phased out as of December 31, 2016. As of December 31, 2017 and 2016, $300 million and $1.4 billion , respectively, qualified as Tier 2 capital. The Firm redeemed $1.6 billion of trust preferred securities in the year ended December 31, 2016. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Preferred Stock | Preferred stock At December 31, 2017 and 2016 , JPMorgan Chase was authorized to issue 200 million shares of preferred stock, in one or more series, with a par value of $1 per share. In the event of a liquidation or dissolution of the Firm, JPMorgan Chase ’s preferred stock then outstanding takes precedence over the Firm’s common stock with respect to the payment of dividends and the distribution of assets. The following is a summary of JPMorgan Chase ’s non-cumulative preferred stock outstanding as of December 31, 2017 and 2016 . Shares at December 31, (a) Carrying value (in millions) at December 31, Issue date Contractual rate Earliest redemption date Date at which dividend rate becomes floating Floating annual 2017 2016 2017 2016 Fixed-rate: Series O — 125,750 $ — $ 1,258 8/27/2012 N/A 9/1/2017 NA NA Series P 90,000 90,000 900 900 2/5/2013 5.450 % 3/1/2018 NA NA Series T 92,500 92,500 925 925 1/30/2014 6.700 3/1/2019 NA NA Series W 88,000 88,000 880 880 6/23/2014 6.300 9/1/2019 NA NA Series Y 143,000 143,000 1,430 1,430 2/12/2015 6.125 3/1/2020 NA NA Series AA 142,500 142,500 1,425 1,425 6/4/2015 6.100 9/1/2020 NA NA Series BB 115,000 115,000 1,150 1,150 7/29/2015 6.150 9/1/2020 NA NA Fixed-to-floating-rate: Series I 600,000 600,000 6,000 6,000 4/23/2008 7.900 % 4/30/2018 4/30/2018 LIBOR + 3.47% Series Q 150,000 150,000 1,500 1,500 4/23/2013 5.150 5/1/2023 5/1/2023 LIBOR + 3.25 Series R 150,000 150,000 1,500 1,500 7/29/2013 6.000 8/1/2023 8/1/2023 LIBOR + 3.30 Series S 200,000 200,000 2,000 2,000 1/22/2014 6.750 2/1/2024 2/1/2024 LIBOR + 3.78 Series U 100,000 100,000 1,000 1,000 3/10/2014 6.125 4/30/2024 4/30/2024 LIBOR + 3.33 Series V 250,000 250,000 2,500 2,500 6/9/2014 5.000 7/1/2019 7/1/2019 LIBOR + 3.32 Series X 160,000 160,000 1,600 1,600 9/23/2014 6.100 10/1/2024 10/1/2024 LIBOR + 3.33 Series Z 200,000 200,000 2,000 2,000 4/21/2015 5.300 5/1/2020 5/1/2020 LIBOR + 3.80 Series CC 125,750 — 1,258 — 10/20/2017 4.625 11/1/2022 11/1/2022 LIBOR + 2.58 Total preferred stock 2,606,750 2,606,750 $ 26,068 $ 26,068 (a) Represented by depositary shares. Each series of preferred stock has a liquidation value and redemption price per share of $10,000 , plus accrued but unpaid dividends. Dividends on fixed-rate preferred stock are payable quarterly. Dividends on fixed-to-floating-rate preferred stock are payable semiannually while at a fixed rate, and become payable quarterly after converting to a floating rate. On October 20, 2017, the Firm issued $1.3 billion of fixed to-floating rate non-cumulative preferred stock, Series CC, with an initial dividend rate of 4.625% . On December 1, 2017, The Firm redeemed all $1.3 billion of its outstanding 5.50% non-cumulative preferred stock, Series O. Redemption rights Each series of the Firm’s preferred stock may be redeemed on any dividend payment date on or after the earliest redemption date for that series. All outstanding preferred stock series except Series I may also be redeemed following a “capital treatment event,” as described in the terms of each series. Any redemption of the Firm’s preferred stock is subject to non-objection from the Board of Governors of the Federal Reserve System (the “Federal Reserve”). |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Common Stock | Common stock At December 31, 2017 and 2016 , JPMorgan Chase was authorized to issue 9.0 billion shares of common stock with a par value of $1 per share. Common shares issued (newly issued or reissuance from treasury) by JPMorgan Chase during the years ended December 31, 2017 , 2016 and 2015 were as follows. Year ended December 31, (in millions) 2017 2016 2015 Total issued – balance at January 1 4,104.9 4,104.9 4,104.9 Treasury – balance at January 1 (543.7 ) (441.4 ) (390.1 ) Repurchase (166.6 ) (140.4 ) (89.8 ) Reissuance: Employee benefits and compensation plans 24.5 26.0 32.8 Warrant exercise 5.4 11.1 4.7 Employee stock purchase plans 0.8 1.0 1.0 Total reissuance 30.7 38.1 38.5 Total treasury – balance at December 31 (679.6 ) (543.7 ) (441.4 ) Outstanding at December 31 3,425.3 3,561.2 3,663.5 At December 31, 2017 , 2016 , and 2015 , respectively, the Firm had 15.0 million , 24.9 million and 47.4 million warrants outstanding to purchase shares of common stock (the “Warrants”). The Warrants are currently traded on the New York Stock Exchange, and they are exercisable, in whole or in part, at any time and from time to time until October 28, 2018 . The original warrant exercise price was $42.42 per share. The number of shares issuable upon the exercise of each warrant and the warrant exercise price is subject to adjustment upon the occurrence of certain events, including, but not limited to, the extent to which regular quarterly cash dividends exceed $0.38 per share. As of December 31, 2017 the exercise price was $41.834 and the Warrant share number was 1.01 . On June 28, 2017 , in conjunction with the Federal Reserve’s release of its 2017 CCAR results, the Firm’s Board of Directors authorized a $19.4 billion common equity (i.e., common stock and warrants) repurchase program. As of December 31, 2017 , $9.8 billion of authorized repurchase capacity remained under the program. This authorization includes shares repurchased to offset issuances under the Firm’s share-based compensation plans. The following table sets forth the Firm’s repurchases of common equity for the years ended December 31, 2017 , 2016 and 2015 . There were no warrants repurchased during the years ended December 31, 2017 , 2016 and 2015 . Year ended December 31, (in millions) 2017 2016 2015 Total number of shares of common stock repurchased 166.6 140.4 89.8 Aggregate purchase price of common stock repurchases $ 15,410 $ 9,082 $ 5,616 The Firm may, from time to time, enter into written trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934 to facilitate repurchases in accordance with the common equity repurchase program. A Rule 10b5-1 repurchase plan allows the Firm to repurchase its equity during periods when it would not otherwise be repurchasing common equity — for example, during internal trading “blackout periods.” All purchases under a Rule 10b5-1 plan must be made according to a predefined plan established when the Firm is not aware of material nonpublic information. For additional information regarding repurchases of the Firm’s equity securities, see Part II, Item 5: Market for registrant’s common equity, related stockholder matters and issuer purchases of equity securities, on page 28 . As of December 31, 2017 , approximately 120 million shares of common stock were reserved for issuance under various employee incentive, compensation, option and stock purchase plans, director compensation plans, and the Warrants. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per share Earnings per share (“EPS”) is calculated under the two-class method under which all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities based on their respective rights to receive dividends. JPMorgan Chase grants RSUs to certain employees under its share-based compensation programs, which entitle 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. The following table presents the calculation of basic and diluted EPS for the years ended December 31, 2017 , 2016 and 2015 . Year ended December 31, (in millions, except per share amounts) 2017 2016 2015 Basic earnings per share Net income $ 24,441 $ 24,733 $ 24,442 Less: Preferred stock dividends 1,663 1,647 1,515 Net income applicable to common equity 22,778 23,086 22,927 Less: Dividends and undistributed earnings allocated to participating securities (a) 211 252 276 Net income applicable to common stockholders (a) $ 22,567 $ 22,834 $ 22,651 Total weighted-average basic shares outstanding (a) 3,551.6 3,658.8 3,741.2 Net income per share $ 6.35 $ 6.24 $ 6.05 Diluted earnings per share Net income applicable to common stockholders (a) $ 22,567 $ 22,834 $ 22,651 Total weighted-average basic shares outstanding (a) 3,551.6 3,658.8 3,741.2 Add: Employee stock options, SARs, warrants and PSUs (a) 25.2 31.2 32.4 Total weighted-average diluted shares outstanding (a)(b) 3,576.8 3,690.0 3,773.6 Net income per share $ 6.31 $ 6.19 $ 6.00 (a) The prior period amounts have been revised to conform with the current period presentation. The revision had no impact on the Firm’s reported earnings per share. (b) Participating securities were included in the calculation of diluted EPS using the two-class method, as this computation was more dilutive than the calculation using the treasury stock method. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income/(Loss) | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income/(Loss) | 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), cash flow hedging activities, and net loss and prior service costs/(credit) related to the Firm’s defined benefit pension and OPEB plans. Year ended December 31, (in millions) Unrealized gains/(losses) on investment securities (b) Translation adjustments, net of hedges Cash flow hedges Defined benefit pension and OPEB plans DVA on fair value option elected liabilities Accumulated other comprehensive income/(loss) Balance at December 31, 2014 $ 4,773 $ (147 ) $ (95 ) $ (2,342 ) $ — $ 2,189 Net change (2,144 ) (15 ) 51 111 — (1,997 ) Balance at December 31, 2015 $ 2,629 $ (162 ) $ (44 ) $ (2,231 ) $ — $ 192 Cumulative effect of change in accounting principle (a) — — — — 154 154 Net change (1,105 ) (2 ) (56 ) (28 ) (330 ) (1,521 ) Balance at December 31, 2016 $ 1,524 $ (164 ) $ (100 ) $ (2,259 ) $ (176 ) $ (1,175 ) Net change 640 (306 ) 176 738 (192 ) 1,056 Balance at December 31, 2017 $ 2,164 $ (470 ) $ 76 $ (1,521 ) (368 ) $ (119 ) (a) Effective January 1, 2016, the Firm adopted new accounting guidance related to the recognition and measurement of financial liabilities where the fair value option has been elected. This guidance requires the portion of the total change in fair value caused by changes in the Firm’s own credit risk (DVA) to be presented separately in OCI; previously these amounts were recognized in net income. (b) Represents the after-tax difference between the fair value and amortized cost of securities accounted for as AFS, including net unamortized unrealized gains and losses related to AFS securities transferred to HTM. The following table presents the pre-tax and after-tax changes in the components of OCI. 2017 2016 2015 Year ended December 31, (in millions) Pre-tax Tax effect After-tax Pre-tax Tax effect After-tax Pre-tax Tax effect After-tax Unrealized gains/(losses) on investment securities: Net unrealized gains/(losses) arising during the period $ 944 $ (346 ) $ 598 $ (1,628 ) $ 611 $ (1,017 ) $ (3,315 ) $ 1,297 $ (2,018 ) Reclassification adjustment for realized (gains)/losses included in net income (a) 66 (24 ) 42 (141 ) 53 (88 ) (202 ) 76 (126 ) Net change 1,010 (370 ) 640 (1,769 ) 664 (1,105 ) (3,517 ) 1,373 (2,144 ) Translation adjustments (b) : Translation 1,313 (801 ) 512 (261 ) 99 (162 ) (1,876 ) 682 (1,194 ) Hedges (1,294 ) 476 (818 ) 262 (102 ) 160 1,885 (706 ) 1,179 Net change 19 (325 ) (306 ) 1 (3 ) (2 ) 9 (24 ) (15 ) Cash flow hedges: Net unrealized gains/(losses) arising during the period 147 (55 ) 92 (450 ) 168 (282 ) (97 ) 35 (62 ) Reclassification adjustment for realized (gains)/losses included in net income (c)(d) 134 (50 ) 84 360 (134 ) 226 180 (67 ) 113 Net change 281 (105 ) 176 (90 ) 34 (56 ) 83 (32 ) 51 Defined benefit pension and OPEB plans: Net gains/(losses) arising during the period 802 (160 ) 642 (366 ) 145 (221 ) 29 (47 ) (18 ) Reclassification adjustments included in net income (e) : Amortization of net loss 250 (90 ) 160 257 (97 ) 160 282 (106 ) 176 Prior service costs/(credits) (36 ) 13 (23 ) (36 ) 14 (22 ) (36 ) 14 (22 ) Settlement loss/(gain) 2 (1 ) 1 4 (1 ) 3 — — — Foreign exchange and other (54 ) 12 (42 ) 77 (25 ) 52 33 (58 ) (25 ) Net change 964 (226 ) 738 (64 ) 36 (28 ) 308 (197 ) 111 DVA on fair value option elected liabilities, net change: $ (303 ) $ 111 $ (192 ) $ (529 ) $ 199 $ (330 ) $ — $ — $ — Total other comprehensive income/(loss) $ 1,971 $ (915 ) $ 1,056 $ (2,451 ) $ 930 $ (1,521 ) $ (3,117 ) $ 1,120 $ (1,997 ) (a) The pre-tax amount is reported in 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 periods presented. (c) The pre-tax amounts are primarily recorded in noninterest revenue, net interest income and compensation expense in the Consolidated statements of income. (d) In 2015, the Firm reclassified approximately $ 150 million of net losses from AOCI to other income because the Firm determined that it is probable that the forecasted interest payment cash flows would not occur. For additional information, see Note 5 . (e) The pre-tax amount is reported in compensation expense in the Consolidated statements of income. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes JPMorgan Chase and its eligible subsidiaries file a consolidated U.S. federal income tax return. JPMorgan Chase uses the asset and liability method to provide income taxes on all transactions recorded in the Consolidated Financial Statements. This method requires that income taxes reflect the expected future tax consequences of temporary differences between the carrying amounts of assets or liabilities for book and tax purposes. Accordingly, a deferred tax asset or liability for each temporary difference is determined based on the tax rates that the Firm expects to be in effect when the underlying items of income and expense are realized. JPMorgan Chase’s expense for income taxes includes the current and deferred portions of that expense. A valuation allowance is established to reduce deferred tax assets to the amount the Firm expects to realize. Due to the inherent complexities arising from the nature of the Firm’s businesses, and from conducting business and being taxed in a substantial number of jurisdictions, significant judgments and estimates are required to be made. Agreement of tax liabilities between JPMorgan Chase and the many tax jurisdictions in which the Firm files tax returns may not be finalized for several years. Thus, the Firm’s final tax-related assets and liabilities may ultimately be different from those currently reported. Effective tax rate and expense A reconciliation of the applicable statutory U.S. federal income tax rate to the effective tax rate for each of the years ended December 31, 2017 , 2016 and 2015 , is presented in the following table. Effective tax rate Year ended December 31, 2017 2016 2015 Statutory U.S. federal tax rate 35.0 % 35.0 % 35.0 % Increase/(decrease) in tax rate resulting from: U.S. state and local income taxes, net of U.S. federal income tax benefit 2.2 2.4 1.5 Tax-exempt income (3.3 ) (3.1 ) (3.3 ) Non-U.S. subsidiary earnings (a) (3.1 ) (1.7 ) (3.9 ) Business tax credits (4.2 ) (3.9 ) (3.7 ) Nondeductible legal expense — 0.3 0.8 Tax audit resolutions — — (5.7 ) Impact of the TCJA 5.4 — — Other, net (0.1 ) (0.6 ) (0.3 ) Effective tax rate 31.9 % 28.4 % 20.4 % (a) Predominantly includes earnings of U.K. subsidiaries that were deemed to be reinvested indefinitely through December 31, 2017. Impact of the TCJA On December 22, 2017, the TCJA was signed into law. The Firm’s effective tax rate increased in 2017 driven by a $1.9 billion income tax expense representing the estimated impact of the enactment of the TCJA. The $1.9 billion tax expense was predominantly driven by a deemed repatriation of the Firm’s unremitted non-U.S. earnings and adjustments to the value of certain tax-oriented investments partially offset by a benefit from the revaluation of the Firm’s net deferred tax liability. The deemed repatriation of the Firm’s unremitted non-U.S. earnings is based on the post-1986 earnings and profits of each controlled foreign corporation. The calculation resulted in an estimated income tax expense of $3.7 billion . Furthermore, accounting for income taxes requires the remeasurement of certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future. The Firm remeasured its deferred tax asset and liability balances in the fourth quarter of 2017 to the new statutory U.S. federal income tax rate of 21% as well as any federal benefit associated with state and local deferred income taxes. The remeasurement resulted in an estimated income tax benefit of $2.1 billion . The deemed repatriation and remeasurement of deferred taxes were calculated based on all available information and published legislative guidance. These amounts are considered to be estimates under SEC Staff Accounting Bulletin No. 118 as the Firm anticipates refinements to both calculations. Anticipated refinements will result from the issuance of future legislative and accounting guidance as well as those in the normal course of business, including true-ups to the tax liability on the tax return as filed and the resolution of tax audits. Adjustments were also recorded to income tax expense for certain tax-oriented investments. These adjustments were driven by changes to affordable housing proportional amortization resulting from the reduction of the federal income tax rate under the TCJA. SEC Staff Accounting Bulletin No. 118 does not apply to these adjustments. The components of income tax expense/(benefit) included in the Consolidated statements of income were as follows for each of the years ended December 31, 2017 , 2016 , and 2015 . Income tax expense/(benefit) Year ended December 31, 2017 2016 2015 Current income tax expense/(benefit) U.S. federal $ 5,718 $ 2,488 $ 3,160 Non-U.S. 2,400 1,760 1,220 U.S. state and local 1,029 904 547 Total current income tax expense/(benefit) 9,147 5,152 4,927 Deferred income tax expense/(benefit) U.S. federal 2,174 4,364 1,213 Non-U.S. (144 ) (73 ) (95 ) U.S. state and local 282 360 215 Total deferred income tax 2,312 4,651 1,333 Total income tax expense $ 11,459 $ 9,803 $ 6,260 Total income tax expense includes $252 million , $55 million and $2.4 billion of tax benefits recorded in 2017 , 2016 , and 2015 , respectively, as a result of tax audit resolutions. Tax effect of items recorded in stockholders’ equity The preceding table does not reflect the tax effect of certain items that are recorded each period directly in stockholders’ equity . The tax effect of all items recorded directly to stockholders’ equity resulted in a decrease of $915 million in 2017 , an increase of $925 million in 2016 , and an increase of $1.5 billion in 2015 . Effective January 1, 2016, the Firm adopted new accounting guidance related to employee share-based payments. As a result of the adoption of this new guidance, all excess tax benefits (including tax benefits from dividends or dividend equivalents) on share-based payment awards are recognized within income tax expense in the Consolidated statements of income. In prior years these tax benefits were recorded as increases to additional paid-in capital. Results from Non-U.S. earnings The following table presents the U.S. and non-U.S. components of income before income tax expense for the years ended December 31, 2017 , 2016 and 2015 . Year ended December 31, 2017 2016 2015 U.S. $ 27,103 $ 26,651 $ 23,191 Non-U.S. (a) 8,797 7,885 7,511 Income before income tax expense $ 35,900 $ 34,536 $ 30,702 (a) For purposes of this table, non-U.S. income is defined as income generated from operations located outside the U.S. Prior to December 31, 2017, U.S. federal income taxes had not been provided on the undistributed earnings of certain non-U.S. subsidiaries, to the extent that such earnings had been reinvested abroad for an indefinite period of time. The Firm will no longer maintain the indefinite reinvestment assertion on the undistributed earnings of those non-U.S. subsidiaries in light of the enactment of the TCJA. The U.S. federal and state and local income taxes associated with the undistributed and previously untaxed earnings of those non-U.S. subsidiaries was included in the deemed repatriation charge recorded as of December 31, 2017. JPMC will treat any tax it may incur on global intangible low tax income as a period cost to tax expense when the tax is incurred. Affordable housing tax credits The Firm recognized $1.7 billion , $1.7 billion and $1.6 billion of tax credits and other tax benefits associated with investments in affordable housing projects within income tax expense for the years 2017 , 2016 and 2015 , respectively. The amount of amortization of such investments reported in income tax expense under the current period presentation during these years was $1.7 billion , $1.2 billion and $1.1 billion , respectively. The carrying value of these investments, which are reported in other assets on the Firm’s Consolidated balance sheets, was $7.8 billion and $8.8 billion at December 31, 2017 and 2016 , respectively. The amount of commitments related to these investments, which are reported in accounts payable and other liabilities on the Firm’s Consolidated balance sheets, was $2.4 billion and $2.8 billion at December 31, 2017 and 2016 , respectively. The results are inclusive of any impacts from the TCJA. Deferred taxes Deferred income tax expense/(benefit) results from differences between assets and liabilities measured for financial reporting purposes versus income tax return purposes. Deferred tax assets are recognized if, in management’s judgment, their realizability is determined to be more likely than not. If a deferred tax asset is determined to be unrealizable, a valuation allowance is established. The significant components of deferred tax assets and liabilities are reflected in the following table as of December 31, 2017 and 2016 . December 31, (in millions) 2017 2016 Deferred tax assets Allowance for loan losses $ 3,395 $ 5,534 Employee benefits 688 2,911 Accrued expenses and other 3,528 6,831 Non-U.S. operations 327 5,368 Tax attribute carryforwards 219 2,155 Gross deferred tax assets 8,157 22,799 Valuation allowance (46 ) (785 ) Deferred tax assets, net of valuation allowance $ 8,111 $ 22,014 Deferred tax liabilities Depreciation and amortization $ 2,299 $ 3,294 Mortgage servicing rights, net of hedges 2,757 4,807 Leasing transactions 3,483 4,053 Non-U.S. operations 200 4,572 Other, net 3,502 5,493 Gross deferred tax liabilities 12,241 22,219 Net deferred tax (liabilities)/assets $ (4,130 ) $ (205 ) JPMorgan Chase has recorded deferred tax assets of $219 million at December 31, 2017, in connection with U.S. federal and non-U.S. net operating loss (“NOL”) carryforwards and state and local capital loss carryforwards. At December 31, 2017, total U.S. federal NOL carryforwards were approximately $769 million , non-U.S. NOL carryforwards were approximately $142 million and state and local capital loss carryforwards were $660 million . If not utilized, the U.S. federal NOL carryforwards will expire between 2025 and 2036 and the state and local capital loss carryforwards will expire between 2020 and 2021. Certain non-U.S. NOL carryforwards will expire between 2028 and 2034 whereas others have an unlimited carryforward period. The valuation allowance at December 31, 2017, was due to the state and local capital loss carryforwards and certain non-U.S. NOL carryforwards. Unrecognized tax benefits At December 31, 2017 , 2016 and 2015 , JPMorgan Chase ’s unrecognized tax benefits, excluding related interest expense and penalties, were $4.7 billion , $3.5 billion and $3.5 billion , respectively, of which $3.5 billion , $2.6 billion and $2.1 billion , respectively, if recognized, would reduce the annual effective tax rate. Included in the amount of unrecognized tax benefits are certain items that would not affect the effective tax rate if they were recognized in the Consolidated statements of income. These unrecognized items include the tax effect of certain temporary differences, the portion of gross state and local unrecognized tax benefits that would be offset by the benefit from associated U.S. federal income tax deductions, and the portion of gross non-U.S. unrecognized tax benefits that would have offsets in other jurisdictions. JPMorgan Chase is presently under audit by a number of taxing authorities, most notably by the Internal Revenue Service as summarized in the Tax examination status table below. As JPMorgan Chase is presently under audit by a number of taxing authorities, it is reasonably possible that over the next 12 months the resolution of these examinations may increase or decrease the gross balance of unrecognized tax benefits by as much as $1.3 billion . Upon settlement of an audit, the change in the unrecognized tax benefit would result from payment or income statement recognition. The following table presents a reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2017 , 2016 and 2015 . Year ended December 31, 2017 2016 2015 Balance at January 1, $ 3,450 $ 3,497 $ 4,911 Increases based on tax positions related to the current period 1,355 262 408 Increases based on tax positions related to prior periods 626 583 1,028 Decreases based on tax positions related to prior periods (350 ) (785 ) (2,646 ) Decreases related to cash settlements with taxing authorities (334 ) (56 ) (204 ) Decreases related to a lapse of applicable statute of limitations — (51 ) — Balance at December 31, $ 4,747 $ 3,450 $ 3,497 After-tax interest expense/(benefit) and penalties related to income tax liabilities recognized in income tax expense were $102 million , $86 million and $(156) million in 2017 , 2016 and 2015 , respectively. At December 31, 2017 and 2016 , in addition to the liability for unrecognized tax benefits, the Firm had accrued $639 million and $687 million , respectively, for income tax-related interest and penalties. Tax examination status JPMorgan Chase is continually under examination by the Internal Revenue Service, by taxing authorities throughout the world, and by many state and local jurisdictions throughout the U.S. The following table summarizes the status of significant income tax examinations of JPMorgan Chase and its consolidated subsidiaries as of December 31, 2017 . December 31, 2017 Periods under examination Status JPMorgan Chase – U.S. 2003 – 2005 At Appellate level JPMorgan Chase – U.S. 2006 – 2010 Field examination of amended returns; certain matters at Appellate level JPMorgan Chase – U.S. 2011 – 2013 Field Examination JPMorgan Chase – California 2011 – 2012 Field Examination JPMorgan Chase – U.K. 2006 – 2015 Field examination of certain select entities |
Restrictions on Cash and Interc
Restrictions on Cash and Intercompany Funds Transfers | 12 Months Ended |
Dec. 31, 2017 | |
Restrictions on Cash and Intercompany Funds Transfers Disclosure [Abstract] | |
Restrictions on Cash and Intercompany Funds Transfers | Restrictions on cash and intercompany funds transfers The business of JPMorgan Chase Bank, National Association (“ JPMorgan Chase Bank, N.A. ”) is subject to examination and regulation by the OCC. The Bank is a member of the U.S. Federal Reserve System, and its deposits in the U.S. are insured by the FDIC, subject to applicable limits. The Federal Reserve requires depository institutions to maintain cash reserves with a Federal Reserve Bank. The average required amount of reserve balances deposited by the Firm’s bank subsidiaries with various Federal Reserve Banks was approximately $24.9 billion and $19.3 billion in 2017 and 2016 , respectively. Restrictions imposed by U.S. federal law prohibit JPMorgan Chase & Co. (“Parent Company”) and certain of its affiliates from borrowing from banking subsidiaries unless the loans are secured in specified amounts. Such secured loans provided by any banking subsidiary to the Parent Company or to any particular affiliate, together with certain other transactions with such affiliate (collectively referred to as “covered transactions”), are generally limited to 10% of the banking subsidiary’s total capital, as determined by the risk-based capital guidelines; the aggregate amount of covered transactions between any banking subsidiary and all of its affiliates is limited to 20% of the banking subsidiary’s total capital. The Parent Company’s two principal subsidiaries are JPMorgan Chase Bank, N.A. and JPMorgan Chase Holdings LLC, an intermediate holding company (the “IHC”). The IHC holds the stock of substantially all of JPMorgan Chase’s subsidiaries other than JPMorgan Chase Bank, N.A. and its subsidiaries. The IHC also owns other assets and intercompany indebtedness owing to the holding company. The Parent Company is obligated to contribute to the IHC substantially all the net proceeds received from securities issuances (including issuances of senior and subordinated debt securities and of preferred and common stock). The principal sources of income and funding for the Parent Company are dividends from JPMorgan Chase Bank, N.A. and dividends and extensions of credit from the IHC. In addition to dividend restrictions set forth in statutes and regulations, the Federal Reserve, the OCC and the FDIC have authority under the Financial Institutions Supervisory Act to prohibit or to limit the payment of dividends by the banking organizations they supervise, including JPMorgan Chase and its subsidiaries that are banks or bank holding companies, if, in the banking regulator’s opinion, payment of a dividend would constitute an unsafe or unsound practice in light of the financial condition of the banking organization. The IHC is prohibited from paying dividends or extending credit to the Parent Company if certain capital or liquidity “thresholds” are breached or if limits are otherwise imposed by JPMorgan Chase’s management or Board of Directors. At January 1, 2018 , JPMorgan Chase ’s banking subsidiaries could pay, in the aggregate, approximately $17 billion in dividends to their respective bank holding companies without the prior approval of their relevant banking regulators. The capacity to pay dividends in 2018 will be supplemented by the banking subsidiaries’ earnings during the year. In compliance with rules and regulations established by U.S. and non-U.S. regulators, as of December 31, 2017 and 2016, cash in the amount of $16.8 billion and $13.4 billion , respectively, were segregated in special bank accounts for the benefit of securities and futures brokerage customers. Also, as of December 31, 2017 and 2016, the Firm had: • Receivables and securities of $18.0 billion and $18.2 billion , respectively, consisting of cash and securities pledged with clearing organizations for the benefit of customers. • Securities with a fair value of $3.5 billion and $19.3 billion , respectively, were also restricted in relation to customer activity. In addition, as of December 31, 2017 and 2016, the Firm had other restricted cash of $3.3 billion and $3.6 billion , respectively, primarily representing cash reserves held at non-U.S. central banks and held for other general purposes. |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Regulatory Capital | Regulatory capital The Federal Reserve establishes capital requirements, including well-capitalized standards, for the consolidated financial holding company. The OCC establishes similar minimum capital requirements and standards for the Firm’s IDI, including JPMorgan Chase Bank, N.A. and Chase Bank USA, N.A. Capital rules under Basel III establish minimum capital ratios and overall capital adequacy standards for large and internationally active U.S. bank holding companies and banks, including the Firm and its IDI subsidiaries. Basel III set forth two comprehensive approaches for calculating RWA: a standardized approach (“Basel III Standardized”) and an advanced approach (“Basel III Advanced”). Certain of the requirements of Basel III are subject to phase-in periods that began on January 1, 2014 and continue through the end of 2018 (“transitional period”). The three categories of risk-based capital and their predominant components under the Basel III Transitional rules are illustrated below: The following tables present the regulatory capital, assets and risk-based capital ratios for JPMorgan Chase and its significant IDI subsidiaries under both Basel III Standardized Transitional and Basel III Advanced Transitional at December 31, 2017 and 2016 . JPMorgan Chase & Co. Basel III Standardized Transitional Basel III Advanced Transitional (in millions, except ratios) Dec 31, Dec 31, Dec 31, Dec 31, Regulatory capital CET1 capital $ 183,300 $ 182,967 $ 183,300 $ 182,967 Tier 1 capital (a) 208,644 208,112 208,644 208,112 Total capital 238,395 239,553 227,933 228,592 Assets Risk-weighted 1,499,506 1,483,132 (e) 1,435,825 1,476,915 Adjusted average (b) 2,514,270 2,484,631 2,514,270 2,484,631 Capital ratios (c) CET1 12.2 % 12.3 % (e) 12.8 % 12.4 % Tier 1 (a) 13.9 14.0 (e) 14.5 14.1 Total 15.9 16.2 (e) 15.9 15.5 Tier 1 leverage (d) 8.3 8.4 8.3 8.4 JPMorgan Chase Bank, N.A. Basel III Standardized Transitional Basel III Advanced Transitional (in millions, except ratios) Dec 31, Dec 31, Dec 31, Dec 31, Regulatory capital CET1 capital $ 184,375 $ 179,319 $ 184,375 $ 179,319 Tier 1 capital (a) 184,375 179,341 184,375 179,341 Total capital 195,839 191,662 189,419 184,637 Assets Risk-weighted 1,335,809 1,311,240 (e) 1,226,534 1,262,613 Adjusted average (b) 2,116,031 2,088,851 2,116,031 2,088,851 Capital ratios (c) CET1 13.8 % 13.7 % (e) 15.0 % 14.2 % Tier 1 (a) 13.8 13.7 (e) 15.0 14.2 Total 14.7 14.6 (e) 15.4 14.6 Tier 1 leverage (d) 8.7 8.6 8.7 8.6 Chase Bank USA, N.A. Basel III Standardized Transitional Basel III Advanced Transitional (in millions, except ratios) Dec 31, Dec 31, Dec 31, Dec 31, Regulatory capital CET1 capital $ 21,600 $ 16,784 $ 21,600 $ 16,784 Tier 1 capital 21,600 16,784 21,600 16,784 Total capital 27,691 22,862 26,250 21,434 Assets Risk-weighted 113,108 112,297 190,523 186,378 Adjusted average (b) 126,517 120,304 126,517 120,304 Capital ratios (c) CET1 19.1 % 14.9 % 11.3 % 9.0 % Tier 1 19.1 14.9 11.3 9.0 Total 24.5 20.4 13.8 11.5 Tier 1 leverage (d) 17.1 14.0 17.1 14.0 (a) Includes the deduction associated with the permissible holdings of covered funds (as defined by the Volcker Rule). The deduction was not material as of December 31, 2017 and 2016 . (b) Adjusted average assets, for purposes of calculating the Tier 1 leverage ratio, includes total quarterly average assets adjusted for unrealized gains/(losses) on AFS securities, less deductions for goodwill and other intangible assets, defined benefit pension plan assets, and deferred tax assets related to tax attributes, including NOLs. (c) For each of the risk-based capital ratios, the capital adequacy of the Firm and its IDI subsidiaries is evaluated against the lower of the two ratios as calculated under Basel III approaches (Standardized or Advanced) as required by the Collins Amendment of the Dodd-Frank Act (the “Collins Floor”) (d) The Tier 1 leverage ratio is not a risk-based measure of capital. This ratio is calculated by dividing Tier 1 capital by adjusted average assets. (e) The prior period amounts have been revised to conform with the current period presentation. Under the risk-based capital guidelines of the Federal Reserve, JPMorgan Chase is required to maintain minimum ratios of CET1, Tier 1 and Total capital to RWA, as well as a minimum leverage ratio (which is defined as Tier 1 capital divided by adjusted quarterly average assets). Failure to meet these minimum requirements could cause the Federal Reserve to take action. IDI subsidiaries also are subject to these capital requirements by their respective primary regulators . The following table presents the minimum ratios to which the Firm and its IDI subsidiaries are subject as of December 31, 2017 . Minimum capital ratios Well-capitalized ratios BHC (a)(e) IDI (b)(e) BHC (c) IDI (d) Capital ratios CET1 7.50 % 5.75 % — % 6.50 % Tier 1 9.00 7.25 6.00 8.00 Total 11.00 9.25 10.00 10.00 Tier 1 leverage 4.00 4.00 — 5.00 Note: The table above is as defined by the regulations issued by the Federal Reserve, OCC and FDIC and to which the Firm and its IDI subsidiaries are subject. (a) Represents the Transitional minimum capital ratios applicable to the Firm under Basel III at December 31, 2017 . At December 31, 2017 , the CET1 minimum capital ratio includes 1.25% resulting from the phase-in of the Firm’s 2.5% capital conservation buffer, and 1.75% resulting from the phase-in of the Firm’s 3.5% GSIB surcharge. (b) Represents requirements for JPMorgan Chase’s IDI subsidiaries. The CET1 minimum capital ratio includes 1.25% resulting from the phase-in of the 2.5% capital conservation buffer that is applicable to the IDI subsidiaries. The IDI subsidiaries are not subject to the GSIB surcharge. (c) Represents requirements for bank holding companies pursuant to regulations issued by the Federal Reserve. (d) Represents requirements for IDI subsidiaries pursuant to regulations issued under the FDIC Improvement Act. (e) For the period ended December 31, 2016 the CET1, Tier 1, Total and Tier 1 leverage minimum capital ratios applicable to the Firm were 6.25% , 7.75% , 9.75% and 4.0% and the CET1, Tier 1, Total and Tier 1 leverage minimum capital ratios applicable to the Firm’s IDI subsidiaries were 5.125% , 6.625% , 8.625% and 4.0% respectively. As of December 31, 2017 and 2016, JPMorgan Chase and all of its IDI subsidiaries were well-capitalized and met all capital requirements to which each was subject. |
Off-balance Sheet Lending-relat
Off-balance Sheet Lending-related Financial Instruments, Guarantees, and Other Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Off-Balance Sheet Lending-Related Financial Instruments, Guarantees and Other Commitments [Abstract] | |
Off-balance Sheet Lending-related Financial Instruments, Guarantees, and Other Commitments | Off–balance sheet lending-related financial instruments, guarantees, and other commitments JPMorgan Chase provides lending-related financial instruments (e.g., commitments and guarantees) to meet the financing needs of its clients or customers. The contractual amount of these financial instruments represents the maximum possible credit risk to the Firm should the counterparty draw upon the commitment or the Firm be required to fulfill its obligation under the guarantee, and should the counterparty subsequently fail to perform according to the terms of the contract. Most of these commitments and guarantees are refinanced, extended, cancelled, or expire without being drawn or a default occurring. As a result, the total contractual amount of these instruments is not, in the Firm’s view, representative of its expected future credit exposure or funding requirements. To provide for probable credit losses inherent in wholesale and certain consumer lending-commitments, an allowance for credit losses on lending-related commitments is maintained. See Note 13 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 December 31, 2017 and 2016 . The amounts in the table below for credit card and home equity lending-related commitments represent the total available credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit for these products will be utilized at the same time. The Firm can reduce or cancel credit card lines of credit by providing the borrower notice or, in some cases as permitted by law, without notice. In addition, the Firm typically closes credit card lines when the borrower is 60 days or more past due. The Firm may reduce or close HELOCs when there are significant decreases in the value of the underlying property, or when there has been a demonstrable decline in the creditworthiness of the borrower. Off–balance sheet lending-related financial instruments, guarantees and other commitments Contractual amount Carrying value (i) 2017 2016 2017 2016 By remaining maturity at December 31, Expires in 1 year or less Expires after Expires after Expires after 5 years Total Total Lending-related Consumer, excluding credit card: Home equity $ 2,165 $ 1,370 $ 1,379 $ 15,446 $ 20,360 $ 21,714 $ 12 $ 12 Residential mortgage (a)(b) 5,723 — — 13 5,736 10,332 — — Auto 8,007 872 292 84 9,255 8,468 2 2 Consumer & Business Banking (b) 11,642 926 112 522 13,202 12,733 19 12 Total consumer, excluding credit card 27,537 3,168 1,783 16,065 48,553 53,247 (h) 33 26 Credit card 572,831 — — — 572,831 553,891 — — Total consumer (c) 600,368 3,168 1,783 16,065 621,384 607,138 (h) 33 26 Wholesale: Other unfunded commitments to extend credit (d) 61,536 118,907 138,289 12,428 331,160 328,497 840 905 Standby letters of credit and other financial guarantees (d) 15,278 9,905 7,963 2,080 35,226 35,947 636 586 Other letters of credit (d) 3,459 114 139 — 3,712 3,570 3 2 Total wholesale (e) 80,273 128,926 146,391 14,508 370,098 368,014 1,479 1,493 Total lending-related $ 680,641 $ 132,094 $ 148,174 $ 30,573 $ 991,482 $ 975,152 (h) $ 1,512 $ 1,519 Other guarantees and commitments Securities lending indemnification agreements and guarantees (f) $ 179,490 $ — $ — $ — $ 179,490 $ 137,209 $ — $ — Derivatives qualifying as guarantees 4,529 101 12,479 40,065 57,174 51,966 304 80 Unsettled reverse repurchase and securities borrowing agreements 76,859 — — — 76,859 50,722 — — Unsettled repurchase and securities lending agreements 44,205 — — — 44,205 26,948 — — Loan sale and securitization-related indemnifications: Mortgage repurchase liability NA NA NA NA NA NA 111 133 Loans sold with recourse NA NA NA NA 1,169 2,730 38 64 Other guarantees and commitments (g) 7,668 1,084 434 2,681 11,867 5,715 (76 ) (118 ) (a) Includes certain commitments to purchase loans from correspondents. (b) Certain loan portfolios have been reclassified. The prior period amounts have been revised to conform with the current period presentation. (c) Predominantly all consumer lending-related commitments are in the U.S. (d) At December 31, 2017 and 2016 , reflected the contractual amount net of risk participations totaling $334 million and $328 million , respectively, for other unfunded commitments to extend credit; $10.4 billion and $11.1 billion , respectively, for standby letters of credit and other financial guarantees; and $405 million and $265 million , respectively, for other letters of credit. In regulatory filings with the Federal Reserve these commitments are shown gross of risk participations. (e) At December 31, 2017 and 2016 , the U.S. portion of the contractual amount of total wholesale lending-related commitments was 77% and 79% , respectively. (f) At December 31, 2017 and 2016 , collateral held by the Firm in support of securities lending indemnification agreements was $188.7 billion and $143.2 billion , respectively. Securities lending collateral consist of primarily cash and securities issued by governments that are members of G7 and U.S. government agencies. (g) At December 31, 2017, primarily includes letters of credit hedged by derivative transactions and managed on a market risk basis, unfunded commitments related to institutional lending and commitments associated with the Firm’s membership in certain clearing houses. Additionally, includes unfunded commitments predominantly related to certain tax-oriented equity investments. (h) The prior period amounts have been revised to conform with the current period presentation. (i) For lending-related products, the carrying value represents the allowance for lending-related commitments and the guarantee liability; for derivative-related products, the carrying value represents the fair value. Other unfunded commitments to extend credit Other unfunded commitments to extend credit generally consist of commitments for working capital and general corporate purposes, extensions of credit to support commercial paper facilities and bond financings in the event that those obligations cannot be remarketed to new investors, as well as committed liquidity facilities to clearing organizations. The Firm also issues commitments under multipurpose facilities which could be drawn upon in several forms, including the issuance of a standby letter of credit. The Firm acts as a settlement and custody bank in the U.S. tri-party repurchase transaction market. In its role as settlement and custody bank, the Firm is exposed to the intra-day credit risk of its cash borrower clients, usually broker-dealers. This exposure arises under secured clearance advance facilities that the Firm extends to its clients (i.e. cash borrowers); these facilities contractually limit the Firm’s intra-day credit risk to the facility amount and must be repaid by the end of the day. As of December 31, 2017 and 2016 , the secured clearance advance facility maximum outstanding commitment amount was $1.5 billion and $2.4 billion , respectively. Guarantees U.S. GAAP requires that a guarantor recognize, at the inception of a guarantee, a liability in an amount equal to the fair value of the obligation undertaken in issuing the guarantee. U.S. GAAP defines a guarantee as a contract that contingently requires the guarantor to pay a guaranteed party based upon: (a) changes in an underlying asset, liability or equity security of the guaranteed party; or (b) a third party’s failure to perform under a specified agreement. The Firm considers the following off–balance sheet lending-related arrangements to be guarantees under U.S. GAAP: standby letters of credit and other financial guarantees, securities lending indemnifications, certain indemnification agreements included within third-party contractual arrangements and certain derivative contracts. As required by U.S. GAAP, the Firm initially records guarantees at the inception date fair value of the obligation assumed (e.g., the amount of consideration received or the net present value of the premium receivable). For certain types of guarantees, the Firm records this fair value amount in other liabilities with an offsetting entry recorded in cash (for premiums received), or other assets (for premiums receivable). Any premium receivable recorded in other assets is reduced as cash is received under the contract, and the fair value of the liability recorded at inception is amortized into income as lending and deposit-related fees over the life of the guarantee contract. For indemnifications provided in sales agreements, a portion of the sale proceeds is allocated to the guarantee, which adjusts the gain or loss that would otherwise result from the transaction. For these indemnifications, the initial liability is amortized to income as the Firm’s risk is reduced (i.e., over time or when the indemnification expires). Any contingent liability that exists as a result of issuing the guarantee or indemnification is recognized when it becomes probable and reasonably estimable. The contingent portion of the liability is not recognized if the estimated amount is less than the carrying amount of the liability recognized at inception (adjusted for any amortization). The recorded amounts of the liabilities related to guarantees and indemnifications at December 31, 2017 and 2016 , excluding the allowance for credit losses on lending-related commitments, are discussed below. Standby letters of credit and other financial guarantees Standby letters of credit and other financial guarantees are conditional lending commitments issued by the Firm to guarantee the performance of a client or customer to a third party under certain arrangements, such as commercial paper facilities, bond financings, acquisition financings, trade and similar transactions. The carrying values of standby and other letters of credit were $639 million and $588 million at December 31, 2017 and 2016 , respectively, which were classified in accounts payable and other liabilities on the Consolidated balance sheets; these carrying values included $195 million and $147 million , respectively, for the allowance for lending-related commitments, and $444 million and $441 million , respectively, for the guarantee liability and corresponding asset. The following table summarizes the types of facilities under which standby letters of credit and other letters of credit arrangements are outstanding by the ratings profiles of the Firm’s clients, as of December 31, 2017 and 2016 . Standby letters of credit, other financial guarantees and other letters of credit 2017 2016 December 31, (in millions) Standby letters of credit and other financial guarantees Other letters of credit Standby letters of credit and Other letters Investment-grade (a) $ 28,492 $ 2,646 $ 28,245 $ 2,781 Noninvestment-grade (a) 6,734 1,066 7,702 789 Total contractual amount $ 35,226 $ 3,712 $ 35,947 $ 3,570 Allowance for lending-related commitments $ 192 $ 3 $ 145 $ 2 Guarantee liability 444 — 441 — Total carrying value $ 636 $ 3 $ 586 $ 2 Commitments with collateral $ 17,421 $ 878 $ 19,346 $ 940 (a) The ratings scale is based on the Firm’s internal ratings, which generally correspond to ratings as defined by S&P and Moody’s. Securities lending indemnifications Through the Firm’s securities lending program, counterparties’ securities, via custodial and non-custodial arrangements, may be lent to third parties. As part of this program, the Firm provides an indemnification in the lending agreements which protects the lender against the failure of the borrower to return the lent securities. To minimize its liability under these indemnification agreements, the Firm obtains cash or other highly liquid collateral with a market value exceeding 100% of the value of the securities on loan from the borrower. Collateral is marked to market daily to help assure that collateralization is adequate. Additional collateral is called from the borrower if a shortfall exists, or collateral may be released to the borrower in the event of overcollateralization. If a borrower defaults, the Firm would use the collateral held to purchase replacement securities in the market or to credit the lending client or counterparty with the cash equivalent thereof. Derivatives qualifying as guarantees The Firm transacts certain derivative contracts that have the characteristics of a guarantee under U.S. GAAP. These contracts include written put options that require the Firm to purchase assets upon exercise by the option holder at a specified price by a specified date in the future. The Firm may enter into written put option contracts in order to meet client needs, or for other trading purposes. The terms of written put options are typically five years or less. Derivatives deemed to be guarantees also includes stable value contracts, commonly referred to as “stable value products”, that require the Firm to make a payment of the difference between the market value and the book value of a counterparty’s reference portfolio of assets in the event that market value is less than book value and certain other conditions have been met. Stable value products are transacted in order to allow investors to realize investment returns with less volatility than an unprotected portfolio. These contracts are typically longer-term or may have no stated maturity, but allow the Firm to elect to terminate the contract under certain conditions. The notional value of derivatives guarantees generally represents the Firm’s maximum exposure. However, exposure to certain stable value products is contractually limited to a substantially lower percentage of the notional amount. The fair value of derivative guarantees reflects the probability, in the Firm’s view, of whether the Firm will be required to perform under the contract. The Firm reduces exposures to these contracts by entering into offsetting transactions, or by entering into contracts that hedge the market risk related to the derivative guarantees. The following table summarizes the derivatives qualifying as guarantees as of December 31, 2017 , and 2016 . (in millions) December 31, 2017 December 31, 2016 Notional amounts Derivative guarantees 57,174 51,966 Stable value contracts with contractually limited exposure 29,104 28,665 Maximum exposure of stable value contracts with contractually limited exposure 3,053 3,012 Fair value Derivative payables 304 96 Derivative receivables — 16 In addition to derivative contracts that meet the characteristics of a guarantee, the Firm is both a purchaser and seller of credit protection in the credit derivatives market. For a further discussion of credit derivatives, see Note 5. Unsettled reverse repurchase and securities borrowing agreements, and unsettled repurchase and securities lending agreements In the normal course of business, the Firm enters into reverse repurchase agreements and securities borrowing agreements, which are secured financing agreements. Such agreements settle at a future date. At settlement, these commitments result in the Firm advancing cash to and receiving securities collateral from the counterparty. The Firm also enters into repurchase agreements and securities lending agreements. At settlement, these commitments result in the Firm receiving cash from and providing securities collateral to the counterparty. These agreements generally do not meet the definition of a derivative, and therefore, are not recorded on the Consolidated balance sheets until settlement date. These agreements predominantly consist of agreements with regular-way settlement periods. For a further discussion of securities purchased under resale agreements and securities borrowed, and securities sold under repurchase agreements and securities loaned, see Note 11 . Loan sales- and securitization-related indemnifications Mortgage repurchase liability In connection with the Firm’s mortgage loan sale and securitization activities with GSEs, as described in Note 14, the Firm has made representations and warranties that the loans sold meet certain requirements that may require the Firm to repurchase mortgage loans and/or indemnify the loan purchaser. Further, although the Firm’s securitizations are predominantly nonrecourse, the Firm does provide recourse servicing in certain limited cases where it agrees to share credit risk with the owner of the mortgage loans. To the extent that repurchase demands that are received relate to loans that the Firm purchased from third parties that remain viable, the Firm typically will have the right to seek a recovery of related repurchase losses from the third party. Generally, the maximum amount of future payments the Firm would be required to make for breaches of these representations and warranties would be equal to the unpaid principal balance of such loans that are deemed to have defects that were sold to purchasers (including securitization-related SPEs) plus, in certain circumstances, accrued interest on such loans and certain expenses. Private label securitizations The liability related to repurchase demands associated with private label securitizations is separately evaluated by the Firm in establishing its litigation reserves. For additional information regarding litigation, see Note 29 . Loans sold with recourse The Firm provides servicing for mortgages and certain commercial lending products on both a recourse and nonrecourse basis. In nonrecourse servicing, the principal credit risk to the Firm is the cost of temporary servicing advances of funds (i.e., normal servicing advances). In recourse servicing, the servicer agrees to share credit risk with the owner of the mortgage loans, such as Fannie Mae or Freddie Mac or a private investor, insurer or guarantor. Losses on recourse servicing predominantly occur when foreclosure sales proceeds of the property underlying a defaulted loan are less than the sum of the outstanding principal balance, plus accrued interest on the loan and the cost of holding and disposing of the underlying property. The Firm’s securitizations are predominantly nonrecourse, thereby effectively transferring the risk of future credit losses to the purchaser of the mortgage-backed securities issued by the trust. At December 31, 2017 and 2016 , the unpaid principal balance of loans sold with recourse totaled $1.2 billion and $2.7 billion , respectively. The carrying value of the related liability that the Firm has recorded, which is representative of the Firm’s view of the likelihood it will have to perform under its recourse obligations, was $38 million and $64 million at December 31, 2017 and 2016 , respectively. Other off-balance sheet arrangements Indemnification agreements – general In connection with issuing securities to investors outside the U.S., the Firm may agree to pay additional amounts to the holders of the securities in the event that, due to a change in tax law, certain types of withholding taxes are imposed on payments on the securities. The terms of the securities may also give the Firm the right to redeem the securities if such additional amounts are payable. The enactment of the TCJA will not cause the Firm to become obligated to pay any such additional amounts. The Firm may also enter into indemnification clauses in connection with the licensing of software to clients (“software licensees”) or when it sells a business or assets to a third party (“third-party purchasers”), pursuant to which it indemnifies software licensees for claims of liability or damages that may occur subsequent to the licensing of the software, or third-party purchasers for losses they may incur due to actions taken by the Firm prior to the sale of the business or assets. It is difficult to estimate the Firm’s maximum exposure under these indemnification arrangements, since this would require an assessment of future changes in tax law and future claims that may be made against the Firm that have not yet occurred. However, based on historical experience, management expects the risk of loss to be remote. Card charge-backs . Under the rules of Visa USA, Inc., and MasterCard International, JPMorgan Chase Bank, N.A., is primarily liable for the amount of each processed card sales transaction that is the subject of a dispute between a cardmember and a merchant. If a dispute is resolved in the cardmember’s favor, Merchant Services will (through the cardmember’s issuing bank) credit or refund the amount to the cardmember 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 cardmember. Merchant Services mitigates this risk by withholding future settlements, retaining cash reserve accounts or by obtaining other security. However, in the unlikely event that: (1) a merchant ceases operations and is unable to deliver products, services or a refund; (2) Merchant Services does not have sufficient collateral from the merchant to provide cardmember refunds; and (3) Merchant Services does not have sufficient financial resources to provide cardmember refunds, JPMorgan Chase Bank, N.A., would recognize the loss. Merchant Services incurred aggregate losses of $28 million , $85 million , and $12 million on $1,191.7 billion , $1,063.4 billion , and $949.3 billion of aggregate volume processed for the years ended December 31, 2017 , 2016 and 2015 , respectively. Incurred losses from merchant charge-backs are charged to other expense, with the offset recorded in a valuation allowance against accrued interest and accounts receivable on the Consolidated balance sheets. The carrying value of the valuation allowance was $7 million and $45 million at December 31, 2017 and 2016 , respectively, which the Firm believes, based on historical experience and the collateral held by Merchant Services of $141 million and $125 million at December 31, 2017 and 2016 , respectively, is representative of the payment or performance risk to the Firm related to charge-backs. Clearing Services – Client Credit Risk The Firm provides clearing services for clients by entering into securities purchases and sales and derivative transactions with CCPs, including ETDs such as futures and options, as well as OTC-cleared derivative contracts. As a clearing member, the Firm stands behind the performance of its clients, collects cash and securities collateral (margin) as well as any settlement amounts due from or to clients, and remits them to the relevant CCP or client in whole or part. There are two types of margin: variation margin is posted on a daily basis based on the value of clients’ derivative contracts and initial margin is posted at inception of a derivative contract, generally on the basis of the potential changes in the variation margin requirement for the contract. As a clearing member, the Firm is exposed to the risk of nonperformance by its clients, but is not liable to clients for the performance of the CCPs. Where possible, the Firm seeks to mitigate its risk to the client through the collection of appropriate amounts of margin at inception and throughout the life of the transactions. The Firm can also cease providing clearing services if clients do not adhere to their obligations under the clearing agreement. In the event of nonperformance by a client, the Firm would close out the client’s positions and access available margin. The CCP would utilize any margin it holds to make itself whole, with any remaining shortfalls required to be paid by the Firm as a clearing member. The Firm reflects its exposure to nonperformance risk of the client through the recognition of margin receivables from clients and margin payables to CCPs; the clients’ underlying securities or derivative contracts are not reflected in the Firm’s Consolidated Financial Statements. It is difficult to estimate the Firm’s maximum possible exposure through its role as a clearing member, as this would require an assessment of transactions that clients may execute in the future. However, based upon historical experience, and the credit risk mitigants available to the Firm, management believes it is unlikely that the Firm will have to make any material payments under these arrangements and the risk of loss is expected to be remote. For information on the derivatives that the Firm executes for its own account and records in its Consolidated Financial Statements, see Note 5 . Exchange & Clearing House Memberships The Firm is a member of several securities and derivative exchanges and clearing houses, both in the U.S. and other countries, and it provides clearing services. Membership in some of these organizations requires the Firm to pay a pro rata share of the losses incurred by the organization as a result of the default of another member. Such obligations vary with different organizations. These obligations may be limited to members who dealt with the defaulting member or to the amount (or a multiple of the amount) of the Firm’s contribution to the guarantee fund maintained by a clearing house or exchange as part of the resources available to cover any losses in the event of a member default. Alternatively, these obligations may include a pro rata share of the residual losses after applying the guarantee fund. Additionally, certain clearing houses require the Firm as a member to pay a pro rata share of losses that may result from the clearing house’s investment of guarantee fund contributions and initial margin, unrelated to and independent of the default of another member. Generally a payment would only be required should such losses exceed the resources of the clearing house or exchange that are contractually required to absorb the losses in the first instance. It is difficult to estimate the Firm’s maximum possible exposure under these membership agreements, since this would require an assessment of future claims that may be made against the Firm that have not yet occurred. However, based on historical experience, management expects the risk of loss to be remote. Guarantees of subsidiaries In the normal course of business, the Parent Company may provide counterparties with guarantees of certain of the trading and other obligations of its subsidiaries on a contract-by-contract basis, as negotiated with the Firm’s counterparties. The obligations of the subsidiaries are included on the Firm’s Consolidated balance sheets or are reflected as off-balance sheet commitments; therefore, the Parent Company has not recognized a separate liability for these guarantees. The Firm believes that the occurrence of any event that would trigger payments by the Parent Company under these guarantees is remote. 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. These guarantees, which rank on a parity with the Firm’s unsecured and unsubordinated indebtedness, are not included in the table on page 262 of this Note. For additional information, see Note 19 . |
Commitments, Pledged Assets and
Commitments, Pledged Assets and Collateral | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Pledged Assets and Collateral | Commitments, pledged assets and collateral Lease commitments At December 31, 2017 , JPMorgan Chase and its subsidiaries were obligated under a number of noncancelable operating leases for premises and equipment used primarily for banking purposes . Certain leases contain renewal options or escalation clauses providing for increased rental payments based on maintenance, utility and tax increases, or they require the Firm to perform restoration work on leased premises. No lease agreement imposes restrictions on the Firm’s ability to pay dividends, engage in debt or equity financing transactions or enter into further lease agreements. The following table presents required future minimum rental payments under operating leases with noncancelable lease terms that expire after December 31, 2017 . Year ended December 31, (in millions) 2018 1,526 2019 1,450 2020 1,300 2021 1,029 2022 815 After 2022 3,757 Total minimum payments required 9,877 Less: Sublease rentals under noncancelable subleases (1,034 ) Net minimum payment required $ 8,843 Total rental expense was as follows. Year ended December 31, (in millions) 2017 2016 2015 Gross rental expense $ 1,853 $ 1,860 $ 2,015 Sublease rental income (251 ) (241 ) (411 ) Net rental expense $ 1,602 $ 1,619 $ 1,604 Pledged assets The Firm may pledge financial assets that it owns to maintain potential borrowing capacity with central banks and for other purposes, including to secure borrowings and public deposits, collateralize repurchase and other securities financing agreements, and cover customer short sales. Certain of these pledged assets may be sold or repledged or otherwise used by the secured parties and are identified as financial instruments owned (pledged to various parties) on the Consolidated balance sheets. The following table presents the Firm’s pledged assets. December 31, (in billions) 2017 2016 Assets that may be sold or repledged or otherwise used by secured parties $ 129.6 $ 133.6 Assets that may not be sold or repledged or otherwise used by secured parties 67.9 53.5 Assets pledged at Federal Reserve banks and FHLBs 493.7 441.9 Total assets pledged $ 691.2 $ 629.0 Total assets pledged do not include assets of consolidated VIEs; these assets are used to settle the liabilities of those entities. See Note 14 for additional information on assets and liabilities of consolidated VIEs. For additional information on the Firm’s securities financing activities, see Note 11 . For additional information on the Firm’s long-term debt, see Note 19 . The significant components of the Firm’s pledged assets were as follows. December 31, (in billions) 2017 2016 Securities $ 86.2 $ 101.1 Loans 437.7 374.9 Trading assets and other 167.3 153.0 Total assets pledged $ 691.2 $ 629.0 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 agreements, securities borrowing agreements, customer margin loans and derivative agreements . Collateral is generally used under repurchase agreements, securities lending agreements or to cover customer short sales and to collateralize deposits and derivative agreements. The following table presents the fair value of collateral accepted. December 31, (in billions) 2017 2016 Collateral permitted to be sold or repledged, delivered, or otherwise used $ 968.8 $ 914.1 Collateral sold, repledged, delivered or otherwise used 775.3 746.6 |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2017 | |
Litigation [Abstract] | |
Litigation | Litigation Contingencies As of December 31, 2017 , the Firm and its subsidiaries and affiliates are defendants or putative defendants in numerous legal proceedings, including private, civil litigations and regulatory/government investigations. The litigations range from individual actions involving a single plaintiff to class action lawsuits with potentially millions of class members. Investigations involve both formal and informal proceedings, by both governmental agencies and self-regulatory organizations. These legal proceedings are at varying stages of adjudication, arbitration or investigation, and involve each of the Firm’s lines of business and geographies and a wide variety of claims (including common law tort and contract claims and statutory antitrust, securities and consumer protection claims), some of which present novel legal theories. The Firm believes the estimate of the aggregate range of reasonably possible losses, in excess of reserves established, for its legal proceedings is from $0 to approximately $1.7 billion at December 31, 2017 . This estimated aggregate range of reasonably possible losses was based upon currently available information 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 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. Foreign Exchange Investigations and Litigation. The Firm previously reported settlements with certain government authorities relating to its foreign exchange (“FX”) sales and trading activities and controls related to those activities. FX-related investigations and inquiries by government authorities, including competition authorities, are ongoing, and the Firm is cooperating with and working to resolve those matters. In May 2015, the Firm pleaded guilty to a single violation of federal antitrust law. In January 2017, the Firm was sentenced, with judgment entered thereafter. The Department of Labor has granted the Firm a five -year exemption of disqualification, effective upon expiration of a temporary one -year exemption previously granted, 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”). The Firm will need to reapply in due course for a further exemption to cover the remainder of the ten -year disqualification period. Separately, in February 2017 the South Africa Competition Commission referred its FX investigation of the Firm and other banks to the South Africa Competition Tribunal, which is conducting civil proceedings concerning that matter. The Firm is also one of a number of foreign exchange dealers defending a class action filed in the United States District Court for the Southern District of New York by U.S.-based plaintiffs, principally alleging violations of federal antitrust laws based on an alleged conspiracy to manipulate foreign exchange rates (the “U.S. class action”). In January 2015, the Firm entered into a settlement agreement in the U.S. class action. Following this settlement, a number of additional putative class actions were filed seeking damages for persons who transacted FX futures and options on futures (the “exchanged-based actions”), consumers who purchased foreign currencies at allegedly inflated rates (the “consumer action”), participants or beneficiaries of qualified ERISA plans (the “ERISA actions”), and purported indirect purchasers of FX instruments (the “indirect purchaser action”). Since then, the Firm has entered into a revised settlement agreement to resolve the consolidated U.S. class action, including the exchange-based actions, and that agreement has been preliminarily approved by the Court. The District Court has dismissed one of the ERISA actions, and the plaintiffs have filed an appeal. The consumer action, a second ERISA action and the indirect purchaser action remain pending in the District Court. General Motors Litigation. JPMorgan Chase Bank, N.A. participated in, and was the Administrative Agent on behalf of a syndicate of lenders on, a $1.5 billion syndicated Term Loan facility (“Term Loan”) for General Motors Corporation (“GM”). In July 2009, in connection with the GM bankruptcy proceedings, the Official Committee of Unsecured Creditors of Motors Liquidation Company (“Creditors Committee”) filed a lawsuit against JPMorgan Chase Bank, N.A., in its individual capacity and as Administrative Agent for other lenders on the Term Loan, seeking to hold the underlying lien invalid based on the filing of a UCC-3 termination statement relating to the Term Loan. In January 2015, following several court proceedings, the United States Court of Appeals for the Second Circuit reversed the Bankruptcy Court’s dismissal of the Creditors Committee’s claim and remanded the case to the Bankruptcy Court with instructions to enter partial summary judgment for the Creditors Committee as to the termination statement. The proceedings in the Bankruptcy Court continue with respect to, among other things, additional defenses asserted by JPMorgan Chase Bank, N.A. and the value of additional collateral on the Term Loan that was unaffected by the filing of the termination statement at issue. In connection with that additional collateral, a trial in the Bankruptcy Court regarding the value of certain representative assets concluded in May 2017, and a ruling was issued in September 2017. The Bankruptcy Court found that 33 of the 40 representative assets are fixtures and that these fixtures generally should be valued on a “going concern” basis. The Creditors Committee is seeking leave to appeal the Bankruptcy Court’s ruling that the fixtures should be valued on a “going concern” basis rather than on a liquidation basis. In addition, certain Term Loan lenders filed cross-claims in the Bankruptcy Court against JPMorgan Chase Bank, N.A. seeking indemnification and asserting various claims. The parties are engaged in mediation concerning, among other things, the characterization and value of the remaining additional collateral, in light of the Bankruptcy Court’s ruling regarding the representative assets, as well as other issues, including the cross-claims. Hopper Estate Litigation. The Firm is a defendant in an action in connection with its role as an independent administrator of an estate. The plaintiffs sought in excess of $7 million in compensatory damages, primarily relating to attorneys’ fees incurred by the plaintiffs. After a trial in probate court in Dallas, Texas that ended in September 2017, the jury returned a verdict against the Firm, awarding plaintiffs their full compensatory damages and multiple billions in punitive damages. Notwithstanding the jury verdict, in light of legal limitations on the availability of damages, certain of the plaintiffs moved for entry of judgment in the total amount of approximately $71 million , including punitive damages, while another plaintiff has not yet moved for judgment. The court has not yet entered a judgment in this matter. The parties are engaged in post-trial briefing. Interchange Litigation. A group 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 respective rules in violation of antitrust laws. The parties settled the cases for a cash payment of $6.1 billion to the class plaintiffs (of which the Firm’s share is approximately 20% ) and an amount equal to ten basis points of credit card interchange for a period of 8 months to be measured from a date within 60 days of the end of the opt-out period. The settlement also provided for modifications to each credit card network’s rules, including those that prohibit surcharging credit card transactions. In December 2013, the District Court granted final approval of the settlement. A number of merchants appealed to the United States Court of Appeals for the Second Circuit, which, in June 2016, vacated the District Court’s certification of the class action and reversed the approval of the class settlement. In March 2017, the U.S. Supreme Court declined petitions seeking review of the decision of the Court of Appeals. The case has been remanded to the District Court for further proceedings consistent with the appellate decision. 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 those actions are proceeding. LIBOR and Other Benchmark Rate Investigations and Litigation. JPMorgan Chase has received subpoenas and requests for documents and, in some cases, interviews, from federal and state agencies and entities, including the U.S. Commodity Futures Trading Commission (“CFTC”) and various state attorneys general, as well as the European Commission (“EC”), the Swiss Competition Commission (“ComCo”) and other regulatory authorities and banking associations around the world relating primarily to the process by which interest rates were submitted to the British Bankers Association (“BBA”) in connection with the setting of the BBA’s London Interbank Offered Rate (“LIBOR”) for various currencies, principally in 2007 and 2008. Some of the inquiries also relate to similar processes by which information on rates was submitted to the European Banking Federation (“EBF”) in connection with the setting of the EBF’s Euro Interbank Offered Rates (“EURIBOR”) and to the Japanese Bankers’ Association for the setting of Tokyo Interbank Offered Rates (“TIBOR”) during similar time periods, as well as processes for the setting of U.S. dollar ISDAFIX rates and other reference rates in various parts of the world during similar time periods, including through 2012. The Firm continues to cooperate with these ongoing investigations, and is currently engaged in discussions with the CFTC about resolving its U.S. dollar ISDAFIX-related investigation with respect to the Firm. There is no assurance that such discussions will result in a settlement. As previously reported, the Firm has resolved EC inquiries relating to Yen LIBOR and Swiss Franc LIBOR. In December 2016, the Firm resolved ComCo inquiries relating to these same rates. ComCo’s investigation relating to EURIBOR, to which the Firm and other banks are subject, continues. In December 2016, the EC issued a decision against the Firm and other banks finding an infringement of European antitrust rules relating to EURIBOR. The Firm has filed an appeal with the European General Court. In addition, the Firm has been named as a defendant along with other banks in a series of individual and putative class actions filed in various United States District Courts. These actions have been filed, or consolidated for pre-trial purposes, in the United States District Court for the Southern District of New York. In these actions, plaintiffs make varying allegations that in various periods, starting in 2000 or later, defendants either individually or collectively manipulated various benchmark rates by submitting rates that were artificially low or high. Plaintiffs allege that they transacted in loans, derivatives or other financial instruments whose values are affected by changes in these rates and assert a variety of claims including antitrust claims seeking treble damages. These matters are in various stages of litigation. The Firm has agreed to settle a putative class action related to Swiss franc LIBOR, and that settlement remains subject to final court approval. In an action related to EURIBOR, the District Court dismissed all claims except a single antitrust claim and two common law claims, and dismissed all defendants except the Firm and Citibank. In actions related to U.S. dollar LIBOR, the District Court dismissed certain claims, including antitrust claims brought by some plaintiffs whom the District Court found did not have standing to assert such claims, and permitted antitrust claims, claims under the Commodity Exchange Act and common law claims to proceed. The plaintiffs whose antitrust claims were dismissed for lack of standing have filed an appeal. In May 2017, plaintiffs in three putative class actions moved in the District Court for class certification, and the Firm and other defendants have opposed that motion. In January 2018, the District Court heard oral arguments on the class certification motions and reserved decision. In an action related to the Singapore Interbank Offered Rate and the Singapore Swap Offer Rate, the District Court dismissed without prejudice all claims except a single antitrust claim, and dismissed without prejudice all defendants except the Firm, Bank of America and Citibank. The plaintiffs filed an amended complaint in September 2017, which the Firm and other defendants have moved to dismiss. The Firm is one of the defendants in a number of putative class actions alleging that defendant banks and ICAP conspired to manipulate the U.S. dollar ISDAFIX rates. In April 2016, the Firm settled this litigation, along with certain other banks. Those settlements have been preliminarily approved by the Court. Mortgage-Backed Securities and Repurchase Litigation and Related Regulatory Investigations. The Firm and affiliates (together, “JPMC”), Bear Stearns and affiliates (together, “Bear Stearns”) and certain Washington Mutual affiliates (together, “Washington Mutual”) have been named as defendants in a number of cases in their various roles in offerings of MBS. The remaining civil cases include one investor action and actions for repurchase of mortgage loans. The Firm and certain of its current and former officers and Board members have also been sued in a shareholder derivative action relating to the Firm’s MBS activities, which remains pending. Issuer Litigation – Individual Purchaser Actions . With the exception of one remaining action, the Firm has resolved all of the individual actions brought against JPMC, Bear Stearns and Washington Mutual as MBS issuers (and, in some cases, also as underwriters of their own MBS offerings). Repurchase Litigation . The Firm is defending a few actions brought by trustees and/or securities administrators of various MBS trusts on behalf of purchasers of securities issued by those trusts. These cases generally allege breaches of various representations and warranties regarding securitized loans and seek repurchase of those loans or equivalent monetary relief, as well as indemnification of attorneys’ fees and costs and other remedies. The trustees and/or securities administrators have accepted settlement offers on these MBS transactions, and these settlements are subject to court approval. In addition, the Firm and a group of 21 institutional MBS investors made a binding offer to the trustees of MBS issued by JPMC and Bear Stearns providing for the payment of $4.5 billion and the implementation of certain servicing changes by JPMC, to resolve all repurchase and servicing claims that have been asserted or could have been asserted with respect to 330 MBS trusts created between 2005 and 2008. The offer does not resolve claims relating to Washington Mutual MBS. The trustees (or separate and successor trustees) for this group of 330 trusts have accepted the settlement for 319 trusts in whole or in part and excluded from the settlement 16 trusts in whole or in part. The trustees’ acceptance received final approval from the court and the Firm paid the settlement in December 2017. Additional actions have been filed against third-party trustees that relate to loan repurchase and servicing claims involving trusts sponsored by JPMC, Bear Stearns and Washington Mutual. In actions against the Firm involving offerings of MBS issued by the Firm, the Firm has contractual rights to indemnification from sellers of mortgage loans that were securitized in such offerings. However, certain of those indemnity rights may prove effectively unenforceable in various situations, such as where the loan sellers are now defunct. The Firm has entered into agreements with a number of MBS trustees or entities that purchased MBS that toll applicable statute of limitations periods with respect to their claims, and has settled, and in the future may settle, tolled claims. There is no assurance that the Firm will not be named as a defendant in additional MBS-related litigation. Derivative Action . A shareholder derivative action against the Firm, as nominal defendant, and certain of its current and former officers and members of its Board of Directors relating to the Firm’s MBS activities was filed in California federal court in 2013. In June 2017, the court granted defendants’ motion to dismiss the cause of action that alleged material misrepresentations and omissions in the Firm’s proxy statement, found that the court did not have personal jurisdiction over the individual defendants with respect to the remaining causes of action, and transferred that remaining portion of the case to the United States District Court for the Southern District of New York without ruling on the merits. The motion by the defendants to dismiss is pending. Municipal Derivatives Litigation. Several civil actions were commenced in New York and Alabama courts against the Firm relating to certain Jefferson County, Alabama (the “County”) warrant underwritings and swap transactions. The claims in the civil actions generally alleged that the Firm made payments to certain third parties in exchange for being chosen to underwrite more than $3.0 billion in warrants issued by the County and to act as the counterparty for certain swaps executed by the County. The County filed for bankruptcy in November 2011. In June 2013, the County filed a Chapter 9 Plan of Adjustment, as amended (the “Plan of Adjustment”), which provided that all the above-described actions against the Firm would be released and dismissed with prejudice. In November 2013, the Bankruptcy Court confirmed the Plan of Adjustment, and in December 2013, certain sewer rate payers filed an appeal challenging the confirmation of the Plan of Adjustment. All conditions to the Plan of Adjustment’s effectiveness, including the dismissal of the actions against the Firm, were satisfied or waived and the transactions contemplated by the Plan of Adjustment occurred in December 2013. Accordingly, all the above-described actions against the Firm have been dismissed pursuant to the terms of the Plan of Adjustment. The appeal of the Bankruptcy Court’s order confirming the Plan of Adjustment remains pending. Petters Bankruptcy and Related Matters. JPMorgan Chase and certain of its affiliates, including One Equity Partners (“OEP”), were named as defendants in several actions filed in connection with the receivership and bankruptcy proceedings pertaining to Thomas J. Petters and certain affiliated entities (collectively, “Petters”) and the Polaroid Corporation. The principal actions against JPMorgan Chase and its affiliates were brought by a court-appointed receiver for Petters and the trustees in bankruptcy proceedings for three Petters entities. These actions generally sought to avoid certain putative transfers in connection with (i) the 2005 acquisition by Petters of Polaroid, which at the time was majority-owned by OEP; (ii) two credit facilities that JPMorgan Chase and other financial institutions entered into with Polaroid; and (iii) a credit line and investment accounts held by Petters. In January 2017, the Court substantially denied the defendants’ motion to dismiss an amended complaint filed by the plaintiffs. In October 2017, JPMorgan Chase and its affiliates reached an agreement in principle to settle the litigation brought by the Petters bankruptcy trustees, or their successors, and the receiver for Thomas J. Petters. The settlement is subject to final documentation and Court approval. Wendel. Since 2012, the French criminal authorities have been investigating a series of transactions entered into by senior managers of Wendel Investissement (“Wendel”) during the period from 2004 through 2007 to restructure their shareholdings in Wendel. JPMorgan Chase Bank, N.A., Paris branch provided financing for the transactions to a number of managers of Wendel in 2007. JPMorgan Chase has cooperated with the investigation. The investigating judges issued an ordonnance de renvoi in November 2016, referring JPMorgan Chase Bank, N.A. to the French tribunal correctionnel for alleged complicity in tax fraud. No date for trial has been set by the court. The Firm has been successful in legal challenges made to the Court of Cassation, France’s highest court, with respect to the criminal proceedings. In January 2018, the Paris Court of Appeal issued a decision cancelling the mise en examen of JPMorgan Chase Bank, N.A. The Firm is requesting clarification from the Court of Cassation concerning the Court of Appeal’s decision before seeking direction on next steps in the criminal proceedings . In addition, a number of the managers have commenced civil proceedings against JPMorgan Chase Bank, N.A. The claims are separate, involve different allegations and are at various stages of proceedings. * * * In addition to the various legal proceedings discussed above, JPMorgan Chase and its subsidiaries are named as defendants or are otherwise involved in a substantial number of other legal proceedings. The Firm believes it has meritorious defenses to the claims asserted against it in its currently outstanding legal proceedings and it intends to defend itself vigorously. Additional legal proceedings may be initiated from time to time in the future. The Firm has established reserves for several hundred of its currently outstanding legal proceedings. In accordance with the provisions of U.S. GAAP for contingencies, the Firm accrues for a litigation-related liability when it is probable that such a liability has been incurred and the amount of the loss can be reasonably estimated. The Firm evaluates its outstanding legal proceedings each quarter to assess its litigation reserves, and makes adjustments in such reserves, upwards or downward, as appropriate, based on management’s best judgment after consultation with counsel. During the years ended December 31, 2017 , 2016 and 2015 , the Firm’s legal expense was a benefit of $(35) million , a benefit of $(317) million , and an expense of $3.0 billion , 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, after consultation with counsel and after taking into account its current litigation reserves, that the 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. |
International Operations
International Operations | 12 Months Ended |
Dec. 31, 2017 | |
Segments, Geographical Areas [Abstract] | |
International Operations | International operations The following table presents income statement- and balance sheet-related information for JPMorgan Chase by major international geographic area. The Firm defines international activities for purposes of this footnote presentation as business transactions that involve clients residing outside of the U.S., and the information presented below is based predominantly on the domicile of the client, the location from which the client relationship is managed, or the location of the trading desk. However, many of the Firm’s U.S. operations serve international businesses. As the Firm’s operations are highly integrated, estimates and subjective assumptions have been made to apportion revenue and expense between U.S. and international operations. These estimates and assumptions are consistent with the allocations used for the Firm’s segment reporting as set forth in Note 31 . The Firm’s long-lived assets for the periods presented are not considered by management to be significant in relation to total assets. The majority of the Firm’s long-lived assets are located in the U.S. As of or for the year ended December 31, Revenue (b) Expense (c) Income before income tax Net income Total assets 2017 Europe/Middle East/Africa $ 14,426 $ 8,653 $ 5,773 $ 4,007 $ 407,145 (d) Asia/Pacific 5,805 4,277 1,528 852 163,718 Latin America/Caribbean 1,994 1,523 471 299 44,569 Total international 22,225 14,453 7,772 5,158 615,432 North America (a) 77,399 49,271 28,128 19,283 1,918,168 Total $ 99,624 $ 63,724 $ 35,900 $ 24,441 $ 2,533,600 2016 Europe/Middle East/Africa $ 13,842 $ 8,550 $ 5,292 $ 3,783 $ 394,134 (d) Asia/Pacific 6,112 4,213 1,899 1,212 156,946 Latin America/Caribbean 1,959 1,632 327 208 42,971 Total international 21,913 14,395 7,518 5,203 594,051 North America (a) 73,755 46,737 27,018 19,530 1,896,921 Total $ 95,668 $ 61,132 $ 34,536 $ 24,733 $ 2,490,972 2015 Europe/Middle East/Africa $ 14,206 $ 8,871 $ 5,335 $ 4,158 $ 347,647 (d) Asia/Pacific 6,151 4,241 1,910 1,285 138,747 Latin America/Caribbean 1,923 1,508 415 253 48,185 Total international 22,280 14,620 7,660 5,696 534,579 North America (a) 71,263 48,221 23,042 18,746 1,817,119 Total $ 93,543 $ 62,841 $ 30,702 $ 24,442 $ 2,351,698 (a) Substantially reflects the U.S. (b) Revenue is composed of net interest income and noninterest revenue. (c) Expense is composed of noninterest expense and the provision for credit losses. (d) Total assets for the U.K. were approximately $310 billion , $310 billion , and $306 billion at December 31, 2017 , 2016 and 2015 , respectively. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Business Segments | Business segments The Firm is managed on a line of business basis. There are four major reportable business segments – Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking and Asset & Wealth Management. In addition, there is a Corporate segment. The business segments are determined based on the products and services provided, or the type of customer served, and they reflect the manner in which financial information is currently evaluated by management. Results of these lines of business are presented on a managed basis. For a further discussion concerning JPMorgan Chase ’s business segments, see Segment results of this footnote. The following is a description of each of the Firm’s business segments, and the products and services they provide to their respective client bases. Consumer & Community Banking CCB offers services to consumers and businesses through bank branches, ATMs, online, mobile and telephone banking. CCB is organized into Consumer & Business Banking (including Consumer Banking/Chase Wealth Management and Business Banking), Home Lending (including Home Lending Production, Home Lending Servicing and Real Estate Portfolios) and Card, Merchant Services & Auto. Consumer & Business Banking offers deposit and investment products and services to consumers, and lending, deposit, and cash management and payment solutions to small businesses. Home Lending includes mortgage origination and servicing activities, as well as portfolios consisting of residential mortgages and home equity loans. Card, Merchant Services & Auto issues credit cards to consumers and small businesses, offers payment processing services to merchants, and originates and services auto loans and leases. Corporate & Investment Bank The CIB, which consists of Banking and Markets & Investor Services, offers a broad suite of investment banking, market-making, prime brokerage, and treasury and securities products and services to a global client base of corporations, investors, financial institutions, government and municipal entities. Banking offers a full range of investment banking products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt markets, as well as loan origination and syndication. Banking also includes Treasury Services, which provides transaction services, consisting of cash management and liquidity solutions. Markets & Investor Services is a global market-maker in cash securities and derivative instruments, and also offers sophisticated risk management solutions, prime brokerage, and research. Markets & Investor Services also includes Securities Services, a leading global custodian which provides custody, fund accounting and administration, and securities lending products principally for asset managers, insurance companies and public and private investment funds. Commercial Banking CB delivers extensive industry knowledge, local expertise and dedicated service to U.S. and U.S. multinational clients, including corporations, municipalities, financial institutions and nonprofit entities with annual revenue generally ranging from $20 million to $2 billion . In addition, CB provides financing to real estate investors and owners. Partnering with the Firm’s other businesses, CB provides comprehensive financial solutions, including lending, treasury services, investment banking and asset management to meet its clients’ domestic and international financial needs. Asset & Wealth Management AWM, with client assets of $2.8 trillion , is a global leader in investment and wealth management. AWM clients include institutions, high-net-worth individuals and retail investors in many major markets throughout the world. AWM offers investment management across most major asset classes including equities, fixed income, alternatives and money market funds. AWM also offers multi-asset investment management, providing solutions for a broad range of clients’ investment needs. For Wealth Management clients, AWM also provides retirement products and services, brokerage and banking services including trusts and estates, loans, mortgages and deposits. The majority of AWM’s client assets are in actively managed portfolios. Corporate The Corporate segment consists of Treasury and CIO and Other Corporate, which includes corporate staff units and expense that is centrally managed. Treasury and CIO are predominantly responsible for measuring, monitoring, reporting and managing the Firm’s liquidity, funding and structural interest rate and foreign exchange risks, as well as executing the Firm’s capital plan. The major Other Corporate units include Real Estate, Enterprise Technology, Legal, Compliance, Finance, Human Resources, Internal Audit, Risk Management, Oversight & Control, Corporate Responsibility and various Other Corporate groups. Segment results The following tables provide a summary of the Firm’s segment results as of or for the years ended December 31, 2017 , 2016 and 2015 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 (noninterest revenue and net interest income) for each of the reportable business segments on a FTE basis. Accordingly, revenue from investments receiving tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. This allows management to assess the comparability of revenue from year-to-year arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense/(benefit). Effective January 1, 2017, the Firm’s methodology used to allocate capital to the Firm’s business segments was updated. The new methodology incorporates Basel III Standardized Fully Phased-In RWA (as well as Basel III Advanced Fully Phased-In RWA), leverage, the GSIB surcharge, and a simulation of capital in a severe stress environment. The methodology will continue to be weighted towards Basel III Advanced Fully Phased-In RWA because the Firm believes it to be the best proxy for economic risk. Segment results and reconciliation As of or for the year ended December 31, (in millions, except ratios) Consumer & Community Banking Corporate & Investment Bank Commercial Banking Asset & Wealth Management 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 Noninterest revenue $ 14,710 $ 15,255 $ 15,592 $ 24,375 $ 24,325 $ 23,693 $ 2,522 $ 2,320 $ 2,365 $ 9,539 $ 9,012 $ 9,563 Net interest income 31,775 29,660 28,228 10,118 10,891 9,849 6,083 5,133 4,520 3,379 3,033 2,556 Total net revenue 46,485 44,915 43,820 34,493 35,216 33,542 8,605 7,453 6,885 12,918 12,045 12,119 Provision for credit losses 5,572 4,494 3,059 (45 ) 563 332 (276 ) 282 442 39 26 4 Noninterest expense 26,062 24,905 24,909 19,243 18,992 21,361 3,327 2,934 2,881 9,301 8,478 8,886 Income/(loss) before income tax expense/(benefit) 14,851 15,516 15,852 15,295 15,661 11,849 5,554 4,237 3,562 3,578 3,541 3,229 Income tax expense/(benefit) 5,456 5,802 6,063 4,482 4,846 3,759 2,015 1,580 1,371 1,241 1,290 1,294 Net income/(loss) $ 9,395 $ 9,714 $ 9,789 $ 10,813 $ 10,815 $ 8,090 $ 3,539 $ 2,657 $ 2,191 $ 2,337 $ 2,251 $ 1,935 Average equity $ 51,000 $ 51,000 $ 51,000 $ 70,000 $ 64,000 $ 62,000 $ 20,000 $ 16,000 $ 14,000 $ 9,000 $ 9,000 $ 9,000 Total assets 552,601 535,310 502,652 826,384 803,511 748,691 221,228 214,341 200,700 151,909 138,384 131,451 Return on equity 17 % 18 % 18 % 14 % 16 % 12 % 17 % 16 % 15 % 25 % 24 % 21 % Overhead ratio 56 55 57 56 54 64 39 39 42 72 70 73 (table continued from above) As of or for the year ended December 31, (in millions, except ratios) Corporate Reconciling Items (a) Total 2017 2016 2015 2017 2016 2015 2017 2016 2015 Noninterest revenue $ 1,085 $ 938 $ 800 $ (2,704 ) (b) $ (2,265 ) $ (1,980 ) $ 49,527 $ 49,585 $ 50,033 Net interest income 55 (1,425 ) (533 ) (1,313 ) (1,209 ) (1,110 ) 50,097 46,083 43,510 Total net revenue 1,140 (487 ) 267 (4,017 ) (3,474 ) (3,090 ) 99,624 95,668 93,543 Provision for credit losses — (4 ) (10 ) — — — 5,290 5,361 3,827 Noninterest expense 501 462 977 — — — 58,434 55,771 59,014 Income/(loss) before income tax expense/(benefit) 639 (945 ) (700 ) (4,017 ) (3,474 ) (3,090 ) 35,900 34,536 30,702 Income tax expense/(benefit) 2,282 (241 ) (3,137 ) (4,017 ) (b) (3,474 ) (3,090 ) 11,459 9,803 6,260 Net income/(loss) $ (1,643 ) $ (704 ) $ 2,437 $ — $ — $ — $ 24,441 $ 24,733 $ 24,442 Average equity $ 80,350 $ 84,631 $ 79,690 $ — $ — $ — $ 230,350 $ 224,631 $ 215,690 Total assets 781,478 799,426 768,204 NA NA NA 2,533,600 2,490,972 2,351,698 Return on equity NM NM NM NM NM NM 10 % 10 % 11 % Overhead ratio NM NM NM NM NM NM 59 58 63 (a) Segment results on a managed basis reflect revenue on a 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) Included $375 million related to tax-oriented investments as a result of the enactment of the TCJA. |
Parent Company
Parent Company | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent Company | Parent Company The following tables present Parent Company-only financial statements. Statements of income and comprehensive income (a) Year ended December 31, (in millions) 2017 2016 2015 Income Dividends from subsidiaries and affiliates: Bank and bank holding company $ 13,000 $ 10,000 $ 10,653 Non-bank (b) 540 3,873 8,172 Interest income from subsidiaries 72 794 443 Other interest income 41 207 234 Other income from subsidiaries, primarily fees: Bank and bank holding company 1,553 852 1,438 Non-bank (88 ) 1,165 (1,402 ) Other income (623 ) (846 ) 1,773 Total income 14,495 16,045 21,311 Expense Interest expense to subsidiaries and affiliates (b) 400 105 98 Other interest expense 5,202 4,413 3,720 Noninterest expense (1,897 ) 1,643 2,611 Total expense 3,705 6,161 6,429 Income before income tax benefit and undistributed net income of subsidiaries 10,790 9,884 14,882 Income tax benefit 1,007 876 1,640 Equity in undistributed net income of subsidiaries 12,644 13,973 7,920 Net income $ 24,441 $ 24,733 $ 24,442 Other comprehensive income, net 1,056 (1,521 ) (1,997 ) Comprehensive income $ 25,497 $ 23,212 $ 22,445 Balance sheets (a) December 31, (in millions) 2017 2016 Assets Cash and due from banks $ 163 $ 113 Deposits with banking subsidiaries 5,306 5,450 Trading assets 4,773 10,326 Available-for-sale securities — 2,694 Loans — 77 Advances to, and receivables from, subsidiaries: Bank and bank holding company 2,106 524 Non-bank 82 46 Investments (at equity) in subsidiaries and affiliates: Bank and bank holding company 451,713 422,028 Non-bank (b) 422 13,103 Other assets 10,458 10,257 Total assets $ 475,023 $ 464,618 Liabilities and stockholders’ equity Borrowings from, and payables to, subsidiaries and affiliates (b) $ 23,426 $ 13,584 Short-term borrowings 3,350 3,831 Other liabilities 8,302 11,224 Long-term debt (c)(d) 184,252 181,789 Total liabilities (d) 219,330 210,428 Total stockholders’ equity 255,693 254,190 Total liabilities and stockholders’ equity $ 475,023 $ 464,618 Statements of cash flows (a) Year ended December 31, (in millions) 2017 2016 2015 Operating activities Net income $ 24,441 $ 24,733 $ 24,442 Less: Net income of subsidiaries and affiliates (b) 26,185 27,846 26,745 Parent company net loss (1,744 ) (3,113 ) (2,303 ) Cash dividends from subsidiaries and affiliates (b) 13,540 13,873 17,023 Other operating adjustments 4,635 (18,166 ) 2,483 Net cash provided by/(used in) operating activities 16,431 (7,406 ) 17,203 Investing activities Net change in: Deposits with banking subsidiaries 144 60,349 30,085 Available-for-sale securities: Proceeds from paydowns and maturities — 353 120 Other changes in loans, net 78 1,793 321 Advances to and investments in subsidiaries and affiliates, net (280 ) (51,967 ) (81 ) All other investing activities, net 17 114 153 Net cash provided by/(used in) investing activities (41 ) 10,642 30,598 Financing activities Net change in: Borrowings from subsidiaries and affiliates (b) 13,862 2,957 (4,062 ) Short-term borrowings (481 ) 109 (47,483 ) Proceeds from long-term borrowings 25,855 41,498 42,121 Payments of long-term borrowings (29,812 ) (29,298 ) (30,077 ) Proceeds from issuance of preferred stock 1,258 — 5,893 Redemption of preferred stock (1,258 ) — — Treasury stock repurchased (15,410 ) (9,082 ) (5,616 ) Dividends paid (8,993 ) (8,476 ) (7,873 ) All other financing activities, net (1,361 ) (905 ) (840 ) Net cash used in financing activities (16,340 ) (3,197 ) (47,937 ) Net increase/(decrease) in cash and due from banks 50 39 (137 ) Cash and due from banks at the beginning of the year 113 74 211 Cash and due from banks at the end of the year $ 163 $ 113 $ 74 Cash interest paid $ 5,426 $ 4,550 $ 3,873 Cash income taxes paid, net 1,775 1,053 8,251 (a) In 2016, in connection with the Firm’s 2016 Resolution Submission, the Parent Company established the IHC, and contributed substantially all of its direct subsidiaries (totaling $55.4 billion ) other than JPMorgan Chase Bank, N.A., as well as most of its other assets (totaling $160.5 billion ) and intercompany indebtedness to the IHC. Total noncash assets contributed were $62.3 billion . In 2017, the Parent Company transferred $16.2 billion of noncash assets to the IHC to complete the contributions to the IHC. (b) Affiliates include trusts that issued guaranteed capital debt securities (“issuer trusts”). For further discussion on these issuer trusts, see Note 19 . (c) At December 31, 2017 , long-term debt that contractually matures in 2018 through 2022 totaled $20.6 billion , $13.3 billion , $22.4 billion , $20.6 billion and $10.5 billion , respectively. (d) For information regarding the Parent Company’s guarantees of its subsidiaries’ obligations, see Notes 19 and 27 . |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation policy | 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. |
Reclassifications policy | Certain amounts reported in prior periods have been reclassified to conform with the current presentation. |
Consolidation policy | 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. Voting Interest Entities Voting interest entities are entities that have sufficient equity and provide the equity investors voting rights that enable them to make significant decisions relating to the entity’s operations. For these types of entities, the Firm’s determination of whether it has a controlling interest is primarily based on the amount of voting equity interests held. Entities in which the Firm has a controlling financial interest, through ownership of the majority of the entities’ voting equity interests, or through other contractual rights that give the Firm control, are consolidated by the Firm. Investments in companies in which the Firm has significant influence over operating and financing decisions (but does not own a majority of the voting equity interests) are accounted for (i) in accordance with the equity method of accounting (which requires the Firm to recognize its proportionate share of the entity’s net earnings), or (ii) at fair value if the fair value option was elected. These investments are generally included in other assets, with income or loss included in other income. Certain Firm -sponsored asset management funds are structured as limited partnerships or certain limited liability companies. For many of these entities, the Firm is the general partner or managing member, but the non-affiliated partners or members have the ability to remove the Firm as the general partner or managing member without cause (i.e., kick-out rights), based on a simple majority vote, or the non-affiliated partners or members have rights to participate in important decisions. Accordingly, the Firm does not consolidate these voting interest entities. However, in the limited cases where the non-managing partners or members do not have substantive kick-out or participating rights, the Firm evaluates the funds as VIEs and consolidates if it is the general partner or managing member and has a potentially significant interest. The Firm’s investment companies have investments in both publicly-held and privately-held entities , including investments in buyouts, growth equity and venture opportunities. These investments are accounted for under investment company guidelines and accordingly, irrespective of the percentage of equity ownership interests held, are carried on the Consolidated balance sheets at fair value, and are recorded in other assets, with income or loss included in noninterest revenue. Variable Interest Entities VIEs are entities that, by design, either (1) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) have equity investors that do not have the ability to make significant decisions relating to the entity’s operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. The most common type of VIE is a n SPE. SPEs are commonly used in securitization transactions in order to isolate certain assets and distribute the cash flows from those assets to investors. The basic SPE structure involves a company selling assets to the SPE; the SPE funds the purchase of those assets by issuing securities to investors. The legal documents that govern the transaction specify how the cash earned on the assets must be allocated to the SPE’s investors and other parties that have rights to those cash flows. SPEs are generally structured to insulate investors from claims on the SPE’s assets by creditors of other entities, including the creditors of the seller of the assets. The primary beneficiary of a VIE (i.e., the party that has a controlling financial interest) is required to consolidate the assets and liabilities of the VIE. The primary beneficiary is the party that has both (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and (2) through its interests in the VIE, the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. To assess whether the Firm has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, the Firm considers all the facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes, first, identifying the activities that most significantly impact the VIE’s economic performance; and second, identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE (such as asset managers, collateral managers, servicers, or owners of call options or liquidation rights over the VIE’s assets) or have the right to unilaterally remove those decision-makers are deemed to have the power to direct the activities of a VIE. To assess whether the Firm has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Firm considers all of its economic interests, including debt and equity investments, servicing fees, and derivatives or other arrangements deemed to be variable interests in the VIE. This assessment requires that the Firm apply judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE’s capital structure; and the reasons why the interests are held by the Firm. The Firm performs on-going reassessments of: (1) whether entities previously evaluated under the majority voting-interest framework have become VIEs, based on certain events, and are therefore subject to the VIE consolidation framework; and (2) whether changes in the facts and circumstances regarding the Firm’s involvement with a VIE cause the Firm’s consolidation conclusion to change. |
Use of estimates in the preparation of consolidated financial statements policy | The preparation of the Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expense, and disclosures of contingent assets and liabilities. Actual results could be different from these estimates. |
Foreign currency translation policy | JPMorgan Chase revalues assets, liabilities, revenue and expense denominated in non-U.S. currencies into U.S. dollars using applicable exchange rates. Gains and losses relating to translating functional currency financial statements for U.S. reporting are included in OCI within stockholders’ equity. Gains and losses relating to nonfunctional currency transactions, including non-U.S. operations where the functional currency is the U.S. dollar, are reported in the Consolidated statements of income. |
Offsetting assets and liabilities policy | 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 sold and purchased under repurchase agreements and securities borrowed or loaned under securities loan agreements to be presented net when specified conditions are met, including the existence of a legally enforceable master netting agreement. The Firm has elected to net such balances when the specified conditions are met. The Firm uses master netting agreements to mitigate counterparty credit risk in certain transactions, including derivative, securities repurchase and reverse repurchase, and securities loaned and borrow transactions. A master netting agreement is 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). Upon the exercise of derivatives termination rights by the non-defaulting party (i) all transactions are terminated, (ii) all transactions are valued and the positive values of “in the money” transactions are netted against the negative values of “out of the money” transactions and (iii) the only remaining payment obligation is of one of the parties to pay the netted termination amount. Upon exercise of default rights under repurchase agreements and securities loan agreements in general (i) all transactions are terminated and accelerated, (ii) all values of securities or cash held or to be delivered are calculated, and all such sums are netted against each other and (iii) the only remaining payment obligation is of one of the parties to pay the netted termination amount. Typical master netting agreements for these types of transactions also often contain a collateral/margin agreement that provides for a security interest in, or title transfer of, securities or cash collateral/margin to the party that has the right to demand margin (the “demanding party”). The collateral/margin agreement typically requires a party to transfer collateral/margin to the demanding party with a value equal to the amount of the margin deficit on a net basis across all transactions governed by the master netting agreement, less any threshold. The collateral/margin agreement grants to the demanding party, upon default by the counterparty, the right to set-off any amounts payable by the counterparty against any posted collateral or the cash equivalent of any posted collateral/margin. It also grants to the demanding party the right to liquidate collateral/margin and to apply the proceeds to an amount payable by the counterparty. |
Statements of cash flows policy | For JPMorgan Chase’s Consolidated statements of cash flows, cash is defined as those amounts included in cash and due from banks. |
Fair value policy | JPMorgan Chase carries a portion of its assets and liabilities at fair value. These assets and liabilities are predominantly carried at fair value on a recurring basis (i.e., assets and liabilities that are measured and reported at fair value on the Firm’s Consolidated balance sheets). Certain assets (e.g., held-for-sale loans), liabilities and unfunded lending-related commitments are measured at fair value on a nonrecurring basis; that is, they are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). |
Fair value option policy | 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 elected were previously 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 arrangements with an embedded derivative and/or a maturity of greater than one year • 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, which are predominantly financial instruments that contain embedded derivatives, that are issued as part of CIB’s client-driven activities • Certain long-term beneficial interests issued by CIB’s consolidated securitization trusts where the underlying assets are carried at fair value |
Derivatives policy | All free-standing derivatives that the Firm executes for its own account are required to be recorded on the Consolidated balance sheets at fair value. As permitted under U.S. GAAP , the Firm nets derivative assets and liabilities, and the related cash collateral receivables and payables, when a legally enforceable master netting agreement exists between the Firm and the derivative counterparty. For further discussion of the offsetting of assets and liabilities, see Note 1 . The accounting for changes in value of a derivative depends on whether or not the transaction has been designated and qualifies for hedge accounting. Derivatives that are not designated as hedges are reported and measured at fair value through earnings. The tabular disclosures on pages 183–189 of this Note provide additional information on the amount of, and reporting for, derivative assets, liabilities, gains and losses. For further discussion of derivatives embedded in structured notes, see Notes 2 and 3 . Derivatives designated as hedges The Firm applies hedge accounting to certain derivatives executed for risk management purposes – generally interest rate, foreign exchange and commodity derivatives. However, JPMorgan Chase does not seek to apply hedge accounting to all of the derivatives involved in the Firm’s risk management activities. For example, the Firm does not apply hedge accounting to purchased CDS used to manage the credit risk of loans and lending-related commitments, because of the difficulties in qualifying such contracts as hedges. For the same reason, the Firm does not apply hedge accounting to certain interest rate , foreign exchange , and commodity derivatives used for risk management purposes. To qualify for hedge accounting, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. In addition, for a derivative to be designated as a hedge, the risk management objective and strategy must be documented. Hedge documentation must identify the derivative hedging instrument, the asset or liability or forecasted transaction and type of risk to be hedged, and how the effectiveness of the derivative is assessed prospectively and retrospectively. To assess effectiveness, the Firm uses statistical methods such as regression analysis, as well as nonstatistical methods including dollar-value comparisons of the change in the fair value of the derivative to the change in the fair value or cash flows of the hedged item. The extent to which a derivative has been, and is expected to continue to be, effective at offsetting changes in the fair value or cash flows of the hedged item must be assessed and documented at least quarterly. Any hedge ineffectiveness (i.e., the amount by which the gain or loss on the designated derivative instrument does not exactly offset the change in the hedged item attributable to the hedged risk) must be reported in current-period earnings. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued. There are three types of hedge accounting designations: fair value hedges, cash flow hedges and net investment hedges. JPMorgan Chase uses fair value hedges primarily to hedge fixed-rate long-term debt, AFS securities and certain commodities inventories. For qualifying fair value hedges, the changes in the fair value of the derivative, and in the value of the hedged item for the risk being hedged, are recognized in earnings. If the hedge relationship is terminated, then the adjustment to the hedged item continues to be reported as part of the basis of the hedged item, and for benchmark interest rate hedges, is amortized to earnings as a yield adjustment. Derivative amounts affecting earnings are recognized consistent with the classification of the hedged item – primarily net interest income and principal transactions revenue. JPMorgan Chase uses cash flow hedges primarily to hedge the exposure to variability in forecasted cash flows from floating-rate assets and liabilities and foreign currency–denominated revenue and expense. For qualifying cash flow hedges, the effective portion of the change in the fair value of the derivative is recorded in OCI and recognized in the Consolidated statements of income when the hedged cash flows affect earnings. Derivative amounts affecting earnings are recognized consistent with the classification of the hedged item – primarily interest income, interest expense, noninterest revenue and compensation expense. The ineffective portions of cash flow hedges are immediately recognized in earnings. If the hedge relationship is terminated, then the value of the derivative recorded in AOCI is recognized in earnings when the cash flows that were hedged affect earnings. For hedge relationships that are discontinued because a forecasted transaction is not expected to occur according to the original hedge forecast, any related derivative values recorded in AOCI are immediately recognized in earnings. JPMorgan Chase uses net investment hedges to protect the value of the Firm’s net investments in certain non-U.S. subsidiaries or branches whose functional currencies are not the U.S. dollar. For foreign currency qualifying net investment hedges, changes in the fair value of the derivatives are recorded in the translation adjustments account within AOCI. |
Noninterest revenue policy | 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 the realized (as a result of the sale of instruments, closing out or termination of transactions, or interim cash payments) and unrealized (as a result of changes in valuation) gains and losses on financial and other instruments (including those accounted for under the fair value option) primarily used in client-driven market-making activities and on private equity investments. In connection with its client-driven market-making activities, the Firm transacts in debt and equity instruments, derivatives and commodities (including physical commodities inventories and financial instruments that reference commodities). Principal transactions revenue also includes certain realized and unrealized gains and losses related to hedge accounting and specified risk-management activities, including: (a) certain derivatives designated in qualifying hedge accounting relationships (primarily fair value hedges of commodity and foreign exchange risk), (b) certain derivatives used for specific risk management purposes, primarily to mitigate credit risk , foreign exchange risk and commodity risk , and (c) other derivatives. For further information on the income statement classification of gains and losses from derivatives activities, see Note 5 . In the financial commodity markets, the Firm transacts in OTC derivatives (e.g., swaps, forwards, options) and ETD that reference a wide range of underlying commodities. In the physical commodity markets, the Firm primarily purchases and sells precious and base metals and may hold other commodities inventories under financing and other arrangements with clients. Mortgage fees and related income This revenue category primarily reflects CCB’s Home Lending production and servicing revenue, including fees and income derived from mortgages originated with the intent to sell; mortgage sales and servicing including losses related to the repurchase of previously sold loans; the impact of risk-management activities associated with the mortgage pipeline, warehouse loans and MSRs; and revenue related to any residual interests held from mortgage securitizations. This revenue category also includes gains and losses on sales and lower of cost or fair value adjustments for mortgage loans held-for-sale, as well as changes in fair value for mortgage loans originated with the intent to sell and measured at fair value under the fair value option. Changes in the fair value of MSRs are reported in mortgage fees and related income. For a further discussion of MSRs, see Note 15 . Net interest income from mortgage loans is recorded in interest income. Card income This revenue category includes interchange income from credit and debit cards and fees earned from processing card transactions for merchants, both of which are recognized when purchases are made by a cardholder. Card income also includes annual and other lending fees and costs, which are deferred and recognized on a straight-line basis over a 12 -month period. Certain Chase credit card products offer the cardholder the ability to earn points based on account activity, which the cardholder can choose to redeem for cash and non-cash rewards. The cost to the Firm related to these proprietary rewards programs varies based on multiple factors including the terms and conditions of the rewards programs, cardholder activity, cardholder reward redemption rates and cardholder reward selections. The Firm maintains a liability for its obligations under its rewards programs and reports the current-period cost as a reduction of card income. Credit card revenue sharing agreements The Firm has contractual agreements with numerous co-brand partners that grant the Firm exclusive rights to issue co-branded credit card products and market them to the customers of such partners. These partners endorse the co-brand credit card programs and provide their customer or member lists to the Firm. The partners may also conduct marketing activities and provide rewards redeemable under their own loyalty programs that the Firm will grant to co-brand credit cardholders based on account activity. The terms of these agreements generally range from five to ten years. The Firm typically makes payments to the co-brand credit card partners based on the cost of partners' marketing activities and loyalty program rewards provided to credit cardholders, new account originations and sales volumes. Payments to partners based on marketing efforts undertaken by the partners are expensed by the Firm as incurred and reported as noninterest expense. Payments for partner rewards are reported as a reduction of card income when incurred. Payments to partners based on new credit card account originations are accounted for as direct loan origination costs and are deferred and recognized as a reduction of card income on a straight-line basis over a 12 -month period. Payments to partners based on sales volumes are reported as a reduction of card income when the related interchange income is earned. This revenue category includes debt and equity underwriting and advisory fees. As an underwriter, the Firm helps clients raise capital via public offering and private placement of various types of debt instruments and equity securities. Underwriting fees are primarily based on the issuance price and quantity of the underlying instruments, and are recognized as revenue typically upon execution of the client’s transaction. The Firm also manages and syndicates loan arrangements. Credit arrangement and syndication fees, included within debt underwriting fees, are recorded as revenue after satisfying certain retention, timing and yield criteria. The Firm also provides advisory services, assisting its clients with mergers and acquisitions, divestitures, restructuring and other complex transactions. Advisory fees are recognized as revenue typically upon execution of the client’s transaction. |
Interest income and interest expense policy | Interest income and interest expense includes the current-period interest accruals for financial instruments measured at fair value, except for derivatives and financial instruments containing embedded derivatives that would be separately accounted for in accordance with U.S. GAAP, absent the fair value option election; for those instruments, all changes in fair value including any interest elements, are reported in principal transactions revenue. For financial instruments that are not measured at fair value, the related interest is included within interest income or interest expense, as applicable. For further information on accounting for interest income and interest expense related to loans, securities, securities financing (i.e. securities purchased or sold under resale or repurchase agreements; securities borrowed; and securities loaned) and long-term debt, see Notes 12 , 10 , 11 and 19 , respectively. |
Pension and other postretirement plans policy | The Firm has various defined benefit pension plans and OPEB plans that provide benefits to its employees. The Firm has a qualified noncontributory U.S. defined benefit pension plan that provides benefits to substantially all U.S. employees. The Firm also has defined benefit pension plans that are offered in certain non-U.S. locations based on factors such as eligible compensation, age and/or years of service. It is the Firm’s policy to fund the pension plans in amounts sufficient to meet the requirements under applicable laws. The Firm does not anticipate at this time any contribution to the U.S. defined benefit pension plan in 2018. The 2018 contributions to the non-U.S. defined benefit pension plans are expected to be $46 million of which $30 million are contractually required. The Firm also has a number of nonqualified noncontributory defined benefit pension plans that are unfunded. These plans provide supplemental defined pension benefits to certain employees. The Firm currently provides two qualified defined contribution plans in the U.S. and maintains other similar arrangements in certain non-U.S. locations. The Firm offers postretirement medical and life insurance benefits to certain U.S. retirees and postretirement medical benefits to qualifying U.S. and U.K. employees. The Firm defrays the cost of its U.S. OPEB obligation through corporate-owned life insurance (“COLI”) purchased on the lives of eligible employees and retirees. While the Firm owns the COLI policies, COLI proceeds (death benefits, withdrawals and other distributions) may be used only to reimburse the Firm for its net postretirement benefit claim payments and related administrative expense. The Firm has generally funded its postretirement benefit obligations through contributions to the relevant trust on a pay-as-you go basis. On December 21, 2017, the Firm contributed $600 million of cash to the trust as a prefunding of a portion of its postretirement benefit obligations. The U.K. OPEB plan is unfunded. Pension and OPEB accounting generally requires that the difference between plan assets at fair value and the benefit obligation be measured and recorded on the balance sheet. Plans that are overfunded (excess of plan assets over benefit obligation) are recorded in other assets and plans that are underfunded (excess benefit obligation over plan assets) are recorded within other liabilities. Gains or losses resulting from changes in the benefit obligation and the value of plan assets are recorded in other comprehensive income (“OCI”) and recognized as part of the net periodic benefit cost over subsequent periods as discussed in the Gains and losses section of this Note. Additionally, service cost, interest cost, and investment returns that would otherwise be classified separately are aggregated and reported net within compensation expense. |
Share-based compensation, option and incentive plans policy | RSUs are awarded at no cost to the recipient upon their grant. Generally, RSUs are granted annually and vest at a rate of 50% after two years and 50% after three years and are converted into shares of common stock as of the vesting date. In addition, RSUs typically include full-career eligibility provisions, which allow employees to continue to vest upon voluntary termination based on age or service-related requirements, subject to post-employment and other restrictions. All RSU awards are subject to forfeiture until vested and contain clawback provisions that may result in cancellation under certain specified circumstances. Generally, RSUs entitle the recipient to receive cash payments equivalent to any dividends paid on the underlying common stock during the period the RSUs are outstanding and, as such, are considered participating securities as discussed in Note 22 . In January 2017 and 2016, the Firm’s Board of Directors approved the grant of performance share units (“PSUs”) to members of the Firm’s Operating Committee under the variable compensation program for performance years 2016 and 2015. PSUs are subject to the Firm’s achievement of specified performance criteria over a three-year period. The number of awards that vest can range from zero to 150% of the grant amount. The awards vest and are converted into shares of common stock in the quarter after the end of the performance period, which is generally three years. In addition, dividends are notionally reinvested in the Firm’s common stock and will be delivered only in respect of any earned shares. Once the PSUs have vested, the shares of common stock that are delivered, after applicable tax withholding, must be held for an additional two-year period, typically for a total combined vesting and holding period of five years from the grant date. Under the LTI Plans, stock options and stock appreciation rights (“SARs”) have generally been granted with an exercise price equal to the fair value of JPMorgan Chase’s common stock on the grant date. The Firm periodically grants employee stock options to individual employees. There were no material grants of stock options or SARs in 2017, 2016 and 2015. SARs generally expire ten years after the grant date. The Firm separately recognizes compensation expense for each tranche of each award, net of estimated forfeitures, as if it were a separate award with its own vesting date. Generally, for each tranche granted, compensation expense is recognized on a straight-line basis from the grant date until the vesting date of the respective tranche, provided that the employees will not become full-career eligible during the vesting period. For awards with full-career eligibility provisions and awards granted with no future substantive service requirement, the Firm accrues the estimated value of awards expected to be awarded to employees as of the grant date without giving consideration to the impact of post-employment restrictions. For each tranche granted to employees who will become full-career eligible during the vesting period, compensation expense is recognized on a straight-line basis from the grant date until the earlier of the employee’s full-career eligibility date or the vesting date of the respective tranche. The Firm’s policy for issuing shares upon settlement of employee share-based incentive awards is to issue either new shares of common stock or treasury shares. During 2017 , 2016 and 2015 , the Firm settled all of its employee share-based awards by issuing treasury shares. In January 2008, the Firm awarded to its Chairman and Chief Executive Officer up to 2 million SARs. The terms of this award are distinct from, and more restrictive than, other equity grants regularly awarded by the Firm. On July 15, 2014, the Compensation & Management Development Committee and Board of Directors determined that all requirements for the vesting of the 2 million SAR awards had been met and thus, the awards became exercisable. The SARs, which had an expiration date of January 2018, were exercised by Mr. Dimon in October 2017 at the exercise price of $39.83 per share (the price of JPMorgan Chase common stock on the date of grant). |
Loans receivable policy | The accounting for a loan depends on management’s strategy for the loan, and on whether the loan was credit-impaired at the date of acquisition. The Firm accounts for loans based on the following categories: • Originated or purchased loans held-for-investment (i.e., “retained”), other than PCI loans • Loans held-for-sale • Loans at fair value • PCI loans held-for-investment The following provides a detailed accounting discussion of these loan categories: Loans held-for-investment (other than PCI loans) Originated or purchased loans held-for-investment, other than PCI loans, are recorded at the principal amount outstanding, net of the following: charge-offs; interest applied to principal (for loans accounted for on the cost recovery method); unamortized discounts and premiums; and net deferred loan fees or costs. Credit card loans also include billed finance charges and fees net of an allowance for uncollectible amounts. Interest income Interest income on performing loans held-for-investment, other than PCI loans, is accrued and recognized as interest income at the contractual rate of interest. Purchase price discounts or premiums, as well as net deferred loan fees or costs, are amortized into interest income over the contractual life of the loan to produce a level rate of return. Nonaccrual loans Nonaccrual loans are those on which the accrual of interest has been suspended. Loans (other than credit card loans and certain consumer loans insured by U.S. government agencies) are placed on nonaccrual status and considered nonperforming 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. A loan is determined to be past due when the minimum payment is not received from the borrower by the contractually specified due date or for certain loans (e.g., residential real estate loans), when a monthly payment is due and unpaid for 30 days or more. Finally, collateral-dependent loans are typically maintained on nonaccrual status. On the date a loan is placed on nonaccrual status, all interest accrued but not collected is reversed against interest income. In addition, the amortization of deferred amounts is suspended. Interest income on nonaccrual loans may be recognized as cash interest payments are received (i.e., on a cash basis) if the recorded loan balance is deemed fully collectible; however, if there is doubt regarding the ultimate collectibility of the recorded loan balance, all interest cash receipts are applied to reduce the carrying value of the loan (the cost recovery method). For consumer loans, application of this policy typically results in the Firm recognizing interest income on nonaccrual consumer loans on a cash basis. A loan may be returned to accrual status when repayment is reasonably assured and there has been demonstrated performance under the terms of the loan or, if applicable, the terms of the restructured loan. As permitted by regulatory guidance, credit card loans are generally exempt from being placed on nonaccrual status; accordingly, interest and fees related to credit card loans continue to accrue until the loan is charged off or paid in full. However, the Firm separately establishes an allowance, which is offset against loans and charged to interest income, for the estimated uncollectible portion of accrued and billed interest and fee income on credit card loans. The allowance is established with a charge to interest income and is reported as an offset to loans. Allowance for loan losses The allowance for loan losses represents the estimated probable credit losses inherent in the held-for-investment loan portfolio at the balance sheet date and is recognized on the balance sheet as a contra asset, which brings the recorded investment to the net carrying value. Changes in the allowance for loan losses are recorded in the provision for credit losses on the Firm’s Consolidated statements of income. See Note 13 for further information on the Firm’s accounting policies for the allowance for loan losses. Charge-offs Consumer loans, other than risk-rated business banking and auto loans, and PCI loans, are generally charged off or charged down to the net realizable value of the underlying collateral (i.e., fair value less costs to sell), with an offset to the allowance for loan losses, upon reaching specified stages of delinquency in accordance with standards established by the FFIEC. Residential real estate loans and non-modified credit card loans are generally charged off no later than 180 days past due. Scored auto, student and modified credit card loans are charged off no later than 120 days past due. Certain consumer loans will be charged off or charged down to their net realizable value earlier than the FFIEC charge-off standards in certain circumstances as follows: • Loans modified in a TDR that are determined to be collateral-dependent. • Loans to borrowers who have experienced an event that suggests a loss is either known or highly certain are subject to accelerated charge-off standards (e.g., residential real estate and auto loans are charged off within 60 days of receiving notification of a bankruptcy filing). • Auto loans upon repossession of the automobile. Other than in certain limited circumstances, the Firm typically does not recognize charge-offs on government-guaranteed loans. Wholesale loans, risk-rated business banking loans and risk-rated auto loans are charged off when it is highly certain that a loss has been realized, including situations where a loan is determined to be both impaired and collateral-dependent. The determination of whether to recognize a charge-off includes many factors, including the prioritization of the Firm’s claim in bankruptcy, expectations of the workout/restructuring of the loan and valuation of the borrower’s equity or the loan collateral. When a loan is charged down to the estimated net realizable value, the determination of the fair value of the collateral depends on the type of collateral (e.g., securities, real estate). In cases where the collateral is in the form of liquid securities, the fair value is based on quoted market prices or broker quotes. For illiquid securities or other financial assets, the fair value of the collateral is estimated using a discounted cash flow model. For residential real estate loans, collateral values are based upon external valuation sources. When it becomes likely that a borrower is either unable or unwilling to pay, the Firm obtains a broker’s price opinion of the home based on an exterior-only valuation (“exterior opinions”), which is then updated at least every six months thereafter. As soon as practicable after the Firm receives the property in satisfaction of a debt (e.g., by taking legal title or physical possession), the Firm generally obtains an appraisal based on an inspection that includes the interior of the home (“interior appraisals”). Exterior opinions and interior appraisals are discounted based upon the Firm’s experience with actual liquidation values as compared with the estimated values provided by exterior opinions and interior appraisals, considering state-specific factors. For commercial real estate loans, collateral values are generally based on appraisals from internal and external valuation sources. Collateral values are typically updated every six to twelve months , either by obtaining a new appraisal or by performing an internal analysis, in accordance with the Firm’s policies. The Firm also considers both borrower- and market-specific factors, which may result in obtaining appraisal updates or broker price opinions at more frequent intervals. Loans held-for-sale Held-for-sale loans are measured at the lower of cost or fair value, with valuation changes recorded in noninterest revenue. For consumer loans, the valuation is performed on a portfolio basis. For wholesale loans, the valuation is performed on an individual loan basis. Interest income on loans held-for-sale is accrued and recognized based on the contractual rate of interest. Loan origination fees or costs and purchase price discounts or premiums are deferred in a contra loan account until the related loan is sold. The deferred fees or costs and discounts or premiums are an adjustment to the basis of the loan and therefore are included in the periodic determination of the lower of cost or fair value adjustments and/or the gain or loss recognized at the time of sale. Held-for-sale loans are subject to the nonaccrual policies described above. Because held-for-sale loans are recognized at the lower of cost or fair value, the Firm’s allowance for loan losses and charge-off policies do not apply to these loans. Loans at fair value Loans used in a market-making strategy or risk managed on a fair value basis are measured at fair value, with changes in fair value recorded in noninterest revenue. Interest income on these loans is accrued and recognized based on the contractual rate of interest. Changes in fair value are recognized in noninterest revenue. Loan origination fees are recognized upfront in noninterest revenue. Loan origination costs are recognized in the associated expense category as incurred. Because these loans are recognized at fair value, the Firm’s allowance for loan losses and charge-off policies do not apply to these loans. See Note 3 for further information on the Firm’s elections of fair value accounting under the fair value option. See Note 2 and Note 3 for further information on loans carried at fair value and classified as trading assets. PCI loans PCI loans held-for-investment are initially measured at fair value. PCI loans have evidence of credit deterioration since the loan’s origination date and therefore it is probable, at acquisition, that all contractually required payments will not be collected. Because PCI loans are initially measured at fair value, which includes an estimate of future credit losses, no allowance for loan losses related to PCI loans is recorded at the acquisition date. See page 223 of this Note for information on accounting for PCI loans subsequent to their acquisition. Loan classification changes Loans in the held-for-investment portfolio that management decides to sell are transferred to the held-for-sale portfolio at the lower of cost or fair value on the date of transfer. Credit-related losses are charged against the allowance for loan losses; non-credit related losses such as those due to changes in interest rates or foreign currency exchange rates are recognized in noninterest revenue. In the event that management decides to retain a loan in the held-for-sale portfolio, the loan is transferred to the held-for-investment portfolio at the lower of cost or fair value on the date of transfer. These loans are subsequently assessed for impairment based on the Firm’s allowance methodology. For a further discussion of the methodologies used in establishing the Firm’s allowance for loan losses, see Note 13 . Loan modifications The Firm seeks to modify certain loans in conjunction with its loss-mitigation activities. Through the modification, JPMorgan Chase grants one or more concessions to a borrower who is experiencing financial difficulty in order to minimize the Firm’s economic loss and avoid foreclosure or repossession of the collateral, and to ultimately maximize payments received by the Firm from the borrower. The concessions granted vary by program and by borrower-specific characteristics, and may include interest rate reductions, term extensions, payment deferrals, principal forgiveness, or the acceptance of equity or other assets in lieu of payments. Such modifications are accounted for and reported as TDRs. A loan that has been modified in a TDR is generally considered to be impaired until it matures, is repaid, or is otherwise liquidated, regardless of whether the borrower performs under the modified terms. In certain limited cases, the effective interest rate applicable to the modified loan is at or above the current market rate at the time of the restructuring. In such circumstances, and assuming that the loan subsequently performs under its modified terms and the Firm expects to collect all contractual principal and interest cash flows, the loan is disclosed as impaired and as a TDR only during the year of the modification; in subsequent years, the loan is not disclosed as an impaired loan or as a TDR so long as repayment of the restructured loan under its modified terms is reasonably assured. Loans, except for credit card loans, modified in a TDR are generally placed on nonaccrual status, although in many cases such loans were already on nonaccrual status prior to modification. These loans may be returned to performing status (the accrual of interest is resumed) if the following criteria are met: (i) the borrower has performed under the modified terms for a minimum of six months and/or six payments, and (ii) the Firm has an expectation that repayment of the modified loan is reasonably assured based on, for example, the borrower’s debt capacity and level of future earnings, collateral values, LTV ratios, and other current market considerations. In certain limited and well-defined circumstances in which the loan is current at the modification date, such loans are not placed on nonaccrual status at the time of modification. Because loans modified in TDRs are considered to be impaired, these loans are measured for impairment using the Firm’s established asset-specific allowance methodology, which considers the expected re-default rates for the modified loans. A loan modified in a TDR generally remains subject to the asset-specific allowance methodology throughout its remaining life, regardless of whether the loan is performing and has been returned to accrual status and/or the loan has been removed from the impaired loans disclosures (i.e., loans restructured at market rates). For further discussion of the methodology used to estimate the Firm’s asset-specific allowance, see Note 13 . Foreclosed property The Firm acquires property from borrowers through loan restructurings, workouts, and foreclosures. Property acquired may include real property (e.g., residential real estate, land, and buildings) and commercial and personal property (e.g., automobiles, aircraft, railcars, and ships). The Firm recognizes foreclosed property upon receiving assets in satisfaction of a loan (e.g., by taking legal title or physical possession). For loans collateralized by real property, the Firm generally recognizes the asset received at foreclosure sale or upon the execution of a deed in lieu of foreclosure transaction with the borrower. Foreclosed assets are reported in other assets on the Consolidated balance sheets and initially recognized at fair value less costs to sell. Each quarter the fair value of the acquired property is reviewed and adjusted, if necessary, to the lower of cost or fair value. Subsequent adjustments to fair value are charged/credited to noninterest revenue. Operating expense, such as real estate taxes and maintenance, are charged to other expense. |
Allowance for credit losses policy | JPMorgan Chase ’s allowance for loan losses represents management’s estimate of probable credit losses inherent in the Firm’s retained loan portfolio, which consists of the two consumer portfolio segments (primarily scored) and the wholesale portfolio segment (risk-rated). The allowance for loan losses includes a formula-based component, an asset-specific component, and a component related to PCI loans, as described below. Management also estimates an allowance for wholesale and certain consumer lending-related commitments using methodologies similar to those used to estimate the allowance on the underlying loans. During the second quarter of 2017, the Firm refined its credit loss estimates relating to the wholesale portfolio by incorporating the use of internal historical data versus external credit rating agency default statistics to estimate PD. In addition, an adjustment to the statistical calculation for wholesale lending-related commitments was incorporated similar to the adjustment applied for wholesale loans. The impacts of these refinements were not material to the allowance for credit losses. The Firm’s policies used to determine its allowance for credit losses are described in the following paragraphs. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. Subsequent evaluations of the loan portfolio, in light of the factors then prevailing, may result in significant changes in the allowances for loan losses and lending-related commitments in future periods. At least quarterly, the allowance for credit losses is reviewed by the CRO, the CFO and the Controller of the Firm and discussed with the DRPC and the Audit Committee . As of December 31, 2017, JPMorgan Chase deemed the allowance for credit losses to be appropriate (i.e., sufficient to absorb probable credit losses inherent in the portfolio). Formula-based component The formula-based component is based on a statistical calculation to provide for incurred credit losses in all consumer loans and performing risk-rated loans. All loans restructured in TDRs as well as any impaired risk-rated loans have an allowance assessed as part of the asset-specific component, while PCI loans have an allowance assessed as part of the PCI component. See Note 12 for more information on TDRs, Impaired loans and PCI loans. Formula-based component - Consumer loans and certain lending-related commitments The formula-based allowance for credit losses for the consumer portfolio segments is calculated by applying statistical credit loss factors (estimated PD and loss severities) to the recorded investment balances or loan-equivalent amounts of pools of loan exposures with similar risk characteristics over a loss emergence period to arrive at an estimate of incurred credit losses. Estimated loss emergence periods may vary by product and may change over time; management applies judgment in estimating loss emergence periods, using available credit information and trends. In addition, management applies judgment to the statistical loss estimates for each loan portfolio category, using delinquency trends and other risk characteristics to estimate the total incurred credit losses in the portfolio. Management uses additional statistical methods and considers actual portfolio performance, including actual losses recognized on defaulted loans and collateral valuation trends, to review the appropriateness of the primary statistical loss estimate. The economic impact of potential modifications of residential real estate loans is not included in the statistical calculation because of the uncertainty regarding the type and results of such modifications. The statistical calculation is then adjusted to take into consideration model imprecision, external factors and current economic events that have occurred but that are not yet reflected in the factors used to derive the statistical calculation; these adjustments are accomplished in part by analyzing the historical loss experience for each major product segment. However, it is difficult to predict whether historical loss experience is indicative of future loss levels. Management applies judgment in making this adjustment, taking into account uncertainties associated with current macroeconomic and political conditions, quality of underwriting standards, borrower behavior, and other relevant internal and external factors affecting the credit quality of the portfolio. In certain instances, the interrelationships between these factors create further uncertainties. The application of different inputs into the statistical calculation, and the assumptions used by management to adjust the statistical calculation, are subject to management judgment, and emphasizing one input or assumption over another, or considering other inputs or assumptions, could affect the estimate of the allowance for credit losses for the consumer credit portfolio. Overall, the allowance for credit losses for consumer portfolios is sensitive to changes in the economic environment (e.g., unemployment rates), delinquency rates, the realizable value of collateral (e.g., housing prices), FICO scores, borrower behavior and other risk factors. While all of these factors are important determinants of overall allowance levels, changes in the various factors may not occur at the same time or at the same rate, or changes may be directionally inconsistent such that improvement in one factor may offset deterioration in another. In addition, changes in these factors would not necessarily be consistent across all geographies or product types. Finally, it is difficult to predict the extent to which changes in these factors would ultimately affect the frequency of losses, the severity of losses or both. Formula-based component - Wholesale loans and lending-related commitments The Firm’s methodology for determining the allowance for loan losses and the allowance for lending-related commitments involves the early identification of credits that are deteriorating. The formula-based component of the allowance for wholesale loans and lending-related commitments is calculated by applying statistical credit loss factors (estimated PD and LGD) to the recorded investment balances or loan-equivalent over a loss emergence period to arrive at an estimate of incurred credit losses in the portfolio. Estimated loss emergence periods may vary by funded versus unfunded status of the instrument and may change over time. The Firm assesses the credit quality of its borrower or counterparty and assigns a risk rating. Risk ratings are assigned at origination or acquisition, and if necessary, adjusted for changes in credit quality over the life of the exposure. In assessing the risk rating of a particular loan or lending-related commitment, among the factors considered are the obligor’s debt capacity and financial flexibility, the level of the obligor’s earnings, the amount and sources for repayment, the level and nature of contingencies, management strength, and the industry and geography in which the obligor operates. These factors are based on an evaluation of historical and current information and involve subjective assessment and interpretation. Determining risk ratings involves significant judgment; emphasizing one factor over another or considering additional factors could affect the risk rating assigned by the Firm. A PD estimate is determined based on the Firm’s history of defaults over more than one credit cycle. LGD estimate is a judgment-based estimate assigned to each loan or lending-related commitment. The estimate represents the amount of economic loss if the obligor were to default. The type of obligor, quality of collateral, and the seniority of the Firm’s lending exposure in the obligor’s capital structure affect LGD. The Firm applies judgment in estimating PD, LGD, loss emergence period and loan-equivalent used in calculating the allowance for credit losses. Estimates of PD, LGD, loss emergence period and loan-equivalent used are subject to periodic refinement based on any changes to underlying external or Firm- specific historical data. Changes to the time period used for PD and LGD estimates could also affect the allowance for credit losses. The use of different inputs, estimates or methodologies could change the amount of the allowance for credit losses determined appropriate by the Firm. In addition to the statistical credit loss estimates applied to the wholesale portfolio, management applies its judgment to adjust the statistical estimates for wholesale loans and lending-related commitments, taking into consideration model imprecision, external factors and economic events that have occurred but are not yet reflected in the loss factors. Historical experience of both LGD and PD are considered when estimating these adjustments. Factors related to concentrated and deteriorating industries also are incorporated where relevant. These estimates are based on management’s view of uncertainties that relate to current macroeconomic conditions, quality of underwriting standards and other relevant internal and external factors affecting the credit quality of the current portfolio. Asset-specific component The asset-specific component of the allowance relates to loans considered to be impaired, which includes loans that have been modified in TDRs as well as risk-rated loans that have been placed on nonaccrual status. To determine the asset-specific component of the allowance, larger risk-rated loans (primarily loans in the wholesale portfolio segment) are evaluated individually, while smaller loans (both risk-rated and scored) are evaluated as pools using historical loss experience for the respective class of assets. The Firm generally measures the asset-specific allowance as the difference between the recorded investment in the loan and the present value of the cash flows expected to be collected, discounted at the loan’s original effective interest rate. Subsequent changes in impairment are reported as an adjustment to the allowance for loan losses. In certain cases, the asset-specific allowance is determined using an observable market price, and the allowance is measured as the difference between the recorded investment in the loan and the loan’s fair value. Collateral-dependent loans are charged down to the fair value of collateral less costs to sell. For any of these impaired loans, the amount of the asset-specific allowance required to be recorded, if any, is dependent upon the recorded investment in the loan (including prior charge-offs), and either the expected cash flows or fair value of collateral. See Note 12 for more information about charge-offs and collateral-dependent loans. The asset-specific component of the allowance for impaired loans that have been modified in TDRs (including forgone interest, principal forgiveness, as well as other concessions) incorporates the effect of the modification on the loan’s expected cash flows, which considers the potential for redefault. For residential real estate loans modified in TDRs, the Firm develops product-specific probability of default estimates, which are applied at a loan level to compute expected losses. In developing these probabilities of default, the Firm considers the relationship between the credit quality characteristics of the underlying loans and certain assumptions about home prices and unemployment, based upon industry-wide data. The Firm also considers its own historical loss experience to-date based on actual redefaulted modified loans. For credit card loans modified in TDRs, expected losses incorporate projected redefaults based on the Firm’s historical experience by type of modification program. For wholesale loans modified in TDRs, expected losses incorporate management’s expectation of the borrower’s ability to repay under the modified terms. Estimating the timing and amounts of future cash flows is highly judgmental as these cash flow projections rely upon estimates such as loss severities, asset valuations, default rates (including redefault rates on modified loans), the amounts and timing of interest or principal payments (including any expected prepayments) or other factors that are reflective of current and expected market conditions. These estimates are, in turn, dependent on factors such as the duration of current overall economic conditions, industry-, portfolio-, or borrower-specific factors, the expected outcome of insolvency proceedings as well as, in certain circumstances, other economic factors, including the level of future home prices. All of these estimates and assumptions require significant management judgment and certain assumptions are highly subjective. PCI loans In connection with the acquisition of certain PCI loans, which are accounted for as described in Note 12 , the allowance for loan losses for the PCI portfolio is based on quarterly estimates of the amount of principal and interest cash flows expected to be collected over the estimated remaining lives of the loans. These cash flow projections are based on estimates regarding default rates (including redefault rates on modified loans), loss severities, the amounts and timing of prepayments and other factors that are reflective of current and expected future market conditions. These estimates are dependent on assumptions regarding the level of future home prices, and the duration of current overall economic conditions, among other factors. These estimates and assumptions require significant management judgment and certain assumptions are highly subjective. |
Loan securitizations policy | The Firm has securitized and sold a variety of loans, including residential mortgage, credit card, student and commercial (primarily related to real estate) loans, as well as debt securities. The purposes of these securitization transactions were to satisfy investor demand and to generate liquidity for the Firm. For loan securitizations in which the Firm is not required to consolidate the trust, the Firm records the transfer of the loan receivable to the trust as a sale when all of the following accounting criteria for a sale are met: (1) the transferred financial assets are legally isolated from the Firm’s creditors; (2) the transferee or beneficial interest holder can pledge or exchange the transferred financial assets; and (3) the Firm does not maintain effective control over the transferred financial assets (e.g., the Firm cannot repurchase the transferred assets before their maturity and it does not have the ability to unilaterally cause the holder to return the transferred assets). For loan securitizations accounted for as a sale, the Firm recognizes a gain or loss based on the difference between the value of proceeds received (including cash, beneficial interests, or servicing assets received) and the carrying value of the assets sold. Gains and losses on securitizations are reported in noninterest revenue. |
Goodwill policy | Goodwill is recorded upon completion of a business combination as the difference between the purchase price and the fair value of the net assets acquired. Subsequent to initial recognition, goodwill is not amortized but 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 there may be impairment. The goodwill associated with each business combination is allocated to the related reporting units, which are determined based on how the Firm’s businesses are managed and how they are reviewed by the Firm’s Operating Committee. |
Mortgage servicing rights policy | 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. As permitted by U.S. GAAP, the Firm has elected to account for its MSRs at fair value. The Firm treats its MSRs as a single class of servicing assets based on the availability of market inputs used to measure the fair value of its MSR asset and its treatment of MSRs as one aggregate pool for risk management purposes. The Firm estimates the fair value of MSRs using an option-adjusted spread (“OAS”) model, which projects MSR cash flows over multiple interest rate scenarios in conjunction with the Firm’s prepayment model, and then discounts these cash flows at risk-adjusted rates. The model considers portfolio characteristics, contractually specified servicing fees, prepayment assumptions, delinquency rates, costs to service, late charges and other ancillary revenue, and other economic factors. The Firm compares fair value estimates and assumptions to observable market data where available, and also considers recent market activity and actual portfolio experience. |
Premises and equipment policy | Premises and equipment, including leasehold improvements, are carried at cost less accumulated depreciation and amortization. JPMorgan Chase computes depreciation using the straight-line method over the estimated useful life of an asset. For leasehold improvements, the Firm uses the straight-line method computed over the lesser of the remaining term of the leased facility or the estimated useful life of the leased asset. |
Internal use software policy | JPMorgan Chase capitalizes certain costs associated with the acquisition or development of internal-use software. Once the software is ready for its intended use, these costs are amortized on a straight-line basis over the software’s expected useful life and reviewed for impairment on an ongoing basis. |
Debt policy | JPMorgan Chase issues long-term debt denominated in various currencies, predominantly U.S. dollars, with both fixed and variable interest rates. Included in senior and subordinated debt below are various equity-linked or other indexed instruments, which the Firm has elected to measure at fair value. Changes in fair value are recorded in principal transactions revenue in the Consolidated statements of income, except for unrealized gains/(losses) due to DVA which are recorded in OCI. |
Earnings per share policy | Earnings per share (“EPS”) is calculated under the two-class method under which all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities based on their respective rights to receive dividends. JPMorgan Chase grants RSUs to certain employees under its share-based compensation programs, which entitle 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. |
Income tax policy | JPMorgan Chase and its eligible subsidiaries file a consolidated U.S. federal income tax return. JPMorgan Chase uses the asset and liability method to provide income taxes on all transactions recorded in the Consolidated Financial Statements. This method requires that income taxes reflect the expected future tax consequences of temporary differences between the carrying amounts of assets or liabilities for book and tax purposes. Accordingly, a deferred tax asset or liability for each temporary difference is determined based on the tax rates that the Firm expects to be in effect when the underlying items of income and expense are realized. JPMorgan Chase’s expense for income taxes includes the current and deferred portions of that expense. A valuation allowance is established to reduce deferred tax assets to the amount the Firm expects to realize. |
Off-balance sheet credit exposure policy | To provide for probable credit losses inherent in wholesale and certain consumer lending-commitments, an allowance for credit losses on lending-related commitments is maintained. U.S. GAAP requires that a guarantor recognize, at the inception of a guarantee, a liability in an amount equal to the fair value of the obligation undertaken in issuing the guarantee. U.S. GAAP defines a guarantee as a contract that contingently requires the guarantor to pay a guaranteed party based upon: (a) changes in an underlying asset, liability or equity security of the guaranteed party; or (b) a third party’s failure to perform under a specified agreement. The Firm considers the following off–balance sheet lending-related arrangements to be guarantees under U.S. GAAP: standby letters of credit and other financial guarantees, securities lending indemnifications, certain indemnification agreements included within third-party contractual arrangements and certain derivative contracts. As required by U.S. GAAP, the Firm initially records guarantees at the inception date fair value of the obligation assumed (e.g., the amount of consideration received or the net present value of the premium receivable). For certain types of guarantees, the Firm records this fair value amount in other liabilities with an offsetting entry recorded in cash (for premiums received), or other assets (for premiums receivable). Any premium receivable recorded in other assets is reduced as cash is received under the contract, and the fair value of the liability recorded at inception is amortized into income as lending and deposit-related fees over the life of the guarantee contract. For indemnifications provided in sales agreements, a portion of the sale proceeds is allocated to the guarantee, which adjusts the gain or loss that would otherwise result from the transaction. For these indemnifications, the initial liability is amortized to income as the Firm’s risk is reduced (i.e., over time or when the indemnification expires). Any contingent liability that exists as a result of issuing the guarantee or indemnification is recognized when it becomes probable and reasonably estimable. The contingent portion of the liability is not recognized if the estimated amount is less than the carrying amount of the liability recognized at inception (adjusted for any amortization). The recorded amounts of the liabilities related to guarantees and indemnifications at December 31, 2017 and 2016 , excluding the allowance for credit losses on lending-related commitments, are discussed below. |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Significant Accounting Policies | The following table identifies JPMorgan Chase’s other significant accounting policies and the Note and page where a detailed description of each policy can be found. Fair value measurement Note 2 Page 155 Fair value option Note 3 Page 174 Derivative instruments Note 5 Page 179 Noninterest revenue Note 6 Page 192 Interest income and interest expense Note 7 Page 195 Pension and other postretirement employee benefit plans Note 8 Page 195 Employee share-based incentives Note 9 Page 201 Securities Note 10 Page 203 Securities financing activities Note 11 Page 208 Loans Note 12 Page 211 Allowance for credit losses Note 13 Page 231 Variable interest entities Note 14 Page 236 Goodwill and Mortgage servicing rights Note 15 page 244 Premises and equipment Note 16 page 248 Long-term debt Note 19 page 249 Income taxes Note 24 page 255 Off–balance sheet lending-related financial instruments, guarantees and other commitments Note 27 page 261 Litigation Note 29 page 268 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value methodologies | The following table describes the valuation methodologies generally used by the Firm to measure its significant products/instruments at fair value, including the general classification of such instruments pursuant to the valuation hierarchy. Product/instrument Valuation methodology Classifications in the valuation hierarchy Securities financing agreements Valuations are based on discounted cash flows, which consider: Predominantly level 2 • Derivative features: for further information refer to the discussion of derivatives below. • Market rates for the respective maturity • Collateral characteristics Loans and lending-related commitments — wholesale Loans carried at fair value (e.g., trading loans and non-trading loans) and associated lending-related commitments Where observable market data is available, valuations are based on: Level 2 or 3 • Observed market prices (circumstances are infrequent) • Relevant broker quotes • Observed market prices for similar instruments Where observable market data is unavailable or limited, valuations are based on discounted cash flows, which consider the following: • Credit spreads derived from the cost of CDS; or benchmark credit curves developed by the Firm, by industry and credit rating • Prepayment speed • Collateral characteristics Loans held-for-investment and associated lending-related commitments Valuations are based on discounted cash flows, which consider: Predominantly level 3 • Credit spreads, derived from the cost of CDS; or benchmark credit curves developed by the Firm, by industry and credit rating • Prepayment speed Lending-related commitments are valued similarly to loans and reflect the portion of an unused commitment expected, based on the Firm’s average portfolio historical experience, to become funded prior to an obligor default. For information regarding the valuation of loans measured at collateral value, see Note 12. Loans — consumer Held-for-investment consumer loans, excluding credit card Valuations are based on discounted cash flows, which consider: Predominantly level 2 • Credit losses – which consider expected and current default rates, and loss severity • Prepayment speed • Discount rates • Servicing costs For information regarding the valuation of loans measured at collateral value, see Note 12. Held-for-investment credit card receivables Valuations are based on discounted cash flows, which consider: Level 3 • Credit costs - the allowance for loan losses is considered a reasonable proxy for the credit cost • Projected interest income, late-fee revenue and loan repayment rates • Discount rates • Servicing costs Trading loans — conforming residential mortgage loans expected to be sold (CCB, CIB) Fair value is based on observable prices for mortgage-backed securities with similar collateral and incorporates adjustments to these prices to account for differences between the securities and the value of the underlying loans, which include credit characteristics, portfolio composition, and liquidity. Predominantly level 2 Product/instrument Valuation methodology, inputs and assumptions Classifications in the valuation hierarchy Investment and trading securities Quoted market prices are used where available. Level 1 In the absence of quoted market prices, securities are valued based on: Level 2 or 3 • Observable market prices for similar securities • Relevant broker quotes • Discounted cash flows In addition, the following inputs to discounted cash flows are used for the following products: Mortgage- and asset-backed securities specific inputs: • Collateral characteristics • Deal-specific payment and loss allocations • Current market assumptions related to yield, prepayment speed, conditional default rates and loss severity Collateralized loan obligations (“CLOs”) specific inputs: • Collateral characteristics • Deal-specific payment and loss allocations • Expected prepayment speed, conditional default rates, loss severity • Credit spreads • Credit rating data Physical commodities Valued using observable market prices or data. Predominantly level 1 and 2 Derivatives Exchange-traded derivatives that are actively traded and valued using the exchange price. Level 1 Derivatives that are valued using models such as the Black-Scholes option pricing model, simulation models, or a combination of models that may use observable or unobservable valuation inputs as well as considering the contractual terms. The key valuation inputs used will depend on the type of derivative and the nature of the underlying instruments and may include equity prices, commodity prices, interest rate yield curves, foreign exchange rates, volatilities, correlations, CDS spreads and recovery rates. Additionally, the credit quality of the counterparty and of the Firm as well as market funding levels may also be considered. Level 2 or 3 In addition, specific inputs used for derivatives that are valued based on models with significant unobservable inputs are as follows: Structured credit derivatives specific inputs include: • CDS spreads and recovery rates • Credit correlation between the underlying debt instruments Equity option specific inputs include: • Equity volatilities • Equity correlation • Equity-FX correlation • Equity-IR correlation Interest rate and FX exotic options specific inputs include: • Interest rate spread volatility • Interest rate correlation • Foreign exchange correlation • Interest rate-FX correlation Commodity derivatives specific inputs include: • Commodity volatility • Forward commodity price Additionally, adjustments are made to reflect counterparty credit quality (CVA) and the impact of funding (FVA). See page 171 of this Note. Product/instrument Valuation methodology, inputs and assumptions Classification in the valuation hierarchy Mortgage servicing rights See Mortgage servicing rights in Note 15. Level 3 Private equity direct investments Fair value is estimated using all available information; the range of potential inputs include: Level 2 or 3 • Transaction prices • Trading multiples of comparable public companies • Operating performance of the underlying portfolio company • Adjustments as required, since comparable public companies are not identical to the company being valued, and for company-specific issues and lack of liquidity. • Additional available inputs relevant to the investment. Fund investments (e.g., mutual/collective investment funds, private equity funds, hedge funds, and real estate funds) Net asset value • NAV is supported by the ability to redeem and purchase at the NAV level. Level 1 • Adjustments to the NAV as required, for restrictions on redemption (e.g., lock-up periods or withdrawal limitations) or where observable activity is limited. Level 2 or 3 (a) Beneficial interests issued by consolidated VIEs Valued using observable market information, where available. Level 2 or 3 In the absence of observable market information, valuations are based on the fair value of the underlying assets held by the VIE. Long-term debt, not carried at fair value Valuations are based on discounted cash flows, which consider: Predominantly level 2 • Market rates for respective maturity Structured notes (included in deposits, short-term borrowings and long-term debt) • Valuations are based on discounted cash flow analyses that consider the embedded derivative and the terms and payment structure of the note. • The embedded derivative features are considered using models such as the Black-Scholes option pricing model, simulation models, or a combination of models that may use observable or unobservable valuation inputs, depending on the embedded derivative. The specific inputs used vary according to the nature of the embedded derivative features, as described in the discussion above regarding derivatives valuation. Adjustments are then made to this base valuation to reflect the Firm’s own credit risk (DVA). See page 171 of this Note. Level 2 or 3 (a) Excludes certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient. |
Assets and liabilities measured at fair value on a recurring basis | The following table presents the assets and liabilities reported at fair value as of December 31, 2017 and 2016 , by major product category and fair value hierarchy. Assets and liabilities measured at fair value on a recurring basis Fair value hierarchy December 31, 2017 (in millions) Level 1 Level 2 Level 3 Derivative netting adjustments Total fair value Federal funds sold and securities purchased under resale agreements $ — $ 14,732 $ — $ — $ 14,732 Securities borrowed — 3,049 — — 3,049 Trading assets: Debt instruments: Mortgage-backed securities: U.S. government agencies (a) — 41,515 307 — 41,822 Residential – nonagency — 1,835 60 — 1,895 Commercial – nonagency — 1,645 11 — 1,656 Total mortgage-backed securities — 44,995 378 — 45,373 U.S. Treasury and government agencies (a) 30,758 6,475 1 — 37,234 Obligations of U.S. states and municipalities — 9,067 744 — 9,811 Certificates of deposit, bankers’ acceptances and commercial paper — 226 — — 226 Non-U.S. government debt securities 28,887 28,831 78 — 57,796 Corporate debt securities — 24,146 312 — 24,458 Loans (b) — 35,242 2,719 — 37,961 Asset-backed securities — 3,284 153 — 3,437 Total debt instruments 59,645 152,266 4,385 — 216,296 Equity securities 87,346 197 295 — 87,838 Physical commodities (c) 4,924 1,322 — — 6,246 Other — 14,197 690 — 14,887 Total debt and equity instruments (d) 151,915 167,982 5,370 — 325,267 Derivative receivables: Interest rate 181 314,107 1,704 (291,319 ) 24,673 Credit — 21,995 1,209 (22,335 ) 869 Foreign exchange 841 158,834 557 (144,081 ) 16,151 Equity — 37,722 2,318 (32,158 ) 7,882 Commodity — 19,875 210 (13,137 ) 6,948 Total derivative receivables (e)(f) 1,022 552,533 5,998 (503,030 ) 56,523 Total trading assets (g) 152,937 720,515 11,368 (503,030 ) 381,790 Available-for-sale securities: Mortgage-backed securities: U.S. government agencies (a) — 70,280 — — 70,280 Residential – nonagency — 11,366 1 — 11,367 Commercial – nonagency — 5,025 — — 5,025 Total mortgage-backed securities — 86,671 1 — 86,672 U.S. Treasury and government agencies (a) 22,745 — — — 22,745 Obligations of U.S. states and municipalities — 32,338 — — 32,338 Certificates of deposit — 59 — — 59 Non-U.S. government debt securities 18,140 9,154 — — 27,294 Corporate debt securities — 2,757 — — 2,757 Asset-backed securities: Collateralized loan obligations — 20,720 276 — 20,996 Other — 8,817 — — 8,817 Equity securities 547 — — — 547 Total available-for-sale securities 41,432 160,516 277 — 202,225 Loans — 2,232 276 — 2,508 Mortgage servicing rights — — 6,030 — 6,030 Other assets (g) 13,795 343 1,265 — 15,403 Total assets measured at fair value on a recurring basis $ 208,164 $ 901,387 $ 19,216 $ (503,030 ) $ 625,737 Deposits $ — $ 17,179 $ 4,142 $ — $ 21,321 Federal funds purchased and securities loaned or sold under repurchase agreements — 697 — — 697 Short-term borrowings — 7,526 1,665 — 9,191 Trading liabilities: Debt and equity instruments (d) 64,664 21,183 39 — 85,886 Derivative payables: Interest rate 170 282,825 1,440 (277,306 ) 7,129 Credit — 22,009 1,244 (21,954 ) 1,299 Foreign exchange 794 154,075 953 (143,349 ) 12,473 Equity — 39,668 5,727 (36,203 ) 9,192 Commodity — 21,017 884 (14,217 ) 7,684 Total derivative payables (e)(f) 964 519,594 10,248 (493,029 ) 37,777 Total trading liabilities 65,628 540,777 10,287 (493,029 ) 123,663 Accounts payable and other liabilities 9,074 121 13 — 9,208 Beneficial interests issued by consolidated VIEs — 6 39 — 45 Long-term debt — 31,394 16,125 — 47,519 Total liabilities measured at fair value on a recurring basis $ 74,702 $ 597,700 $ 32,271 $ (493,029 ) $ 211,644 Fair value hierarchy December 31, 2016 (in millions) Level 1 Level 2 Level 3 Derivative netting adjustments Total fair value Federal funds sold and securities purchased under resale agreements $ — $ 21,506 $ — $ — $ 21,506 Securities borrowed — — — — — Trading assets: Debt instruments: Mortgage-backed securities: U.S. government agencies (a) 13 40,586 392 — 40,991 Residential – nonagency — 1,552 83 — 1,635 Commercial – nonagency — 1,321 17 — 1,338 Total mortgage-backed securities 13 43,459 492 — 43,964 U.S. Treasury and government agencies (a) 19,554 5,201 — — 24,755 Obligations of U.S. states and municipalities — 8,403 649 — 9,052 Certificates of deposit, bankers’ acceptances and commercial paper — 1,649 — — 1,649 Non-U.S. government debt securities 28,443 23,076 46 — 51,565 Corporate debt securities — 22,751 576 — 23,327 Loans (b) — 28,965 4,837 — 33,802 Asset-backed securities — 5,250 302 — 5,552 Total debt instruments 48,010 138,754 6,902 — 193,666 Equity securities 96,759 281 231 — 97,271 Physical commodities (c) 5,341 1,620 — — 6,961 Other — 9,341 761 — 10,102 Total debt and equity instruments (d) 150,110 149,996 7,894 — 308,000 Derivative receivables: Interest rate 715 602,747 2,501 (577,661 ) 28,302 Credit — 28,256 1,389 (28,351 ) 1,294 Foreign exchange 812 231,743 870 (210,154 ) 23,271 Equity — 34,032 908 (30,001 ) 4,939 Commodity 158 18,360 125 (12,371 ) 6,272 Total derivative receivables (e) 1,685 915,138 5,793 (858,538 ) 64,078 Total trading assets (g) 151,795 1,065,134 13,687 (858,538 ) 372,078 Available-for-sale securities: Mortgage-backed securities: U.S. government agencies (a) — 64,005 — — 64,005 Residential – nonagency — 14,442 1 — 14,443 Commercial – nonagency — 9,104 — — 9,104 Total mortgage-backed securities — 87,551 1 — 87,552 U.S. Treasury and government agencies (a) 44,072 29 — — 44,101 Obligations of U.S. states and municipalities — 31,592 — — 31,592 Certificates of deposit — 106 — — 106 Non-U.S. government debt securities 22,793 12,495 — — 35,288 Corporate debt securities — 4,958 — — 4,958 Asset-backed securities: Collateralized loan obligations — 26,738 663 — 27,401 Other — 6,967 — — 6,967 Equity securities 926 — — — 926 Total available-for-sale securities 67,791 170,436 664 — 238,891 Loans — 1,660 570 — 2,230 Mortgage servicing rights — — 6,096 — 6,096 Other assets (g) 4,357 — 2,223 — 6,580 Total assets measured at fair value on a recurring basis $ 223,943 $ 1,258,736 $ 23,240 $ (858,538 ) $ 647,381 Deposits $ — $ 11,795 $ 2,117 $ — $ 13,912 Federal funds purchased and securities loaned or sold under repurchase agreements — 687 — — 687 Short-term borrowings — 7,971 1,134 — 9,105 Trading liabilities: Debt and equity instruments (d) 68,304 19,081 43 — 87,428 Derivative payables: Interest rate 539 569,001 1,238 (559,963 ) 10,815 Credit — 27,375 1,291 (27,255 ) 1,411 Foreign exchange 902 231,815 2,254 (214,463 ) 20,508 Equity — 35,202 3,160 (30,222 ) 8,140 Commodity 173 20,079 210 (12,105 ) 8,357 Total derivative payables (e) 1,614 883,472 8,153 (844,008 ) 49,231 Total trading liabilities 69,918 902,553 8,196 (844,008 ) 136,659 Accounts payable and other liabilities 9,107 — 13 — 9,120 Beneficial interests issued by consolidated VIEs — 72 48 — 120 Long-term debt — 24,836 (h) 12,850 (h) — 37,686 Total liabilities measured at fair value on a recurring basis $ 79,025 $ 947,914 (h) $ 24,358 (h) $ (844,008 ) $ 207,289 (a) At December 31, 2017 and 2016 , included total U.S. government-sponsored enterprise obligations of $78.0 billion and $80.6 billion , respectively, which were predominantly mortgage-related. (b) At December 31, 2017 and 2016 , included within trading loans were $11.4 billion and $16.5 billion , respectively, of residential first-lien mortgages, and $4.2 billion and $3.3 billion , respectively, of commercial first-lien mortgages. Residential mortgage loans include conforming mortgage loans originated with the intent to sell to U.S. government agencies of $5.7 billion and $11.0 billion , respectively, and reverse mortgages of $836 million and $2.0 billion , respectively. (c) Physical commodities inventories are generally accounted for at the lower of cost or net realizable value. “Net realizable value” is a term defined in U.S. GAAP as not exceeding fair value less costs to sell (“transaction costs”). Transaction costs for the Firm’s physical commodities inventories are either not applicable or immaterial to the value of the inventory. Therefore, net realizable value approximates fair value for the Firm’s physical commodities inventories. When fair value hedging has been applied (or when net realizable value is below cost), the carrying value of physical commodities approximates fair value, because under fair value hedge accounting, the cost basis is adjusted for changes in fair value. For a further discussion of the Firm’s hedge accounting relationships, see Note 5 . To provide consistent fair value disclosure information, all physical commodities inventories have been included in each period presented. (d) Balances reflect the reduction of securities owned (long positions) by the amount of identical securities sold but not yet purchased (short positions). (e) As permitted under U.S. GAAP, the Firm has elected to net derivative receivables and derivative payables and the related cash collateral received and paid when a legally enforceable master netting agreement exists. For purposes of the tables above, the Firm does not reduce derivative receivables and derivative payables balances for this netting adjustment, either within or across the levels of the fair value hierarchy, as such netting is not relevant to a presentation based on the transparency of inputs to the valuation of an asset or liability. The level 3 balances would be reduced if netting were applied, including the netting benefit associated with cash collateral. (f) Reflects the Firm’s adoption of rulebook changes made by two CCPs that require or allow the Firm to treat certain OTC-cleared derivative transactions as daily settled. For further information, see Note 5 . (g) 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 December 31, 2017 and 2016 , the fair values of these investments, which include certain hedge funds, private equity funds, real estate and other funds, were $779 million and $1.0 billion , respectively. Included in these balances at December 31, 2017 and 2016 , were trading assets of $54 million and $52 million , respectively, and other assets of $725 million and $977 million , respectively. (h) The prior period amounts have been revised to conform with the current period presentation. |
Fair value inputs, assets and liabilities, quantitative information | Level 3 inputs (a) December 31, 2017 Product/Instrument Fair value (in millions) Principal valuation technique Unobservable inputs (g) Range of input values Weighted average Residential mortgage-backed securities and loans (b) $ 1,418 Discounted cash flows Yield 3 % – 16% 6% Prepayment speed 0 % – 13% 9% Conditional default rate 0 % – 5% 1% Loss severity 0 % – 84% 3% Commercial mortgage-backed securities and loans (c) 714 Market comparables Price $ 0 – $100 $94 Obligations of U.S. states and municipalities 744 Market comparables Price $ 59 – $100 $98 Corporate debt securities 312 Market comparables Price $ 3 – $111 $82 Loans (d) 1,242 Market comparables Price $ 4 – $103 $84 Asset-backed securities 276 Discounted cash flows Credit spread 204 bps – 205bps 205bps Prepayment speed 20% 20% Conditional default rate 2% 2% Loss severity 30% 30% 153 Market comparables Price $ 2 – $160 $79 Net interest rate derivatives 28 Option pricing Interest rate spread volatility 27 bps – 38bps Interest rate correlation (50 )% – 98% IR-FX correlation 60 % – 70% 236 Discounted cash flows Prepayment speed 0 % – 30% Net credit derivatives (37 ) Discounted cash flows Credit correlation 40 % – 75% Credit spread 6 bps – 1,489bps Recovery rate 20 % – 70% Yield 1 % – 20% Prepayment speed 4 % – 21% Conditional default rate 0 % – 100% Loss severity 4 % – 100% 2 Market comparables Price $ 10 $98 Net foreign exchange derivatives (200 ) Option pricing IR-FX correlation (50 )% – 70% (196 ) Discounted cash flows Prepayment speed 7% Net equity derivatives (3,409 ) Option pricing Equity volatility 20 % – 55% Equity correlation 0 % – 85% Equity-FX correlation (50 )% – 30% Equity-IR correlation 10 % – 40% Net commodity derivatives (674 ) Option pricing Forward commodity price $ 54 – $68 per barrel Commodity volatility 5 % 46% Commodity correlation (40 )% – 70% MSRs 6,030 Discounted cash flows Refer to Note 15 Other assets 984 Discounted cash flows Credit spread 40bps – 70bps 55bps Yield 8% – 60% 47% 971 Market comparables EBITDA multiple 4.7x – 10.6x 8.9x Long-term debt, short-term borrowings, and deposits (e) 21,932 Option pricing Interest rate spread volatility 27 bps – 38bps Interest rate correlation (50 )% – 98% IR-FX correlation (50 )% – 70% Equity correlation 0 % – 85% Equity-FX correlation (50 )% – 30% Equity-IR correlation 10 % – 40% Other level 3 assets and liabilities, net (f) 283 (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) Includes U.S. government agency securities of $297 million , nonagency securities of $61 million and trading loans of $1.1 billion . (c) Includes U.S. government agency securities of $10 million , nonagency securities of $11 million , trading loans of $417 million and non-trading loans of $276 million . (d) Includes trading loans of $1.2 billion . (e) Long-term debt, short-term borrowings and deposits include structured notes issued by the Firm that are predominantly financial instruments containing embedded derivatives. The estimation of the fair value of structured notes includes the derivative features embedded within the instrument. The significant unobservable inputs are broadly consistent with those presented for derivative receivables. (f) Includes level 3 assets and liabilities that are insignificant both individually and in aggregate. (g) Price is a significant unobservable input for certain instruments. When quoted market prices are not readily available, reliance is generally placed on price-based internal valuation techniques. The price input is expressed assuming a par value of $100 . |
Changes in 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 years ended December 31, 2017 , 2016 and 2015 . When a determination is made to classify a financial instrument within level 3, the determination is based on the significance of the unobservable parameters 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. Fair value measurements using significant unobservable inputs Year ended (in millions) Fair value at January 1, 2017 Total realized/unrealized gains/(losses) Transfers into (h) Transfers (out of) level 3 (h) Fair value at Dec. 31, 2017 Change in unrealized gains/(losses) related to financial instruments held at Dec. 31, 2017 Purchases (f) Sales Settlements (g) Assets: Trading assets: Debt instruments: Mortgage-backed securities: U.S. government agencies $ 392 $ (11 ) $ 161 $ (171 ) $ (70 ) $ 49 $ (43 ) $ 307 $ (20 ) Residential – nonagency 83 19 53 (30 ) (64 ) 132 (133 ) 60 11 Commercial – nonagency 17 9 27 (44 ) (13 ) 64 (49 ) 11 1 Total mortgage-backed securities 492 17 241 (245 ) (147 ) 245 (225 ) 378 (8 ) U.S. Treasury and government agencies — — — — — 1 — 1 — Obligations of U.S. states and municipalities 649 18 152 (70 ) (5 ) — — 744 15 Non-U.S. government debt securities 46 — 559 (518 ) — 62 (71 ) 78 — Corporate debt securities 576 11 872 (612 ) (497 ) 157 (195 ) 312 18 Loans 4,837 333 2,389 (2,832 ) (1,323 ) 806 (1,491 ) 2,719 43 Asset-backed securities 302 32 354 (356 ) (56 ) 75 (198 ) 153 — Total debt instruments 6,902 411 4,567 (4,633 ) (2,028 ) 1,346 (2,180 ) 4,385 68 Equity securities 231 39 176 (148 ) (4 ) 59 (58 ) 295 21 Other 761 100 30 (46 ) (162 ) 17 (10 ) 690 39 Total trading assets – debt and equity instruments 7,894 550 (c) 4,773 (4,827 ) (2,194 ) 1,422 (2,248 ) 5,370 128 (c) Net derivative receivables: (a) Interest rate 1,263 72 60 (82 ) (1,040 ) (8 ) (1 ) 264 (473 ) Credit 98 (164 ) 1 (6 ) — 77 (41 ) (35 ) 32 Foreign exchange (1,384 ) 43 13 (10 ) 854 (61 ) 149 (396 ) 42 Equity (2,252 ) (417 ) 1,116 (551 ) (245 ) (1,482 ) 422 (3,409 ) (161 ) Commodity (85 ) (149 ) — — (433 ) (6 ) (1 ) (674 ) (718 ) Total net derivative receivables (2,360 ) (615 ) (c) 1,190 (649 ) (864 ) (1,480 ) 528 (4,250 ) (1,278 ) (c) Available-for-sale securities: Asset-backed securities 663 15 — (50 ) (352 ) — — 276 14 Other 1 — — — — — — 1 — Total available-for-sale securities 664 15 (d) — (50 ) (352 ) — — 277 14 (d) Loans 570 35 (c) — (26 ) (303 ) — — 276 3 (c) Mortgage servicing rights 6,096 (232 ) (e) 1,103 (140 ) (797 ) — — 6,030 (232 ) (e) Other assets 2,223 244 (c) 66 (177 ) (870 ) — (221 ) 1,265 74 (c) Fair value measurements using significant unobservable inputs Year ended Fair value at January 1, 2017 Total realized/unrealized (gains)/losses Transfers (out of) level 3 (h) Fair value at Dec. 31, 2017 Change in unrealized (gains)/losses related to financial instruments held at Dec. 31, 2017 Purchases Sales Issuances Settlements (g) Transfers into (h) Liabilities: (b) Deposits $ 2,117 $ 152 (c)(i) $ — $ — $ 3,027 $ (291 ) $ 11 $ (874 ) $ 4,142 $ 198 (c)(i) Federal funds purchased and securities loaned or sold under repurchase agreements — — — — — — — — — — Short-term borrowings 1,134 42 (c)(i) — — 3,289 (2,748 ) 150 (202 ) 1,665 7 (c)(i) Trading liabilities – debt and equity instruments 43 (3 ) (c) (46 ) 48 — 3 3 (9 ) 39 — (c) Accounts payable and other liabilities 13 (2 ) (1 ) — — 3 — — 13 (2 ) Beneficial interests issued by consolidated VIEs 48 2 (c) (122 ) 39 — (6 ) 78 — 39 — (c) Long-term debt 12,850 1,067 (c)(i) — — 12,458 (10,985 ) 1,660 (925 ) 16,125 552 (c)(i) Fair value measurements using significant unobservable inputs Year ended (in millions) Fair value at January 1, 2016 Total realized/unrealized gains/(losses) Transfers (out of) level 3 (h) Fair value at Dec. 31, 2016 Change in unrealized gains/(losses) related to financial instruments held at Dec. 31, 2016 Purchases (f) Sales Settlements (g) Transfers into (h) Assets: Trading assets: Debt instruments: Mortgage-backed securities: U.S. government agencies $ 715 $ (20 ) $ 135 $ (295 ) $ (115 ) $ 111 $ (139 ) $ 392 $ (36 ) Residential – nonagency 194 4 252 (319 ) (20 ) 67 (95 ) 83 5 Commercial – nonagency 115 (11 ) 69 (29 ) (3 ) 173 (297 ) 17 3 Total mortgage-backed securities 1,024 (27 ) 456 (643 ) (138 ) 351 (531 ) 492 (28 ) Obligations of U.S. states and municipalities 651 19 149 (132 ) (38 ) — — 649 — Non-U.S. government debt securities 74 (4 ) 91 (97 ) (7 ) 19 (30 ) 46 (7 ) Corporate debt securities 736 2 445 (359 ) (189 ) 148 (207 ) 576 (22 ) Loans 6,604 (343 ) 2,228 (2,598 ) (1,311 ) 1,044 (787 ) 4,837 (169 ) Asset-backed securities 1,832 39 655 (712 ) (968 ) 288 (832 ) 302 19 Total debt instruments 10,921 (314 ) 4,024 (4,541 ) (2,651 ) 1,850 (2,387 ) 6,902 (207 ) Equity securities 265 — 90 (108 ) (40 ) 29 (5 ) 231 7 Other 744 79 649 (287 ) (360 ) 26 (90 ) 761 28 Total trading assets – debt and equity instruments 11,930 (235 ) (c) 4,763 (4,936 ) (3,051 ) 1,905 (2,482 ) 7,894 (172 ) (c) Net derivative receivables: (a) — — — Interest rate 876 756 193 (57 ) (713 ) (14 ) 222 1,263 (144 ) Credit 549 (742 ) 10 (2 ) 211 36 36 98 (622 ) Foreign exchange (725 ) 67 64 (124 ) (649 ) (48 ) 31 (1,384 ) (350 ) Equity (1,514 ) (145 ) 277 (852 ) 213 94 (325 ) (2,252 ) (86 ) Commodity (935 ) 194 1 10 645 8 (8 ) (85 ) (36 ) Total net derivative receivables (1,749 ) 130 (c) 545 (1,025 ) (293 ) 76 (44 ) (2,360 ) (1,238 ) (c) Available-for-sale securities: Asset-backed securities 823 1 — — (119 ) — (42 ) 663 1 Other 1 — — — — — — 1 — Total available-for-sale securities 824 1 (d) — — (119 ) — (42 ) 664 1 (d) Loans 1,518 (49 ) (c) 259 (7 ) (838 ) — (313 ) 570 — (c) Mortgage servicing rights 6,608 (163 ) (e) 679 (109 ) (919 ) — — 6,096 (163 ) (e) Other assets 2,401 130 (c) 487 (496 ) (299 ) — — 2,223 48 (c) Fair value measurements using significant unobservable inputs Year ended Fair value at January 1, 2016 Total realized/unrealized (gains)/losses Transfers (out of) level 3 (h) Fair value at Dec. 31, 2016 Change in unrealized (gains)/losses related to financial instruments held at Dec. 31, 2016 Purchases Sales Issuances Settlements (g) Transfers into (h) Liabilities: (b) Deposits $ 2,950 $ (56 ) (c) $ — $ — $ 1,375 $ (1,283 ) $ — $ (869 ) $ 2,117 $ 23 (c) Federal funds purchased and securities loaned or sold under repurchase agreements — — — — — (2 ) 6 (4 ) — — Short-term borrowings 639 (230 ) (c) — — 1,876 (1,210 ) 114 (55 ) 1,134 (70 ) (c) Trading liabilities – debt and equity instruments 63 (12 ) (c) (15 ) 23 — (22 ) 13 (7 ) 43 (18 ) (c) Accounts payable and other liabilities 19 — — — — (6 ) — — 13 — Beneficial interests issued by consolidated VIEs 549 (31 ) (c) — — 143 (613 ) — — 48 6 (c) Long-term debt 11,447 (j) 147 (c)(j) — — 8,140 (j) (5,810 ) 315 (1,389 ) 12,850 (j) 639 (c)(j) Fair value measurements using significant unobservable inputs Year ended (in millions) Fair value at January 1, 2015 Total realized/unrealized gains/(losses) Transfers (out of) level 3 (h) Fair value at Dec. 31, 2015 Change in unrealized gains/(losses) related to financial instruments held at Dec. 31, 2015 Purchases (f) Sales Settlements (g) Transfers into (h) Assets: Trading assets: Debt instruments: Mortgage-backed securities: U.S. government agencies $ 922 $ (28 ) $ 327 $ (303 ) $ (132 ) $ 25 $ (96 ) $ 715 $ (27 ) Residential – nonagency 663 130 253 (611 ) (23 ) 180 (398 ) 194 4 Commercial – nonagency 306 (14 ) 246 (262 ) (22 ) 117 (256 ) 115 (5 ) Total mortgage-backed securities 1,891 88 826 (1,176 ) (177 ) 322 (750 ) 1,024 (28 ) Obligations of U.S. states and municipalities 1,273 14 352 (133 ) (27 ) 5 (833 ) 651 (1 ) Non-U.S. government debt securities 302 9 205 (123 ) (64 ) 16 (271 ) 74 (16 ) Corporate debt securities 2,989 (77 ) 1,171 (1,038 ) (125 ) 179 (2,363 ) 736 2 Loans 13,287 (174 ) 3,532 (4,661 ) (3,112 ) 509 (2,777 ) 6,604 (181 ) Asset-backed securities 1,264 (41 ) 1,920 (1,229 ) (35 ) 205 (252 ) 1,832 (32 ) Total debt instruments 21,006 (181 ) 8,006 (8,360 ) (3,540 ) 1,236 (7,246 ) 10,921 (256 ) Equity securities 431 96 89 (193 ) (26 ) 51 (183 ) 265 82 Physical commodities 2 (2 ) — — — — — — — Other 1,050 119 1,581 (1,313 ) 192 33 (918 ) 744 85 Total trading assets – debt and equity instruments 22,489 32 (c) 9,676 (9,866 ) (3,374 ) 1,320 (8,347 ) 11,930 (89 ) (c) Net derivative receivables: (a) Interest rate 626 962 513 (173 ) (732 ) 6 (326 ) 876 263 Credit 189 118 129 (136 ) 165 29 55 549 260 Foreign exchange (526 ) 657 19 (149 ) (296 ) 36 (466 ) (725 ) 49 Equity (1,785 ) 731 890 (1,262 ) (158 ) 17 53 (1,514 ) 5 Commodity (565 ) (856 ) 1 (24 ) 512 (30 ) 27 (935 ) (41 ) Total net derivative receivables (2,061 ) 1,612 (c) 1,552 (1,744 ) (509 ) 58 (657 ) (1,749 ) 536 (c) Available-for-sale securities: — Asset-backed securities 908 (32 ) 51 (43 ) (61 ) — — 823 (28 ) Other 129 — — — (29 ) — (99 ) 1 — Total available-for-sale securities 1,037 (32 ) (d) 51 (43 ) (90 ) — (99 ) 824 (28 ) (d) Loans 2,541 (133 ) (c) 1,290 (92 ) (1,241 ) — (847 ) 1,518 (32 ) (c) Mortgage servicing rights 7,436 (405 ) (e) 985 (486 ) (922 ) — — 6,608 (405 ) (e) Other assets 3,184 (29 ) (c) 346 (509 ) (411 ) — (180 ) 2,401 (289 ) (c) Fair value measurements using significant unobservable inputs Year ended (in millions) Fair value at January 1, 2015 Total realized/unrealized (gains)/losses Transfers into level 3 (h) Transfers (out of) level 3 (h) Fair value at Dec. 31, 2015 Change in unrealized (gains)/losses related to financial instruments held at Dec. 31, 2015 Purchases Sales Issuances Settlements (g) Liabilities: (b) Deposits $ 2,859 $ (39 ) (c) $ — $ — $ 1,993 $ (850 ) $ — $ (1,013 ) $ 2,950 $ (29 ) (c) Short-term borrowings 1,453 (697 ) (c) — — 3,334 (2,963 ) 243 (731 ) 639 (57 ) (c) Trading liabilities – debt and equity instruments 72 15 (c) (163 ) 160 — (17 ) 12 (16 ) 63 (4 ) (c) Accounts payable and other liabilities 26 — (c) — — — (7 ) — — 19 — Beneficial interests issued by consolidated VIEs 1,146 (82 ) (c) — — 286 (574 ) — (227 ) 549 (63 ) (c) Long-term debt 11,877 (480 ) (c) (58 ) — 9,359 (6,465 ) (j) 315 (3,101 ) 11,447 (j) 385 (c)(j) (a) All level 3 derivatives are presented on a net basis, irrespective of underlying counterparty. (b) Level 3 liabilities as a percentage of total Firm liabilities accounted for at fair value (including liabilities measured at fair value on a nonrecurring basis) were 15% , 12% and 13% at December 31, 2017 , 2016 and 2015 , respectively. (c) Predominantly reported in principal transactions revenue, except for changes in fair value for CCB mortgage loans, and lending-related commitments originated with the intent to sell, and mortgage loan purchase commitments, which are reported in mortgage fees and related income. (d) Realized gains/(losses) on AFS securities, as well as other-than-temporary impairment (“OTTI”) losses that are recorded in earnings, are reported in securities gains. Unrealized gains/(losses) are reported in OCI. Realized gains/(losses) and foreign exchange hedge accounting adjustments recorded in income on AFS securities were zero , zero , and $(7) million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Unrealized gains/(losses) recorded on AFS securities in OCI were $15 million , $1 million and $(25) million for the years ended December 31, 2017 , 2016 and 2015 , respectively. (e) Changes in fair value for CCB MSRs are reported in mortgage fees and related income. (f) Loan originations are included in purchases (g) Includes financial assets and liabilities that have matured, been partially or fully repaid, impacts of modifications, and deconsolidation associated with beneficial interests in VIEs and other items. (h) All transfers into and/or out of level 3 are based on changes in the observability of the valuation inputs and are assumed to occur at the beginning of the quarterly reporting period in which they occur. (i) Realized (gains)/losses due to DVA for fair value option elected liabilities are reported in principal transactions revenue. Unrealized (gains)/losses are reported in OCI. Unrealized gains were $48 million for the year ended December 31, 2017. There were no realized gains for the year ended December 31, 2017. (j) The prior period amounts have been revised to conform with the current period presentation. |
Impact of credit adjustments on earnings | 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 reported below include 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. Year ended December 31, 2017 2016 2015 Credit and funding adjustments: Derivatives CVA $ 802 $ (84 ) $ 620 Derivatives FVA (295 ) 7 73 |
Assets and liabilities measured at fair value on a nonrecurring basis | The following table presents the total change in value of assets and liabilities for which a fair value adjustment has been recognized for the years ended December 31, 2017 2016 and 2015, related to financial instruments held at those dates. December 31, (in millions) 2017 2016 2015 Loans $ (159 ) $ (209 ) $ (226 ) Other Assets (148 ) 37 (60 ) Accounts payable and other liabilities (1 ) — (8 ) Total nonrecurring fair value gains/(losses) $ (308 ) $ (172 ) $ (294 ) The following tables present the assets reported on a nonrecurring basis at fair value as of December 31, 2017 and 2016, by major product category and fair value hierarchy. Fair value hierarchy Total fair value December 31, 2017 (in millions) Level 1 Level 2 Level 3 Loans $ — $ 238 $ 596 (a) $ 834 Other assets — 283 183 466 Total assets measured at fair value on a nonrecurring basis $ — $ 521 $ 779 (a) $ 1,300 Fair value hierarchy Total fair value December 31, 2016 (in millions) Level 1 Level 2 Level 3 Loans $ — $ 730 $ 590 $ 1,320 Other assets — 5 232 237 Total assets measured at fair value on a nonrecurring basis $ — $ 735 $ 822 $ 1,557 (a) Of the $779 million in level 3 assets measured at fair value on a nonrecurring basis as of December 31, 2017, $442 million related to residential real estate loans carried at the net realizable value of the underlying collateral (e.g., collateral-dependent loans and other loans charged off in accordance with regulatory guidance). These amounts are classified as level 3 as they are valued using a broker’s price opinion and discounted based upon the Firm’s experience with actual liquidation values. These discounts to the broker price opinions ranged from 13% to 48% with a weighted average of 27% . |
Carrying value and estimated fair value of financial assets and liabilities | The following table presents by fair value hierarchy classification the carrying values and estimated fair values at December 31, 2017 and 2016 , of financial assets and liabilities, excluding financial instruments that are carried at fair value on a recurring basis, and their classification within the fair value hierarchy. For additional information regarding the financial instruments within the scope of this disclosure, and the methods and significant assumptions used to estimate their fair value, see pages 156–159 of this Note. December 31, 2017 December 31, 2016 Estimated fair value hierarchy Estimated fair value hierarchy (in billions) Carrying value Level 1 Level 2 Level 3 Total estimated fair value Carrying value Level 1 Level 2 Level 3 Total estimated fair value Financial assets Cash and due from banks $ 25.8 $ 25.8 $ — $ — $ 25.8 $ 23.9 $ 23.9 $ — $ — $ 23.9 Deposits with banks 404.3 401.8 2.5 — 404.3 365.8 362.0 3.8 — 365.8 Accrued interest and accounts receivable 67.0 — 67.0 — 67.0 52.3 — 52.2 0.1 52.3 Federal funds sold and securities purchased under resale agreements 183.7 — 183.7 — 183.7 208.5 — 208.3 0.2 208.5 Securities borrowed 102.1 — 102.1 — 102.1 96.4 — 96.4 — 96.4 Securities, held-to-maturity 47.7 — 48.7 — 48.7 50.2 — 50.9 — 50.9 Loans, net of allowance for loan losses (a)(b) 914.6 — 213.2 707.1 920.3 878.8 — 24.1 851.0 875.1 Other 62.9 — 52.9 16.5 69.4 71.4 0.1 60.8 14.3 75.2 Financial liabilities Deposits $ 1,422.7 $ — $ 1,422.7 $ — $ 1,422.7 $ 1,361.3 $ — $ 1,361.3 $ — $ 1,361.3 Federal funds purchased and securities loaned or sold under repurchase agreements 158.2 — 158.2 — 158.2 165.0 — 165.0 — 165.0 Short-term borrowings 42.6 — 42.4 0.2 42.6 25.3 — 25.3 — 25.3 Accounts payable and other liabilities 152.0 — 148.9 2.9 151.8 148.0 — 144.8 3.4 148.2 Beneficial interests issued by consolidated VIEs 26.0 — 26.0 — 26.0 38.9 — 38.9 — 38.9 Long-term debt and junior subordinated deferrable interest debentures 236.6 — 240.3 3.2 243.5 257.5 — 260.0 2.0 262.0 (a) Fair value is typically estimated using a discounted cash flow model that incorporates the characteristics of the underlying loans (including principal, contractual interest rate and contractual fees) and other key inputs, including expected lifetime credit losses, interest rates, prepayment rates, and primary origination or secondary market spreads. For certain loans, the fair value is measured based on the value of the underlying collateral. The difference between the estimated fair value and carrying value of a financial asset or liability is the result of the different methodologies used to determine fair value as compared with carrying value. For example, credit losses are estimated for a financial asset’s remaining life in a fair value calculation but are estimated for a loss emergence period in the allowance for loan loss calculation; future loan income (interest and fees) is incorporated in a fair value calculation but is generally not considered in the allowance for loan losses. For a further discussion of the Firm’s methodologies for estimating the fair value of loans and lending-related commitments, see Valuation hierarchy on pages 156–159 . (b) For the year ended December 31, 2017, the Firm transferred certain residential mortgage loans from Level 3 to Level 2 as a result of an increase in observability. |
The carrying value and estimated fair value of wholesale lending- related commitments | The majority of the Firm’s lending-related commitments are not carried at fair value on a recurring basis on the Consolidated balance sheets. The carrying value of the wholesale allowance for lending-related commitments and the estimated fair value of these wholesale lending-related commitments were as follows for the periods indicated. December 31, 2017 December 31, 2016 Estimated fair value hierarchy Estimated fair value hierarchy (in billions) Carrying value (a) Level 1 Level 2 Level 3 Total estimated fair value Carrying value (a) Level 1 Level 2 Level 3 Total estimated fair value Wholesale lending-related commitments $ 1.1 $ — $ — $ 1.6 $ 1.6 $ 1.1 $ — $ — $ 2.1 $ 2.1 (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. |
Fair Value Option (Tables)
Fair Value Option (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Option [Abstract] | |
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 years ended December 31, 2017 , 2016 and 2015 , 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. 2017 2016 2015 December 31, (in millions) Principal transactions All other income Total changes in fair value recorded Principal transactions All other income Total changes in fair value recorded Principal transactions All other income Total changes in fair value recorded Federal funds sold and securities purchased under resale agreements $ (97 ) $ — $ (97 ) $ (76 ) $ — $ (76 ) $ (38 ) $ — $ (38 ) Securities borrowed 50 — 50 1 — 1 (6 ) — (6 ) Trading assets: Debt and equity instruments, excluding loans 1,943 2 (c) 1,945 120 (1 ) (c) 119 756 (10 ) (c) 746 Loans reported as trading assets: Changes in instrument-specific credit risk 330 14 (c) 344 461 43 (c) 504 138 41 (c) 179 Other changes in fair value 217 747 (c) 964 79 684 (c) 763 232 818 (c) 1,050 Loans: Changes in instrument-specific credit risk (1 ) — (1 ) 13 — 13 35 — 35 Other changes in fair value (12 ) 3 (c) (9 ) (7 ) — (7 ) 4 — 4 Other assets 11 (55 ) (d) (44 ) 20 62 (d) 82 79 (1 ) (d) 78 Deposits (a) (533 ) — (533 ) (134 ) — (134 ) 93 — 93 Federal funds purchased and securities loaned or sold under repurchase agreements 11 — 11 19 — 19 8 — 8 Short-term borrowings (a) (747 ) — (747 ) (236 ) — (236 ) 1,996 — 1,996 Trading liabilities (1 ) — (1 ) 6 — 6 (20 ) — (20 ) Beneficial interests issued by consolidated VIEs — — — 23 — 23 49 — 49 Long-term debt (a)(b) (2,022 ) — (2,022 ) (773 ) — (773 ) 1,388 — 1,388 (a) Unrealized gains/(losses) due to instrument-specific credit risk (DVA) for liabilities for which the fair value option has been elected is recorded in OCI, while realized gains/(losses) are recorded in principal transactions revenue. DVA for 2015 was included in principal transactions revenue, and 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 subsequent to issuance. See Notes 2 and 23 for further information. Realized gains/(losses) due to instrument-specific credit risk recorded in principal transaction revenue were not material for the years ended December 31, 2017 and 2016. (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. |
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 December 31, 2017 and 2016 , for loans, long-term debt and long-term beneficial interests for which the fair value option has been elected. 2017 2016 December 31, (in millions) Contractual principal outstanding Fair value Fair value over/(under) contractual principal outstanding Contractual principal outstanding Fair value Fair value over/(under) contractual principal outstanding Loans (a) Nonaccrual loans Loans reported as trading assets $ 4,219 $ 1,371 $ (2,848 ) $ 3,338 $ 748 $ (2,590 ) Loans 39 — (39 ) — — — Subtotal 4,258 1,371 (2,887 ) 3,338 748 (2,590 ) All other performing loans Loans reported as trading assets 38,157 36,590 (1,567 ) 35,477 33,054 (2,423 ) Loans 2,539 2,508 (31 ) 2,259 2,228 (31 ) Total loans $ 44,954 $ 40,469 $ (4,485 ) $ 41,074 $ 36,030 $ (5,044 ) Long-term debt Principal-protected debt $ 26,297 (c) $ 23,848 $ (2,449 ) $ 21,602 (c) $ 19,195 $ (2,407 ) Nonprincipal-protected debt (b) NA 23,671 NA NA 18,491 NA Total long-term debt NA $ 47,519 NA NA $ 37,686 NA Long-term beneficial interests Nonprincipal-protected debt NA $ 45 NA NA $ 120 NA Total long-term beneficial interests NA $ 45 NA NA $ 120 NA (a) There were no performing loans that were ninety days or more past due as of December 31, 2017 and 2016 . (b) Remaining contractual principal is not applicable to nonprincipal-protected notes. Unlike principal-protected structured notes, for which the Firm is obligated to return a stated amount of principal at the maturity of the note, nonprincipal-protected structured notes do not obligate the Firm to return a stated amount of principal at maturity, but 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. (c) Where the Firm issues principal-protected zero-coupon or discount notes, the balance reflects the contractual principal payment at maturity or, if applicable, the contractual principal payment at the Firm’s next call date. |
Fair value option, structured notes by balance sheet classification and primary embedded derivative risk | The following table presents the fair value of the structured notes issued by the Firm, by balance sheet classification and the primary risk type. December 31, 2017 December 31, 2016 (in millions) Long-term debt Short-term borrowings Deposits Total Long-term debt Short-term borrowings Deposits Total Risk exposure Interest rate $ 22,056 $ 69 $ 8,058 $ 30,183 $ 16,296 $ 184 $ 4,296 $ 20,776 Credit 4,329 1,312 — 5,641 3,267 225 — 3,492 Foreign exchange 2,841 147 38 3,026 2,365 135 6 2,506 Equity 17,581 7,106 6,548 31,235 14,831 8,234 5,481 28,546 Commodity 230 15 4,468 4,713 488 37 1,811 2,336 Total structured notes $ 47,037 $ 8,649 $ 19,112 $ 74,798 $ 37,247 $ 8,815 $ 11,594 $ 57,656 |
Credit Risk Concentrations (Tab
Credit Risk Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | |
Concentrations of credit exposure | The table below presents both on–balance sheet and off–balance sheet consumer and wholesale-related credit exposure by the Firm’s three credit portfolio segments as of December 31, 2017 and 2016 . In 2017 the Firm revised its methodology for the assignment of industry classifications, to better monitor and manage concentrations. This largely resulted in the re-assignment of holding companies from Other to the industry of risk category based on the primary business activity of the holding company's underlying entities. In the tables and industry discussions below, the prior period amounts have been revised to conform with the current period presentation. 2017 2016 Credit exposure (f) On-balance sheet Off-balance sheet (g) Credit exposure On-balance sheet Off-balance sheet (g) December 31, (in millions) Loans Derivatives Loans Derivatives Consumer, excluding credit card $ 421,234 $ 372,681 $ — $ 48,553 $ 417,891 $ 364,644 $ — $ 53,247 (h) Receivables from customers (a) 133 — — — 120 — — — Total Consumer, excluding credit card 421,367 372,681 — 48,553 418,011 364,644 — 53,247 (h) Credit Card 722,342 149,511 — 572,831 695,707 141,816 — 553,891 Total consumer-related 1,143,709 522,192 — 621,384 1,113,718 506,460 — 607,138 (h) Wholesale-related (b) Real Estate 139,409 113,648 153 25,608 134,287 105,802 207 28,278 Consumer & Retail 87,679 31,044 1,114 55,521 84,804 29,929 1,082 53,793 Technology, Media & Telecommunications 59,274 13,665 2,265 43,344 63,324 14,063 1,293 47,968 Healthcare 55,997 16,273 2,191 37,533 49,445 15,545 2,280 31,620 Industrials 55,272 18,161 1,163 35,948 55,733 17,295 1,658 36,780 Banks & Finance Cos 49,037 25,879 6,816 16,342 48,393 22,714 12,257 13,422 Oil & Gas 41,317 12,621 1,727 26,969 40,367 13,253 1,878 25,236 Asset Managers 32,531 11,480 7,998 13,053 33,201 10,339 10,820 12,042 Utilities 29,317 6,187 2,084 21,046 29,672 7,208 888 21,576 State & Municipal Govt (c) 28,633 12,134 2,888 13,611 28,263 12,416 2,096 13,751 Central Govt 19,182 3,375 13,937 1,870 20,408 3,964 14,235 2,209 Chemicals & Plastics 15,945 5,654 208 10,083 15,043 5,292 271 9,480 Transportation 15,797 6,733 977 8,087 19,096 8,996 751 9,349 Automotive 14,820 4,903 342 9,575 16,736 4,964 1,196 10,576 Metals & Mining 14,171 4,728 702 8,741 13,419 4,350 439 8,630 Insurance 14,089 1,411 2,804 9,874 13,510 1,119 3,382 9,009 Financial Markets Infrastructure 5,036 351 3,499 1,186 8,732 347 3,884 4,501 Securities Firms 4,113 952 1,692 1,469 4,211 1,059 1,913 1,239 All other (d) 147,900 113,699 3,963 30,238 137,238 105,135 3,548 28,555 Subtotal 829,519 402,898 56,523 370,098 815,882 383,790 64,078 368,014 Loans held-for-sale and loans at fair value 5,607 5,607 — — 4,515 4,515 — — Receivables from customers and other (a) 26,139 — — — 17,440 — — — Total wholesale-related 861,265 408,505 56,523 370,098 837,837 388,305 64,078 368,014 Total exposure (e)(f) $ 2,004,974 $ 930,697 $ 56,523 $ 991,482 $ 1,951,555 $ 894,765 $ 64,078 $ 975,152 (h) (a) Receivables from customers primarily represent held-for-investment margin loans to brokerage customers (Prime Services in CIB, AWM and CCB) that are collateralized through assets maintained in the clients' brokerage accounts, as such no allowance is held against these receivables. These receivables are reported within accrued interest and accounts receivable on the Firm's Consolidated balance sheets. (b) The industry rankings presented in the table as of December 31, 2016 , are based on the industry rankings of the corresponding exposures at December 31, 2017 , not actual rankings of such exposures at December 31, 2016 . (c) In addition to the credit risk exposure to states and municipal governments (both U.S. and non-U.S.) at December 31, 2017 and 2016 , noted above, the Firm held: $9.8 billion and $9.1 billion , respectively, of trading securities; $32.3 billion and $31.6 billion , respectively, of AFS securities; and $14.4 billion and $14.5 billion , respectively, of HTM securities, issued by U.S. state and municipal governments. For further information, see Note 2 and Note 10 . (d) All other includes: individuals; SPEs; and private education and civic organizations. For more information on exposures to SPEs, see Note 14 . (e) Excludes cash placed with banks of $421.0 billion and $380.2 billion , at December 31, 2017 and 2016 , 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 used in credit portfolio management activities held against derivative receivables or loans and liquid securities and other cash collateral held against derivative receivables. (g) Represents lending-related financial instruments. (h) The prior period amounts have been revised to conform with the current period presentation. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of uses and disclosure of derivatives | The following table outlines the Firm’s primary uses of derivatives and the related hedge accounting designation or disclosure category. Type of Derivative Use of Derivative Designation and disclosure Affected segment or unit Page reference Manage specifically identified risk exposures in qualifying hedge accounting relationships: • Interest rate Hedge fixed rate assets and liabilities Fair value hedge Corporate 187 • Interest rate Hedge floating-rate assets and liabilities Cash flow hedge Corporate 188 • Foreign exchange Hedge foreign currency-denominated assets and liabilities Fair value hedge Corporate 187 • Foreign exchange Hedge foreign currency-denominated forecasted revenue and expense Cash flow hedge Corporate 188 • Foreign exchange Hedge the value of the Firm’s investments in non-U.S. dollar functional currency entities Net investment hedge Corporate 189 • Commodity Hedge commodity inventory Fair value hedge CIB 187 Manage specifically identified risk exposures not designated in qualifying hedge accounting relationships: • Interest rate Manage the risk of the mortgage pipeline, warehouse loans and MSRs Specified risk management CCB 189 • Credit Manage the credit risk of wholesale lending exposures Specified risk management CIB 189 • Commodity Manage the risk of certain commodities-related contracts and investments Specified risk management CIB 189 • Interest rate and foreign exchange Manage the risk of certain other specified assets and liabilities Specified risk management Corporate 189 Market-making derivatives and other activities: • Various Market-making and related risk management Market-making and other CIB 189 • Various Other derivatives Market-making and other CIB, Corporate 189 |
Notional amount of derivative contracts | The following table summarizes the notional amount of derivative contracts outstanding as of December 31, 2017 and 2016 . Notional amounts (b) December 31, (in billions) 2017 2016 Interest rate contracts Swaps $ 21,043 $ 22,000 Futures and forwards 4,904 5,289 Written options 3,576 3,091 Purchased options 3,987 3,482 Total interest rate contracts 33,510 33,862 Credit derivatives (a) 1,522 2,032 Foreign exchange contracts Cross-currency swaps 3,953 3,359 Spot, futures and forwards 5,923 5,341 Written options 786 734 Purchased options 776 721 Total foreign exchange contracts 11,438 10,155 Equity contracts Swaps 367 258 Futures and forwards 90 59 Written options 531 417 Purchased options 453 345 Total equity contracts 1,441 1,079 Commodity contracts Swaps 116 102 Spot, futures and forwards 168 130 Written options 98 83 Purchased options 93 94 Total commodity contracts 475 409 Total derivative notional amounts $ 48,386 $ 47,537 (a) For more information on volumes and types of credit derivative contracts, see the Credit derivatives discussion on pages 189–191 . (b) Represents the sum of gross long and gross short third-party notional derivative contracts. |
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 December 31, 2017 and 2016 , by accounting designation (e.g., whether the derivatives were designated in qualifying hedge accounting relationships or not) and contract type. Gross derivative balances as of December 31, 2017, reflect the Firm’s adoption of rulebook changes made by two CCPs, that require or allow the Firm to treat certain OTC-cleared derivative transactions with that CCP as settled each day. If such rulebook changes had been in effect as of December 31, 2016, the impact would have been a reduction in gross derivative receivables and payables of $227.1 billion and $224.7 billion , respectively, and a corresponding decrease in amounts netted, with no impact to the Consolidated balance sheets. Free-standing derivative receivables and payables (a) Gross derivative receivables Gross derivative payables December 31, 2017 Not designated as hedges Designated as hedges Total derivative receivables Net derivative receivables (b) Not designated as hedges Designated as hedges Total derivative payables Net derivative payables (b) Trading assets and liabilities Interest rate $ 313,276 $ 2,716 $ 315,992 $ 24,673 $ 283,092 $ 1,344 $ 284,436 $ 7,129 Credit 23,205 — 23,205 869 23,252 — 23,252 1,299 Foreign exchange 159,740 491 160,231 16,151 154,601 1,221 155,822 12,473 Equity 40,040 — 40,040 7,882 45,395 — 45,395 9,192 Commodity 20,066 19 20,085 6,948 21,498 403 21,901 7,684 Total fair value of trading assets and liabilities $ 556,327 $ 3,226 $ 559,553 $ 56,523 $ 527,838 $ 2,968 $ 530,806 $ 37,777 Gross derivative receivables Gross derivative payables December 31, 2016 Not designated as hedges Designated as hedges Total derivative receivables Net derivative receivables (b) Not designated as hedges Designated as hedges Total derivative payables Net derivative payables (b) Trading assets and liabilities Interest rate $ 601,557 $ 4,406 $ 605,963 $ 28,302 $ 567,894 $ 2,884 $ 570,778 $ 10,815 Credit 29,645 — 29,645 1,294 28,666 — 28,666 1,411 Foreign exchange 232,137 1,289 233,426 23,271 233,823 1,148 234,971 20,508 Equity 34,940 — 34,940 4,939 38,362 — 38,362 8,140 Commodity 18,505 137 18,642 6,272 20,283 179 20,462 8,357 Total fair value of trading assets and liabilities $ 916,784 $ 5,832 $ 922,616 $ 64,078 $ 889,028 $ 4,211 $ 893,239 $ 49,231 (a) Balances exclude structured notes for which the fair value option has been elected. See 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. |
Offsetting assets | The following tables present, as of December 31, 2017 and 2016 , gross and net derivative receivables and payables by contract and settlement type. Derivative receivables and payables, as well as the related cash collateral from the same counterparty, have been netted on the Consolidated balance sheets where the Firm has obtained an appropriate legal opinion with respect to the master netting agreement. Where such a legal opinion has not been either sought or obtained, amounts are not eligible for netting on the Consolidated balance sheets, and those derivative receivables and payables are shown separately in the tables below. In addition to the cash collateral received and transferred that is presented on a net basis with derivative receivables and payables, the Firm receives and transfers additional collateral (financial instruments and cash). These amounts mitigate counterparty credit risk associated with the Firm’s derivative instruments, but are not eligible for net presentation: • collateral that consists of non-cash financial instruments (generally U.S. government and agency securities and other G7 government securities) and cash collateral held at third party custodians, which are shown separately as “Collateral not nettable on the Consolidated balance sheets” in the tables below, up to the fair value exposure amount. • the amount of collateral held or transferred that exceeds the fair value exposure at the individual counterparty level, as of the date presented, which is excluded from the tables below; and • collateral held or transferred that relates to derivative receivables or payables where an appropriate legal opinion has not been either sought or obtained with respect to the master netting agreement, which is excluded from the tables below. 2017 2016 December 31, (in millions) Gross derivative receivables Amounts netted on the Consolidated balance sheets Net derivative receivables Gross derivative receivables Amounts netted on the Consolidated balance sheets Net derivative receivables U.S. GAAP nettable derivative receivables Interest rate contracts: Over-the-counter (“OTC”) $ 305,569 $ (284,917 ) $ 20,652 $ 365,227 $ (342,173 ) $ 23,054 OTC–cleared 6,531 (6,318 ) 213 235,399 (235,261 ) 138 Exchange-traded (a) 185 (84 ) 101 241 (227 ) 14 Total interest rate contracts 312,285 (291,319 ) 20,966 600,867 (577,661 ) 23,206 Credit contracts: OTC 15,390 (15,165 ) 225 23,130 (22,612 ) 518 OTC–cleared 7,225 (7,170 ) 55 5,746 (5,739 ) 7 Total credit contracts 22,615 (22,335 ) 280 28,876 (28,351 ) 525 Foreign exchange contracts: OTC 155,289 (142,420 ) 12,869 226,271 (208,962 ) 17,309 OTC–cleared 1,696 (1,654 ) 42 1,238 (1,165 ) 73 Exchange-traded (a) 141 (7 ) 134 104 (27 ) 77 Total foreign exchange contracts 157,126 (144,081 ) 13,045 227,613 (210,154 ) 17,459 Equity contracts: OTC 22,024 (19,917 ) 2,107 20,868 (20,570 ) 298 Exchange-traded (a) 14,188 (12,241 ) 1,947 11,439 (9,431 ) 2,008 Total equity contracts 36,212 (32,158 ) 4,054 32,307 (30,001 ) 2,306 Commodity contracts: OTC 10,903 (4,436 ) 6,467 11,571 (5,605 ) 5,966 Exchange-traded (a) 8,854 (8,701 ) 153 6,794 (6,766 ) 28 Total commodity contracts 19,757 (13,137 ) 6,620 18,365 (12,371 ) 5,994 Derivative receivables with appropriate legal opinion 547,995 (503,030 ) (b) 44,965 908,028 (858,538 ) (b) 49,490 Derivative receivables where an appropriate legal opinion has not been either sought or obtained 11,558 11,558 14,588 14,588 Total derivative receivables recognized on the Consolidated balance sheets $ 559,553 $ 56,523 $ 922,616 $ 64,078 Collateral not nettable on the Consolidated balance sheets (c)(d) (13,363 ) (18,638 ) Net amounts $ 43,160 $ 45,440 |
Offsetting liabilities | 2017 2016 December 31, (in millions) Gross derivative payables Amounts netted on the Consolidated balance sheets Net derivative payables Gross derivative payables Amounts netted on the Consolidated balance sheets Net derivative payables U.S. GAAP nettable derivative payables Interest rate contracts: OTC $ 276,960 $ (271,294 ) $ 5,666 $ 338,502 $ (329,325 ) $ 9,177 OTC–cleared 6,004 (5,928 ) 76 230,464 (230,463 ) 1 Exchange-traded (a) 127 (84 ) 43 196 (175 ) 21 Total interest rate contracts 283,091 (277,306 ) 5,785 569,162 (559,963 ) 9,199 Credit contracts: OTC 16,194 (15,170 ) 1,024 22,366 (21,614 ) 752 OTC–cleared 6,801 (6,784 ) 17 5,641 (5,641 ) — Total credit contracts 22,995 (21,954 ) 1,041 28,007 (27,255 ) 752 Foreign exchange contracts: OTC 150,966 (141,789 ) 9,177 228,300 (213,296 ) 15,004 OTC–cleared 1,555 (1,553 ) 2 1,158 (1,158 ) — Exchange-traded (a) 98 (7 ) 91 328 (9 ) 319 Total foreign exchange contracts 152,619 (143,349 ) 9,270 229,786 (214,463 ) 15,323 Equity contracts: OTC 28,193 (23,969 ) 4,224 24,688 (20,808 ) 3,880 Exchange-traded (a) 12,720 (12,234 ) 486 10,004 (9,414 ) 590 Total equity contracts 40,913 (36,203 ) 4,710 34,692 (30,222 ) 4,470 Commodity contracts: OTC 12,645 (5,508 ) 7,137 12,885 (5,252 ) 7,633 Exchange-traded (a) 8,870 (8,709 ) 161 7,099 (6,853 ) 246 Total commodity contracts 21,515 (14,217 ) 7,298 19,984 (12,105 ) 7,879 Derivative payables with appropriate legal opinion 521,133 (493,029 ) (b) 28,104 881,631 (844,008 ) (b) 37,623 Derivative payables where an appropriate legal opinion has not been either sought or obtained 9,673 9,673 11,608 11,608 Total derivative payables recognized on the Consolidated balance sheets $ 530,806 $ 37,777 $ 893,239 $ 49,231 Collateral not nettable on the Consolidated balance sheets (c)(d) (4,180 ) (8,925 ) Net amounts $ 33,597 $ 40,306 (a) Exchange-traded derivative balances that relate to futures contracts are settled daily. (b) Net derivatives receivable included cash collateral netted of $55.5 billion and $71.9 billion at December 31, 2017 and 2016 , respectively. Net derivatives payable included cash collateral netted of $45.5 billion and $57.3 billion related to OTC and OTC-cleared derivatives at December 31, 2017 and 2016 , respectively. (c) Represents liquid security collateral as well as 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. (d) Derivative collateral relates only to OTC and OTC-cleared derivative instruments. |
Current credit risk of derivative receivables and liquidity risk of derivative payables | While derivative receivables expose the Firm to credit risk, derivative payables expose the Firm to liquidity risk, as the derivative contracts typically require the Firm to post cash or securities collateral with counterparties as the fair value of the contracts moves in the counterparties’ favor or upon specified downgrades in the Firm’s and its subsidiaries’ respective credit ratings. Certain derivative contracts also provide for termination of the contract, generally upon a downgrade of either the Firm or the counterparty, at the fair value of the 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 December 31, 2017 and 2016 . OTC and OTC-cleared derivative payables containing downgrade triggers December 31, (in millions) 2017 2016 Aggregate fair value of net derivative payables $ 11,916 $ 21,550 Collateral posted 9,973 19,383 The following table shows the impact of a single-notch and two-notch downgrade of the long-term issuer ratings of JPMorgan Chase & Co. and its subsidiaries , predominantly JPMorgan Chase Bank, National Association (“JPMorgan Chase Bank, N.A.”), at December 31, 2017 and 2016 , 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 derivatives 2017 2016 December 31, (in millions) Single-notch downgrade Two-notch downgrade Single-notch downgrade Two-notch downgrade Amount of additional collateral to be posted upon downgrade (a) $ 79 $ 1,989 $ 560 $ 2,497 Amount required to settle contracts with termination triggers upon downgrade (b) 320 650 606 1,049 (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. |
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 years ended December 31, 2017 , 2016 and 2015 , respectively. The Firm includes gains/(losses) on the hedging derivative and the related hedged item in the same line item in the Consolidated statements of income. Gains/(losses) recorded in income Income statement impact due to: Year ended December 31, 2017 (in millions) Derivatives Hedged items Total income statement impact Hedge ineffectiveness (e) Excluded components (f) Contract type Interest rate (a)(b) $ (481 ) $ 1,359 $ 878 $ (18 ) $ 896 Foreign exchange (c) (3,509 ) 3,507 (2 ) — (2 ) Commodity (d) (1,275 ) 1,348 73 29 44 Total $ (5,265 ) $ 6,214 $ 949 $ 11 $ 938 Gains/(losses) recorded in income Income statement impact due to: Year ended December 31, 2016 (in millions) Derivatives Hedged items Total income statement impact Hedge ineffectiveness (e) Excluded components (f) Contract type Interest rate (a)(b) $ (482 ) $ 1,338 $ 856 $ 6 $ 850 Foreign exchange (c) 2,435 (2,261 ) 174 — 174 Commodity (d) (536 ) 586 50 (9 ) 59 Total $ 1,417 $ (337 ) $ 1,080 $ (3 ) $ 1,083 Gains/(losses) recorded in income Income statement impact due to: Year ended December 31, 2015 (in millions) Derivatives Hedged items Total income statement impact Hedge ineffectiveness (e) Excluded components (f) Contract type Interest rate (a)(b) $ 38 $ 911 $ 949 $ 3 $ 946 Foreign exchange (c) 6,030 (6,006 ) 24 — 24 Commodity (d) 1,153 (1,142 ) 11 (13 ) 24 Total $ 7,221 $ (6,237 ) $ 984 $ (10 ) $ 994 (a) Primarily consists of hedges of the benchmark (e.g., London Interbank Offered Rate (“LIBOR”)) interest rate risk of fixed-rate long-term debt and AFS securities. Gains and losses were recorded in net interest income. (b) Excludes the amortization expense associated with the inception hedge accounting adjustment applied to the hedged item. This expense is recorded in net interest income and substantially offsets the income statement impact of the excluded components. (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, were recorded primarily in principal transactions revenue and net interest income. (d) Consists of overall fair value hedges of physical commodities inventories that are generally carried at the lower of cost or net realizable value (net realizable value approximates fair value). Gains and losses were recorded in principal transactions revenue. (e) Hedge ineffectiveness is the amount by which the gain or loss on the designated derivative instrument does not exactly offset the gain or loss on the hedged item attributable to the hedged risk. (f) The assessment of hedge effectiveness excludes certain components of the changes in fair values of the derivatives and hedged items such as forward points on foreign exchange forward contracts and time values. |
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 years ended December 31, 2017 , 2016 and 2015 , respectively. The Firm includes the gain/(loss) on the hedging derivative and the change in cash flows on the hedged item in the same line item in the Consolidated statements of income. Gains/(losses) recorded in income and other comprehensive income/(loss) Year ended December 31, 2017 (in millions) Derivatives – effective portion reclassified from AOCI to income Hedge ineffectiveness recorded directly in income (c) Total income statement impact Derivatives – effective portion recorded in OCI Total change in OCI for period Contract type Interest rate (a) $ (17 ) $ — $ (17 ) $ 12 $ 29 Foreign exchange (b) (117 ) — (117 ) 135 252 Total $ (134 ) $ — $ (134 ) $ 147 $ 281 Gains/(losses) recorded in income and other comprehensive income/(loss) Year ended December 31, 2016 (in millions) Derivatives – effective portion reclassified from AOCI to income Hedge ineffectiveness recorded directly in income (c) Total income statement impact Derivatives – effective portion recorded in OCI Total change Contract type Interest rate (a) $ (74 ) $ — $ (74 ) $ (55 ) $ 19 Foreign exchange (b) (286 ) — (286 ) (395 ) (109 ) Total $ (360 ) $ — $ (360 ) $ (450 ) $ (90 ) Gains/(losses) recorded in income and other comprehensive income/(loss) Year ended December 31, 2015 (in millions) Derivatives – effective portion reclassified from AOCI to income Hedge ineffectiveness recorded directly in income (c) Total income statement impact Derivatives – effective portion recorded in OCI Total change Contract type Interest rate (a) $ (99 ) $ — $ (99 ) $ (44 ) $ 55 Foreign exchange (b) (81 ) — (81 ) (53 ) 28 Total $ (180 ) $ — $ (180 ) $ (97 ) $ 83 (a) Primarily consists of benchmark interest rate hedges of LIBOR-indexed floating-rate assets and floating-rate liabilities. Gains and losses were recorded in net interest income. (b) Primarily consists of hedges of the foreign currency risk of non-U.S. dollar-denominated revenue and expense. The income statement classification of gains and losses follows the hedged item – primarily noninterest revenue and compensation expense. (c) Hedge ineffectiveness is the amount by which the cumulative gain or loss on the designated derivative instrument exceeds the present value of the cumulative expected change in cash flows on the hedged item attributable to the hedged risk. |
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 years ended December 31, 2017 , 2016 and 2015 . Gains/(losses) recorded in income and other comprehensive income/(loss) 2017 2016 2015 Year ended December 31, (in millions) Excluded components recorded directly in income (a) Effective portion recorded in OCI Excluded components recorded directly in income (a) Effective portion recorded in OCI Excluded components recorded directly in income (a) Effective portion recorded in OCI Foreign exchange derivatives $(172) $(1,294) $(282) $262 $(379) $1,885 (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. Amounts related to excluded components are recorded in other income. The Firm measures the ineffectiveness of net investment hedge accounting relationships based on changes in spot foreign currency rates and, therefore, there was no significant ineffectiveness for net investment hedge accounting relationships during 2017 , 2016 and 2015 . |
Risk management derivatives gains and losses (not designated as hedging instruments) | The following table presents pre-tax gains/(losses) recorded on a limited number of derivatives, not designated in hedge accounting relationships, that are used to manage risks associated with certain specified assets and liabilities, including certain risks arising from the mortgage pipeline, warehouse loans, MSRs, wholesale lending exposures , foreign currency denominated assets and liabilities , and commodities-related contracts and investments. Derivatives gains/(losses) recorded in income Year ended December 31, 2017 2016 2015 Contract type Interest rate (a) $ 331 $ 1,174 $ 853 Credit (b) (74 ) (282 ) 70 Foreign exchange (c) (33 ) 27 25 Commodity (d) — — (12 ) Total $ 224 $ 919 $ 936 (a) Primarily represents interest rate derivatives used to hedge the interest rate risk inherent in the mortgage pipeline, warehouse loans and MSRs, as well as written commitments to originate warehouse loans. Gains and losses were recorded predominantly in mortgage fees and related income. (b) Relates to credit derivatives used to mitigate credit risk associated with lending exposures in the Firm’s wholesale businesses. These derivatives do not include credit derivatives used to mitigate counterparty credit risk arising from derivative receivables, which is included in gains and losses on derivatives related to market-making activities and other derivatives. Gains and losses were recorded in principal transactions revenue. (c) Primarily relates to derivatives used to mitigate foreign exchange risk of specified foreign currency-denominated assets and liabilities. Gains and losses were recorded in principal transactions revenue. (d) Primarily relates to commodity derivatives used to mitigate energy price risk associated with energy-related contracts and investments. Gains and losses were recorded in principal transactions revenue. |
Credit derivatives and credit-related notes | Total credit derivatives and credit-related notes Maximum payout/Notional amount Protection sold Protection purchased with identical underlyings (b) Net protection (sold)/purchased (c) Other protection purchased (d) December 31, 2017 (in millions) Credit derivatives Credit default swaps $ (690,224 ) $ 702,098 $ 11,874 $ 5,045 Other credit derivatives (a) (54,157 ) 59,158 5,001 11,747 Total credit derivatives (744,381 ) 761,256 16,875 16,792 Credit-related notes (18 ) — (18 ) 7,915 Total $ (744,399 ) $ 761,256 $ 16,857 $ 24,707 Maximum payout/Notional amount Protection sold Protection purchased with identical underlyings (b) Net protection (sold)/purchased (c) Other protection purchased (d) December 31, 2016 (in millions) Credit derivatives Credit default swaps $ (961,003 ) $ 974,252 $ 13,249 $ 7,935 Other credit derivatives (a) (36,829 ) 31,859 (4,970 ) 19,991 Total credit derivatives (997,832 ) 1,006,111 8,279 27,926 Credit-related notes (41 ) — (41 ) 4,505 Total $ (997,873 ) $ 1,006,111 $ 8,238 $ 32,431 (a) Other credit derivatives largely consists of credit swap options. (b) Represents the total notional amount of protection purchased where the underlying reference instrument is identical to the reference instrument on protection sold; the notional amount of protection purchased for each individual identical underlying reference instrument may be greater or lower than the notional amount of protection sold. (c) Does not take into account the fair value of the reference obligation at the time of settlement, which would generally reduce the amount the seller of protection pays to the buyer of protection in determining settlement value. (d) Represents protection purchased by the Firm on referenced instruments (single-name, portfolio or index) where the Firm has not sold any protection on the identical reference instrument. |
Protection sold - credit derivatives and credit-related notes ratings/maturity profile | The following tables summarize the notional amounts by the ratings, maturity profile, and total fair value, of credit derivatives and credit-related notes as of December 31, 2017 and 2016 , where JPMorgan Chase is the seller of protection. The maturity profile is based on the remaining contractual maturity of the credit derivative contracts. The ratings profile is based on the rating of the reference entity on which the credit derivative contract is based. The ratings and maturity profile of credit derivatives and credit-related notes where JPMorgan Chase is the purchaser of protection are comparable to the profile reflected below. Protection sold – credit derivatives and credit-related notes ratings (a) /maturity profile December 31, 2017 (in millions) <1 year 1–5 years >5 years Total notional amount Fair value of receivables (b) Fair value of payables (b) Net fair value Risk rating of reference entity Investment-grade $ (159,286 ) $ (319,726 ) $ (39,429 ) $ (518,441 ) $ 8,516 $ (1,134 ) $ 7,382 Noninvestment-grade (73,394 ) (134,125 ) (18,439 ) (225,958 ) 7,407 (5,313 ) 2,094 Total $ (232,680 ) $ (453,851 ) $ (57,868 ) $ (744,399 ) $ 15,923 $ (6,447 ) $ 9,476 December 31, 2016 (in millions) <1 year 1–5 years >5 years Total notional amount Fair value of receivables (b) Fair value of payables (b) Net fair value Risk rating of reference entity Investment-grade $ (273,688 ) $ (383,586 ) $ (39,281 ) $ (696,555 ) $ 7,841 $ (3,055 ) $ 4,786 Noninvestment-grade (107,955 ) (170,046 ) (23,317 ) (301,318 ) 8,184 (8,570 ) (386 ) Total $ (381,643 ) $ (553,632 ) $ (62,598 ) $ (997,873 ) $ 16,025 $ (11,625 ) $ 4,400 (a) The ratings scale is primarily based on external credit ratings defined by S&P and Moody’s. (b) Amounts are shown on a gross basis, before the benefit of legally enforceable master netting agreements and cash collateral received by the Firm. |
Noninterest Revenue and Nonin47
Noninterest Revenue and Noninterest Expense (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Noninterest Income (Expense) [Abstract] | |
Components of investment banking fees | Year ended December 31, 2017 2016 2015 Underwriting Equity $ 1,394 $ 1,146 $ 1,408 Debt 3,710 3,207 3,232 Total underwriting 5,104 4,353 4,640 Advisory 2,144 2,095 2,111 Total investment banking fees $ 7,248 $ 6,448 $ 6,751 |
Principal transactions revenue | 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. See Note 7 for further information on interest income and interest expense. Trading revenue is presented primarily by instrument type. The Firm’s client-driven market-making businesses generally utilize a variety of instrument types in connection with their market-making and related risk-management activities; accordingly, the trading revenue presented in the table below is not representative of the total revenue of any individual line of business. Year ended December 31, 2017 2016 2015 Trading revenue by instrument type Interest rate $ 2,479 $ 2,325 $ 1,933 Credit 1,329 2,096 1,735 Foreign exchange 2,746 2,827 2,557 Equity 3,873 2,994 2,990 Commodity 661 1,067 842 Total trading revenue 11,088 11,309 10,057 Private equity gains 259 257 351 Principal transactions $ 11,347 $ 11,566 $ 10,408 |
Components of lending and deposit-related fees | Year ended December 31, (in millions) 2017 2016 2015 Lending-related fees $ 1,110 $ 1,114 $ 1,148 Deposit-related fees 4,823 4,660 4,546 Total lending- and deposit-related fees $ 5,933 $ 5,774 $ 5,694 |
Components of asset management, administration and commissions | Year ended December 31, (in millions) 2017 2016 2015 Asset management fees Investment management fees $ 9,526 $ 8,865 $ 9,403 All other asset management fees (a) 294 336 352 Total asset management fees 9,820 9,201 9,755 Total administration fees (b) 2,029 1,915 2,015 Commissions and other fees Brokerage commissions (c) 2,239 2,151 2,304 All other commissions and fees 1,289 1,324 1,435 Total commissions and fees 3,528 3,475 3,739 Total asset management, administration and commissions $ 15,377 $ 14,591 $ 15,509 (a) The Firm receives other asset management fees for services that are ancillary to investment management services, including commissions earned on sales or distribution of mutual funds to clients. These fees are recorded as revenue at the time the service is rendered or, in the case of certain distribution fees based on the underlying fund’s asset value and/or investor redemption, recorded over time as the investor remains in the fund or upon investor redemption. (b) The Firm receives administrative fees predominantly from custody, securities lending, fund services and securities clearance fees. These fees are recorded as revenue over the period in which the related service is provided. (c) The Firm acts as a broker, facilitating its clients’ purchase and sale of securities and other financial instruments. It collects and recognizes brokerage commissions as revenue upon occurrence of the client transaction. The Firm reports certain costs paid to third-party clearing houses and exchanges net against commission revenue. |
Schedule of amounts included in other income | Other income on the Firm’s Consolidated statements of income included the following: Year ended December 31, (in millions) 2017 2016 2015 Operating lease income $ 3,613 $ 2,724 $ 2,081 |
Components of noninterest expense | Other expense on the Firm’s Consolidated statements of income included the following: Year ended December 31, 2017 2016 2015 Legal expense/(benefit) $ (35 ) $ (317 ) $ 2,969 FDIC-related expense 1,492 1,296 1,227 |
Interest Income and Interest 48
Interest Income and Interest Expense (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Interest Income (Expense), Net [Abstract] | |
Details of interest income and interest expense | The following table presents the components of interest income and interest expense: Year ended December 31, (in millions) 2017 2016 2015 Interest Income Loans $ 41,008 $ 36,634 $ 33,134 Taxable securities 5,535 5,538 6,550 Non-taxable securities (a) 1,847 1,766 1,706 Total securities 7,382 7,304 8,256 Trading assets 7,610 7,292 6,621 Federal funds sold and securities purchased under resale agreements 2,327 2,265 1,592 Securities borrowed (b) (37 ) (332 ) (532 ) Deposits with banks 4,219 1,863 1,250 All other interest-earning assets (c) 1,863 875 652 Total interest income $ 64,372 $ 55,901 $ 50,973 Interest expense Interest bearing deposits $ 2,857 $ 1,356 $ 1,252 Federal funds purchased and securities loaned or sold under repurchase agreements 1,611 1,089 609 Short-term borrowings (d) 481 203 175 Trading liabilities - debt and all other interest-bearing liabilities (e) 2,070 1,102 557 Long-term debt 6,753 5,564 4,435 Beneficial interest issued by consolidated VIEs 503 504 435 Total interest expense $ 14,275 $ 9,818 $ 7,463 Net interest income $ 50,097 $ 46,083 $ 43,510 Provision for credit losses 5,290 5,361 3,827 Net interest income after provision for credit losses $ 44,807 $ 40,722 $ 39,683 (a) Represents securities that are tax-exempt for U.S. federal income tax purposes. (b) Negative interest income is related to client-driven demand for certain securities combined with the impact of low interest rates. This is matched book activity and the negative interest expense on the corresponding securities loaned is recognized in interest expense. (c) Includes held-for-investment margin loans, which are classified in accrued interest and accounts receivable, and all other interest-earning assets included in other assets. (d) Includes commercial paper. (e) Other interest-bearing liabilities include brokerage customer payables. |
Pension and Other Postretirem49
Pension and Other Postretirement Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Changes in benefit obligations and plan assets and funded status amounts | The following table presents the changes in benefit obligations, plan assets, the net funded status, and the pretax pension and OPEB amounts recorded in AOCI on the Consolidated balance sheets for the Firm’s defined benefit pension and OPEB plans, and the weighted-average actuarial annualized assumptions for the projected and accumulated postretirement benefit obligations. As of or for the year ended December 31, Defined benefit OPEB plans (f) (in millions) 2017 2016 2017 2016 Change in benefit obligation Benefit obligation, beginning of year $ (15,594 ) $ (15,259 ) $ (708 ) $ (744 ) Benefits earned during the year (330 ) (332 ) — — Interest cost on benefit obligations (598 ) (629 ) (28 ) (31 ) Employee contributions (7 ) (7 ) (16 ) (19 ) Net gain/(loss) (721 ) (743 ) (4 ) 4 Benefits paid 841 851 76 76 Plan settlements 30 21 — — Expected Medicare Part D subsidy receipts NA NA (1 ) — Foreign exchange impact and other (321 ) 504 (3 ) 6 Benefit obligation, end of year (a) $ (16,700 ) $ (15,594 ) $ (684 ) $ (708 ) Change in plan assets Fair value of plan assets, beginning of year $ 17,703 $ 17,636 $ 1,956 $ 1,855 Actual return on plan assets 2,356 1,375 233 131 Firm contributions 78 86 602 2 Employee contributions 7 7 — — Benefits paid (841 ) (851 ) (34 ) (32 ) Plan settlements (30 ) (21 ) — — Foreign exchange impact and other 330 (529 ) — — Fair value of plan assets, end of year (a)(b)(c) $ 19,603 $ 17,703 $ 2,757 $ 1,956 Net funded status (d) $ 2,903 $ 2,109 $ 2,073 $ 1,248 Accumulated benefit obligation, end of year $ (16,530 ) $ (15,421 ) NA NA Pretax pension and OPEB amounts recorded in AOCI Net gain/(loss) $ (2,800 ) $ (3,667 ) $ 271 $ 138 Prior service credit/(loss) 6 42 — — Accumulated other comprehensive income/(loss), pretax, end of year $ (2,794 ) $ (3,625 ) $ 271 $ 138 Weighted-average actuarial assumptions used to determine benefit obligations Discount Rate (e) 0.60 - 3.70% 0.60 - 4.30% 3.70 % 4.20 % Rate of compensation increase (e) 2.25 – 3.00 2.25 – 3.00 NA NA Health care cost trend rate: Assumed for next year NA NA 5.00 5.00 Ultimate NA NA 5.00 5.00 Year when rate will reach ultimate NA NA 2018 2017 (a) At December 31, 2017 and 2016, included non-U.S. benefit obligations of $(3.8) billion and $(3.4) billion , and plan assets of $3.9 billion and $3.4 billion , respectively, predominantly in the U.K. (b) At December 31, 2017 and 2016, approximately $302 million and $390 million , respectively, of U.S. defined benefit pension plan assets included participation rights under participating annuity contracts. (c) At December 31, 2017 and 2016, defined benefit pension plan amounts that were not measured at fair value included $377 million and $130 million , respectively, of accrued receivables, and $587 million and $224 million , respectively, of accrued liabilities, for U.S. plans. (d) Represents plans with an aggregate overfunded balance of $5.6 billion and $4.0 billion at December 31, 2017 and 2016, respectively, and plans with an aggregate underfunded balance of $612 million and $639 million at December 31, 2017 and 2016, respectively. (e) For the U.S. defined benefit pension plans, the discount rate assumption is 3.70% and 4.30% , and the rate of compensation increase is 2.30% and 2.30% , for 2017 and 2016 respectively. (f) Includes an unfunded postretirement benefit obligation of $32 million and $35 million at December 31, 2017 and 2016, respectively, for the U.K. plan. |
Components of net periodic benefit costs reported in the Consolidated Statements of Income and other comprehensive income | 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, and in other comprehensive income for the defined benefit pension and OPEB plans, and the weighted-average annualized actuarial assumptions for the net periodic benefit cost. Pension plans OPEB plans Year ended December 31, (in millions) 2017 2016 2015 2017 2016 2015 Components of net periodic benefit cost Benefits earned during the year $ 330 $ 332 $ 377 $ — $ — $ 1 Interest cost on benefit obligations 598 629 610 28 31 31 Expected return on plan assets (968 ) (1,030 ) (1,079 ) (97 ) (105 ) (106 ) Amortization: Net (gain)/loss 250 257 282 — — — Prior service cost/(credit) (36 ) (36 ) (36 ) — — — Special termination benefits — — 1 — — — Settlement loss 2 4 — — Net periodic defined benefit cost $ 176 $ 156 $ 155 $ (69 ) $ (74 ) $ (74 ) Other defined benefit pension plans (a) 24 25 24 NA NA NA Total defined benefit plans $ 200 $ 181 $ 179 $ (69 ) $ (74 ) $ (74 ) Total defined contribution plans 814 789 769 NA NA NA Total pension and OPEB cost included in compensation expense $ 1,014 $ 970 $ 948 $ (69 ) $ (74 ) $ (74 ) Changes in plan assets and benefit obligations recognized in other comprehensive income Net (gain)/loss arising during the year $ (669 ) $ 395 $ (50 ) $ (133 ) $ (29 ) $ 21 Amortization of net loss (250 ) (257 ) (282 ) — — — Amortization of prior service (cost)/credit 36 36 36 — — — Settlement loss (2 ) (4 ) — — — — Foreign exchange impact and other 54 (77 ) (33 ) — — — Total recognized in other comprehensive income $ (831 ) $ 93 $ (329 ) $ (133 ) $ (29 ) $ 21 Total recognized in net periodic benefit cost and other comprehensive income $ (655 ) $ 249 $ (174 ) $ (202 ) $ (103 ) $ (53 ) Weighted-average assumptions used to determine net periodic benefit costs Discount rate (b) 0.60 - 4.30 % 0.90 – 4.50% 1.00 – 4.00% 4.20 % 4.40 % 4.10 % Expected long-term rate of return on plan assets (b) 0.70 - 6.00 0.80 – 6.50 0.90 – 6.50 5.00 5.75 6.00 Rate of compensation increase (b) 2.25 - 3.00 2.25 – 4.30 2.75 – 4.20 NA NA NA Health care cost trend rate Assumed for next year NA NA NA 5.00 5.50 6.00 Ultimate NA NA NA 5.00 5.00 5.00 Year when rate will reach ultimate NA NA NA 2017 2017 2017 (a) Includes various defined benefit pension plans which are individually immaterial. (b) The rate assumptions for the U.S. defined benefit pension plans are at the upper end of the range, except for the rate of compensation increase, which is 2.30% for 2017 and 3.50% for 2016 and 2015, respectively. |
Estimated pretax amounts that will be amortized from AOCI into net periodic benefit cost | The estimated pretax amounts that will be amortized from AOCI into net periodic benefit cost in 2018 are as follows. (in millions) Defined benefit pension plans Net loss/(gain) $ 106 Prior service cost/(credit) $ (25 ) Total $ 81 |
Schedule of effect of 25-basis point decline on estimated future defined benefit plan expense and postretirement benefit obligations | The following table represents the effect of a 25-basis point decline in the three listed rates below on estimated 2018 defined benefit pension and OPEB plan expense, as well as the effect on the postretirement benefit obligations. (in millions) Defined benefit pension and OPEB plan expense Benefit obligation Expected long-term rate of return $ 54 NA Discount rate $ 59 $ 583 Interest crediting rate for U.S. plans $ (41 ) $ (193 ) |
Weighted-average asset allocation of the fair values of total plan assets | The following table presents the weighted-average asset allocation of the fair values of total plan assets at December 31 for the years indicated, as well as the respective approved asset allocation ranges by asset class. Defined benefit pension plans OPEB plan (c) Asset % of plan assets Asset % of plan assets December 31, Allocation 2017 2016 Allocation 2017 (d) 2016 Asset class Debt securities (a) 0-80% 42 % 35 % 30-70% 61 % 50 % Equity securities 0-85 42 47 30-70 39 50 Real estate 0-10 3 4 — — — Alternatives (b) 0-35 13 14 — — — Total 100 % 100 % 100 % 100 % 100 % 100 % (a) Debt securities primarily include cash, corporate debt, U.S. federal, state, local and non-U.S. government, and mortgage-backed securities. (b) Alternatives primarily include limited partnerships. (c) Represents the U.S. OPEB plan only, as the U.K. OPEB plan is unfunded. (d) Change in percentage of plan assets due to the contribution to the U.S. OPEB plan. |
Pension and OPEB plan assets and liabilities measured at fair value | Pension and OPEB plan assets and liabilities measured at fair value Defined benefit pension plans 2017 2016 December 31 , (in millions) Level 1 Level 2 Level 3 Total fair value Level 1 Level 2 Level 3 Total fair value Cash and cash equivalents $ 173 $ 1 $ — $ 174 $ 196 $ 2 $ — $ 198 Equity securities 6,407 194 2 6,603 6,158 166 2 6,326 Mutual funds 325 — — 325 — — — — Common/collective trust funds (a) 778 — — 778 384 — — 384 Limited partnerships (b) 60 — — 60 62 — — 62 Corporate debt securities (c) — 2,644 4 2,648 — 2,506 4 2,510 U.S. federal, state, local and non-U.S. government debt securities 1,096 784 — 1,880 1,139 804 — 1,943 Mortgage-backed securities 92 100 2 194 42 75 — 117 Derivative receivables — 203 — 203 — 243 — 243 Other (d) 2,353 60 302 2,715 1,497 53 390 1,940 Total assets measured at fair value (e) $ 11,284 $ 3,986 $ 310 $ 15,580 $ 9,478 $ 3,849 $ 396 $ 13,723 Derivative payables $ — $ (141 ) $ — $ (141 ) $ — $ (208 ) $ — $ (208 ) Total liabilities measured at fair value (e) $ — $ (141 ) $ — $ (141 ) $ — $ (208 ) $ — $ (208 ) (a) At December 31, 2017 and 2016, common/collective trust funds primarily included a mix of short-term investment funds, domestic and international equity investments (including index) and real estate funds. (b) Unfunded commitments to purchase limited partnership investments for the plans were $605 million and $735 million for 2017 and 2016, respectively. (c) Corporate debt securities include debt securities of U.S. and non-U.S. corporations. (d) Other consists primarily of money market funds and participating and non-participating annuity contracts. Money market funds are primarily classified within level 1 of the fair value hierarchy given they are valued using market observable prices. Participating and non-participating annuity contracts are classified within level 3 of the fair value hierarchy due to a lack of market mechanisms for transferring each policy and surrender restrictions. (e) At December 31, 2017 and 2016, excludes $4.4 billion and $4.2 billion of certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient, which are not required to be classified in the fair value hierarchy, $377 million and $130 million of defined benefit pension plan receivables for investments sold and dividends and interest receivables, $561 million and $203 million of defined benefit pension plan payables for investments purchased, and $26 million and $21 million of other liabilities, respectively. |
Changes in level 3 fair value measurements using significant unobservable inputs | Changes in level 3 fair value measurements using significant unobservable inputs (in millions) Fair value, Beginning balance Actual return on plan assets Purchases, sales and settlements, net Transfers in and/or out of level 3 Fair value, Ending balance Realized gains/(losses) Unrealized gains/(losses) Year ended December 31, 2017 U.S. defined benefit pension plan Annuity contracts and other (a) $ 396 $ — $ 1 $ (87 ) $ — $ 310 U.S. OPEB plan COLI policies $ 1,957 $ — $ 200 $ — $ — $ 2,157 Year ended December 31, 2016 U.S. defined benefit pension plan Annuity contracts and other (a) $ 539 $ — $ (157 ) $ — $ 14 $ 396 U.S. OPEB plan COLI policies $ 1,855 $ — $ 102 $ — $ — $ 1,957 (a) Substantially all are participating and non-participating annuity contracts. |
Estimated future benefit payments | The following table presents benefit payments expected to be paid, which include the effect of expected future service, for the years indicated. The OPEB medical and life insurance payments are net of expected retiree contributions. Year ended December 31, (in millions) Defined benefit pension plans OPEB before Medicare Part D subsidy Medicare Part D subsidy 2018 $ 926 $ 65 $ 1 2019 922 63 1 2020 927 60 1 2021 944 57 — 2022 960 55 — Years 2023–2027 4,925 235 2 |
Employee Share-Based Incentiv50
Employee Share-Based Incentives (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Restricted Stock Unit (RSU) activity | Generally, compensation expense for RSUs and PSUs is measured based on the number of units granted multiplied by the stock price at the grant date, and for employee stock options and SARs, is measured at the grant date using the Black-Scholes valuation model. Compensation expense for these awards is recognized in net income as described previously. The following table summarizes JPMorgan Chase ’s RSUs, PSUs, employee stock options and SARs activity for 2017 . RSUs/PSUs Options/SARs Year ended December 31, 2017 Number of units Weighted-average grant date fair value Number of awards Weighted-average exercise price Weighted-average remaining contractual life (in years) Aggregate intrinsic value (in thousands, except weighted-average data, and where otherwise stated) Outstanding, January 1 81,707 $ 57.15 30,267 $ 40.65 Granted 26,017 84.30 109 90.94 Exercised or vested (32,961 ) 57.80 (12,816 ) 40.50 Forfeited (2,030 ) 63.34 (54 ) 55.82 Canceled NA NA (13 ) 405.47 Outstanding, December 31 72,733 $ 66.36 17,493 $ 40.76 3.4 $ 1,169,470 Exercisable, December 31 NA NA 15,828 40.00 3.3 1,070,212 |
Noncash compensation expense related to employee stock-based incentive plans | The Firm recognized the following noncash compensation expense related to its various employee share-based incentive plans in its Consolidated statements of income. Year ended December 31, (in millions) 2017 2016 2015 Cost of prior grants of RSUs, PSUs and SARs that are amortized over their applicable vesting periods $ 1,125 $ 1,046 $ 1,109 Accrual of estimated costs of share-based awards to be granted in future periods including those to full-career eligible employees 945 894 878 Total noncash compensation expense related to employee share-based incentive plans $ 2,070 $ 1,940 $ 1,987 |
Cash received from the exercise of stock options and income tax benefit realized | The following table sets forth the cash received from the exercise of stock options under all share-based incentive arrangements, and the actual income tax benefit related to tax deductions from the exercise of the stock options. Year ended December 31, (in millions) 2017 2016 2015 Cash received for options exercised $ 18 $ 26 $ 20 Tax benefit 190 70 64 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized costs and estimated fair values | The amortized cost and estimated fair value of the investment securities portfolio were as follows for the dates indicated. 2017 2016 December 31, (in millions) Amortized cost Gross unrealized gains Gross unrealized losses Fair value Amortized cost Gross unrealized gains Gross unrealized losses Fair value Available-for-sale debt securities Mortgage-backed securities: U.S. government agencies (a) $ 69,879 $ 736 $ 335 $ 70,280 $ 63,367 $ 1,112 $ 474 $ 64,005 Residential: U.S (b) 8,193 185 14 8,364 8,171 100 28 8,243 Non-U.S. 2,882 122 1 3,003 6,049 158 7 6,200 Commercial 4,932 98 5 5,025 9,002 122 20 9,104 Total mortgage-backed securities 85,886 1,141 355 86,672 86,589 1,492 529 87,552 U.S. Treasury and government agencies (a) 22,510 266 31 22,745 44,822 75 796 44,101 Obligations of U.S. states and municipalities 30,490 1,881 33 32,338 30,284 1,492 184 31,592 Certificates of deposit 59 — — 59 106 — — 106 Non-U.S. government debt securities 26,900 426 32 27,294 34,497 836 45 35,288 Corporate debt securities 2,657 101 1 2,757 4,916 64 22 4,958 Asset-backed securities: Collateralized loan obligations 20,928 69 1 20,996 27,352 75 26 27,401 Other 8,764 77 24 8,817 6,950 62 45 6,967 Total available-for-sale debt securities 198,194 3,961 477 201,678 235,516 4,096 1,647 237,965 Available-for-sale equity securities 547 — — 547 914 12 — 926 Total available-for-sale securities 198,741 3,961 477 202,225 236,430 4,108 1,647 238,891 Held-to-maturity debt securities Mortgage-backed securities U.S. government agencies (c) 27,577 558 40 28,095 29,910 638 37 30,511 Commercial 5,783 1 74 5,710 5,783 — 129 5,654 Total mortgage-backed securities 33,360 559 114 33,805 35,693 638 166 36,165 Obligations of U.S. states and municipalities 14,373 554 80 14,847 14,475 374 125 14,724 Total held-to-maturity debt securities 47,733 1,113 194 48,652 50,168 1,012 291 50,889 Total securities $ 246,474 $ 5,074 $ 671 $ 250,877 $ 286,598 $ 5,120 $ 1,938 $ 289,780 (a) Includes total U.S. government-sponsored enterprise obligations with a fair value of $45.8 billion for the years ended December 31, 2017 and 2016 , which were predominantly mortgage-related. (b) Prior period amounts have been revised to conform with the current period presentation. (c) Included total U.S. government-sponsored enterprise obligations with amortized cost of $22.0 billion and $25.6 billion at December 31, 2017 and 2016 , respectively, which were mortgage-related. |
Securities impairment | The following tables present the fair value and gross unrealized losses for the investment securities portfolio by aging category at December 31, 2017 and 2016 . Securities with gross unrealized losses Less than 12 months 12 months or more December 31, 2017 (in millions) Fair value Gross unrealized losses Fair value Gross unrealized losses Total fair value Total gross unrealized losses Available-for-sale debt securities Mortgage-backed securities: U.S. government agencies $ 36,037 $ 139 $ 7,711 $ 196 $ 43,748 $ 335 Residential: U.S 1,112 5 596 9 1,708 14 Non-U.S. — — 266 1 266 1 Commercial 528 4 335 1 863 5 Total mortgage-backed securities 37,677 148 8,908 207 46,585 355 U.S. Treasury and government agencies 1,834 11 373 20 2,207 31 Obligations of U.S. states and municipalities 949 7 1,652 26 2,601 33 Certificates of deposit — — — — — — Non-U.S. government debt securities 6,500 15 811 17 7,311 32 Corporate debt securities — — 52 1 52 1 Asset-backed securities: Collateralized loan obligations — — 276 1 276 1 Other 3,521 20 720 4 4,241 24 Total available-for-sale debt securities 50,481 201 12,792 276 63,273 477 Available-for-sale equity securities — — — — — — Held-to-maturity securities Mortgage-backed securities U.S. government securities 4,070 38 205 2 4,275 40 Commercial 3,706 41 1,882 33 5,588 74 Total mortgage-backed securities 7,776 79 2,087 35 9,863 114 Obligations of U.S. states and municipalities 584 9 2,131 71 2,715 80 Total held-to-maturity securities 8,360 88 4,218 106 12,578 194 Total securities with gross unrealized losses $ 58,841 $ 289 $ 17,010 $ 382 $ 75,851 $ 671 Securities with gross unrealized losses Less than 12 months 12 months or more December 31, 2016 (in millions) Fair value Gross unrealized losses Fair value Gross unrealized losses Total fair value Total gross unrealized losses Available-for-sale debt securities Mortgage-backed securities: U.S. government agencies $ 29,856 $ 463 $ 506 $ 11 $ 30,362 $ 474 Residential: U.S. (a) 1,373 6 1,073 22 2,446 28 Non-U.S. — — 886 7 886 7 Commercial 2,328 17 1,078 3 3,406 20 Total mortgage-backed securities 33,557 486 3,543 43 37,100 529 U.S. Treasury and government agencies 23,543 796 — — 23,543 796 Obligations of U.S. states and municipalities 7,215 181 55 3 7,270 184 Certificates of deposit — — — — — — Non-U.S. government debt securities 4,436 36 421 9 4,857 45 Corporate debt securities 797 2 829 20 1,626 22 Asset-backed securities: Collateralized loan obligations 766 2 5,263 24 6,029 26 Other 739 6 1,992 39 2,731 45 Total available-for-sale debt securities 71,053 1,509 12,103 138 83,156 1,647 Available-for-sale equity securities — — — — — — Held-to-maturity debt securities Mortgage-backed securities U.S. government agencies 3,129 37 — — 3,129 37 Commercial 5,163 114 441 15 5,604 129 Total mortgage-backed securities 8,292 151 441 15 8,733 166 Obligations of U.S. states and municipalities 4,702 125 — — 4,702 125 Total held-to-maturity securities 12,994 276 441 15 13,435 291 Total securities with gross unrealized losses $ 84,047 $ 1,785 $ 12,544 $ 153 $ 96,591 $ 1,938 (a) Prior period amounts have been revised to conform with the current period presentation. |
Securities gains and losses | The following table presents realized gains and losses and OTTI from AFS securities that were recognized in income. Year ended December 31, 2017 2016 2015 Realized gains $ 1,013 $ 401 $ 351 Realized losses (1,072 ) (232 ) (127 ) OTTI losses (a) (7 ) (28 ) (22 ) Net securities gains/(losses) (66 ) 141 202 OTTI losses Credit losses recognized in income — (1 ) (1 ) Securities the Firm intends to sell (a) (7 ) (27 ) (21 ) Total OTTI losses recognized in income $ (7 ) $ (28 ) $ (22 ) (a) Excludes realized losses on securities sold of $6 million , $24 million and $5 million for the years ended December 31, 2017 , 2016 and 2015 , respectively that had been previously reported as an OTTI loss due to the intention to sell the securities. |
Amortized cost and estimated fair value by contractual maturity | The following table presents the amortized cost and estimated fair value at December 31, 2017 , of JPMorgan Chase ’s investment securities portfolio by contractual maturity. By remaining maturity December 31, 2017 (in millions) Due in one year or less Due after one year through five years Due after five years through 10 years Due after 10 years (c) Total Available-for-sale debt securities Mortgage-backed securities (a) Amortized cost $ 3 $ 698 $ 6,134 $ 79,051 $ 85,886 Fair value 3 708 6,294 79,667 86,672 Average yield (b) 4.76 % 2.10 % 3.10 % 3.35 % 3.32 % U.S. Treasury and government agencies Amortized cost $ 60 $ — $ 17,437 $ 5,013 $ 22,510 Fair value 60 — 17,542 5,143 22,745 Average yield (b) 1.72 % — % 1.96 % 1.76 % 1.91 % Obligations of U.S. states and municipalities Amortized cost $ 73 $ 750 $ 1,265 $ 28,402 $ 30,490 Fair value 72 765 1,324 30,177 32,338 Average yield (b) 1.78 % 3.28 % 5.40 % 5.50 % 5.43 % Certificates of deposit Amortized cost $ 59 $ — $ — $ — $ 59 Fair value 59 — — — 59 Average yield (b) 0.50 % — % — % — % 0.50 % Non-U.S. government debt securities Amortized cost $ 5,020 $ 13,665 $ 8,215 $ — $ 26,900 Fair value 5,022 13,845 8,427 — 27,294 Average yield (b) 3.09 % 1.55 % 1.19 % — % 1.73 % Corporate debt securities Amortized cost $ 150 $ 1,159 $ 1,203 $ 145 $ 2,657 Fair value 151 1,197 1,255 154 2,757 Average yield (b) 3.07 % 3.60 % 3.58 % 3.22 % 3.54 % Asset-backed securities Amortized cost $ — $ 3,372 $ 13,046 $ 13,274 $ 29,692 Fair value — 3,353 13,080 13,380 29,813 Average yield (b) — % 2.14 % 2.58 % 2.36 % 2.43 % Total available-for-sale debt securities Amortized cost $ 5,365 $ 19,644 $ 47,300 $ 125,885 $ 198,194 Fair value 5,367 19,868 47,922 128,521 201,678 Average yield (b) 3.03 % 1.86 % 2.28 % 3.66 % 3.14 % Available-for-sale equity securities Amortized cost $ — $ — $ — $ 547 $ 547 Fair value — — — 547 547 Average yield (b) — % — % — % 0.71 % 0.71 % Total available-for-sale securities Amortized cost $ 5,365 $ 19,644 $ 47,300 $ 126,432 $ 198,741 Fair value 5,367 19,868 47,922 129,068 202,225 Average yield (b) 3.03 % 1.86 % 2.28 % 3.65 % 3.13 % Held-to-maturity debt securities Mortgage-backed securities (a) Amortized Cost $ — $ — $ 49 $ 33,311 $ 33,360 Fair value — — 49 33,756 33,805 Average yield (b) — % — % 2.88 % 3.27 % 3.27 % Obligations of U.S. states and municipalities Amortized cost $ — $ 66 $ 2,019 $ 12,288 $ 14,373 Fair value — 65 2,067 12,715 14,847 Average yield (b) — % 4.74 % 4.30 % 4.72 % 4.66 % Total held-to-maturity securities Amortized cost $ — $ 66 $ 2,068 $ 45,599 $ 47,733 Fair value — 65 2,116 46,471 48,652 Average yield (b) — % 4.75 % 4.26 % 3.66 % 3.69 % (a) As of December 31, 2017 , mortgage-backed securities issued by Fannie Mae exceeded 10% of JPMorgan Chase’s total stockholders’ equity; the amortized cost and fair value of such securities was $ 55.1 billion and $ 56.0 billion , respectively . (b) Average yield is computed using the effective yield of each security owned at the end of the period, weighted based on the amortized cost of each security. The effective yield considers the contractual coupon, amortization of premiums and accretion of discounts, and the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable and reflect the estimated impact of the enactment of the Tax Cuts and Jobs Act (“TCJA”). The effective yield excludes unscheduled principal prepayments; and accordingly, actual maturities of securities may differ from their contractual or expected maturities as certain securities may be prepaid. (c) Includes securities with no stated maturity. Substantially all of the Firm’s U.S. residential MBS and collateralized mortgage obligations are due in 10 years or more, based on contractual maturity. The estimated weighted-average life, which reflects anticipated future prepayments, is approximately six years for agency residential MBS, three years for agency residential collateralized mortgage obligations and three years for nonagency residential collateralized mortgage obligations. |
Securities Financing Activiti52
Securities Financing Activities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Securities Financing Transactions Disclosures [Abstract] | |
Schedule of securities sold under repurchase agreements, netting & securities loaned | The table below summarizes the gross and net amounts of the Firm’s securities financing agreements, as of December 31, 2017, and 2016. When the Firm has obtained an appropriate legal opinion with respect to the master netting agreement with a counterparty and where other relevant netting criteria under U.S. GAAP are met, the Firm nets, on the Consolidated balance sheets, the balances outstanding under its securities financing agreements with the same counterparty. In addition, the Firm exchanges securities and/or cash collateral with its counterparties; this collateral also reduces the economic exposure with the counterparty. Such collateral, along with securities financing balances that do not meet all these relevant netting criteria under U.S. GAAP, is presented as “Amounts not nettable on the Consolidated balance sheets,” and reduces the “Net amounts” presented below, if the Firm has an appropriate legal opinion with respect to the master netting agreement with the counterparty. Where a legal opinion has not been either sought or obtained, the securities financing balances are presented gross in the “Net amounts” below, and related collateral does not reduce the amounts presented. 2017 December 31, (in millions) Gross amounts Amounts netted on the Consolidated balance sheets Amounts presented on the Consolidated balance sheets (b) Amounts not nettable on the Consolidated balance sheets (c) Net amounts (d) Assets Securities purchased under resale agreements $ 448,608 $ (250,505 ) $ 198,103 $ (188,502 ) $ 9,601 Securities borrowed 113,926 (8,814 ) 105,112 (76,805 ) 28,307 Liabilities Securities sold under repurchase agreements $ 398,218 $ (250,505 ) $ 147,713 $ (129,178 ) $ 18,535 Securities loaned and other (a) 27,228 (8,814 ) 18,414 (18,151 ) 263 2016 December 31, (in millions) Gross amounts Amounts netted on the Consolidated balance sheets Amounts presented on the Consolidated balance sheets (b) Amounts not nettable on the Consolidated balance sheets (c) Net amounts (d) Assets Securities purchased under resale agreements $ 480,735 $ (250,832 ) $ 229,903 $ (222,413 ) $ 7,490 Securities borrowed 96,409 — 96,409 (66,822 ) 29,587 Liabilities Securities sold under repurchase agreements $ 402,465 $ (250,832 ) $ 151,633 $ (133,300 ) $ 18,333 Securities loaned and other (a) 22,451 — 22,451 (22,177 ) 274 (a) Includes securities-for-securities lending transactions of $9.2 billion and $9.1 billion at December 31, 2017 and 2016 , respectively, accounted for at fair value, where the Firm is acting as lender. These amounts are presented within accounts payable and other liabilities in the Consolidated balance sheets. (b) Includes securities financing agreements accounted for at fair value. At December 31, 2017 and 2016 , included securities purchased under resale agreements of $14.7 billion and $21.5 billion , respectively, and securities sold under agreements to repurchase of $697 million and $687 million , respectively. There were $3.0 billion of securities borrowed at December 31, 2017 and there were no securities borrowed at December 31, 2016 . There were no securities loaned accounted for at fair value in either period. (c) In some cases, collateral exchanged with a counterparty exceeds the net asset or liability balance with that counterparty. In such cases, the amounts reported in this column are limited to the related asset or liability with that counterparty. (d) Includes securities financing agreements that provide collateral rights, but where an appropriate legal opinion with respect to the master netting agreement has not been either sought or obtained. At December 31, 2017 and 2016 , included $7.5 billion and $4.8 billion , respectively, of securities purchased under resale agreements; $25.5 billion and $27.1 billion , respectively, of securities borrowed; $16.5 billion and $15.9 billion , respectively, of securities sold under agreements to repurchase; and $29 million and $90 million , respectively, of securities loaned and other. |
Schedule of types of assets pledged in secured financing transactions | The tables below present as of December 31, 2017 and 2016 the types of financial assets pledged in securities financing agreements and the remaining contractual maturity of the securities financing agreements. Gross liability balance 2017 2016 December 31, (in millions) Securities sold under repurchase agreements Securities loaned and other (b) Securities sold under repurchase agreements Securities loaned and other (b) Mortgage-backed securities: U.S. government agencies (a) $ 13,100 $ — $ 14,034 $ — Residential - nonagency 2,972 — 6,224 — Commercial - nonagency 1,594 — 4,173 — U.S. Treasury and government agencies (a) 177,581 14 185,145 — Obligations of U.S. states and municipalities 1,557 — 2,491 — Non-U.S. government debt 170,196 2,485 149,008 1,279 Corporate debt securities 14,231 287 18,140 108 Asset-backed securities 3,508 — 7,721 — Equity securities 13,479 24,442 15,529 21,064 Total $ 398,218 $ 27,228 $ 402,465 $ 22,451 Remaining contractual maturity of the agreements Overnight and continuous Greater than 90 days 2017 (in millions) Up to 30 days 30 – 90 days Total Total securities sold under repurchase agreements $ 166,425 $ 156,434 $ 41,611 $ 33,748 $ 398,218 Total securities loaned and other (b) 22,876 375 2,328 1,649 27,228 Remaining contractual maturity of the agreements Overnight and continuous Greater than 90 days 2016 (in millions) Up to 30 days 30 – 90 days Total Total securities sold under repurchase agreements $ 140,318 $ 157,860 $ 55,621 $ 48,666 $ 402,465 Total securities loaned and other (b) 13,586 1,371 2,877 4,617 22,451 (a) Prior period amounts were revised to conform with the current period presentation. (b) Includes securities-for-securities lending transactions of $9.2 billion and $9.1 billion at December 31, 2017 and 2016 , respectively, accounted for at fair value, where the Firm is acting as lender. These amounts are presented within accounts payable and other liabilities on the Consolidated balance sheets. |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Loan portfolio segment descriptions | The Firm’s loan portfolio is divided into three portfolio segments, which are the same segments used by the Firm to determine the allowance for loan losses: Consumer, excluding credit card; Credit card; and Wholesale. Within each portfolio segment the Firm monitors and assesses the credit risk in the following classes of loans, based on the risk characteristics of each loan class. Consumer, excluding credit card (a) Credit card Wholesale (f) Residential real estate – excluding PCI • Residential mortgage (b) • Home equity (c) Other consumer loans • Auto (d) • Consumer & Business Banking (d)(e) • Student Residential real estate – PCI • Home equity • Prime mortgage • Subprime mortgage • Option ARMs • Credit card loans • Commercial and industrial • Real estate • Financial institutions • Government agencies • Other (g) (a) Includes loans held in CCB, prime mortgage and home equity loans held in AWM and prime mortgage loans held in Corporate . (b) Predominantly includes prime (including option ARMs) and subprime loans. (c) Includes senior and junior lien home equity loans. (d) Includes certain business banking and auto dealer risk-rated loans that apply the wholesale methodology for determining the allowance for loan losses; these loans are managed by CCB, and therefore, for consistency in presentation, are included with the other consumer loan classes. (e) Predominantly includes Business Banking loans. (f) Includes loans held in CIB, CB, AWM and Corporate. Excludes prime mortgage and home equity loans held in AWM and prime mortgage loans held in Corporate. Classes are internally defined and may not align with regulatory definitions. (g) Includes loans to: individuals; SPEs; and private education and civic organizations. For more information on SPEs, see Note 14 . |
Schedule of loans by portfolio segment | The following tables summarize the Firm’s loan balances by portfolio segment. December 31, 2017 Consumer, excluding credit card Credit card (a) Wholesale Total (in millions) Retained $ 372,553 $ 149,387 $ 402,898 $ 924,838 (b) Held-for-sale 128 124 3,099 3,351 At fair value — — 2,508 2,508 Total $ 372,681 $ 149,511 $ 408,505 $ 930,697 December 31, 2016 Consumer, excluding credit card Credit card (a) Wholesale Total (in millions) Retained $ 364,406 $ 141,711 $ 383,790 $ 889,907 (b) Held-for-sale 238 105 2,285 2,628 At fair value — — 2,230 2,230 Total $ 364,644 $ 141,816 $ 388,305 $ 894,765 (a) Includes accrued interest and fees net of an allowance for the uncollectible portion of accrued interest and fee income. (b) Loans (other than PCI loans and 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 December 31, 2017 and 2016 . The table below provides information about retained consumer loans, excluding credit card, by class. In 2017, the Firm sold its student loan portfolio. December 31, (in millions) 2017 2016 Residential real estate – excluding PCI Residential mortgage (a) $ 216,496 $ 192,486 Home equity 33,450 39,063 Other consumer loans Auto 66,242 65,814 Consumer & Business Banking (a) 25,789 24,307 Student (a) — 7,057 Residential real estate – PCI Home equity 10,799 12,902 Prime mortgage 6,479 7,602 Subprime mortgage 2,609 2,941 Option ARMs 10,689 12,234 Total retained loans $ 372,553 $ 364,406 (a) Certain loan portfolios have been reclassified. The prior period amounts have been revised to conform with the current period presentation. |
Schedule of retained loans purchased, sold and reclassified to held-for-sale | The following table provides information about the carrying value of retained loans purchased, sold and reclassified to held-for-sale during the periods indicated. This table excludes loans recorded at fair value. The Firm manages its exposure to credit risk on an ongoing basis. Selling loans is one way that the Firm reduces its credit exposures. 2017 Year ended December 31, Consumer, excluding credit card Credit card Wholesale Total Purchases $ 3,461 (a)(b) $ — $ 1,799 $ 5,260 Sales 3,405 — 11,063 14,468 Retained loans reclassified to held-for-sale 6,340 (c) — 1,229 7,569 2016 Year ended December 31, Consumer, excluding credit card Credit card Wholesale Total Purchases $ 4,116 (a)(b) $ — $ 1,448 $ 5,564 Sales 6,368 — 8,739 15,107 Retained loans reclassified to held-for-sale 321 — 2,381 2,702 2015 Year ended December 31, Consumer, excluding credit card Credit card Wholesale Total Purchases $ 5,279 (a)(b) $ — $ 2,154 $ 7,433 Sales 5,099 — 9,188 14,287 Retained loans reclassified to held-for-sale 1,514 79 642 2,235 (a) Purchases predominantly represent the Firm’s voluntary repurchase of certain delinquent loans from loan pools as permitted by Government National Mortgage Association (“Ginnie Mae”) guidelines. The Firm typically elects to repurchase these delinquent loans as it continues to service them and/or manage the foreclosure process in accordance with applicable requirements of Ginnie Mae, FHA, RHS, and/or VA. (b) Excludes purchases of retained loans sourced through the correspondent origination channel and underwritten in accordance with the Firm’s standards. Such purchases were $23.5 billion , $30.4 billion and $50.3 billion for the years ended December 31, 2017 , 2016 and 2015 , respectively. (c) Includes the Firm’s student loan portfolio which was sold in 2017. |
Schedule of gains/(losses) on loan sales by portfolio segment | The following table provides information about gains and losses on loan sales, including lower of cost or fair value adjustments, on loan sales by portfolio segment. Year ended December 31, (in millions) 2017 2016 2015 Net gains/(losses) on sales of loans (including lower of cost or fair value adjustments) (a) Consumer, excluding credit card (b) $ (126 ) $ 231 $ 305 Credit card (8 ) (12 ) 1 Wholesale 41 26 34 Total net gains/(losses) on sales of loans (including lower of cost or fair value adjustments) $ (93 ) $ 245 $ 340 (a) Excludes sales related to loans accounted for at fair value. (b) Includes amounts related to the Firm’s student loan portfolio which was sold in 2017. |
Schedule of financing receivable credit quality indicators | The following table represent s the Firm’s delinquency statistics for junior lien home equity loans and lines as of December 31, 2017 and 2016 . Total loans Total 30+ day delinquency rate December 31, (in millions except ratios) 2017 2016 2017 2016 HELOCs: (a) Within the revolving period (b) $ 6,363 $ 10,304 0.50 % 1.27 % Beyond the revolving period 13,532 13,272 3.56 3.05 HELOANs 1,371 1,861 3.50 2.85 Total $ 21,266 $ 25,437 2.64 % 2.32 % (a) These HELOCs are predominantly revolving loans for a 10 -year period, after which time the HELOC converts to a loan with a 20 -year amortization period, but also include HELOCs that allow interest-only payments beyond the revolving period. (b) The Firm manages the risk of HELOCs during their revolving period by closing or reducing the undrawn line to the extent permitted by law when borrowers are experiencing financial difficulty. The table below sets forth information about the Firm’s consumer, excluding credit card, PCI loans. December 31, (in millions, except ratios) Home equity Prime mortgage Subprime mortgage Option ARMs Total PCI 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 Carrying value (a) $ 10,799 $ 12,902 $ 6,479 $ 7,602 $ 2,609 $ 2,941 $ 10,689 $ 12,234 $ 30,576 $ 35,679 Related allowance for loan losses (b) 1,133 1,433 863 829 150 — 79 49 2,225 2,311 Loan delinquency (based on unpaid principal balance) Current $ 10,272 $ 12,423 $ 5,839 $ 6,840 $ 2,640 $ 3,005 $ 9,662 $ 11,074 $ 28,413 $ 33,342 30–149 days past due 356 291 336 336 381 361 547 555 1,620 1,543 150 or more days past due 392 478 327 451 176 240 689 917 1,584 2,086 Total loans $ 11,020 $ 13,192 $ 6,502 $ 7,627 $ 3,197 $ 3,606 $ 10,898 $ 12,546 $ 31,617 $ 36,971 % of 30+ days past due to total loans 6.79 % 5.83 % 10.20 % 10.32 % 17.42 % 16.67 % 11.34 % 11.73 % 10.13 % 9.82 % Current estimated LTV ratios (based on unpaid principal balance) (c)(d) Greater than 125% and refreshed FICO scores: Equal to or greater than 660 $ 33 $ 69 $ 4 $ 6 $ 2 $ 7 $ 6 $ 12 $ 45 $ 94 Less than 660 21 39 16 17 20 31 9 18 66 105 101% to 125% and refreshed FICO scores: Equal to or greater than 660 274 555 16 52 20 39 43 83 353 729 Less than 660 132 256 42 84 75 135 71 144 320 619 80% to 100% and refreshed FICO scores: Equal to or greater than 660 1,195 1,860 221 442 119 214 316 558 1,851 3,074 Less than 660 559 804 230 381 309 439 371 609 1,469 2,233 Lower than 80% and refreshed FICO scores: Equal to or greater than 660 6,134 6,676 3,551 3,967 895 919 6,113 6,754 16,693 18,316 Less than 660 2,095 2,183 2,103 2,287 1,608 1,645 3,499 3,783 9,305 9,898 No FICO/LTV available 577 750 319 391 149 177 470 585 1,515 1,903 Total unpaid principal balance $ 11,020 $ 13,192 $ 6,502 $ 7,627 $ 3,197 $ 3,606 $ 10,898 $ 12,546 $ 31,617 $ 36,971 Geographic region (based on unpaid principal balance) California $ 6,555 $ 7,899 $ 3,716 $ 4,396 $ 797 $ 899 $ 6,225 $ 7,128 $ 17,293 $ 20,322 Florida 1,137 1,306 428 501 296 332 878 1,026 2,739 3,165 New York 607 697 457 515 330 363 628 711 2,022 2,286 Washington 532 673 135 167 61 68 238 290 966 1,198 Illinois 273 314 200 226 161 178 249 282 883 1,000 New Jersey 242 280 178 210 110 125 336 401 866 1,016 Massachusetts 79 94 149 173 98 110 307 346 633 723 Maryland 57 64 129 144 132 145 232 267 550 620 Arizona 203 241 106 124 60 68 156 181 525 614 Virginia 66 77 123 142 51 56 280 314 520 589 All other 1,269 1,547 881 1,029 1,101 1,262 1,369 1,600 4,620 5,438 Total unpaid principal balance $ 11,020 $ 13,192 $ 6,502 $ 7,627 $ 3,197 $ 3,606 $ 10,898 $ 12,546 $ 31,617 $ 36,971 (a) Carrying value includes the effect of fair value adjustments that were applied to the consumer PCI portfolio at the date of acquisition. (b) Management concluded, as part of the Firm’s regular assessment of the PCI loan pools, that it was probable that higher expected credit losses would result in a decrease in expected cash flows. As a result, an allowance for loan losses for impairment of these pools has been recognized. (c) Represents the aggregate unpaid principal balance of loans divided by the estimated current property value. Current property values are estimated, at a minimum, quarterly, based on home valuation models using nationally recognized home price index valuation estimates incorporating actual data to the extent available and forecasted data where actual data is not available. These property values do not represent actual appraised loan level collateral values; as such, the resulting ratios are necessarily imprecise and should be viewed as estimates. Current estimated combined LTV for junior lien home equity loans considers all available lien positions, as well as unused lines, related to the property. (d) Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis. Approximately 25% of the PCI home equity portfolio are senior lien loans; the remaining balance are junior lien HELOANs or HELOCs. The following table sets forth delinquency statistics for PCI junior lien home equity loans and lines of credit based on the unpaid principal balance as of December 31, 2017 and 2016 . Total loans Total 30+ day delinquency rate December 31, 2017 2016 2017 2016 (in millions, except ratios) HELOCs: (a) Within the revolving period (b) $ 51 $ 2,126 1.96 % 3.67 % Beyond the revolving period (c) 7,875 7,452 4.63 4.03 HELOANs 360 465 5.28 5.38 Total $ 8,286 $ 10,043 4.65 % 4.01 % (a) In general, these HELOCs are revolving loans for a 10 -year period, after which time the HELOC converts to an interest-only loan with a balloon payment at the end of the loan’s term. (b) Substantially all undrawn HELOCs within the revolving period have been closed. (c) Includes loans modified into fixed rate amortizing loans. The table below provides information for other consumer retained loan classes, including auto and business banking loans. This table excludes student loans that were sold in 2017. December 31, (in millions, except ratios) Auto Consumer & Business Banking (c) 2017 2016 2017 2016 Loan delinquency Current $ 65,651 $ 65,029 $ 25,454 $ 23,920 30–119 days past due 584 773 213 247 120 or more days past due 7 12 122 140 Total retained loans $ 66,242 $ 65,814 $ 25,789 $ 24,307 % of 30+ days past due to total retained loans 0.89 % 1.19 % 1.30 % 1.59 % Nonaccrual loans (a) 141 214 283 287 Geographic region California $ 8,445 $ 7,975 $ 5,032 $ 4,426 Texas 7,013 7,041 2,916 2,954 New York 4,023 4,078 4,195 3,979 Illinois 3,916 3,984 2,017 1,758 Florida 3,350 3,374 1,424 1,195 Arizona 2,221 2,209 1,383 1,307 Ohio 2,105 2,194 1,380 1,402 Michigan 1,418 1,567 1,357 1,343 New Jersey 2,044 2,031 721 623 Louisiana 1,656 1,814 849 979 All other 30,051 29,547 4,515 4,341 Total retained loans $ 66,242 $ 65,814 $ 25,789 $ 24,307 Loans by risk ratings (b) Noncriticized $ 15,604 $ 13,899 $ 17,938 $ 16,858 Criticized performing 93 201 791 816 Criticized nonaccrual 9 94 213 217 (a) There were no loans that were 90 or more days past due and still accruing interest at December 31, 2017 , and December 31, 2016 . (b) For risk-rated business banking and auto loans, the primary credit quality indicator is the risk rating of the loan, including whether the loans are considered to be criticized and/or nonaccrual. (c) Certain loan portfolios have been reclassified. The prior period amounts have been revised to conform with the current period presentation. The following table provides information by class for residential real estate — excluding retained PCI loans. Residential real estate – excluding PCI loans December 31, (in millions, except ratios) Residential mortgage (g) Home equity Total residential real estate – excluding PCI 2017 2016 2017 2016 2017 2016 Loan delinquency (a) Current $ 208,713 $ 184,133 $ 32,391 $ 37,941 $ 241,104 $ 222,074 30–149 days past due 4,234 3,828 671 646 4,905 4,474 150 or more days past due 3,549 4,525 388 476 3,937 5,001 Total retained loans $ 216,496 $ 192,486 $ 33,450 $ 39,063 $ 249,946 $ 231,549 % of 30+ days past due to total retained loans (b) 0.77 % 0.75 % 3.17 % 2.87 % 1.09 % 1.11 % 90 or more days past due and government guarantee d (c) $ 4,172 $ 4,858 — — $ 4,172 $ 4,858 Nonaccrual loans 2,175 2,256 1,610 1,845 3,785 4,101 Current estimated LTV ratios (d)(e) Greater than 125% and refreshed FICO scores: Equal to or greater than 660 $ 37 $ 30 $ 10 $ 70 $ 47 $ 100 Less than 660 19 48 3 15 22 63 101% to 125% and refreshed FICO scores: Equal to or greater than 660 36 135 296 668 332 803 Less than 660 88 177 95 221 183 398 80% to 100% and refreshed FICO scores: Equal to or greater than 660 4,369 4,026 1,676 2,961 6,045 6,987 Less than 660 483 718 569 945 1,052 1,663 Less than 80% and refreshed FICO scores: Equal to or greater than 660 194,758 169,579 25,262 27,317 220,020 196,896 Less than 660 6,952 6,759 3,850 4,380 10,802 11,139 No FICO/LTV available 1,259 1,650 1,689 2,486 2,948 4,136 U.S. government-guaranteed 8,495 9,364 — — 8,495 9,364 Total retained loans $ 216,496 $ 192,486 $ 33,450 $ 39,063 $ 249,946 $ 231,549 Geographic region California $ 68,855 $ 59,802 $ 6,582 $ 7,644 $ 75,437 $ 67,446 New York 27,473 24,916 6,866 7,978 34,339 32,894 Illinois 14,501 13,126 2,521 2,947 17,022 16,073 Texas 12,508 10,772 2,021 2,225 14,529 12,997 Florida 9,598 8,395 1,847 2,133 11,445 10,528 New Jersey 7,142 6,374 1,957 2,253 9,099 8,627 Washington 6,962 5,451 1,026 1,229 7,988 6,680 Colorado 7,335 6,306 632 677 7,967 6,983 Massachusetts 6,323 5,834 295 371 6,618 6,205 Arizona 4,109 3,595 1,439 1,772 5,548 5,367 All other (f) 51,690 47,915 8,264 9,834 59,954 57,749 Total retained loans $ 216,496 $ 192,486 $ 33,450 $ 39,063 $ 249,946 $ 231,549 (a) Individual delinquency classifications include mortgage loans insured by U.S. government agencies as follows: current included $2.4 billion and $2.5 billion ; 30 – 149 days past due included $3.2 billion and $3.1 billion ; and 150 or more days past due included $2.9 billion and $3.8 billion at December 31, 2017 and 2016 , respectively. (b) At December 31, 2017 and 2016 , residential mortgage loans excluded mortgage loans insured by U.S. government agencies of $6.1 billion and $6.9 billion , respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee. (c) These balances, which are 90 days or more past due, were excluded from nonaccrual loans as the loans are guaranteed by U.S government agencies. Typically the principal balance of the loans is insured and interest is guaranteed at a specified reimbursement rate subject to meeting agreed-upon servicing guidelines. At December 31, 2017 and 2016 , these balances included $1.5 billion and $2.2 billion , respectively, of loans that are no longer accruing interest based on the agreed-upon servicing guidelines. For the remaining balance, interest is being accrued at the guaranteed reimbursement rate. There were no loans that were not guaranteed by U.S. government agencies that are 90 or more days past due and still accruing interest at December 31, 2017 and 2016 . (d) Represents the aggregate unpaid principal balance of loans divided by the estimated current property value. Current property values are estimated, at a minimum, quarterly, based on home valuation models using nationally recognized home price index valuation estimates incorporating actual data to the extent available and forecasted data where actual data is not available. These property values do not represent actual appraised loan level collateral values; as such, the resulting ratios are necessarily imprecise and should be viewed as estimates. Current estimated combined LTV for junior lien home equity loans considers all available lien positions, as well as unused lines, related to the property. (e) Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis. (f) At December 31, 2017 and 2016 , included mortgage loans insured by U.S. government agencies of $8.5 billion and $9.4 billion , respectively. (g) Certain loan portfolios have been reclassified. The prior period amounts have been revised to conform with the current period presentation. The table below sets forth information about the Firm’s credit card loans. As of or for the year ended December 31, (in millions, except ratios) 2017 2016 Net charge-offs $ 4,123 $ 3,442 % of net charge-offs to retained loans 2.95 % 2.63 % Loan delinquency Current and less than 30 days past due $ 146,704 $ 139,434 30–89 days past due and still accruing 1,305 1,134 90 or more days past due and still accruing 1,378 1,143 Total retained credit card loans $ 149,387 $ 141,711 Loan delinquency ratios % of 30+ days past due to total retained loans 1.80 % 1.61 % % of 90+ days past due to total retained loans 0.92 0.81 Credit card loans by geographic region California $ 22,245 $ 20,571 Texas 14,200 13,220 New York 13,021 12,249 Florida 9,138 8,585 Illinois 8,585 8,189 New Jersey 6,506 6,271 Ohio 4,997 4,906 Pennsylvania 4,883 4,787 Colorado 4,006 3,699 Michigan 3,826 3,741 All other 57,980 55,493 Total retained credit card loans $ 149,387 $ 141,711 Percentage of portfolio based on carrying value with estimated refreshed FICO scores Equal to or greater than 660 84.0 % 84.4 % Less than 660 14.6 14.2 No FICO available 1.4 1.4 The table below provides information by class of receivable for the retained loans in the Wholesale portfolio segment. In 2017 the Firm revised its methodology for the assignment of industry classifications, to better monitor and manage concentrations. This largely resulted in the re-assignment of holding companies from Other to the industry of risk category based on the primary business activity of the holding company's underlying entities. In the tables and industry discussions below, the prior period amounts have been revised to conform with the current period presentation. Below are summaries of the Firm ’s exposures as of December 31, 2017 and 2016 . For additional information on industry concentrations, see Note 4 . As of or for the year ended December 31, (in millions, except ratios) Commercial and industrial Real estate Financial Government agencies Other (d) Total 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 Loans by risk ratings Investment-grade $ 68,071 $ 65,687 $ 98,467 $ 88,649 $ 26,791 $ 24,294 $ 15,140 $ 15,935 $ 103,212 $ 95,358 $ 311,681 $ 289,923 Noninvestment- grade: Noncriticized 46,558 47,531 14,335 16,155 13,071 11,075 369 439 9,988 9,360 84,321 84,560 Criticized performing 3,983 6,186 710 798 210 200 — 6 259 163 5,162 7,353 Criticized nonaccrual 1,357 1,491 136 200 2 9 — — 239 254 1,734 1,954 Total noninvestment- grade 51,898 55,208 15,181 17,153 13,283 11,284 369 445 10,486 9,777 91,217 93,867 Total retained loans $ 119,969 $ 120,895 $ 113,648 $ 105,802 $ 40,074 $ 35,578 $ 15,509 $ 16,380 $ 113,698 $ 105,135 $ 402,898 $ 383,790 % of total criticized to total retained loans 4.45 % 6.35 % 0.74 % 0.94 % 0.53 % 0.59 % — 0.04 % 0.44 % 0.40 % 1.71 % 2.43 % % of nonaccrual loans to total retained loans 1.13 1.23 0.12 0.19 — 0.03 — — 0.21 0.24 0.43 0.51 Loans by geographic distribution (a) Total non-U.S. $ 28,470 $ 30,563 $ 3,101 $ 3,302 $ 16,790 $ 15,147 $ 2,906 $ 3,726 $ 44,112 $ 38,776 $ 95,379 $ 91,514 Total U.S. 91,499 90,332 110,547 102,500 23,284 20,431 12,603 12,654 69,586 66,359 307,519 292,276 Total retained loans $ 119,969 $ 120,895 $ 113,648 $ 105,802 $ 40,074 $ 35,578 $ 15,509 $ 16,380 $ 113,698 $ 105,135 $ 402,898 $ 383,790 Net charge-offs/(recoveries) $ 117 $ 345 $ (4 ) $ (7 ) $ 6 $ (1 ) $ 5 $ (1 ) $ (5 ) $ 5 $ 119 $ 341 % of net charge-offs/(recoveries) to end-of-period retained loans 0.10 % 0.28 % — % (0.01 )% 0.01 % (0.01 )% 0.03 % (0.01 )% — % 0.01 % 0.03 % 0.09 % Loan delinquency (b) Current and less than 30 days past due and still accruing $ 118,288 $ 119,050 $ 113,258 $ 105,396 $ 40,042 $ 35,523 $ 15,493 $ 16,269 $ 112,559 $ 104,280 $ 399,640 $ 380,518 30–89 days past due and still accruing 216 268 242 204 15 25 12 107 898 582 1,383 1,186 90 or more days past due and still accruing (c) 108 86 12 2 15 21 4 4 2 19 141 132 Criticized nonaccrual 1,357 1,491 136 200 2 9 — — 239 254 1,734 1,954 Total retained loans $ 119,969 $ 120,895 $ 113,648 $ 105,802 $ 40,074 $ 35,578 $ 15,509 $ 16,380 $ 113,698 $ 105,135 $ 402,898 $ 383,790 (a) The U.S. and non-U.S. distribution is determined based predominantly on the domicile of the borrower. (b) The credit quality of wholesale loans is assessed primarily through ongoing review and monitoring of an obligor’s ability to meet contractual obligations rather than relying on the past due status, which is generally a lagging indicator of credit quality. (c) Represents loans that are considered well-collateralized and therefore still accruing interest. (d) Other includes individuals, SPEs, holding companies, and private education and civic organizations. For more information on exposures to SPEs, see Note 14 . The following table presents additional information on the real estate class of loans within the Wholesale portfolio for the periods indicated. Exposure consists primarily of secured commercial loans, of which multifamily is the largest segment. Multifamily lending finances acquisition, leasing and construction of apartment buildings, and includes exposure to real estate investment trusts (“REITs”). Other commercial lending largely includes financing for acquisition, leasing and construction, largely for office, retail and industrial real estate, and includes exposure to REITs. Included in real estate loans is $10.8 billion and $9.2 billion as of December 31, 2017 and 2016 , respectively, of construction and development exposure consisting of loans originally purposed for construction and development, general purpose loans for builders, as well as loans for land subdivision and pre-development. December 31, (in millions, except ratios) Multifamily Other Commercial Total real estate loans 2017 2016 2017 2016 2017 2016 Real estate retained loans $ 77,597 $ 72,143 $ 36,051 $ 33,659 $ 113,648 $ 105,802 Criticized 491 539 355 459 846 998 % of criticized to total real estate retained loans 0.63 % 0.75 % 0.98 % 1.36 % 0.74 % 0.94 % Criticized nonaccrual $ 44 $ 57 $ 92 $ 143 $ 136 $ 200 % of criticized nonaccrual to total real estate retained loans 0.06 % 0.08 % 0.26 % 0.42 % 0.12 % 0.19 % |
Schedule of impaired financing receivables | The table below sets forth information about the Firm’s residential real estate impaired loans, excluding PCI loans. These loans are considered to be impaired as they have been modified in a TDR. All impaired loans are evaluated for an asset-specific allowance as described in Note 13 . December 31, (in millions) Residential mortgage Home equity Total residential real estate – excluding PCI 2017 2016 2017 2016 2017 2016 Impaired loans With an allowance $ 4,407 $ 4,689 $ 1,236 $ 1,266 $ 5,643 $ 5,955 Without an allowance (a) 1,213 1,343 882 998 2,095 2,341 Total impaired loans (b)(c) $ 5,620 $ 6,032 $ 2,118 $ 2,264 $ 7,738 $ 8,296 Allowance for loan losses related to impaired loans $ 62 $ 68 $ 111 $ 121 $ 173 $ 189 Unpaid principal balance of impaired loans (d) 7,741 8,285 3,701 3,847 11,442 12,132 Impaired loans on nonaccrual status (e) 1,743 1,755 1,032 1,116 2,775 2,871 (a) Represents collateral-dependent residential real estate loans that are charged off 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 December 31, 2017 , Chapter 7 residential real estate loans included approximately 12% of home equity and 15% of residential mortgages that were 30 days or more past due. (b) At December 31, 2017 and 2016 , $3.8 billion and $3.4 billion , respectively, of loans modified subsequent to repurchase from Ginnie Mae in accordance with the standards of the appropriate government agency (i.e., FHA, VA, RHS) are not included in the table above. When such loans perform subsequent to modification in accordance with Ginnie Mae guidelines, they are generally sold back into Ginnie Mae loan pools. Modified loans that do not re-perform become subject to foreclosure. (c) Predominantly all residential real estate impaired loans, excluding PCI loans, are in the U.S. (d) Represents the contractual amount of principal owed at December 31, 2017 and 2016 . The unpaid principal balance differs from the impaired loan balances due to various factors including charge-offs, net deferred loan fees or costs, and unamortized discounts or premiums on purchased loans. (e) As of December 31, 2017 and 2016 , nonaccrual loans included $2.2 billion and $2.3 billion , respectively, of TDRs for which the borrowers were less than 90 days past due. For additional information about loans modified in a TDR that are on nonaccrual status refer to the Loan accounting framework on pages 211–213 of this Note. The following table sets forth information about the Firm’s other consumer impaired loans, including risk-rated business banking and auto loans that have been placed on nonaccrual status, and loans that have been modified in TDRs. December 31, (in millions) 2017 2016 Impaired loans With an allowance $ 272 $ 614 Without an allowance (a) 26 30 Total impaired loans (b)(c) $ 298 $ 644 Allowance for loan losses related to impaired loans $ 73 $ 119 Unpaid principal balance of impaired loans (d) 402 753 Impaired loans on nonaccrual status 268 508 (a) When discounted cash flows, collateral value or market price equals or exceeds the recorded investment in the loan, the loan does not require an allowance. This typically occurs when the impaired loans have been partially charged off and/or there have been interest payments received and applied to the loan balance. (b) Predominantly all other consumer impaired loans are in the U.S. (c) Other consumer average impaired loans were $427 million , $635 million and $566 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The related interest income on impaired loans, including those on a cash basis, was not material for the years ended December 31, 2017 , 2016 and 2015 . (d) Represents the contractual amount of principal owed at December 31, 2017 and 2016 . The unpaid principal balance differs from the impaired loan balances due to various factors, including charge-offs, interest payments received and applied to the principal balance, net deferred loan fees or costs and unamortized discounts or premiums on purchased loans. The table below sets forth information about the Firm’s impaired credit card loans. All of these loans are considered to be impaired as they have been modified in TDRs. December 31, (in millions) 2017 2016 Impaired credit card loans with an allowance (a)(b) Credit card loans with modified payment terms (c) $ 1,135 $ 1,098 Modified credit card loans that have reverted to pre-modification payment terms (d) 80 142 Total impaired credit card loans (e) $ 1,215 $ 1,240 Allowance for loan losses related to impaired credit card loans $ 383 $ 358 (a) The carrying value and the unpaid principal balance are the same for credit card impaired loans. (b) There were no impaired loans without an allowance. (c) Represents credit card loans outstanding to borrowers enrolled in a credit card modification program as of the date presented. (d) Represents credit card loans that were modified in TDRs but that have subsequently reverted back to the loans’ pre-modification payment terms. At December 31, 2017 and 2016 , $43 million and $94 million , respectively, of loans have reverted back to the pre-modification payment terms of the loans due to noncompliance with the terms of the modified loans. The remaining $37 million and $48 million at December 31, 2017 and 2016 , respectively, of these loans are to borrowers who have successfully completed a short-term modification program. The Firm continues to report these loans as TDRs since the borrowers’ credit lines remain closed. (e) Predominantly all impaired credit card loans are in the U.S. The table below sets forth information about the Firm’s wholesale impaired loans. December 31, (in millions) Commercial and industrial Real estate Financial institutions Government agencies Other Total retained loans 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 Impaired loans With an allowance $ 1,170 $ 1,127 $ 78 $ 124 $ 93 $ 9 $ — $ — $ 168 $ 180 $ 1,509 $ 1,440 Without an allowance (a) 228 414 60 87 — — — — 70 76 358 577 Total impaired loans $ 1,398 $ 1,541 $ 138 $ 211 $ 93 $ 9 $ — $ — $ 238 $ 256 $ 1,867 (c) $ 2,017 (c) Allowance for loan losses related to impaired loans $ 404 $ 258 $ 11 $ 18 $ 4 $ 3 $ — $ — $ 42 $ 63 $ 461 $ 342 Unpaid principal balance of impaired loans (b) 1,604 1,754 201 295 94 12 — — 255 284 2,154 2,345 (a) When the discounted cash flows, collateral value or market price equals or exceeds the recorded investment in the loan, the loan does not require an allowance. This typically occurs when the impaired loans have been partially charged-off and/or there have been interest payments received and applied to the loan balance. (b) Represents the contractual amount of principal owed at December 31, 2017 and 2016 . The unpaid principal balance differs from the impaired loan balances due to various factors, including charge-offs; interest payments received and applied to the carrying value; net deferred loan fees or costs; and unamortized discount or premiums on purchased loans. (c) Based upon the domicile of the borrower, largely consists of loans in the U.S. |
Schedule of impaired financing receivables, average recorded investment | The following table presents average impaired loans and the related interest income reported by the Firm. Year ended December 31, (in millions) Average impaired loans Interest income on impaired loans (a) Interest income on impaired loans on a cash basis (a) 2017 2016 2015 2017 2016 2015 2017 2016 2015 Residential mortgage $ 5,797 $ 6,376 $ 7,697 $ 287 $ 305 $ 348 $ 75 $ 77 $ 87 Home equity 2,189 2,311 2,369 127 125 128 80 80 85 Total residential real estate – excluding PCI $ 7,986 $ 8,687 $ 10,066 $ 414 $ 430 $ 476 $ 155 $ 157 $ 172 (a) Generally, interest income on loans modified in TDRs is recognized on a cash basis until such time as the borrower has made a minimum of six payments under the new terms, unless the loan is deemed to be collateral-dependent. The following table presents average balances of impaired credit card loans and interest income recognized on those loans. Year ended December 31, (in millions) 2017 2016 2015 Average impaired credit card loans $ 1,214 $ 1,325 $ 1,710 Interest income on impaired credit card loans 59 63 82 The following table presents the Firm’s average impaired loans for the years ended 2017 , 2016 and 2015 . Year ended December 31, (in millions) 2017 2016 2015 Commercial and industrial $ 1,145 $ 1,480 $ 453 Real estate 164 217 250 Financial institutions 20 13 13 Government agencies — — — Other 231 213 129 Total (a) $ 1,560 $ 1,923 $ 845 (a) The related interest income on accruing impaired loans and interest income recognized on a cash basis were not material for the years ended December 31, 2017 , 2016 and 2015 . |
Troubled debt restructuring on financing receivables | The following table provides information about the Firm’s other consumer loans modified in TDRs. New TDRs were not material for the years ended December 31, 2017 and 2016. December 31, (in millions) 2017 2016 Loans modified in TDRs (a)(b) $ 102 $ 362 TDRs on nonaccrual status 72 226 (a) The impact of these modifications was not material to the Firm for the years ended December 31, 2017 and 2016 . (b) Additional commitments to lend to borrowers whose loans have been modified in TDRs as of December 31, 2017 and 2016 were immaterial. The following table presents new TDRs reported by the Firm. Year ended December 31, 2017 2016 2015 Residential mortgage $ 373 $ 254 $ 267 Home equity 321 385 401 Total residential real estate – excluding PCI $ 694 $ 639 $ 668 |
Troubled debt restructuring on financing receivables nature and extent of modifications | The following table provides information about how residential real estate loans, excluding PCI loans, were modified 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. Year ended December 31, Residential mortgage Home equity Total residential real estate – excluding PCI 2017 2016 2015 2017 2016 2015 2017 2016 2015 Number of loans approved for a trial modification 1,283 1,945 2,711 2,321 3,760 3,933 3,604 5,705 6,644 Number of loans permanently modified 2,628 3,338 3,145 5,624 4,824 4,296 8,252 8,162 7,441 Concession granted: (a) Interest rate reduction 63 % 76 % 71 % 59 % 75 % 66 % 60 % 76 % 68 % Term or payment extension 72 90 81 69 83 89 70 86 86 Principal and/or interest deferred 15 16 27 10 19 23 12 18 24 Principal forgiveness 16 26 28 13 9 7 14 16 16 Other (b) 33 25 11 31 6 — 32 14 5 (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. A significant portion of trial modifications include interest rate reductions and/or term or payment extensions. (b) Predominantly represents variable interest rate to fixed interest rate modifications. |
Troubled debt restructuring on financing receivables, financial effects of modifications and re-defaults | The following table provides information about the financial effects of the various concessions granted in modifications of residential real estate loans, excluding PCI, 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 final financial effects of permanent modifications and does 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. Year ended Residential mortgage Home equity Total residential real estate – excluding PCI 2017 2016 2015 2017 2016 2015 2017 2016 2015 Weighted-average interest rate of loans with interest rate reductions – before TDR 5.15 % 5.59 % 5.67 % 4.94 % 4.99 % 5.20 % 5.06 % 5.36 % 5.51 % Weighted-average interest rate of loans with interest rate reductions – after TDR 2.99 2.93 2.79 2.64 2.34 2.35 2.83 2.70 2.64 Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR 24 24 25 21 18 18 23 22 22 Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR 38 38 37 39 38 35 38 38 36 Charge-offs recognized upon permanent modification $ 2 $ 4 $ 11 $ 1 $ 1 $ 4 $ 3 $ 5 $ 15 Principal deferred 12 30 58 10 23 27 22 53 85 Principal forgiven 20 44 66 13 7 6 33 51 72 Balance of loans that redefaulted within one year of permanent modification (a) $ 124 $ 98 $ 133 $ 56 $ 40 $ 21 $ 180 $ 138 $ 154 (a) Represents loans permanently modified in TDRs that experienced a payment default in the periods presented, and for which the payment default occurred within one year of the modification. The dollar amounts presented represent the balance of such loans at the end of the reporting period in which such loans defaulted. For residential real estate loans modified in TDRs, payment default is deemed to occur when the loan becomes two contractual payments past due. In the event that a modified loan redefaults, it is probable that the loan will ultimately be liquidated through foreclosure or another similar type of liquidation transaction. Redefaults of loans modified within the last 12 months may not be representative of ultimate redefault levels. 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. Year ended December 31, (in millions, except weighted-average data) 2017 2016 2015 Weighted-average interest rate of loans – before TDR 16.58 % 15.56 % 15.08 % Weighted-average interest rate of loans – after TDR 4.88 4.76 4.40 Loans that redefaulted within one year of modification (a) $ 75 $ 79 $ 85 (a) Represents loans modified in TDRs that experienced a payment default in the periods presented, and for which the payment default occurred within one year of the modification. The amounts presented represent the balance of such loans as of the end of the quarter in which they defaulted. |
Certain loans acquired in transfer accretable yield movement roll forward | The table below sets forth the accretable yield activity for the Firm’s PCI consumer loans for the years ended December 31, 2017 , 2016 and 2015 , and represents the Firm’s estimate of gross interest income expected to be earned over the remaining life of the PCI loan portfolios. The table excludes the cost to fund the PCI portfolios, and therefore the accretable yield does not represent net interest income expected to be earned on these portfolios. Year ended December 31, Total PCI 2017 2016 2015 Beginning balance $ 11,768 $ 13,491 $ 14,592 Accretion into interest income (1,396 ) (1,555 ) (1,700 ) Changes in interest rates on variable-rate loans 503 260 279 Other changes in expected cash flows (a) 284 (428 ) 230 Reclassification from nonaccretable difference (b) — — 90 Balance at December 31 $ 11,159 $ 11,768 $ 13,491 Accretable yield percentage 4.53 % 4.35 % 4.20 % (a) Other changes in expected cash flows may vary from period to period as the Firm continues to refine its cash flow model, for example cash flows expected to be collected due to the impact of modifications and changes in prepayment assumptions. (b) Reclassifications from the nonaccretable difference in the year ended December 31, 2015 were driven by continued improvement in home prices and delinquencies, as well as increased granularity in the impairment estimates. |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Allowance for Credit Losses [Abstract] | |
Allowance for credit losses on financing receivables | The table below summarizes information about the allowances for loan losses and lending-relating commitments, and includes a breakdown of loans and lending-related commitments by impairment methodology. 2017 Year ended December 31, (in millions) Consumer, excluding credit card Credit card Wholesale Total Allowance for loan losses Beginning balance at January 1, $ 5,198 $ 4,034 $ 4,544 $ 13,776 Gross charge-offs 1,779 4,521 212 6,512 Gross recoveries (634 ) (398 ) (93 ) (1,125 ) Net charge-offs 1,145 4,123 119 5,387 Write-offs of PCI loans (a) 86 — — 86 Provision for loan losses 613 4,973 (286 ) 5,300 Other (1 ) — 2 1 Ending balance at December 31, $ 4,579 $ 4,884 $ 4,141 $ 13,604 Allowance for loan losses by impairment methodology Asset-specific (b) $ 246 $ 383 (c) $ 461 $ 1,090 Formula-based 2,108 4,501 3,680 10,289 PCI 2,225 — — 2,225 Total allowance for loan losses $ 4,579 $ 4,884 $ 4,141 $ 13,604 Loans by impairment methodology Asset-specific $ 8,036 $ 1,215 $ 1,867 $ 11,118 Formula-based 333,941 148,172 401,028 883,141 PCI 30,576 — 3 30,579 Total retained loans $ 372,553 $ 149,387 $ 402,898 $ 924,838 Impaired collateral-dependent loans Net charge-offs $ 64 $ — $ 31 $ 95 Loans measured at fair value of collateral less cost to sell 2,133 — 233 2,366 Allowance for lending-related commitments Beginning balance at January 1, $ 26 $ — $ 1,052 $ 1,078 Provision for lending-related commitments 7 — (17 ) (10 ) Other — — — — Ending balance at December 31, $ 33 $ — $ 1,035 $ 1,068 Allowance for lending-related commitments by impairment methodology Asset-specific $ — $ — $ 187 $ 187 Formula-based 33 — 848 881 Total allowance for lending-related commitments $ 33 $ — $ 1,035 $ 1,068 Lending-related commitments by impairment methodology Asset-specific $ — $ — $ 731 $ 731 Formula-based 48,553 572,831 369,367 990,751 Total lending-related commitments $ 48,553 $ 572,831 $ 370,098 $ 991,482 (a) Write-offs of PCI loans are recorded against the allowance for loan losses when actual losses for a pool exceed estimated losses that were recorded as purchase accounting adjustments at the time of acquisition. A write-off of a PCI loan is recognized when the underlying loan is removed from a pool. (b) Includes risk-rated loans that have been placed on nonaccrual status and all loans that have been modified in a TDR. (c) The asset-specific credit card allowance for loan losses is related to loans that have been modified in a TDR; such allowance is calculated based on the loans’ original contractual interest rates and does not consider any incremental penalty rates. (d) The prior period amounts have been revised to conform with the current period presentation. (table continued from previous page) 2016 2015 Consumer, excluding credit card Credit card Wholesale Total Consumer, excluding credit card Credit card Wholesale Total $ 5,806 $ 3,434 $ 4,315 $ 13,555 $ 7,050 $ 3,439 $ 3,696 $ 14,185 1,500 3,799 398 5,697 1,658 3,488 95 5,241 (591 ) (357 ) (57 ) (1,005 ) (704 ) (366 ) (85 ) (1,155 ) 909 3,442 341 4,692 954 3,122 10 4,086 156 — — 156 208 — — 208 467 4,042 571 5,080 (82 ) 3,122 623 3,663 (10 ) — (1 ) (11 ) — (5 ) 6 1 $ 5,198 $ 4,034 $ 4,544 $ 13,776 $ 5,806 $ 3,434 $ 4,315 $ 13,555 $ 308 $ 358 (c) $ 342 $ 1,008 $ 364 $ 460 (c) $ 274 $ 1,098 2,579 3,676 4,202 10,457 2,700 2,974 4,041 9,715 2,311 — — 2,311 2,742 — — 2,742 $ 5,198 $ 4,034 $ 4,544 $ 13,776 $ 5,806 $ 3,434 $ 4,315 $ 13,555 $ 8,940 $ 1,240 $ 2,017 $ 12,197 $ 9,606 $ 1,465 $ 1,024 $ 12,095 319,787 140,471 381,770 842,028 293,751 129,922 356,022 779,695 35,679 — 3 35,682 40,998 — 4 41,002 $ 364,406 $ 141,711 $ 383,790 $ 889,907 $ 344,355 $ 131,387 $ 357,050 $ 832,792 $ 98 $ — $ 7 $ 105 $ 104 $ — $ 16 $ 120 2,391 — 300 2,691 2,566 — 283 2,849 $ 14 $ — $ 772 $ 786 $ 13 $ — $ 609 $ 622 — — 281 281 1 — 163 164 12 — (1 ) 11 — — — — $ 26 $ — $ 1,052 $ 1,078 $ 14 $ — $ 772 $ 786 $ — $ — $ 169 $ 169 $ — $ — $ 73 $ 73 26 — 883 909 14 — 699 713 $ 26 $ — $ 1,052 $ 1,078 $ 14 $ — $ 772 $ 786 $ — $ — $ 506 $ 506 $ — $ — $ 193 $ 193 53,247 (d) 553,891 367,508 974,646 (d) 56,865 (d) 515,518 366,206 938,589 (d) $ 53,247 (d) $ 553,891 $ 368,014 $ 975,152 (d) $ 56,865 (d) $ 515,518 $ 366,399 $ 938,782 (d) |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Variable Interest Entities [Abstract] | |
Schedule of significant types of variable interest entities by business segment | The following table summarizes the most significant types of Firm -sponsored VIEs by business segment. The Firm considers a “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 Business Transaction Type Activity Annual Report page references CCB Credit card securitization trusts Securitization of originated credit card receivables 236-237 Mortgage securitization trusts Servicing and securitization of both originated and purchased residential mortgages 237-239 CIB Mortgage and other securitization trusts Securitization of both originated and purchased residential and commercial mortgages and other consumer loans 237-239 Multi-seller conduits Assist clients in accessing the financial markets in a cost-efficient manner and structures transactions to meet investor needs 239 Municipal bond vehicles Financing of municipal bond investments 239-240 |
Firm-sponsored mortgage and other consumer securitization trusts | The following table presents the total unpaid principal amount of assets held in Firm -sponsored private-label securitization entities, including those in which the Firm has continuing involvement, and those that are consolidated by the Firm. Continuing involvement includes servicing the loans, holding senior interests or subordinated interests (including amounts required to be held pursuant to credit risk retention rules), recourse or guarantee arrangements, and derivative transactions. In certain instances, the Firm’s only continuing involvement is servicing the loans. See Securitization activity on page 242 of this Note for further information regarding the Firm’s cash flows with and interests retained in nonconsolidated VIEs, and page 243 of this Note for information on the Firm’s loan sales to U.S. government agencies. Principal amount outstanding JPMorgan Chase interest in securitized assets in nonconsolidated VIEs (c)(d)(e) December 31, 2017 (in millions) Total assets held by securitization VIEs Assets held in consolidated securitization VIEs Assets held in nonconsolidated securitization VIEs with continuing involvement Trading assets Securities Other financial assets Total interests held by JPMorgan Chase Securitization-related (a) Residential mortgage: Prime/Alt-A and option ARMs $ 68,874 $ 3,615 $ 52,280 $ 410 $ 943 $ — $ 1,353 Subprime 18,984 7 17,612 93 — — 93 Commercial and other (b) 94,905 63 63,411 745 1,133 157 2,035 Total $ 182,763 $ 3,685 $ 133,303 $ 1,248 $ 2,076 $ 157 $ 3,481 Principal amount outstanding JPMorgan Chase interest in securitized assets in nonconsolidated VIEs (c)(d)(e) December 31, 2016(in millions) Total assets held by securitization VIEs Assets held in consolidated securitization VIEs Assets held in nonconsolidated securitization VIEs with continuing involvement Trading assets Securities Other financial assets Total interests held by JPMorgan Chase Securitization-related (a) Residential mortgage: Prime/Alt-A and option ARMs $ 76,789 $ 4,209 $ 57,543 $ 226 $ 1,334 $ — $ 1,560 Subprime 21,542 — 19,903 76 — — 76 Commercial and other (b) 101,265 107 71,464 509 2,064 — 2,573 Total $ 199,596 $ 4,316 $ 148,910 $ 811 $ 3,398 $ — $ 4,209 (a) Excludes U.S. government agency securitizations and re-securitizations, which are not Firm-sponsored. See page 243 of this Note for information on the Firm’s loan sales to U.S. government agencies. (b) Consists of securities backed by commercial loans (predominantly real estate) and non-mortgage-related consumer receivables purchased from third parties. (c) Excludes the following: retained servicing (see Note 15 for a discussion of MSRs); securities retained from loan sales to U.S. government agencies; interest rate and foreign exchange derivatives primarily used to manage interest rate and foreign exchange risks of securitization entities (See Note 5 for further information on derivatives); senior and subordinated securities of $88 million and $48 million , respectively, at December 31, 2017 , and $180 million and $49 million , respectively, at December 31, 2016 , which the Firm purchased in connection with CIB’s secondary market-making activities. (d) Includes interests held in re-securitization transactions. (e) As of December 31, 2017 and 2016 , 61% and 61% , respectively, of the Firm’s retained securitization interests, which are predominantly carried at fair value and include amounts required to be held pursuant to credit risk retention rules, were risk-rated “A” or better, on an S&P-equivalent basis. The retained interests in prime residential mortgages consisted of $1.3 billion and $1.5 billion of investment-grade and $48 million and $77 million of noninvestment-grade retained interests at December 31, 2017 and 2016 , respectively. The retained interests in commercial and other securitizations trusts consisted of $1.6 billion and $2.4 billion of investment-grade and $412 million and $210 million of noninvestment-grade retained interests at December 31, 2017 and 2016 , respectively. |
Schedule of re-securitizations | The following table presents the principal amount of securities transferred to re-securitization VIEs. Year ended December 31, 2017 2016 2015 Transfers of securities to VIEs Firm-sponsored private-label $ — $ 647 $ 777 Agency $ 12,617 $ 11,241 $ 21,908 The following table presents information on nonconsolidated re-securitization VIEs. Year ended December 31, (in millions) 2017 2016 Firm-sponsored private-label Assets held in VIEs with continuing involvement (a) 783 875 Interest in VIEs 29 43 Agency Interest in VIEs 2,250 1,986 (a) Represents the principal amount and includes the notional amount of interest-only securities. |
Information on assets and liabilities related to VIEs that are consolidated by the Firm | The following table presents information on assets and liabilities related to VIEs consolidated by the Firm as of December 31, 2017 and 2016 . Assets Liabilities December 31, 2017 (in millions) Trading assets Loans Other (d) Total (e) Beneficial interests in (f) Other (g) Total VIE program type (a) Firm-sponsored credit card trusts $ — $ 41,923 $ 652 $ 42,575 $ 21,278 $ 16 $ 21,294 Firm-administered multi-seller conduits — 23,411 48 23,459 3,045 28 3,073 Municipal bond vehicles 1,278 — 3 1,281 1,265 2 1,267 Mortgage securitization entities (b) 66 3,661 55 3,782 359 199 558 Student loan securitization entities (c) — — — — — — — Other 105 — 1,916 2,021 134 104 238 Total $ 1,449 $ 68,995 $ 2,674 $ 73,118 $ 26,081 $ 349 $ 26,430 Assets Liabilities December 31, 2016 (in millions) Trading assets Loans Other (d) Total (e) Beneficial interests in (f) Other (g) Total VIE program type (a) Firm-sponsored credit card trusts $ — $ 45,919 $ 790 $ 46,709 $ 31,181 $ 18 $ 31,199 Firm-administered multi-seller conduits — 23,760 43 23,803 2,719 33 2,752 Municipal bond vehicles 2,897 — 8 2,905 2,969 2 2,971 Mortgage securitization entities (b) 143 4,246 103 4,492 468 313 781 Student loan securitization entities (c) — 1,689 59 1,748 1,527 4 1,531 Other 145 — 2,318 2,463 183 120 303 Total $ 3,185 $ 75,614 $ 3,321 $ 82,120 $ 39,047 $ 490 $ 39,537 (a) Excludes intercompany transactions, which are eliminated in consolidation. (b) Includes residential and commercial mortgage securitizations. (c) The Firm deconsolidated the student loan securitization entities in the second quarter of 2017 as it no longer had a controlling financial interest in these entities as a result of the sale of the student loan portfolio. (d) Includes assets classified as cash and other assets on the Consolidated balance sheets. (e) The assets of the consolidated VIEs included in the program types above are used to settle the liabilities of those entities. The difference between total assets and total liabilities recognized for consolidated VIEs represents the Firm’s interest in the consolidated VIEs for each program type. (f) The interest-bearing beneficial interest liabilities issued by consolidated VIEs are classified in the line item on the Consolidated balance sheets titled, “Beneficial interests issued by consolidated variable interest entities.” The holders of these beneficial interests do not have recourse to the general credit of JPMorgan Chase . Included in beneficial interests in VIE assets are long-term beneficial interests of $21.8 billion and $33.4 billion at December 31, 2017 and 2016 , respectively. For additional information on interest bearing long-term beneficial interest, see Note 19 . (g) Includes liabilities classified as accounts payable and other liabilities on the Consolidated balance sheets. |
Securitization activities | The following table provides information related to the Firm’s securitization activities for the years ended December 31, 2017 , 2016 and 2015 , 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. 2017 2016 2015 Year ended December 31, (in millions, except rates) Residential mortgage (d) Commercial and other (e) Residential mortgage (d) Commercial and other (e) Residential mortgage (d) Commercial and other (e) Principal securitized $ 5,532 $ 10,252 $ 1,817 $ 8,964 $ 3,008 $ 11,933 All cash flows during the period: (a) Proceeds received from loan sales as financial instruments (b) $ 5,661 $ 10,340 $ 1,831 $ 9,094 $ 3,022 $ 12,011 Servicing fees collected 525 3 477 3 528 3 Purchases of previously transferred financial assets (or the underlying collateral) (c) 1 — 37 — 3 — Cash flows received on interests 463 918 482 1,441 407 597 (a) Excludes re-securitization transactions. (b) Predominantly includes Level 2 assets. (c) Includes cash paid by the Firm to reacquire assets from off–balance sheet, nonconsolidated entities – for example, loan repurchases due to representation and warranties and servicer “clean-up” calls. (d) Includes prime/Alt-A, subprime, and option ARMs. Excludes certain loan securitization transactions entered into with Ginnie Mae, Fannie Mae and Freddie Mac. (e) Includes commercial mortgage and other consumer loans. Key assumptions used to value retained interests originated during the year are shown in the table below. Year ended December 31, 2017 2016 2015 Residential mortgage retained interest: Weighted-average life (in years) 4.8 4.5 4.2 Weighted-average discount rate 2.9 % 4.2 % 2.9 % Commercial mortgage retained interest: Weighted-average life (in years) 7.1 6.2 6.2 Weighted-average discount rate 4.4 % 5.8 % 4.1 % |
Summary of loan sale activities | The following table summarizes the activities related to loans sold to the U.S. GSEs, loans in securitization transactions pursuant to Ginnie Mae guidelines, and other third-party-sponsored securitization entities. Year ended December 31, 2017 2016 2015 Carrying value of loans sold $ 64,542 $ 52,869 $ 42,161 Proceeds received from loan sales as cash $ 117 $ 592 $ 313 Proceeds from loans sales as securities (a) 63,542 51,852 41,615 Total proceeds received from loan sales (b) $ 63,659 $ 52,444 $ 41,928 Gains on loan sales (c)(d) $ 163 $ 222 $ 299 (a) Predominantly includes securities from U.S. GSEs and Ginnie Mae that are generally sold shortly after receipt. (b) Excludes the value of MSRs retained upon the sale of loans. (c) Gains on loan sales include the value of MSRs. (d) The carrying value of the loans accounted for at fair value approximated the proceeds received upon loan sale. |
Schedule of loans repurchased and options to repurchase delinquent loans | 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 December 31, 2017 and 2016 . Substantially all of these loans and real estate are insured or guaranteed by U.S. government agencies. For additional information, refer to Note 12 . December 31, (in millions) 2017 2016 Loans repurchased or option to repurchase (a) $ 8,629 $ 9,556 Real estate owned 95 142 Foreclosed government-guaranteed residential mortgage loans (b) 527 1,007 (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. |
Information about delinquencies, net charge-offs, and components of off-balance sheet securitized financial assets | The table below includes information about components of nonconsolidated securitized financial assets held in Firm -sponsored private-label securitization entities, in which the Firm has continuing involvement, and delinquencies as of December 31, 2017 and 2016 . Securitized assets 90 days past due Liquidation losses As of or for the year ended December 31, (in millions) 2017 2016 2017 2016 2017 2016 Securitized loans Residential mortgage: Prime/ Alt-A & option ARMs $ 52,280 $ 57,543 $ 4,870 $ 6,169 $ 790 $ 1,160 Subprime 17,612 19,903 3,276 4,186 719 1,087 Commercial and other 63,411 71,464 957 1,755 114 643 Total loans securitized $ 133,303 $ 148,910 $ 9,103 $ 12,110 $ 1,623 $ 2,890 |
Goodwill and Mortgage Servici56
Goodwill and Mortgage Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill attributed to the business segments | The following table presents goodwill attributed to the business segments. December 31, (in millions) 2017 2016 2015 Consumer & Community Banking $ 31,013 $ 30,797 $ 30,769 Corporate & Investment Bank 6,776 6,772 6,772 Commercial Banking 2,860 2,861 2,861 Asset & Wealth Management 6,858 6,858 6,923 Total goodwill $ 47,507 $ 47,288 $ 47,325 The following table presents changes in the carrying amount of goodwill. Year ended December 31, (in millions) 2017 2016 2015 Balance at beginning of period $ 47,288 $ 47,325 $ 47,647 Changes during the period from: Business combinations (a) 199 — 28 Dispositions (b) — (72 ) (160 ) Other (c) 20 35 (190 ) Balance at December 31, $ 47,507 $ 47,288 $ 47,325 (a) For 2017, represents CCB goodwill in connection with an acquisition. (b) For 2016, represents AWM goodwill, which was disposed of as part of an AWM sales transaction. For 2015 includes $101 million of Private Equity goodwill, which was disposed of as part of the Private Equity sale. (c) Includes foreign currency translation adjustments and other tax-related adjustments |
Mortgage servicing rights activity | The following table summarizes MSR activity for the years ended December 31, 2017 , 2016 and 2015 . As of or for the year ended December 31, (in millions, except where otherwise noted) 2017 2016 2015 Fair value at beginning of period $ 6,096 $ 6,608 $ 7,436 MSR activity: Originations of MSRs 1,103 679 550 Purchase of MSRs — — 435 Disposition of MSRs (a) (140 ) (109 ) (486 ) Net additions 963 570 499 Changes due to collection/realization of expected cash flows (797 ) (919 ) (922 ) Changes in valuation due to inputs and assumptions: Changes due to market interest rates and other (b) (202 ) (72 ) (160 ) Changes in valuation due to other inputs and assumptions: Projected cash flows (e.g., cost to service) (102 ) (35 ) (112 ) Discount rates (19 ) 7 (10 ) Prepayment model changes and other (c) 91 (63 ) (123 ) Total changes in valuation due to other inputs and assumptions (30 ) (91 ) (245 ) Total changes in valuation due to inputs and assumptions (232 ) (163 ) (405 ) Fair value at December 31, $ 6,030 $ 6,096 $ 6,608 Change in unrealized gains/(losses) included in income related to MSRs held at December 31, $ (232 ) $ (163 ) $ (405 ) Contractual service fees, late fees and other ancillary fees included in income 1,886 2,124 2,533 Third-party mortgage loans serviced at December 31, (in billions) 555.0 593.3 677.0 Servicer advances, net of an allowance for uncollectible amounts, at December 31, (in billions) (d) 4.0 4.7 6.5 (a) Includes excess MSRs transferred to agency-sponsored trusts in exchange for stripped mortgage backed securities (“SMBS”). In each transaction, a portion of the SMBS was acquired by third parties at the transaction date; the Firm acquired the remaining balance of those SMBS as trading securities. (b) Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments. (c) Represents changes in prepayments other than those attributable to changes in market interest rates. (d) Represents amounts the Firm pays as the servicer (e.g., scheduled principal and interest, taxes and insurance), which will generally be reimbursed within a short period of time after the advance from future cash flows from the trust or the underlying loans. The Firm’s credit risk associated with these servicer advances is minimal because reimbursement of the advances is typically senior to all cash payments to investors. In addition, the Firm maintains the right to stop payment to investors if the collateral is insufficient to cover the advance. However, certain of these servicer advances may not be recoverable if they were not made in accordance with applicable rules and agreements. |
CCB mortgage fees and related income | The following table presents the components of mortgage fees and related income (including the impact of MSR risk management activities) for the years ended December 31, 2017 , 2016 and 2015 . Year ended December 31, 2017 2016 2015 CCB mortgage fees and related income Net production revenue $ 636 $ 853 $ 769 Net mortgage servicing revenue: Operating revenue: Loan servicing revenue 2,014 2,336 2,776 Changes in MSR asset fair value due to collection/realization of expected cash flows (795 ) (916 ) (917 ) Total operating revenue 1,219 1,420 1,859 Risk management: Changes in MSR asset fair value (a) (202 ) (72 ) (160 ) Other changes in MSR asset fair value due to other inputs and assumptions in model (b) (30 ) (91 ) (245 ) Change in derivative fair value and other (10 ) 380 288 Total risk management (242 ) 217 (117 ) Total net mortgage servicing revenue 977 1,637 1,742 Total CCB mortgage fees and related income 1,613 2,490 2,511 All other 3 1 2 Mortgage fees and related income $ 1,616 $ 2,491 $ 2,513 (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). |
Key economic assumptions used to determine the fair value of the Firm's Mortgage Servicing Rights (MSRs) | The table below outlines the key economic assumptions used to determine the fair value of the Firm’s MSRs at December 31, 2017 and 2016 , and outlines the sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below. December 31, (in millions, except rates) 2017 2016 Weighted-average prepayment speed assumption (“CPR”) 9.35 % 9.41 % Impact on fair value of 10% adverse change $ (221 ) $ (231 ) Impact on fair value of 20% adverse change (427 ) (445 ) Weighted-average option adjusted spread 9.04 % 8.55 % Impact on fair value of 100 basis points adverse change $ (250 ) $ (248 ) Impact on fair value of 200 basis points adverse change (481 ) (477 ) CPR: Constant prepayment rate. |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Noninterest-bearing and interest-bearing deposits | At December 31, 2017 and 2016 , noninterest-bearing and interest-bearing deposits were as follows. December 31, (in millions) 2017 2016 U.S. offices Noninterest-bearing $ 393,645 $ 400,831 Interest-bearing (included $14,947, and $12,245 at fair value) (a) 793,618 737,949 Total deposits in U.S. offices 1,187,263 1,138,780 Non-U.S. offices Noninterest-bearing 15,576 14,764 Interest-bearing (included $6,374 and $1,667 at fair value) (a) 241,143 221,635 Total deposits in non-U.S. offices 256,719 236,399 Total deposits $ 1,443,982 $ 1,375,179 (a) Includes structured notes classified as deposits for which the fair value option has been elected. For further discussion, see Note 3 . |
Time deposits one hundred thousand or more | At December 31, 2017 and 2016 , time deposits in denominations of $250,000 or more were as follows. December 31, (in millions) 2017 2016 U.S. offices $ 30,671 $ 26,180 Non-U.S. offices (a) 29,049 29,652 Total (a) $ 59,720 $ 55,832 (a) The prior period amounts have been revised to conform with the current period presentation. |
Time deposits, by maturity | At December 31, 2017 , the maturities of interest-bearing time deposits were as follows. December 31, 2017 (in millions) U.S. Non-U.S. Total 2018 $ 37,645 $ 27,621 $ 65,266 2019 3,487 349 3,836 2020 2,332 22 2,354 2021 4,275 26 4,301 2022 2,297 443 2,740 After 5 years 3,391 1,697 5,088 Total $ 53,427 $ 30,158 $ 83,585 |
Accounts Payable and Other Li58
Accounts Payable and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Components of accounts payable and other liabilities | The following table details the components of accounts payable and other liabilities. December 31, (in millions) 2017 2016 Brokerage payables $ 102,727 $ 109,842 Other payables and liabilities (a) 86,656 80,701 Total accounts payable and other liabilities $ 189,383 $ 190,543 (a) Includes credit card rewards liability of $4.9 billion and $3.8 billion at December 31, 2017 and 2016 , respectively. |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | The following table is a summary of long-term debt carrying values (including unamortized premiums and discounts, issuance costs, valuation adjustments and fair value adjustments, where applicable) by remaining contractual maturity as of December 31, 2017 . By remaining maturity at December 31, (in millions, except rates) 2017 2016 Under 1 year 1-5 years After 5 years Total Total Parent company Senior debt: Fixed rate $ 15,084 $ 53,939 $ 72,528 $ 141,551 $ 128,967 Variable rate 5,547 12,802 8,112 26,461 34,766 Interest rates (a) 0.38-7.25% 0.16-6.30% 0.45-6.40% 0.16-7.25% 0.09-7.25% Subordinated debt: Fixed rate $ — $ 149 $ 14,497 $ 14,646 $ 16,811 Variable rate — — 9 9 1,245 Interest rates (a) — % 8.53% 3.38-8.00% 3.38-8.53% 0.82-8.53% Subtotal $ 20,631 $ 66,890 $ 95,146 $ 182,667 $ 181,789 Subsidiaries Federal Home Loan Banks advances: Fixed rate $ 4 $ 34 $ 129 $ 167 $ 179 Variable rate 12,450 37,000 11,000 60,450 79,340 Interest rates (a) 1.58-1.75% 1.46-2.00% 1.18-1.47% 1.18-2.00% 0.41-1.21% Senior debt: Fixed rate $ 1,122 $ 3,970 $ 6,898 $ 11,990 $ 8,329 Variable rate 8,967 13,287 3,964 26,218 19,379 Interest rates (a) 0.22-7.50% 1.65-7.50% 1.00-7.50% 0.22-7.50% 0.00-7.50% Subordinated debt: Fixed rate $ — $ — $ 313 $ 313 $ 3,884 Variable rate — — — — Interest rates (a) — % — % 8.25% 8.25% 6.00-8.25% Subtotal $ 22,543 $ 54,291 $ 22,304 $ 99,138 $ 111,111 Junior subordinated debt (b) : Fixed rate $ — $ — $ 690 $ 690 $ 706 Variable rate — — 1,585 1,585 1,639 Interest rates (a) — % — % 1.88-8.75% 1.88-8.75% 1.39-8.75% Subtotal $ — $ — $ 2,275 $ 2,275 $ 2,345 Total long-term debt (c)(d)(e) $ 43,174 $ 121,181 $ 119,725 $ 284,080 (g)(h) $ 295,245 Long-term beneficial interests: Fixed rate $ 5,927 $ 7,652 $ — $ 13,579 $ 18,678 Variable rate 3,399 4,472 321 8,192 14,681 Interest rates 1.10-2.50% 1.27-6.54% 0.00-3.75% 0.00-6.54% 0.39-7.87% Total long-term beneficial interests (f) $ 9,326 $ 12,124 $ 321 $ 21,771 $ 33,359 (a) The interest rates shown are the range of contractual rates in effect at December 31, 2017 and 2016, respectively, including non-U.S. dollar fixed- and variable-rate issuances, which excludes the effects of the associated derivative instruments used in hedge accounting relationships, if applicable. The use of these derivative instruments modifies the Firm’s exposure to the contractual interest rates disclosed in the table above. Including the effects of the hedge accounting derivatives, the range of modified rates in effect at December 31, 2017 , for total long-term debt was (0.19)% to 8.88% , versus the contractual range of 0.16% to 8.75% presented in the table above. The interest rate ranges shown exclude structured notes accounted for at fair value. (b) As of December 31, 2017, includes $0.7 billion of fixed rate junior subordinated debentures issued to an issuer trust and $1.6 billion of variable rate junior subordinated debentures distributed pro rata to the holders of the $1.6 billion of trust preferred securities which were cancelled on December 18, 2017. (c) Included long-term debt of $63.5 billion and $82.2 billion secured by assets totaling $208.4 billion and $205.6 billion at December 31, 2017 and 2016 , respectively. The amount of long-term debt secured by assets does not include amounts related to hybrid instruments. (d) Included $47.5 billion and $37.7 billion of long-term debt accounted for at fair value at December 31, 2017 and 2016 , respectively. (e) Included $10.3 billion and $7.5 billion of outstanding zero-coupon notes at December 31, 2017 and 2016 , respectively. The aggregate principal amount of these notes at their respective maturities is $33.5 billion and $25.1 billion , respectively. The aggregate principal amount reflects the contractual principal payment at maturity, which may exceed the contractual principal payment at the Firm’s next call date, if applicable. (f) Included on the Consolidated balance sheets in beneficial interests issued by consolidated VIEs. Also included $45 million and $120 million accounted for at fair value at December 31, 2017 and 2016 , respectively. Excluded short-term commercial paper and other short-term beneficial interests of $4.3 billion and $5.7 billion at December 31, 2017 and 2016 , respectively. (g) At December 31, 2017 , long-term debt in the aggregate of $111.2 billion was redeemable at the option of JPMorgan Chase, in whole or in part, prior to maturity, based on the terms specified in the respective instruments. (h) The aggregate carrying values of debt that matures in each of the five years subsequent to 2017 is $43.2 billion in 2018, $34.7 billion in 2019, $39.3 billion in 2020, $33.8 billion in 2021 and $13.4 billion in 2022. |
Schedule of maturities of long-term debt | The following table is a summary of long-term debt carrying values (including unamortized premiums and discounts, issuance costs, valuation adjustments and fair value adjustments, where applicable) by remaining contractual maturity as of December 31, 2017 . By remaining maturity at December 31, (in millions, except rates) 2017 2016 Under 1 year 1-5 years After 5 years Total Total Parent company Senior debt: Fixed rate $ 15,084 $ 53,939 $ 72,528 $ 141,551 $ 128,967 Variable rate 5,547 12,802 8,112 26,461 34,766 Interest rates (a) 0.38-7.25% 0.16-6.30% 0.45-6.40% 0.16-7.25% 0.09-7.25% Subordinated debt: Fixed rate $ — $ 149 $ 14,497 $ 14,646 $ 16,811 Variable rate — — 9 9 1,245 Interest rates (a) — % 8.53% 3.38-8.00% 3.38-8.53% 0.82-8.53% Subtotal $ 20,631 $ 66,890 $ 95,146 $ 182,667 $ 181,789 Subsidiaries Federal Home Loan Banks advances: Fixed rate $ 4 $ 34 $ 129 $ 167 $ 179 Variable rate 12,450 37,000 11,000 60,450 79,340 Interest rates (a) 1.58-1.75% 1.46-2.00% 1.18-1.47% 1.18-2.00% 0.41-1.21% Senior debt: Fixed rate $ 1,122 $ 3,970 $ 6,898 $ 11,990 $ 8,329 Variable rate 8,967 13,287 3,964 26,218 19,379 Interest rates (a) 0.22-7.50% 1.65-7.50% 1.00-7.50% 0.22-7.50% 0.00-7.50% Subordinated debt: Fixed rate $ — $ — $ 313 $ 313 $ 3,884 Variable rate — — — — Interest rates (a) — % — % 8.25% 8.25% 6.00-8.25% Subtotal $ 22,543 $ 54,291 $ 22,304 $ 99,138 $ 111,111 Junior subordinated debt (b) : Fixed rate $ — $ — $ 690 $ 690 $ 706 Variable rate — — 1,585 1,585 1,639 Interest rates (a) — % — % 1.88-8.75% 1.88-8.75% 1.39-8.75% Subtotal $ — $ — $ 2,275 $ 2,275 $ 2,345 Total long-term debt (c)(d)(e) $ 43,174 $ 121,181 $ 119,725 $ 284,080 (g)(h) $ 295,245 Long-term beneficial interests: Fixed rate $ 5,927 $ 7,652 $ — $ 13,579 $ 18,678 Variable rate 3,399 4,472 321 8,192 14,681 Interest rates 1.10-2.50% 1.27-6.54% 0.00-3.75% 0.00-6.54% 0.39-7.87% Total long-term beneficial interests (f) $ 9,326 $ 12,124 $ 321 $ 21,771 $ 33,359 (a) The interest rates shown are the range of contractual rates in effect at December 31, 2017 and 2016, respectively, including non-U.S. dollar fixed- and variable-rate issuances, which excludes the effects of the associated derivative instruments used in hedge accounting relationships, if applicable. The use of these derivative instruments modifies the Firm’s exposure to the contractual interest rates disclosed in the table above. Including the effects of the hedge accounting derivatives, the range of modified rates in effect at December 31, 2017 , for total long-term debt was (0.19)% to 8.88% , versus the contractual range of 0.16% to 8.75% presented in the table above. The interest rate ranges shown exclude structured notes accounted for at fair value. (b) As of December 31, 2017, includes $0.7 billion of fixed rate junior subordinated debentures issued to an issuer trust and $1.6 billion of variable rate junior subordinated debentures distributed pro rata to the holders of the $1.6 billion of trust preferred securities which were cancelled on December 18, 2017. (c) Included long-term debt of $63.5 billion and $82.2 billion secured by assets totaling $208.4 billion and $205.6 billion at December 31, 2017 and 2016 , respectively. The amount of long-term debt secured by assets does not include amounts related to hybrid instruments. (d) Included $47.5 billion and $37.7 billion of long-term debt accounted for at fair value at December 31, 2017 and 2016 , respectively. (e) Included $10.3 billion and $7.5 billion of outstanding zero-coupon notes at December 31, 2017 and 2016 , respectively. The aggregate principal amount of these notes at their respective maturities is $33.5 billion and $25.1 billion , respectively. The aggregate principal amount reflects the contractual principal payment at maturity, which may exceed the contractual principal payment at the Firm’s next call date, if applicable. (f) Included on the Consolidated balance sheets in beneficial interests issued by consolidated VIEs. Also included $45 million and $120 million accounted for at fair value at December 31, 2017 and 2016 , respectively. Excluded short-term commercial paper and other short-term beneficial interests of $4.3 billion and $5.7 billion at December 31, 2017 and 2016 , respectively. (g) At December 31, 2017 , long-term debt in the aggregate of $111.2 billion was redeemable at the option of JPMorgan Chase, in whole or in part, prior to maturity, based on the terms specified in the respective instruments. (h) The aggregate carrying values of debt that matures in each of the five years subsequent to 2017 is $43.2 billion in 2018, $34.7 billion in 2019, $39.3 billion in 2020, $33.8 billion in 2021 and $13.4 billion in 2022. |
Preferred Stock (Tables)
Preferred Stock (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of stock by class | The following is a summary of JPMorgan Chase ’s non-cumulative preferred stock outstanding as of December 31, 2017 and 2016 . Shares at December 31, (a) Carrying value (in millions) at December 31, Issue date Contractual rate Earliest redemption date Date at which dividend rate becomes floating Floating annual 2017 2016 2017 2016 Fixed-rate: Series O — 125,750 $ — $ 1,258 8/27/2012 N/A 9/1/2017 NA NA Series P 90,000 90,000 900 900 2/5/2013 5.450 % 3/1/2018 NA NA Series T 92,500 92,500 925 925 1/30/2014 6.700 3/1/2019 NA NA Series W 88,000 88,000 880 880 6/23/2014 6.300 9/1/2019 NA NA Series Y 143,000 143,000 1,430 1,430 2/12/2015 6.125 3/1/2020 NA NA Series AA 142,500 142,500 1,425 1,425 6/4/2015 6.100 9/1/2020 NA NA Series BB 115,000 115,000 1,150 1,150 7/29/2015 6.150 9/1/2020 NA NA Fixed-to-floating-rate: Series I 600,000 600,000 6,000 6,000 4/23/2008 7.900 % 4/30/2018 4/30/2018 LIBOR + 3.47% Series Q 150,000 150,000 1,500 1,500 4/23/2013 5.150 5/1/2023 5/1/2023 LIBOR + 3.25 Series R 150,000 150,000 1,500 1,500 7/29/2013 6.000 8/1/2023 8/1/2023 LIBOR + 3.30 Series S 200,000 200,000 2,000 2,000 1/22/2014 6.750 2/1/2024 2/1/2024 LIBOR + 3.78 Series U 100,000 100,000 1,000 1,000 3/10/2014 6.125 4/30/2024 4/30/2024 LIBOR + 3.33 Series V 250,000 250,000 2,500 2,500 6/9/2014 5.000 7/1/2019 7/1/2019 LIBOR + 3.32 Series X 160,000 160,000 1,600 1,600 9/23/2014 6.100 10/1/2024 10/1/2024 LIBOR + 3.33 Series Z 200,000 200,000 2,000 2,000 4/21/2015 5.300 5/1/2020 5/1/2020 LIBOR + 3.80 Series CC 125,750 — 1,258 — 10/20/2017 4.625 11/1/2022 11/1/2022 LIBOR + 2.58 Total preferred stock 2,606,750 2,606,750 $ 26,068 $ 26,068 (a) Represented by depositary shares. Common shares issued (newly issued or reissuance from treasury) by JPMorgan Chase during the years ended December 31, 2017 , 2016 and 2015 were as follows. Year ended December 31, (in millions) 2017 2016 2015 Total issued – balance at January 1 4,104.9 4,104.9 4,104.9 Treasury – balance at January 1 (543.7 ) (441.4 ) (390.1 ) Repurchase (166.6 ) (140.4 ) (89.8 ) Reissuance: Employee benefits and compensation plans 24.5 26.0 32.8 Warrant exercise 5.4 11.1 4.7 Employee stock purchase plans 0.8 1.0 1.0 Total reissuance 30.7 38.1 38.5 Total treasury – balance at December 31 (679.6 ) (543.7 ) (441.4 ) Outstanding at December 31 3,425.3 3,561.2 3,663.5 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of stock by class | The following is a summary of JPMorgan Chase ’s non-cumulative preferred stock outstanding as of December 31, 2017 and 2016 . Shares at December 31, (a) Carrying value (in millions) at December 31, Issue date Contractual rate Earliest redemption date Date at which dividend rate becomes floating Floating annual 2017 2016 2017 2016 Fixed-rate: Series O — 125,750 $ — $ 1,258 8/27/2012 N/A 9/1/2017 NA NA Series P 90,000 90,000 900 900 2/5/2013 5.450 % 3/1/2018 NA NA Series T 92,500 92,500 925 925 1/30/2014 6.700 3/1/2019 NA NA Series W 88,000 88,000 880 880 6/23/2014 6.300 9/1/2019 NA NA Series Y 143,000 143,000 1,430 1,430 2/12/2015 6.125 3/1/2020 NA NA Series AA 142,500 142,500 1,425 1,425 6/4/2015 6.100 9/1/2020 NA NA Series BB 115,000 115,000 1,150 1,150 7/29/2015 6.150 9/1/2020 NA NA Fixed-to-floating-rate: Series I 600,000 600,000 6,000 6,000 4/23/2008 7.900 % 4/30/2018 4/30/2018 LIBOR + 3.47% Series Q 150,000 150,000 1,500 1,500 4/23/2013 5.150 5/1/2023 5/1/2023 LIBOR + 3.25 Series R 150,000 150,000 1,500 1,500 7/29/2013 6.000 8/1/2023 8/1/2023 LIBOR + 3.30 Series S 200,000 200,000 2,000 2,000 1/22/2014 6.750 2/1/2024 2/1/2024 LIBOR + 3.78 Series U 100,000 100,000 1,000 1,000 3/10/2014 6.125 4/30/2024 4/30/2024 LIBOR + 3.33 Series V 250,000 250,000 2,500 2,500 6/9/2014 5.000 7/1/2019 7/1/2019 LIBOR + 3.32 Series X 160,000 160,000 1,600 1,600 9/23/2014 6.100 10/1/2024 10/1/2024 LIBOR + 3.33 Series Z 200,000 200,000 2,000 2,000 4/21/2015 5.300 5/1/2020 5/1/2020 LIBOR + 3.80 Series CC 125,750 — 1,258 — 10/20/2017 4.625 11/1/2022 11/1/2022 LIBOR + 2.58 Total preferred stock 2,606,750 2,606,750 $ 26,068 $ 26,068 (a) Represented by depositary shares. Common shares issued (newly issued or reissuance from treasury) by JPMorgan Chase during the years ended December 31, 2017 , 2016 and 2015 were as follows. Year ended December 31, (in millions) 2017 2016 2015 Total issued – balance at January 1 4,104.9 4,104.9 4,104.9 Treasury – balance at January 1 (543.7 ) (441.4 ) (390.1 ) Repurchase (166.6 ) (140.4 ) (89.8 ) Reissuance: Employee benefits and compensation plans 24.5 26.0 32.8 Warrant exercise 5.4 11.1 4.7 Employee stock purchase plans 0.8 1.0 1.0 Total reissuance 30.7 38.1 38.5 Total treasury – balance at December 31 (679.6 ) (543.7 ) (441.4 ) Outstanding at December 31 3,425.3 3,561.2 3,663.5 |
Schedule of common equity repurchases | The following table sets forth the Firm’s repurchases of common equity for the years ended December 31, 2017 , 2016 and 2015 . There were no warrants repurchased during the years ended December 31, 2017 , 2016 and 2015 . Year ended December 31, (in millions) 2017 2016 2015 Total number of shares of common stock repurchased 166.6 140.4 89.8 Aggregate purchase price of common stock repurchases $ 15,410 $ 9,082 $ 5,616 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share basic and diluted | The following table presents the calculation of basic and diluted EPS for the years ended December 31, 2017 , 2016 and 2015 . Year ended December 31, (in millions, except per share amounts) 2017 2016 2015 Basic earnings per share Net income $ 24,441 $ 24,733 $ 24,442 Less: Preferred stock dividends 1,663 1,647 1,515 Net income applicable to common equity 22,778 23,086 22,927 Less: Dividends and undistributed earnings allocated to participating securities (a) 211 252 276 Net income applicable to common stockholders (a) $ 22,567 $ 22,834 $ 22,651 Total weighted-average basic shares outstanding (a) 3,551.6 3,658.8 3,741.2 Net income per share $ 6.35 $ 6.24 $ 6.05 Diluted earnings per share Net income applicable to common stockholders (a) $ 22,567 $ 22,834 $ 22,651 Total weighted-average basic shares outstanding (a) 3,551.6 3,658.8 3,741.2 Add: Employee stock options, SARs, warrants and PSUs (a) 25.2 31.2 32.4 Total weighted-average diluted shares outstanding (a)(b) 3,576.8 3,690.0 3,773.6 Net income per share $ 6.31 $ 6.19 $ 6.00 (a) The prior period amounts have been revised to conform with the current period presentation. The revision had no impact on the Firm’s reported earnings per share. (b) Participating securities were included in the calculation of diluted EPS using the two-class method, as this computation was more dilutive than the calculation using the treasury stock method. |
Accumulated Other Comprehensi63
Accumulated Other Comprehensive Income/(Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
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), cash flow hedging activities, and net loss and prior service costs/(credit) related to the Firm’s defined benefit pension and OPEB plans. Year ended December 31, (in millions) Unrealized gains/(losses) on investment securities (b) Translation adjustments, net of hedges Cash flow hedges Defined benefit pension and OPEB plans DVA on fair value option elected liabilities Accumulated other comprehensive income/(loss) Balance at December 31, 2014 $ 4,773 $ (147 ) $ (95 ) $ (2,342 ) $ — $ 2,189 Net change (2,144 ) (15 ) 51 111 — (1,997 ) Balance at December 31, 2015 $ 2,629 $ (162 ) $ (44 ) $ (2,231 ) $ — $ 192 Cumulative effect of change in accounting principle (a) — — — — 154 154 Net change (1,105 ) (2 ) (56 ) (28 ) (330 ) (1,521 ) Balance at December 31, 2016 $ 1,524 $ (164 ) $ (100 ) $ (2,259 ) $ (176 ) $ (1,175 ) Net change 640 (306 ) 176 738 (192 ) 1,056 Balance at December 31, 2017 $ 2,164 $ (470 ) $ 76 $ (1,521 ) (368 ) $ (119 ) (a) Effective January 1, 2016, the Firm adopted new accounting guidance related to the recognition and measurement of financial liabilities where the fair value option has been elected. This guidance requires the portion of the total change in fair value caused by changes in the Firm’s own credit risk (DVA) to be presented separately in OCI; previously these amounts were recognized in net income. (b) Represents the after-tax difference between the fair value and amortized cost of securities accounted for as AFS, including net unamortized unrealized gains and losses related to AFS securities transferred to HTM. |
Changes of the components of accumulated other comprehensive income (loss) | The following table presents the pre-tax and after-tax changes in the components of OCI. 2017 2016 2015 Year ended December 31, (in millions) Pre-tax Tax effect After-tax Pre-tax Tax effect After-tax Pre-tax Tax effect After-tax Unrealized gains/(losses) on investment securities: Net unrealized gains/(losses) arising during the period $ 944 $ (346 ) $ 598 $ (1,628 ) $ 611 $ (1,017 ) $ (3,315 ) $ 1,297 $ (2,018 ) Reclassification adjustment for realized (gains)/losses included in net income (a) 66 (24 ) 42 (141 ) 53 (88 ) (202 ) 76 (126 ) Net change 1,010 (370 ) 640 (1,769 ) 664 (1,105 ) (3,517 ) 1,373 (2,144 ) Translation adjustments (b) : Translation 1,313 (801 ) 512 (261 ) 99 (162 ) (1,876 ) 682 (1,194 ) Hedges (1,294 ) 476 (818 ) 262 (102 ) 160 1,885 (706 ) 1,179 Net change 19 (325 ) (306 ) 1 (3 ) (2 ) 9 (24 ) (15 ) Cash flow hedges: Net unrealized gains/(losses) arising during the period 147 (55 ) 92 (450 ) 168 (282 ) (97 ) 35 (62 ) Reclassification adjustment for realized (gains)/losses included in net income (c)(d) 134 (50 ) 84 360 (134 ) 226 180 (67 ) 113 Net change 281 (105 ) 176 (90 ) 34 (56 ) 83 (32 ) 51 Defined benefit pension and OPEB plans: Net gains/(losses) arising during the period 802 (160 ) 642 (366 ) 145 (221 ) 29 (47 ) (18 ) Reclassification adjustments included in net income (e) : Amortization of net loss 250 (90 ) 160 257 (97 ) 160 282 (106 ) 176 Prior service costs/(credits) (36 ) 13 (23 ) (36 ) 14 (22 ) (36 ) 14 (22 ) Settlement loss/(gain) 2 (1 ) 1 4 (1 ) 3 — — — Foreign exchange and other (54 ) 12 (42 ) 77 (25 ) 52 33 (58 ) (25 ) Net change 964 (226 ) 738 (64 ) 36 (28 ) 308 (197 ) 111 DVA on fair value option elected liabilities, net change: $ (303 ) $ 111 $ (192 ) $ (529 ) $ 199 $ (330 ) $ — $ — $ — Total other comprehensive income/(loss) $ 1,971 $ (915 ) $ 1,056 $ (2,451 ) $ 930 $ (1,521 ) $ (3,117 ) $ 1,120 $ (1,997 ) (a) The pre-tax amount is reported in 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 periods presented. (c) The pre-tax amounts are primarily recorded in noninterest revenue, net interest income and compensation expense in the Consolidated statements of income. (d) In 2015, the Firm reclassified approximately $ 150 million of net losses from AOCI to other income because the Firm determined that it is probable that the forecasted interest payment cash flows would not occur. For additional information, see Note 5 . (e) The pre-tax amount is reported in compensation expense in the Consolidated statements of income. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of the applicable statutory U.S. income tax rate to the effective tax rate the effective tax rate | A reconciliation of the applicable statutory U.S. federal income tax rate to the effective tax rate for each of the years ended December 31, 2017 , 2016 and 2015 , is presented in the following table. Effective tax rate Year ended December 31, 2017 2016 2015 Statutory U.S. federal tax rate 35.0 % 35.0 % 35.0 % Increase/(decrease) in tax rate resulting from: U.S. state and local income taxes, net of U.S. federal income tax benefit 2.2 2.4 1.5 Tax-exempt income (3.3 ) (3.1 ) (3.3 ) Non-U.S. subsidiary earnings (a) (3.1 ) (1.7 ) (3.9 ) Business tax credits (4.2 ) (3.9 ) (3.7 ) Nondeductible legal expense — 0.3 0.8 Tax audit resolutions — — (5.7 ) Impact of the TCJA 5.4 — — Other, net (0.1 ) (0.6 ) (0.3 ) Effective tax rate 31.9 % 28.4 % 20.4 % (a) Predominantly includes earnings of U.K. subsidiaries that were deemed to be reinvested indefinitely through December 31, 2017. |
Components of income tax expense/(benefit) included in the Consolidated Statements of Income | The components of income tax expense/(benefit) included in the Consolidated statements of income were as follows for each of the years ended December 31, 2017 , 2016 , and 2015 . Income tax expense/(benefit) Year ended December 31, 2017 2016 2015 Current income tax expense/(benefit) U.S. federal $ 5,718 $ 2,488 $ 3,160 Non-U.S. 2,400 1,760 1,220 U.S. state and local 1,029 904 547 Total current income tax expense/(benefit) 9,147 5,152 4,927 Deferred income tax expense/(benefit) U.S. federal 2,174 4,364 1,213 Non-U.S. (144 ) (73 ) (95 ) U.S. state and local 282 360 215 Total deferred income tax 2,312 4,651 1,333 Total income tax expense $ 11,459 $ 9,803 $ 6,260 |
U.S. and non-U.S. components of income before income tax expense/(benefit) | The following table presents the U.S. and non-U.S. components of income before income tax expense for the years ended December 31, 2017 , 2016 and 2015 . Year ended December 31, 2017 2016 2015 U.S. $ 27,103 $ 26,651 $ 23,191 Non-U.S. (a) 8,797 7,885 7,511 Income before income tax expense $ 35,900 $ 34,536 $ 30,702 (a) For purposes of this table, non-U.S. income is defined as income generated from operations located outside the U.S. |
Significant components of deferred tax assets and liabilities | The significant components of deferred tax assets and liabilities are reflected in the following table as of December 31, 2017 and 2016 . December 31, (in millions) 2017 2016 Deferred tax assets Allowance for loan losses $ 3,395 $ 5,534 Employee benefits 688 2,911 Accrued expenses and other 3,528 6,831 Non-U.S. operations 327 5,368 Tax attribute carryforwards 219 2,155 Gross deferred tax assets 8,157 22,799 Valuation allowance (46 ) (785 ) Deferred tax assets, net of valuation allowance $ 8,111 $ 22,014 Deferred tax liabilities Depreciation and amortization $ 2,299 $ 3,294 Mortgage servicing rights, net of hedges 2,757 4,807 Leasing transactions 3,483 4,053 Non-U.S. operations 200 4,572 Other, net 3,502 5,493 Gross deferred tax liabilities 12,241 22,219 Net deferred tax (liabilities)/assets $ (4,130 ) $ (205 ) |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | The following table presents a reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2017 , 2016 and 2015 . Year ended December 31, 2017 2016 2015 Balance at January 1, $ 3,450 $ 3,497 $ 4,911 Increases based on tax positions related to the current period 1,355 262 408 Increases based on tax positions related to prior periods 626 583 1,028 Decreases based on tax positions related to prior periods (350 ) (785 ) (2,646 ) Decreases related to cash settlements with taxing authorities (334 ) (56 ) (204 ) Decreases related to a lapse of applicable statute of limitations — (51 ) — Balance at December 31, $ 4,747 $ 3,450 $ 3,497 |
Tax examination status | JPMorgan Chase is continually under examination by the Internal Revenue Service, by taxing authorities throughout the world, and by many state and local jurisdictions throughout the U.S. The following table summarizes the status of significant income tax examinations of JPMorgan Chase and its consolidated subsidiaries as of December 31, 2017 . December 31, 2017 Periods under examination Status JPMorgan Chase – U.S. 2003 – 2005 At Appellate level JPMorgan Chase – U.S. 2006 – 2010 Field examination of amended returns; certain matters at Appellate level JPMorgan Chase – U.S. 2011 – 2013 Field Examination JPMorgan Chase – California 2011 – 2012 Field Examination JPMorgan Chase – U.K. 2006 – 2015 Field examination of certain select entities |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |
Reconciliation of regulatory capital, assets and risk-based capital ratios | The following tables present the regulatory capital, assets and risk-based capital ratios for JPMorgan Chase and its significant IDI subsidiaries under both Basel III Standardized Transitional and Basel III Advanced Transitional at December 31, 2017 and 2016 . JPMorgan Chase & Co. Basel III Standardized Transitional Basel III Advanced Transitional (in millions, except ratios) Dec 31, Dec 31, Dec 31, Dec 31, Regulatory capital CET1 capital $ 183,300 $ 182,967 $ 183,300 $ 182,967 Tier 1 capital (a) 208,644 208,112 208,644 208,112 Total capital 238,395 239,553 227,933 228,592 Assets Risk-weighted 1,499,506 1,483,132 (e) 1,435,825 1,476,915 Adjusted average (b) 2,514,270 2,484,631 2,514,270 2,484,631 Capital ratios (c) CET1 12.2 % 12.3 % (e) 12.8 % 12.4 % Tier 1 (a) 13.9 14.0 (e) 14.5 14.1 Total 15.9 16.2 (e) 15.9 15.5 Tier 1 leverage (d) 8.3 8.4 8.3 8.4 JPMorgan Chase Bank, N.A. Basel III Standardized Transitional Basel III Advanced Transitional (in millions, except ratios) Dec 31, Dec 31, Dec 31, Dec 31, Regulatory capital CET1 capital $ 184,375 $ 179,319 $ 184,375 $ 179,319 Tier 1 capital (a) 184,375 179,341 184,375 179,341 Total capital 195,839 191,662 189,419 184,637 Assets Risk-weighted 1,335,809 1,311,240 (e) 1,226,534 1,262,613 Adjusted average (b) 2,116,031 2,088,851 2,116,031 2,088,851 Capital ratios (c) CET1 13.8 % 13.7 % (e) 15.0 % 14.2 % Tier 1 (a) 13.8 13.7 (e) 15.0 14.2 Total 14.7 14.6 (e) 15.4 14.6 Tier 1 leverage (d) 8.7 8.6 8.7 8.6 Chase Bank USA, N.A. Basel III Standardized Transitional Basel III Advanced Transitional (in millions, except ratios) Dec 31, Dec 31, Dec 31, Dec 31, Regulatory capital CET1 capital $ 21,600 $ 16,784 $ 21,600 $ 16,784 Tier 1 capital 21,600 16,784 21,600 16,784 Total capital 27,691 22,862 26,250 21,434 Assets Risk-weighted 113,108 112,297 190,523 186,378 Adjusted average (b) 126,517 120,304 126,517 120,304 Capital ratios (c) CET1 19.1 % 14.9 % 11.3 % 9.0 % Tier 1 19.1 14.9 11.3 9.0 Total 24.5 20.4 13.8 11.5 Tier 1 leverage (d) 17.1 14.0 17.1 14.0 (a) Includes the deduction associated with the permissible holdings of covered funds (as defined by the Volcker Rule). The deduction was not material as of December 31, 2017 and 2016 . (b) Adjusted average assets, for purposes of calculating the Tier 1 leverage ratio, includes total quarterly average assets adjusted for unrealized gains/(losses) on AFS securities, less deductions for goodwill and other intangible assets, defined benefit pension plan assets, and deferred tax assets related to tax attributes, including NOLs. (c) For each of the risk-based capital ratios, the capital adequacy of the Firm and its IDI subsidiaries is evaluated against the lower of the two ratios as calculated under Basel III approaches (Standardized or Advanced) as required by the Collins Amendment of the Dodd-Frank Act (the “Collins Floor”) (d) The Tier 1 leverage ratio is not a risk-based measure of capital. This ratio is calculated by dividing Tier 1 capital by adjusted average assets. (e) The prior period amounts have been revised to conform with the current period presentation. The following table presents the minimum ratios to which the Firm and its IDI subsidiaries are subject as of December 31, 2017 . Minimum capital ratios Well-capitalized ratios BHC (a)(e) IDI (b)(e) BHC (c) IDI (d) Capital ratios CET1 7.50 % 5.75 % — % 6.50 % Tier 1 9.00 7.25 6.00 8.00 Total 11.00 9.25 10.00 10.00 Tier 1 leverage 4.00 4.00 — 5.00 Note: The table above is as defined by the regulations issued by the Federal Reserve, OCC and FDIC and to which the Firm and its IDI subsidiaries are subject. (a) Represents the Transitional minimum capital ratios applicable to the Firm under Basel III at December 31, 2017 . At December 31, 2017 , the CET1 minimum capital ratio includes 1.25% resulting from the phase-in of the Firm’s 2.5% capital conservation buffer, and 1.75% resulting from the phase-in of the Firm’s 3.5% GSIB surcharge. (b) Represents requirements for JPMorgan Chase’s IDI subsidiaries. The CET1 minimum capital ratio includes 1.25% resulting from the phase-in of the 2.5% capital conservation buffer that is applicable to the IDI subsidiaries. The IDI subsidiaries are not subject to the GSIB surcharge. (c) Represents requirements for bank holding companies pursuant to regulations issued by the Federal Reserve. (d) Represents requirements for IDI subsidiaries pursuant to regulations issued under the FDIC Improvement Act. (e) For the period ended December 31, 2016 the CET1, Tier 1, Total and Tier 1 leverage minimum capital ratios applicable to the Firm were 6.25% , 7.75% , 9.75% and 4.0% and the CET1, Tier 1, Total and Tier 1 leverage minimum capital ratios applicable to the Firm’s IDI subsidiaries were 5.125% , 6.625% , 8.625% and 4.0% respectively. |
Off-balance Sheet Lending-rel66
Off-balance Sheet Lending-related Financial Instruments, Guarantees, and Other Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Off-Balance Sheet Lending-Related Financial Instruments, Guarantees and Other Commitments [Abstract] | |
Off-balance sheet lending related financial instruments, and guarantees and other commitments | Off–balance sheet lending-related financial instruments, guarantees and other commitments Contractual amount Carrying value (i) 2017 2016 2017 2016 By remaining maturity at December 31, Expires in 1 year or less Expires after Expires after Expires after 5 years Total Total Lending-related Consumer, excluding credit card: Home equity $ 2,165 $ 1,370 $ 1,379 $ 15,446 $ 20,360 $ 21,714 $ 12 $ 12 Residential mortgage (a)(b) 5,723 — — 13 5,736 10,332 — — Auto 8,007 872 292 84 9,255 8,468 2 2 Consumer & Business Banking (b) 11,642 926 112 522 13,202 12,733 19 12 Total consumer, excluding credit card 27,537 3,168 1,783 16,065 48,553 53,247 (h) 33 26 Credit card 572,831 — — — 572,831 553,891 — — Total consumer (c) 600,368 3,168 1,783 16,065 621,384 607,138 (h) 33 26 Wholesale: Other unfunded commitments to extend credit (d) 61,536 118,907 138,289 12,428 331,160 328,497 840 905 Standby letters of credit and other financial guarantees (d) 15,278 9,905 7,963 2,080 35,226 35,947 636 586 Other letters of credit (d) 3,459 114 139 — 3,712 3,570 3 2 Total wholesale (e) 80,273 128,926 146,391 14,508 370,098 368,014 1,479 1,493 Total lending-related $ 680,641 $ 132,094 $ 148,174 $ 30,573 $ 991,482 $ 975,152 (h) $ 1,512 $ 1,519 Other guarantees and commitments Securities lending indemnification agreements and guarantees (f) $ 179,490 $ — $ — $ — $ 179,490 $ 137,209 $ — $ — Derivatives qualifying as guarantees 4,529 101 12,479 40,065 57,174 51,966 304 80 Unsettled reverse repurchase and securities borrowing agreements 76,859 — — — 76,859 50,722 — — Unsettled repurchase and securities lending agreements 44,205 — — — 44,205 26,948 — — Loan sale and securitization-related indemnifications: Mortgage repurchase liability NA NA NA NA NA NA 111 133 Loans sold with recourse NA NA NA NA 1,169 2,730 38 64 Other guarantees and commitments (g) 7,668 1,084 434 2,681 11,867 5,715 (76 ) (118 ) (a) Includes certain commitments to purchase loans from correspondents. (b) Certain loan portfolios have been reclassified. The prior period amounts have been revised to conform with the current period presentation. (c) Predominantly all consumer lending-related commitments are in the U.S. (d) At December 31, 2017 and 2016 , reflected the contractual amount net of risk participations totaling $334 million and $328 million , respectively, for other unfunded commitments to extend credit; $10.4 billion and $11.1 billion , respectively, for standby letters of credit and other financial guarantees; and $405 million and $265 million , respectively, for other letters of credit. In regulatory filings with the Federal Reserve these commitments are shown gross of risk participations. (e) At December 31, 2017 and 2016 , the U.S. portion of the contractual amount of total wholesale lending-related commitments was 77% and 79% , respectively. (f) At December 31, 2017 and 2016 , collateral held by the Firm in support of securities lending indemnification agreements was $188.7 billion and $143.2 billion , respectively. Securities lending collateral consist of primarily cash and securities issued by governments that are members of G7 and U.S. government agencies. (g) At December 31, 2017, primarily includes letters of credit hedged by derivative transactions and managed on a market risk basis, unfunded commitments related to institutional lending and commitments associated with the Firm’s membership in certain clearing houses. Additionally, includes unfunded commitments predominantly related to certain tax-oriented equity investments. (h) The prior period amounts have been revised to conform with the current period presentation. (i) For lending-related products, the carrying value represents the allowance for lending-related commitments and the guarantee liability; for derivative-related products, the carrying value represents the fair value. |
Standby letters of credit, other financial guarantees and other letters of credit | The following table summarizes the types of facilities under which standby letters of credit and other letters of credit arrangements are outstanding by the ratings profiles of the Firm’s clients, as of December 31, 2017 and 2016 . Standby letters of credit, other financial guarantees and other letters of credit 2017 2016 December 31, (in millions) Standby letters of credit and other financial guarantees Other letters of credit Standby letters of credit and Other letters Investment-grade (a) $ 28,492 $ 2,646 $ 28,245 $ 2,781 Noninvestment-grade (a) 6,734 1,066 7,702 789 Total contractual amount $ 35,226 $ 3,712 $ 35,947 $ 3,570 Allowance for lending-related commitments $ 192 $ 3 $ 145 $ 2 Guarantee liability 444 — 441 — Total carrying value $ 636 $ 3 $ 586 $ 2 Commitments with collateral $ 17,421 $ 878 $ 19,346 $ 940 (a) The ratings scale is based on the Firm’s internal ratings, which generally correspond to ratings as defined by S&P and Moody’s. |
Schedule of derivatives qualifying as guarantees | The following table summarizes the derivatives qualifying as guarantees as of December 31, 2017 , and 2016 . (in millions) December 31, 2017 December 31, 2016 Notional amounts Derivative guarantees 57,174 51,966 Stable value contracts with contractually limited exposure 29,104 28,665 Maximum exposure of stable value contracts with contractually limited exposure 3,053 3,012 Fair value Derivative payables 304 96 Derivative receivables — 16 |
Commitments, Pledged Assets a67
Commitments, Pledged Assets and Collateral (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum rental payments under operating leases | The following table presents required future minimum rental payments under operating leases with noncancelable lease terms that expire after December 31, 2017 . Year ended December 31, (in millions) 2018 1,526 2019 1,450 2020 1,300 2021 1,029 2022 815 After 2022 3,757 Total minimum payments required 9,877 Less: Sublease rentals under noncancelable subleases (1,034 ) Net minimum payment required $ 8,843 |
Total rental expense | Total rental expense was as follows. Year ended December 31, (in millions) 2017 2016 2015 Gross rental expense $ 1,853 $ 1,860 $ 2,015 Sublease rental income (251 ) (241 ) (411 ) Net rental expense $ 1,602 $ 1,619 $ 1,604 |
Schedule of pledged assets | The following table presents the Firm’s pledged assets. December 31, (in billions) 2017 2016 Assets that may be sold or repledged or otherwise used by secured parties $ 129.6 $ 133.6 Assets that may not be sold or repledged or otherwise used by secured parties 67.9 53.5 Assets pledged at Federal Reserve banks and FHLBs 493.7 441.9 Total assets pledged $ 691.2 $ 629.0 The significant components of the Firm’s pledged assets were as follows. December 31, (in billions) 2017 2016 Securities $ 86.2 $ 101.1 Loans 437.7 374.9 Trading assets and other 167.3 153.0 Total assets pledged $ 691.2 $ 629.0 |
Schedule of collateral received | The following table presents the fair value of collateral accepted. December 31, (in billions) 2017 2016 Collateral permitted to be sold or repledged, delivered, or otherwise used $ 968.8 $ 914.1 Collateral sold, repledged, delivered or otherwise used 775.3 746.6 |
International Operations (Table
International Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segments, Geographical Areas [Abstract] | |
Schedule of revenue from external customers attributed to foreign countries by geographic area | The following table presents income statement- and balance sheet-related information for JPMorgan Chase by major international geographic area. The Firm defines international activities for purposes of this footnote presentation as business transactions that involve clients residing outside of the U.S., and the information presented below is based predominantly on the domicile of the client, the location from which the client relationship is managed, or the location of the trading desk. However, many of the Firm’s U.S. operations serve international businesses. As the Firm’s operations are highly integrated, estimates and subjective assumptions have been made to apportion revenue and expense between U.S. and international operations. These estimates and assumptions are consistent with the allocations used for the Firm’s segment reporting as set forth in Note 31 . The Firm’s long-lived assets for the periods presented are not considered by management to be significant in relation to total assets. The majority of the Firm’s long-lived assets are located in the U.S. As of or for the year ended December 31, Revenue (b) Expense (c) Income before income tax Net income Total assets 2017 Europe/Middle East/Africa $ 14,426 $ 8,653 $ 5,773 $ 4,007 $ 407,145 (d) Asia/Pacific 5,805 4,277 1,528 852 163,718 Latin America/Caribbean 1,994 1,523 471 299 44,569 Total international 22,225 14,453 7,772 5,158 615,432 North America (a) 77,399 49,271 28,128 19,283 1,918,168 Total $ 99,624 $ 63,724 $ 35,900 $ 24,441 $ 2,533,600 2016 Europe/Middle East/Africa $ 13,842 $ 8,550 $ 5,292 $ 3,783 $ 394,134 (d) Asia/Pacific 6,112 4,213 1,899 1,212 156,946 Latin America/Caribbean 1,959 1,632 327 208 42,971 Total international 21,913 14,395 7,518 5,203 594,051 North America (a) 73,755 46,737 27,018 19,530 1,896,921 Total $ 95,668 $ 61,132 $ 34,536 $ 24,733 $ 2,490,972 2015 Europe/Middle East/Africa $ 14,206 $ 8,871 $ 5,335 $ 4,158 $ 347,647 (d) Asia/Pacific 6,151 4,241 1,910 1,285 138,747 Latin America/Caribbean 1,923 1,508 415 253 48,185 Total international 22,280 14,620 7,660 5,696 534,579 North America (a) 71,263 48,221 23,042 18,746 1,817,119 Total $ 93,543 $ 62,841 $ 30,702 $ 24,442 $ 2,351,698 (a) Substantially reflects the U.S. (b) Revenue is composed of net interest income and noninterest revenue. (c) Expense is composed of noninterest expense and the provision for credit losses. (d) Total assets for the U.K. were approximately $310 billion , $310 billion , and $306 billion at December 31, 2017 , 2016 and 2015 , respectively. |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment results and reconciliation | The following tables provide a summary of the Firm’s segment results as of or for the years ended December 31, 2017 , 2016 and 2015 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 (noninterest revenue and net interest income) for each of the reportable business segments on a FTE basis. Accordingly, revenue from investments receiving tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. This allows management to assess the comparability of revenue from year-to-year arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense/(benefit). Effective January 1, 2017, the Firm’s methodology used to allocate capital to the Firm’s business segments was updated. The new methodology incorporates Basel III Standardized Fully Phased-In RWA (as well as Basel III Advanced Fully Phased-In RWA), leverage, the GSIB surcharge, and a simulation of capital in a severe stress environment. The methodology will continue to be weighted towards Basel III Advanced Fully Phased-In RWA because the Firm believes it to be the best proxy for economic risk. Segment results and reconciliation As of or for the year ended December 31, (in millions, except ratios) Consumer & Community Banking Corporate & Investment Bank Commercial Banking Asset & Wealth Management 2017 2016 2015 2017 2016 2015 2017 2016 2015 2017 2016 2015 Noninterest revenue $ 14,710 $ 15,255 $ 15,592 $ 24,375 $ 24,325 $ 23,693 $ 2,522 $ 2,320 $ 2,365 $ 9,539 $ 9,012 $ 9,563 Net interest income 31,775 29,660 28,228 10,118 10,891 9,849 6,083 5,133 4,520 3,379 3,033 2,556 Total net revenue 46,485 44,915 43,820 34,493 35,216 33,542 8,605 7,453 6,885 12,918 12,045 12,119 Provision for credit losses 5,572 4,494 3,059 (45 ) 563 332 (276 ) 282 442 39 26 4 Noninterest expense 26,062 24,905 24,909 19,243 18,992 21,361 3,327 2,934 2,881 9,301 8,478 8,886 Income/(loss) before income tax expense/(benefit) 14,851 15,516 15,852 15,295 15,661 11,849 5,554 4,237 3,562 3,578 3,541 3,229 Income tax expense/(benefit) 5,456 5,802 6,063 4,482 4,846 3,759 2,015 1,580 1,371 1,241 1,290 1,294 Net income/(loss) $ 9,395 $ 9,714 $ 9,789 $ 10,813 $ 10,815 $ 8,090 $ 3,539 $ 2,657 $ 2,191 $ 2,337 $ 2,251 $ 1,935 Average equity $ 51,000 $ 51,000 $ 51,000 $ 70,000 $ 64,000 $ 62,000 $ 20,000 $ 16,000 $ 14,000 $ 9,000 $ 9,000 $ 9,000 Total assets 552,601 535,310 502,652 826,384 803,511 748,691 221,228 214,341 200,700 151,909 138,384 131,451 Return on equity 17 % 18 % 18 % 14 % 16 % 12 % 17 % 16 % 15 % 25 % 24 % 21 % Overhead ratio 56 55 57 56 54 64 39 39 42 72 70 73 (table continued from above) As of or for the year ended December 31, (in millions, except ratios) Corporate Reconciling Items (a) Total 2017 2016 2015 2017 2016 2015 2017 2016 2015 Noninterest revenue $ 1,085 $ 938 $ 800 $ (2,704 ) (b) $ (2,265 ) $ (1,980 ) $ 49,527 $ 49,585 $ 50,033 Net interest income 55 (1,425 ) (533 ) (1,313 ) (1,209 ) (1,110 ) 50,097 46,083 43,510 Total net revenue 1,140 (487 ) 267 (4,017 ) (3,474 ) (3,090 ) 99,624 95,668 93,543 Provision for credit losses — (4 ) (10 ) — — — 5,290 5,361 3,827 Noninterest expense 501 462 977 — — — 58,434 55,771 59,014 Income/(loss) before income tax expense/(benefit) 639 (945 ) (700 ) (4,017 ) (3,474 ) (3,090 ) 35,900 34,536 30,702 Income tax expense/(benefit) 2,282 (241 ) (3,137 ) (4,017 ) (b) (3,474 ) (3,090 ) 11,459 9,803 6,260 Net income/(loss) $ (1,643 ) $ (704 ) $ 2,437 $ — $ — $ — $ 24,441 $ 24,733 $ 24,442 Average equity $ 80,350 $ 84,631 $ 79,690 $ — $ — $ — $ 230,350 $ 224,631 $ 215,690 Total assets 781,478 799,426 768,204 NA NA NA 2,533,600 2,490,972 2,351,698 Return on equity NM NM NM NM NM NM 10 % 10 % 11 % Overhead ratio NM NM NM NM NM NM 59 58 63 (a) Segment results on a managed basis reflect revenue on a 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) Included $375 million related to tax-oriented investments as a result of the enactment of the TCJA. |
Parent Company (Tables)
Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Financial Information of Parent Company Only | The following tables present Parent Company-only financial statements. Statements of income and comprehensive income (a) Year ended December 31, (in millions) 2017 2016 2015 Income Dividends from subsidiaries and affiliates: Bank and bank holding company $ 13,000 $ 10,000 $ 10,653 Non-bank (b) 540 3,873 8,172 Interest income from subsidiaries 72 794 443 Other interest income 41 207 234 Other income from subsidiaries, primarily fees: Bank and bank holding company 1,553 852 1,438 Non-bank (88 ) 1,165 (1,402 ) Other income (623 ) (846 ) 1,773 Total income 14,495 16,045 21,311 Expense Interest expense to subsidiaries and affiliates (b) 400 105 98 Other interest expense 5,202 4,413 3,720 Noninterest expense (1,897 ) 1,643 2,611 Total expense 3,705 6,161 6,429 Income before income tax benefit and undistributed net income of subsidiaries 10,790 9,884 14,882 Income tax benefit 1,007 876 1,640 Equity in undistributed net income of subsidiaries 12,644 13,973 7,920 Net income $ 24,441 $ 24,733 $ 24,442 Other comprehensive income, net 1,056 (1,521 ) (1,997 ) Comprehensive income $ 25,497 $ 23,212 $ 22,445 Balance sheets (a) December 31, (in millions) 2017 2016 Assets Cash and due from banks $ 163 $ 113 Deposits with banking subsidiaries 5,306 5,450 Trading assets 4,773 10,326 Available-for-sale securities — 2,694 Loans — 77 Advances to, and receivables from, subsidiaries: Bank and bank holding company 2,106 524 Non-bank 82 46 Investments (at equity) in subsidiaries and affiliates: Bank and bank holding company 451,713 422,028 Non-bank (b) 422 13,103 Other assets 10,458 10,257 Total assets $ 475,023 $ 464,618 Liabilities and stockholders’ equity Borrowings from, and payables to, subsidiaries and affiliates (b) $ 23,426 $ 13,584 Short-term borrowings 3,350 3,831 Other liabilities 8,302 11,224 Long-term debt (c)(d) 184,252 181,789 Total liabilities (d) 219,330 210,428 Total stockholders’ equity 255,693 254,190 Total liabilities and stockholders’ equity $ 475,023 $ 464,618 Statements of cash flows (a) Year ended December 31, (in millions) 2017 2016 2015 Operating activities Net income $ 24,441 $ 24,733 $ 24,442 Less: Net income of subsidiaries and affiliates (b) 26,185 27,846 26,745 Parent company net loss (1,744 ) (3,113 ) (2,303 ) Cash dividends from subsidiaries and affiliates (b) 13,540 13,873 17,023 Other operating adjustments 4,635 (18,166 ) 2,483 Net cash provided by/(used in) operating activities 16,431 (7,406 ) 17,203 Investing activities Net change in: Deposits with banking subsidiaries 144 60,349 30,085 Available-for-sale securities: Proceeds from paydowns and maturities — 353 120 Other changes in loans, net 78 1,793 321 Advances to and investments in subsidiaries and affiliates, net (280 ) (51,967 ) (81 ) All other investing activities, net 17 114 153 Net cash provided by/(used in) investing activities (41 ) 10,642 30,598 Financing activities Net change in: Borrowings from subsidiaries and affiliates (b) 13,862 2,957 (4,062 ) Short-term borrowings (481 ) 109 (47,483 ) Proceeds from long-term borrowings 25,855 41,498 42,121 Payments of long-term borrowings (29,812 ) (29,298 ) (30,077 ) Proceeds from issuance of preferred stock 1,258 — 5,893 Redemption of preferred stock (1,258 ) — — Treasury stock repurchased (15,410 ) (9,082 ) (5,616 ) Dividends paid (8,993 ) (8,476 ) (7,873 ) All other financing activities, net (1,361 ) (905 ) (840 ) Net cash used in financing activities (16,340 ) (3,197 ) (47,937 ) Net increase/(decrease) in cash and due from banks 50 39 (137 ) Cash and due from banks at the beginning of the year 113 74 211 Cash and due from banks at the end of the year $ 163 $ 113 $ 74 Cash interest paid $ 5,426 $ 4,550 $ 3,873 Cash income taxes paid, net 1,775 1,053 8,251 (a) In 2016, in connection with the Firm’s 2016 Resolution Submission, the Parent Company established the IHC, and contributed substantially all of its direct subsidiaries (totaling $55.4 billion ) other than JPMorgan Chase Bank, N.A., as well as most of its other assets (totaling $160.5 billion ) and intercompany indebtedness to the IHC. Total noncash assets contributed were $62.3 billion . In 2017, the Parent Company transferred $16.2 billion of noncash assets to the IHC to complete the contributions to the IHC. (b) Affiliates include trusts that issued guaranteed capital debt securities (“issuer trusts”). For further discussion on these issuer trusts, see Note 19 . (c) At December 31, 2017 , long-term debt that contractually matures in 2018 through 2022 totaled $20.6 billion , $13.3 billion , $22.4 billion , $20.6 billion and $10.5 billion , respectively. (d) For information regarding the Parent Company’s guarantees of its subsidiaries’ obligations, see Notes 19 and 27 . |
Fair Value Measurement - Recurr
Fair Value Measurement - Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Gross derivative receivables | $ 559,553 | $ 922,616 | ||
Derivative netting adjustments | (503,030) | (858,538) | ||
Net derivative receivables | 56,523 | 64,078 | ||
Trading assets | 381,844 | 372,130 | ||
Available-for-sale securities | 202,225 | 238,891 | ||
Loans | 2,508 | 2,230 | ||
Mortgage servicing rights | 6,030 | 6,096 | $ 6,608 | $ 7,436 |
Derivative payables, gross | 530,806 | 893,239 | ||
Derivative netting adjustments | (493,029) | (844,008) | ||
Derivative payables, net | 37,777 | 49,231 | ||
Fair value assets and liabilities measured on recurring basis - supplemental data | ||||
Alternative investments, net asset value, fair value | 779 | 1,000 | ||
Other assets | ||||
Fair value assets and liabilities measured on recurring basis - supplemental data | ||||
Alternative investments, net asset value, fair value | 725 | 977 | ||
Trading assets | ||||
Fair value assets and liabilities measured on recurring basis - supplemental data | ||||
Alternative investments, net asset value, fair value | 54 | 52 | ||
Interest rate | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Gross derivative receivables | 315,992 | 605,963 | ||
Derivative netting adjustments | (291,319) | (577,661) | ||
Net derivative receivables | 24,673 | 28,302 | ||
Derivative payables, gross | 284,436 | 570,778 | ||
Derivative netting adjustments | (277,306) | (559,963) | ||
Derivative payables, net | 7,129 | 10,815 | ||
Credit | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Gross derivative receivables | 23,205 | 29,645 | ||
Derivative netting adjustments | (22,335) | (28,351) | ||
Net derivative receivables | 869 | 1,294 | ||
Derivative payables, gross | 23,252 | 28,666 | ||
Derivative netting adjustments | (21,954) | (27,255) | ||
Derivative payables, net | 1,299 | 1,411 | ||
Foreign exchange | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Gross derivative receivables | 160,231 | 233,426 | ||
Derivative netting adjustments | (144,081) | (210,154) | ||
Net derivative receivables | 16,151 | 23,271 | ||
Derivative payables, gross | 155,822 | 234,971 | ||
Derivative netting adjustments | (143,349) | (214,463) | ||
Derivative payables, net | 12,473 | 20,508 | ||
Equity | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Gross derivative receivables | 40,040 | 34,940 | ||
Derivative netting adjustments | (32,158) | (30,001) | ||
Net derivative receivables | 7,882 | 4,939 | ||
Derivative payables, gross | 45,395 | 38,362 | ||
Derivative netting adjustments | (36,203) | (30,222) | ||
Derivative payables, net | 9,192 | 8,140 | ||
Commodity | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Gross derivative receivables | 20,085 | 18,642 | ||
Derivative netting adjustments | (13,137) | (12,371) | ||
Net derivative receivables | 6,948 | 6,272 | ||
Derivative payables, gross | 21,901 | 20,462 | ||
Derivative netting adjustments | (14,217) | (12,105) | ||
Derivative payables, net | 7,684 | 8,357 | ||
Obligations of U.S. states and municipalities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 9,800 | 9,100 | ||
US government-sponsored and enterprises obligations | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Available-for-sale securities | 45,800 | 45,800 | ||
Residential mortgage | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 11,400 | 16,500 | ||
Commercial mortgage | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 4,200 | 3,300 | ||
Residential conforming mortgage intended for sale to government agency | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 5,700 | 11,000 | ||
Reverse mortgage | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 836 | 2,000 | ||
Recurring | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Federal funds sold and securities purchased under resale agreements | 14,732 | 21,506 | ||
Securities borrowed | 3,049 | 0 | ||
Trading assets | 325,267 | 308,000 | ||
Derivative netting adjustments | (503,030) | (858,538) | ||
Net derivative receivables | 56,523 | 64,078 | ||
Trading assets | 381,790 | 372,078 | ||
Available-for-sale securities | 202,225 | 238,891 | ||
Loans | 2,508 | 2,230 | ||
Mortgage servicing rights | 6,030 | 6,096 | ||
Total assets measured at fair value on a recurring basis | 625,737 | 647,381 | ||
Deposits | 21,321 | 13,912 | ||
Federal funds purchased and securities loaned or sold under repurchase agreements | 697 | 687 | ||
Short-term borrowings | 9,191 | 9,105 | ||
Trading liabilities, Debt and equity instruments | 85,886 | 87,428 | ||
Derivative netting adjustments | (493,029) | (844,008) | ||
Derivative payables, net | 37,777 | 49,231 | ||
Trading liabilities | 123,663 | 136,659 | ||
Accounts payable and other liabilities | 9,208 | 9,120 | ||
Beneficial interests issued by consolidated VIEs | 45 | 120 | ||
Long-term debt | 47,519 | 37,686 | ||
Total liabilities measured at fair value on a recurring basis | 211,644 | 207,289 | ||
Recurring | Other assets | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Other assets | 15,403 | 6,580 | ||
Recurring | Interest rate | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Derivative netting adjustments | (291,319) | (577,661) | ||
Net derivative receivables | 24,673 | 28,302 | ||
Derivative netting adjustments | (277,306) | (559,963) | ||
Derivative payables, net | 7,129 | 10,815 | ||
Recurring | Credit | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Derivative netting adjustments | (22,335) | (28,351) | ||
Net derivative receivables | 869 | 1,294 | ||
Derivative netting adjustments | (21,954) | (27,255) | ||
Derivative payables, net | 1,299 | 1,411 | ||
Recurring | Foreign exchange | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Derivative netting adjustments | (144,081) | (210,154) | ||
Net derivative receivables | 16,151 | 23,271 | ||
Derivative netting adjustments | (143,349) | (214,463) | ||
Derivative payables, net | 12,473 | 20,508 | ||
Recurring | Equity | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Derivative netting adjustments | (32,158) | (30,001) | ||
Net derivative receivables | 7,882 | 4,939 | ||
Derivative netting adjustments | (36,203) | (30,222) | ||
Derivative payables, net | 9,192 | 8,140 | ||
Recurring | Commodity | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Derivative netting adjustments | (13,137) | (12,371) | ||
Net derivative receivables | 6,948 | 6,272 | ||
Derivative netting adjustments | (14,217) | (12,105) | ||
Derivative payables, net | 7,684 | 8,357 | ||
Recurring | Total debt instruments | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 216,296 | 193,666 | ||
Recurring | Total mortgage-backed securities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 45,373 | 43,964 | ||
Available-for-sale securities | 86,672 | 87,552 | ||
Recurring | Mortgage-backed securities, U.S. government agencies | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 41,822 | 40,991 | ||
Available-for-sale securities | 70,280 | 64,005 | ||
Recurring | Mortgage-backed securities, Residential - nonagency | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 1,895 | 1,635 | ||
Available-for-sale securities | 11,367 | 14,443 | ||
Recurring | Mortgage-backed securities, Commercial - nonagency | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 1,656 | 1,338 | ||
Available-for-sale securities | 5,025 | 9,104 | ||
Recurring | U.S. Treasury and government agencies | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 37,234 | 24,755 | ||
Available-for-sale securities | 22,745 | 44,101 | ||
Recurring | Obligations of U.S. states and municipalities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 9,811 | 9,052 | ||
Available-for-sale securities | 32,338 | 31,592 | ||
Recurring | Certificates of deposit, bankers’ acceptances and commercial paper | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 226 | 1,649 | ||
Recurring | Certificates of deposit | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Available-for-sale securities | 59 | 106 | ||
Recurring | Non-U.S. government debt securities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 57,796 | 51,565 | ||
Available-for-sale securities | 27,294 | 35,288 | ||
Recurring | Corporate debt securities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 24,458 | 23,327 | ||
Available-for-sale securities | 2,757 | 4,958 | ||
Recurring | Loans | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 37,961 | 33,802 | ||
Recurring | Asset-backed securities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 3,437 | 5,552 | ||
Recurring | Asset-backed securities, Collateralized loan obligations | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Available-for-sale securities | 20,996 | 27,401 | ||
Recurring | Asset-backed securities, other | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Available-for-sale securities | 8,817 | 6,967 | ||
Recurring | Equity securities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 87,838 | 97,271 | ||
Available-for-sale securities | 547 | 926 | ||
Recurring | Physical commodities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 6,246 | 6,961 | ||
Recurring | Other | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 14,887 | 10,102 | ||
Recurring | US government-sponsored and enterprises obligations | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 78,000 | 80,600 | ||
Recurring | Level 1 | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Federal funds sold and securities purchased under resale agreements | 0 | 0 | ||
Securities borrowed | 0 | 0 | ||
Trading assets | 151,915 | 150,110 | ||
Gross derivative receivables | 1,022 | 1,685 | ||
Trading assets | 152,937 | 151,795 | ||
Available-for-sale securities | 41,432 | 67,791 | ||
Loans | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | ||
Total assets measured at fair value on a recurring basis | 208,164 | 223,943 | ||
Deposits | 0 | 0 | ||
Federal funds purchased and securities loaned or sold under repurchase agreements | 0 | 0 | ||
Short-term borrowings | 0 | 0 | ||
Trading liabilities, Debt and equity instruments | 64,664 | 68,304 | ||
Derivative payables, gross | 964 | 1,614 | ||
Trading liabilities | 65,628 | 69,918 | ||
Accounts payable and other liabilities | 9,074 | 9,107 | ||
Beneficial interests issued by consolidated VIEs | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Total liabilities measured at fair value on a recurring basis | 74,702 | 79,025 | ||
Recurring | Level 1 | Other assets | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Other assets | 13,795 | 4,357 | ||
Recurring | Level 1 | Interest rate | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Gross derivative receivables | 181 | 715 | ||
Derivative payables, gross | 170 | 539 | ||
Recurring | Level 1 | Credit | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Gross derivative receivables | 0 | 0 | ||
Derivative payables, gross | 0 | 0 | ||
Recurring | Level 1 | Foreign exchange | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Gross derivative receivables | 841 | 812 | ||
Derivative payables, gross | 794 | 902 | ||
Recurring | Level 1 | Equity | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Gross derivative receivables | 0 | 0 | ||
Derivative payables, gross | 0 | 0 | ||
Recurring | Level 1 | Commodity | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Gross derivative receivables | 0 | 158 | ||
Derivative payables, gross | 0 | 173 | ||
Recurring | Level 1 | Total debt instruments | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 59,645 | 48,010 | ||
Recurring | Level 1 | Total mortgage-backed securities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 0 | 13 | ||
Available-for-sale securities | 0 | 0 | ||
Recurring | Level 1 | Mortgage-backed securities, U.S. government agencies | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 0 | 13 | ||
Available-for-sale securities | 0 | 0 | ||
Recurring | Level 1 | Mortgage-backed securities, Residential - nonagency | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 0 | 0 | ||
Available-for-sale securities | 0 | 0 | ||
Recurring | Level 1 | Mortgage-backed securities, Commercial - nonagency | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 0 | 0 | ||
Available-for-sale securities | 0 | 0 | ||
Recurring | Level 1 | U.S. Treasury and government agencies | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 30,758 | 19,554 | ||
Available-for-sale securities | 22,745 | 44,072 | ||
Recurring | Level 1 | Obligations of U.S. states and municipalities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 0 | 0 | ||
Available-for-sale securities | 0 | 0 | ||
Recurring | Level 1 | Certificates of deposit, bankers’ acceptances and commercial paper | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 0 | 0 | ||
Recurring | Level 1 | Certificates of deposit | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Available-for-sale securities | 0 | 0 | ||
Recurring | Level 1 | Non-U.S. government debt securities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 28,887 | 28,443 | ||
Available-for-sale securities | 18,140 | 22,793 | ||
Recurring | Level 1 | Corporate debt securities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 0 | 0 | ||
Available-for-sale securities | 0 | 0 | ||
Recurring | Level 1 | Loans | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 0 | 0 | ||
Recurring | Level 1 | Asset-backed securities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 0 | 0 | ||
Recurring | Level 1 | Asset-backed securities, Collateralized loan obligations | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Available-for-sale securities | 0 | 0 | ||
Recurring | Level 1 | Asset-backed securities, other | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Available-for-sale securities | 0 | 0 | ||
Recurring | Level 1 | Equity securities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 87,346 | 96,759 | ||
Available-for-sale securities | 547 | 926 | ||
Recurring | Level 1 | Physical commodities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 4,924 | 5,341 | ||
Recurring | Level 1 | Other | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 0 | 0 | ||
Recurring | Level 2 | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Federal funds sold and securities purchased under resale agreements | 14,732 | 21,506 | ||
Securities borrowed | 3,049 | 0 | ||
Trading assets | 167,982 | 149,996 | ||
Gross derivative receivables | 552,533 | 915,138 | ||
Trading assets | 720,515 | 1,065,134 | ||
Available-for-sale securities | 160,516 | 170,436 | ||
Loans | 2,232 | 1,660 | ||
Mortgage servicing rights | 0 | 0 | ||
Total assets measured at fair value on a recurring basis | 901,387 | 1,258,736 | ||
Deposits | 17,179 | 11,795 | ||
Federal funds purchased and securities loaned or sold under repurchase agreements | 697 | 687 | ||
Short-term borrowings | 7,526 | 7,971 | ||
Trading liabilities, Debt and equity instruments | 21,183 | 19,081 | ||
Derivative payables, gross | 519,594 | 883,472 | ||
Trading liabilities | 540,777 | 902,553 | ||
Accounts payable and other liabilities | 121 | 0 | ||
Beneficial interests issued by consolidated VIEs | 6 | 72 | ||
Long-term debt | 31,394 | 24,836 | ||
Total liabilities measured at fair value on a recurring basis | 597,700 | 947,914 | ||
Recurring | Level 2 | Other assets | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Other assets | 343 | 0 | ||
Recurring | Level 2 | Interest rate | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Gross derivative receivables | 314,107 | 602,747 | ||
Derivative payables, gross | 282,825 | 569,001 | ||
Recurring | Level 2 | Credit | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Gross derivative receivables | 21,995 | 28,256 | ||
Derivative payables, gross | 22,009 | 27,375 | ||
Recurring | Level 2 | Foreign exchange | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Gross derivative receivables | 158,834 | 231,743 | ||
Derivative payables, gross | 154,075 | 231,815 | ||
Recurring | Level 2 | Equity | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Gross derivative receivables | 37,722 | 34,032 | ||
Derivative payables, gross | 39,668 | 35,202 | ||
Recurring | Level 2 | Commodity | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Gross derivative receivables | 19,875 | 18,360 | ||
Derivative payables, gross | 21,017 | 20,079 | ||
Recurring | Level 2 | Total debt instruments | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 152,266 | 138,754 | ||
Recurring | Level 2 | Total mortgage-backed securities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 44,995 | 43,459 | ||
Available-for-sale securities | 86,671 | 87,551 | ||
Recurring | Level 2 | Mortgage-backed securities, U.S. government agencies | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 41,515 | 40,586 | ||
Available-for-sale securities | 70,280 | 64,005 | ||
Recurring | Level 2 | Mortgage-backed securities, Residential - nonagency | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 1,835 | 1,552 | ||
Available-for-sale securities | 11,366 | 14,442 | ||
Recurring | Level 2 | Mortgage-backed securities, Commercial - nonagency | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 1,645 | 1,321 | ||
Available-for-sale securities | 5,025 | 9,104 | ||
Recurring | Level 2 | U.S. Treasury and government agencies | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 6,475 | 5,201 | ||
Available-for-sale securities | 0 | 29 | ||
Recurring | Level 2 | Obligations of U.S. states and municipalities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 9,067 | 8,403 | ||
Available-for-sale securities | 32,338 | 31,592 | ||
Recurring | Level 2 | Certificates of deposit, bankers’ acceptances and commercial paper | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 226 | 1,649 | ||
Recurring | Level 2 | Certificates of deposit | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Available-for-sale securities | 59 | 106 | ||
Recurring | Level 2 | Non-U.S. government debt securities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 28,831 | 23,076 | ||
Available-for-sale securities | 9,154 | 12,495 | ||
Recurring | Level 2 | Corporate debt securities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 24,146 | 22,751 | ||
Available-for-sale securities | 2,757 | 4,958 | ||
Recurring | Level 2 | Loans | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 35,242 | 28,965 | ||
Recurring | Level 2 | Asset-backed securities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 3,284 | 5,250 | ||
Recurring | Level 2 | Asset-backed securities, Collateralized loan obligations | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Available-for-sale securities | 20,720 | 26,738 | ||
Recurring | Level 2 | Asset-backed securities, other | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Available-for-sale securities | 8,817 | 6,967 | ||
Recurring | Level 2 | Equity securities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 197 | 281 | ||
Available-for-sale securities | 0 | 0 | ||
Recurring | Level 2 | Physical commodities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 1,322 | 1,620 | ||
Recurring | Level 2 | Other | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 14,197 | 9,341 | ||
Recurring | Level 3 | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Federal funds sold and securities purchased under resale agreements | 0 | 0 | ||
Securities borrowed | 0 | 0 | ||
Trading assets | 5,370 | 7,894 | ||
Gross derivative receivables | 5,998 | 5,793 | ||
Trading assets | 11,368 | 13,687 | ||
Available-for-sale securities | 277 | 664 | ||
Loans | 276 | 570 | ||
Mortgage servicing rights | 6,030 | 6,096 | ||
Total assets measured at fair value on a recurring basis | 19,216 | 23,240 | ||
Deposits | 4,142 | 2,117 | ||
Federal funds purchased and securities loaned or sold under repurchase agreements | 0 | 0 | ||
Short-term borrowings | 1,665 | 1,134 | ||
Trading liabilities, Debt and equity instruments | 39 | 43 | ||
Derivative payables, gross | 10,248 | 8,153 | ||
Trading liabilities | 10,287 | 8,196 | ||
Accounts payable and other liabilities | 13 | 13 | ||
Beneficial interests issued by consolidated VIEs | 39 | 48 | ||
Long-term debt | 16,125 | 12,850 | ||
Total liabilities measured at fair value on a recurring basis | 32,271 | 24,358 | ||
Recurring | Level 3 | Other assets | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Other assets | 1,265 | 2,223 | ||
Recurring | Level 3 | Interest rate | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Gross derivative receivables | 1,704 | 2,501 | ||
Derivative payables, gross | 1,440 | 1,238 | ||
Recurring | Level 3 | Credit | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Gross derivative receivables | 1,209 | 1,389 | ||
Derivative payables, gross | 1,244 | 1,291 | ||
Recurring | Level 3 | Foreign exchange | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Gross derivative receivables | 557 | 870 | ||
Derivative payables, gross | 953 | 2,254 | ||
Recurring | Level 3 | Equity | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Gross derivative receivables | 2,318 | 908 | ||
Derivative payables, gross | 5,727 | 3,160 | ||
Recurring | Level 3 | Commodity | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Gross derivative receivables | 210 | 125 | ||
Derivative payables, gross | 884 | 210 | ||
Recurring | Level 3 | Total debt instruments | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 4,385 | 6,902 | ||
Recurring | Level 3 | Total mortgage-backed securities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 378 | 492 | ||
Available-for-sale securities | 1 | 1 | ||
Recurring | Level 3 | Mortgage-backed securities, U.S. government agencies | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 307 | 392 | ||
Available-for-sale securities | 0 | 0 | ||
Recurring | Level 3 | Mortgage-backed securities, Residential - nonagency | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 60 | 83 | ||
Available-for-sale securities | 1 | 1 | ||
Recurring | Level 3 | Mortgage-backed securities, Commercial - nonagency | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 11 | 17 | ||
Available-for-sale securities | 0 | 0 | ||
Recurring | Level 3 | U.S. Treasury and government agencies | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 1 | 0 | ||
Available-for-sale securities | 0 | 0 | ||
Recurring | Level 3 | Obligations of U.S. states and municipalities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 744 | 649 | ||
Available-for-sale securities | 0 | 0 | ||
Recurring | Level 3 | Certificates of deposit, bankers’ acceptances and commercial paper | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 0 | 0 | ||
Recurring | Level 3 | Certificates of deposit | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Available-for-sale securities | 0 | 0 | ||
Recurring | Level 3 | Non-U.S. government debt securities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 78 | 46 | ||
Available-for-sale securities | 0 | 0 | ||
Recurring | Level 3 | Corporate debt securities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 312 | 576 | ||
Available-for-sale securities | 0 | 0 | ||
Recurring | Level 3 | Loans | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 2,719 | 4,837 | ||
Recurring | Level 3 | Asset-backed securities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 153 | 302 | ||
Recurring | Level 3 | Asset-backed securities, Collateralized loan obligations | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Available-for-sale securities | 276 | 663 | ||
Recurring | Level 3 | Asset-backed securities, other | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Available-for-sale securities | 0 | 0 | ||
Recurring | Level 3 | Equity securities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 295 | 231 | ||
Available-for-sale securities | 0 | 0 | ||
Recurring | Level 3 | Physical commodities | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | 0 | 0 | ||
Recurring | Level 3 | Other | ||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | ||||
Trading assets | $ 690 | $ 761 |
Fair Value Measurement - Transf
Fair Value Measurement - Transfers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Trading loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers from level 2 into level 3, assets | $ 806 | $ 1,044 | $ 509 |
Transfers from level 3 into level 2, assets | 1,491 | 787 | 2,777 |
Corporate debt | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers from level 2 into level 3, assets | 157 | 148 | 179 |
Transfers from level 3 into level 2, assets | 195 | 207 | 2,363 |
Long-term debt | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers from level 3 into level 2, liabilities | 925 | 1,389 | 3,101 |
Transfers from level 2 into level 3, liabilities | 1,660 | 315 | 315 |
Recurring | Derivative receivables | Equity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers from level 2 into level 3, assets | 1,000 | 1,100 | 1,200 |
Transfers from level 3 into level 2, assets | 2,100 | ||
Recurring | Trading loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers from level 2 into level 3, assets | 1,700 | 1,000 | |
Transfers from level 3 into level 2, assets | 2,100 | 2,800 | |
Recurring | Deposits | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers from level 3 into level 2, assets | 1,000 | ||
Recurring | Corporate debt | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers from level 2 into level 3, assets | 2,400 | ||
Recurring | Long-term debt | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers from level 3 into level 2, liabilities | 1,500 | 1,400 | 3,100 |
Recurring | Derivative payables | Equity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers from level 3 into level 2, liabilities | 1,200 | 2,100 | |
Transfers from level 2 into level 3, liabilities | $ 2,500 | $ 1,000 | $ 1,200 |
Fair Value Measurement - Level
Fair Value Measurement - Level 3 Inputs (Details) $ / shares in Units, $ in Millions | Dec. 31, 2017USD ($)$ / shares$ / bbl | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability) | $ (4,250) | $ (2,360) | $ (1,749) | $ (2,061) |
Assumed par value for price input (in dollars per share) | $ / shares | $ 100 | |||
Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Liability fair value | $ 211,644 | 207,289 | ||
Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Liability fair value | 32,271 | 24,358 | ||
Other level 3 assets and liabilities, net | $ 283 | |||
Long-term debt, other borrowed funds, and deposits | Option pricing | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Interest rate spread volatility | 0.27% | |||
Interest rate correlation | (50.00%) | |||
IR-FX correlation | (50.00%) | |||
Equity correlation | 0.00% | |||
Equity-FX correlation | (50.00%) | |||
Equity-IR correlation | 10.00% | |||
Long-term debt, other borrowed funds, and deposits | Option pricing | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Interest rate spread volatility | 0.38% | |||
Interest rate correlation | 98.00% | |||
IR-FX correlation | 70.00% | |||
Equity correlation | 85.00% | |||
Equity-FX correlation | 30.00% | |||
Equity-IR correlation | 40.00% | |||
Long-term debt, other borrowed funds, and deposits | Option pricing | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Liability fair value | $ 21,932 | |||
Interest rate | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability) | $ 264 | 1,263 | 876 | 626 |
Interest rate | Discounted cash flows | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Prepayment speed | 0.00% | |||
Interest rate | Discounted cash flows | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Prepayment speed | 30.00% | |||
Interest rate | Discounted cash flows | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability) | $ 236 | |||
Interest rate | Option pricing | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Interest rate spread volatility | 0.27% | |||
Interest rate correlation | (50.00%) | |||
IR-FX correlation | 60.00% | |||
Interest rate | Option pricing | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Interest rate spread volatility | 0.38% | |||
Interest rate correlation | 98.00% | |||
IR-FX correlation | 70.00% | |||
Interest rate | Option pricing | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability) | $ 28 | |||
Credit | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability) | $ (35) | 98 | 549 | 189 |
Credit | Discounted cash flows | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Yield | 1.00% | |||
Prepayment speed | 4.00% | |||
Conditional default rate | 0.00% | |||
Loss severity | 4.00% | |||
Credit spread | 0.06% | |||
Credit correlation | 40.00% | |||
Recovery rate | 20.00% | |||
Credit | Discounted cash flows | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Yield | 20.00% | |||
Prepayment speed | 21.00% | |||
Conditional default rate | 100.00% | |||
Loss severity | 100.00% | |||
Credit spread | 14.89% | |||
Credit correlation | 75.00% | |||
Recovery rate | 70.00% | |||
Credit | Discounted cash flows | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability) | $ (37) | |||
Credit | Market comparables | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ / shares | $ 10 | |||
Credit | Market comparables | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ / shares | $ 98 | |||
Credit | Market comparables | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability) | $ 2 | |||
Foreign exchange | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability) | $ (396) | (1,384) | (725) | (526) |
Foreign exchange | Discounted cash flows | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Prepayment speed | 7.00% | |||
Foreign exchange | Discounted cash flows | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Prepayment speed | 7.00% | |||
Foreign exchange | Discounted cash flows | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability) | $ (196) | |||
Foreign exchange | Option pricing | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
IR-FX correlation | (50.00%) | |||
Foreign exchange | Option pricing | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
IR-FX correlation | 70.00% | |||
Foreign exchange | Option pricing | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability) | $ (200) | |||
Equity | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability) | $ (3,409) | (2,252) | (1,514) | (1,785) |
Equity | Option pricing | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Equity volatility | 20.00% | |||
Equity correlation | 0.00% | |||
Equity-FX correlation | (50.00%) | |||
Equity-IR correlation | 10.00% | |||
Equity | Option pricing | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Equity volatility | 55.00% | |||
Equity correlation | 85.00% | |||
Equity-FX correlation | 30.00% | |||
Equity-IR correlation | 40.00% | |||
Equity | Option pricing | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability) | $ (3,409) | |||
Commodity | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability) | $ (674) | $ (85) | $ (935) | $ (565) |
Commodity | Discounted cash flows | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Forward commodity price | $ / bbl | 54 | |||
Commodity | Discounted cash flows | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Forward commodity price | $ / bbl | 68 | |||
Commodity | Option pricing | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Commodity volatility | 5.00% | |||
Commodity correlation | (40.00%) | |||
Commodity | Option pricing | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Commodity volatility | 46.00% | |||
Commodity correlation | 70.00% | |||
Commodity | Option pricing | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability) | $ (674) | |||
Residential mortgage-backed securities and loans | Discounted cash flows | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Yield | 3.00% | |||
Prepayment speed | 0.00% | |||
Conditional default rate | 0.00% | |||
Loss severity | 0.00% | |||
Residential mortgage-backed securities and loans | Discounted cash flows | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Yield | 16.00% | |||
Prepayment speed | 13.00% | |||
Conditional default rate | 5.00% | |||
Loss severity | 84.00% | |||
Residential mortgage-backed securities and loans | Discounted cash flows | Weighted Average | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Yield | 6.00% | |||
Prepayment speed | 9.00% | |||
Conditional default rate | 1.00% | |||
Loss severity | 3.00% | |||
Residential mortgage-backed securities and loans | Discounted cash flows | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Asset fair value | $ 1,418 | |||
Commercial mortgage-backed securities and loans | Market comparables | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ / shares | $ 0 | |||
Commercial mortgage-backed securities and loans | Market comparables | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ / shares | 100 | |||
Commercial mortgage-backed securities and loans | Market comparables | Weighted Average | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ / shares | $ 94 | |||
Commercial mortgage-backed securities and loans | Market comparables | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Asset fair value | $ 714 | |||
Obligations of U.S. states and municipalities | Market comparables | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ / shares | $ 59 | |||
Obligations of U.S. states and municipalities | Market comparables | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ / shares | 100 | |||
Obligations of U.S. states and municipalities | Market comparables | Weighted Average | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ / shares | $ 98 | |||
Obligations of U.S. states and municipalities | Market comparables | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Asset fair value | $ 744 | |||
Corporate debt securities | Market comparables | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ / shares | $ 3 | |||
Corporate debt securities | Market comparables | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ / shares | 111 | |||
Corporate debt securities | Market comparables | Weighted Average | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ / shares | $ 82 | |||
Corporate debt securities | Market comparables | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Asset fair value | $ 312 | |||
Loans | Market comparables | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ / shares | $ 4 | |||
Loans | Market comparables | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ / shares | 103 | |||
Loans | Market comparables | Weighted Average | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ / shares | $ 84 | |||
Loans | Market comparables | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Asset fair value | $ 1,242 | |||
Loans | Market comparables | Recurring | Level 3 | Loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Asset fair value | $ 1,200 | |||
Asset-backed securities | Discounted cash flows | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Prepayment speed | 20.00% | |||
Conditional default rate | 2.00% | |||
Loss severity | 30.00% | |||
Credit spread | 2.04% | |||
Asset-backed securities | Discounted cash flows | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Prepayment speed | 20.00% | |||
Conditional default rate | 2.00% | |||
Loss severity | 30.00% | |||
Credit spread | 2.05% | |||
Asset-backed securities | Discounted cash flows | Weighted Average | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Prepayment speed | 20.00% | |||
Conditional default rate | 2.00% | |||
Loss severity | 30.00% | |||
Credit spread | 2.05% | |||
Asset-backed securities | Discounted cash flows | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Asset fair value | $ 276 | |||
Asset-backed securities | Market comparables | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ / shares | $ 2 | |||
Asset-backed securities | Market comparables | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ / shares | 160 | |||
Asset-backed securities | Market comparables | Weighted Average | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Price (in dollars per share) | $ / shares | $ 79 | |||
Asset-backed securities | Market comparables | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Asset fair value | $ 153 | |||
MSRs | Discounted cash flows | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Asset fair value | $ 6,030 | |||
Other assets | Discounted cash flows | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Yield | 8.00% | |||
Credit spread | 0.40% | |||
Other assets | Discounted cash flows | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Yield | 60.00% | |||
Credit spread | 0.70% | |||
Other assets | Discounted cash flows | Weighted Average | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Yield | 47.00% | |||
Credit spread | 0.55% | |||
Other assets | Discounted cash flows | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Asset fair value | $ 984 | |||
Other assets | Market comparables | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
EBITDA multiple | 4.7 | |||
Other assets | Market comparables | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
EBITDA multiple | 10.6 | |||
Other assets | Market comparables | Weighted Average | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
EBITDA multiple | 8.9 | |||
Other assets | Market comparables | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Asset fair value | $ 971 | |||
Residential mortgage-backed securities | Discounted cash flows | Recurring | Level 3 | Mortgage-backed securities, U.S. government agencies | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Asset fair value | 297 | |||
Residential mortgage-backed securities | Discounted cash flows | Recurring | Level 3 | Residential mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Asset fair value | 61 | |||
Residential mortgage-backed securities | Discounted cash flows | Recurring | Level 3 | Loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Asset fair value | 1,100 | |||
Commercial | Market comparables | Recurring | Level 3 | Mortgage-backed securities, U.S. government agencies | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Asset fair value | 10 | |||
Commercial | Market comparables | Recurring | Level 3 | Commercial | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Asset fair value | 11 | |||
Commercial | Market comparables | Recurring | Level 3 | Loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Asset fair value | 417 | |||
Commercial | Market comparables | Recurring | Level 3 | Nontrading loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Asset fair value | $ 276 |
Fair Value Measurement - Change
Fair Value Measurement - Changes in Level 3 Recurring Measurements (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net derivative receivables: | |||
Beginning balance | $ (2,360,000,000) | $ (1,749,000,000) | $ (2,061,000,000) |
Total realized/unrealized gains/(losses) | (615,000,000) | 130,000,000 | 1,612,000,000 |
Purchases | 1,190,000,000 | 545,000,000 | 1,552,000,000 |
Sales | (649,000,000) | (1,025,000,000) | (1,744,000,000) |
Settlements | (864,000,000) | (293,000,000) | (509,000,000) |
Transfers into level 3 | (1,480,000,000) | 76,000,000 | 58,000,000 |
Transfers (out of) level 3 | 528,000,000 | (44,000,000) | (657,000,000) |
Ending balance | (4,250,000,000) | (2,360,000,000) | (1,749,000,000) |
Change in unrealized gains/(losses) related to financial instruments held | $ (1,278,000,000) | $ (1,238,000,000) | $ 536,000,000 |
Level 3 Rollforward Supplemental Data [Abstract] | |||
Level 3 liabilities as a percentage of total firm liabilities at fair value | 15.00% | 12.00% | 13.00% |
Deposits | |||
Liabilities: | |||
Beginning balance | $ 2,117,000,000 | $ 2,950,000,000 | $ 2,859,000,000 |
Total realized/unrealized (gains)/losses | 152,000,000 | (56,000,000) | (39,000,000) |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | 3,027,000,000 | 1,375,000,000 | 1,993,000,000 |
Settlements | (291,000,000) | (1,283,000,000) | (850,000,000) |
Transfers into level 3 | 11,000,000 | 0 | 0 |
Transfers (out of) level 3 | (874,000,000) | (869,000,000) | (1,013,000,000) |
Ending balance | 4,142,000,000 | 2,117,000,000 | 2,950,000,000 |
Change in unrealized gains/(losses) related to financials instruments held | 198,000,000 | 23,000,000 | (29,000,000) |
Federal funds purchased and securities loaned or sold under repurchase agreements | |||
Liabilities: | |||
Beginning balance | 0 | 0 | |
Total realized/unrealized (gains)/losses | 0 | 0 | |
Purchases | 0 | 0 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | (2,000,000) | |
Transfers into level 3 | 0 | 6,000,000 | |
Transfers (out of) level 3 | 0 | (4,000,000) | |
Ending balance | 0 | 0 | 0 |
Change in unrealized gains/(losses) related to financials instruments held | 0 | 0 | |
Short-term borrowings | |||
Liabilities: | |||
Beginning balance | 1,134,000,000 | 639,000,000 | 1,453,000,000 |
Total realized/unrealized (gains)/losses | 42,000,000 | (230,000,000) | (697,000,000) |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | 3,289,000,000 | 1,876,000,000 | 3,334,000,000 |
Settlements | (2,748,000,000) | (1,210,000,000) | (2,963,000,000) |
Transfers into level 3 | 150,000,000 | 114,000,000 | 243,000,000 |
Transfers (out of) level 3 | (202,000,000) | (55,000,000) | (731,000,000) |
Ending balance | 1,665,000,000 | 1,134,000,000 | 639,000,000 |
Change in unrealized gains/(losses) related to financials instruments held | 7,000,000 | (70,000,000) | (57,000,000) |
Total debt and equity instruments | |||
Liabilities: | |||
Beginning balance | 43,000,000 | 63,000,000 | 72,000,000 |
Total realized/unrealized (gains)/losses | (3,000,000) | (12,000,000) | 15,000,000 |
Purchases | (46,000,000) | (15,000,000) | (163,000,000) |
Sales | 48,000,000 | 23,000,000 | 160,000,000 |
Issuances | 0 | 0 | 0 |
Settlements | 3,000,000 | (22,000,000) | (17,000,000) |
Transfers into level 3 | 3,000,000 | 13,000,000 | 12,000,000 |
Transfers (out of) level 3 | (9,000,000) | (7,000,000) | (16,000,000) |
Ending balance | 39,000,000 | 43,000,000 | 63,000,000 |
Change in unrealized gains/(losses) related to financials instruments held | 0 | (18,000,000) | (4,000,000) |
Accounts payable and other liabilities | |||
Liabilities: | |||
Beginning balance | 13,000,000 | 19,000,000 | 26,000,000 |
Total realized/unrealized (gains)/losses | (2,000,000) | 0 | 0 |
Purchases | (1,000,000) | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | 0 | 0 | 0 |
Settlements | 3,000,000 | (6,000,000) | (7,000,000) |
Transfers into level 3 | 0 | 0 | 0 |
Transfers (out of) level 3 | 0 | 0 | 0 |
Ending balance | 13,000,000 | 13,000,000 | 19,000,000 |
Change in unrealized gains/(losses) related to financials instruments held | (2,000,000) | 0 | 0 |
Beneficial interests issued by consolidated VIEs | |||
Liabilities: | |||
Beginning balance | 48,000,000 | 549,000,000 | 1,146,000,000 |
Total realized/unrealized (gains)/losses | 2,000,000 | (31,000,000) | (82,000,000) |
Purchases | (122,000,000) | 0 | 0 |
Sales | 39,000,000 | 0 | 0 |
Issuances | 0 | 143,000,000 | 286,000,000 |
Settlements | (6,000,000) | (613,000,000) | (574,000,000) |
Transfers into level 3 | 78,000,000 | 0 | 0 |
Transfers (out of) level 3 | 0 | 0 | (227,000,000) |
Ending balance | 39,000,000 | 48,000,000 | 549,000,000 |
Change in unrealized gains/(losses) related to financials instruments held | 0 | 6,000,000 | (63,000,000) |
Long-term debt | |||
Liabilities: | |||
Beginning balance | 12,850,000,000 | 11,447,000,000 | 11,877,000,000 |
Total realized/unrealized (gains)/losses | 1,067,000,000 | 147,000,000 | (480,000,000) |
Purchases | 0 | 0 | (58,000,000) |
Sales | 0 | 0 | 0 |
Issuances | 12,458,000,000 | 8,140,000,000 | 9,359,000,000 |
Settlements | (10,985,000,000) | (5,810,000,000) | (6,465,000,000) |
Transfers into level 3 | 1,660,000,000 | 315,000,000 | 315,000,000 |
Transfers (out of) level 3 | (925,000,000) | (1,389,000,000) | (3,101,000,000) |
Ending balance | 16,125,000,000 | 12,850,000,000 | 11,447,000,000 |
Change in unrealized gains/(losses) related to financials instruments held | 552,000,000 | 639,000,000 | 385,000,000 |
DVA for fair value option elected liabilities | |||
Level 3 Rollforward Supplemental Data [Abstract] | |||
Unrealized gains/(losses) on liabilities recorded in OCI | 48,000,000 | ||
Realized gains/(losses) on liabilities recorded in income | 0 | ||
Interest rate | |||
Net derivative receivables: | |||
Beginning balance | 1,263,000,000 | 876,000,000 | 626,000,000 |
Total realized/unrealized gains/(losses) | 72,000,000 | 756,000,000 | 962,000,000 |
Purchases | 60,000,000 | 193,000,000 | 513,000,000 |
Sales | (82,000,000) | (57,000,000) | (173,000,000) |
Settlements | (1,040,000,000) | (713,000,000) | (732,000,000) |
Transfers into level 3 | (8,000,000) | (14,000,000) | 6,000,000 |
Transfers (out of) level 3 | (1,000,000) | 222,000,000 | (326,000,000) |
Ending balance | 264,000,000 | 1,263,000,000 | 876,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | (473,000,000) | (144,000,000) | 263,000,000 |
Credit | |||
Net derivative receivables: | |||
Beginning balance | 98,000,000 | 549,000,000 | 189,000,000 |
Total realized/unrealized gains/(losses) | (164,000,000) | (742,000,000) | 118,000,000 |
Purchases | 1,000,000 | 10,000,000 | 129,000,000 |
Sales | (6,000,000) | (2,000,000) | (136,000,000) |
Settlements | 0 | 211,000,000 | 165,000,000 |
Transfers into level 3 | 77,000,000 | 36,000,000 | 29,000,000 |
Transfers (out of) level 3 | (41,000,000) | 36,000,000 | 55,000,000 |
Ending balance | (35,000,000) | 98,000,000 | 549,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | 32,000,000 | (622,000,000) | 260,000,000 |
Foreign exchange | |||
Net derivative receivables: | |||
Beginning balance | (1,384,000,000) | (725,000,000) | (526,000,000) |
Total realized/unrealized gains/(losses) | 43,000,000 | 67,000,000 | 657,000,000 |
Purchases | 13,000,000 | 64,000,000 | 19,000,000 |
Sales | (10,000,000) | (124,000,000) | (149,000,000) |
Settlements | 854,000,000 | (649,000,000) | (296,000,000) |
Transfers into level 3 | (61,000,000) | (48,000,000) | 36,000,000 |
Transfers (out of) level 3 | 149,000,000 | 31,000,000 | (466,000,000) |
Ending balance | (396,000,000) | (1,384,000,000) | (725,000,000) |
Change in unrealized gains/(losses) related to financial instruments held | 42,000,000 | (350,000,000) | 49,000,000 |
Equity | |||
Net derivative receivables: | |||
Beginning balance | (2,252,000,000) | (1,514,000,000) | (1,785,000,000) |
Total realized/unrealized gains/(losses) | (417,000,000) | (145,000,000) | 731,000,000 |
Purchases | 1,116,000,000 | 277,000,000 | 890,000,000 |
Sales | (551,000,000) | (852,000,000) | (1,262,000,000) |
Settlements | (245,000,000) | 213,000,000 | (158,000,000) |
Transfers into level 3 | (1,482,000,000) | 94,000,000 | 17,000,000 |
Transfers (out of) level 3 | 422,000,000 | (325,000,000) | 53,000,000 |
Ending balance | (3,409,000,000) | (2,252,000,000) | (1,514,000,000) |
Change in unrealized gains/(losses) related to financial instruments held | (161,000,000) | (86,000,000) | 5,000,000 |
Commodity | |||
Net derivative receivables: | |||
Beginning balance | (85,000,000) | (935,000,000) | (565,000,000) |
Total realized/unrealized gains/(losses) | (149,000,000) | 194,000,000 | (856,000,000) |
Purchases | 0 | 1,000,000 | 1,000,000 |
Sales | 0 | 10,000,000 | (24,000,000) |
Settlements | (433,000,000) | 645,000,000 | 512,000,000 |
Transfers into level 3 | (6,000,000) | 8,000,000 | (30,000,000) |
Transfers (out of) level 3 | (1,000,000) | (8,000,000) | 27,000,000 |
Ending balance | (674,000,000) | (85,000,000) | (935,000,000) |
Change in unrealized gains/(losses) related to financial instruments held | (718,000,000) | (36,000,000) | (41,000,000) |
Mortgage-backed securities | |||
Assets: | |||
Fair value, beginning balance | 492,000,000 | 1,024,000,000 | 1,891,000,000 |
Total realized/unrealized gains/(losses) | 17,000,000 | (27,000,000) | 88,000,000 |
Purchases | 241,000,000 | 456,000,000 | 826,000,000 |
Sales | (245,000,000) | (643,000,000) | (1,176,000,000) |
Settlements | (147,000,000) | (138,000,000) | (177,000,000) |
Transfers into level 3 | 245,000,000 | 351,000,000 | 322,000,000 |
Transfers (out of) level 3 | (225,000,000) | (531,000,000) | (750,000,000) |
Fair value, ending balance | 378,000,000 | 492,000,000 | 1,024,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | (8,000,000) | (28,000,000) | (28,000,000) |
Mortgage-backed securities, U.S. government agencies | |||
Assets: | |||
Fair value, beginning balance | 392,000,000 | 715,000,000 | 922,000,000 |
Total realized/unrealized gains/(losses) | (11,000,000) | (20,000,000) | (28,000,000) |
Purchases | 161,000,000 | 135,000,000 | 327,000,000 |
Sales | (171,000,000) | (295,000,000) | (303,000,000) |
Settlements | (70,000,000) | (115,000,000) | (132,000,000) |
Transfers into level 3 | 49,000,000 | 111,000,000 | 25,000,000 |
Transfers (out of) level 3 | (43,000,000) | (139,000,000) | (96,000,000) |
Fair value, ending balance | 307,000,000 | 392,000,000 | 715,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | (20,000,000) | (36,000,000) | (27,000,000) |
Mortgage-backed securities, Residential - nonagency | |||
Assets: | |||
Fair value, beginning balance | 83,000,000 | 194,000,000 | 663,000,000 |
Total realized/unrealized gains/(losses) | 19,000,000 | 4,000,000 | 130,000,000 |
Purchases | 53,000,000 | 252,000,000 | 253,000,000 |
Sales | (30,000,000) | (319,000,000) | (611,000,000) |
Settlements | (64,000,000) | (20,000,000) | (23,000,000) |
Transfers into level 3 | 132,000,000 | 67,000,000 | 180,000,000 |
Transfers (out of) level 3 | (133,000,000) | (95,000,000) | (398,000,000) |
Fair value, ending balance | 60,000,000 | 83,000,000 | 194,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | 11,000,000 | 5,000,000 | 4,000,000 |
Mortgage-backed securities, Commercial - nonagency | |||
Assets: | |||
Fair value, beginning balance | 17,000,000 | 115,000,000 | 306,000,000 |
Total realized/unrealized gains/(losses) | 9,000,000 | (11,000,000) | (14,000,000) |
Purchases | 27,000,000 | 69,000,000 | 246,000,000 |
Sales | (44,000,000) | (29,000,000) | (262,000,000) |
Settlements | (13,000,000) | (3,000,000) | (22,000,000) |
Transfers into level 3 | 64,000,000 | 173,000,000 | 117,000,000 |
Transfers (out of) level 3 | (49,000,000) | (297,000,000) | (256,000,000) |
Fair value, ending balance | 11,000,000 | 17,000,000 | 115,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | 1,000,000 | 3,000,000 | (5,000,000) |
Total debt and equity instruments | |||
Assets: | |||
Fair value, beginning balance | 7,894,000,000 | 11,930,000,000 | 22,489,000,000 |
Total realized/unrealized gains/(losses) | 550,000,000 | (235,000,000) | 32,000,000 |
Purchases | 4,773,000,000 | 4,763,000,000 | 9,676,000,000 |
Sales | (4,827,000,000) | (4,936,000,000) | (9,866,000,000) |
Settlements | (2,194,000,000) | (3,051,000,000) | (3,374,000,000) |
Transfers into level 3 | 1,422,000,000 | 1,905,000,000 | 1,320,000,000 |
Transfers (out of) level 3 | (2,248,000,000) | (2,482,000,000) | (8,347,000,000) |
Fair value, ending balance | 5,370,000,000 | 7,894,000,000 | 11,930,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | 128,000,000 | (172,000,000) | (89,000,000) |
Total debt instruments | |||
Assets: | |||
Fair value, beginning balance | 6,902,000,000 | 10,921,000,000 | 21,006,000,000 |
Total realized/unrealized gains/(losses) | 411,000,000 | (314,000,000) | (181,000,000) |
Purchases | 4,567,000,000 | 4,024,000,000 | 8,006,000,000 |
Sales | (4,633,000,000) | (4,541,000,000) | (8,360,000,000) |
Settlements | (2,028,000,000) | (2,651,000,000) | (3,540,000,000) |
Transfers into level 3 | 1,346,000,000 | 1,850,000,000 | 1,236,000,000 |
Transfers (out of) level 3 | (2,180,000,000) | (2,387,000,000) | (7,246,000,000) |
Fair value, ending balance | 4,385,000,000 | 6,902,000,000 | 10,921,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | 68,000,000 | (207,000,000) | (256,000,000) |
U.S. Treasury and government agencies | |||
Assets: | |||
Fair value, beginning balance | 0 | ||
Total realized/unrealized gains/(losses) | 0 | ||
Purchases | 0 | ||
Sales | 0 | ||
Settlements | 0 | ||
Transfers into level 3 | 1,000,000 | ||
Transfers (out of) level 3 | 0 | ||
Fair value, ending balance | 1,000,000 | 0 | |
Change in unrealized gains/(losses) related to financial instruments held | 0 | ||
Obligations of U.S. states and municipalities | |||
Assets: | |||
Fair value, beginning balance | 649,000,000 | 651,000,000 | 1,273,000,000 |
Total realized/unrealized gains/(losses) | 18,000,000 | 19,000,000 | 14,000,000 |
Purchases | 152,000,000 | 149,000,000 | 352,000,000 |
Sales | (70,000,000) | (132,000,000) | (133,000,000) |
Settlements | (5,000,000) | (38,000,000) | (27,000,000) |
Transfers into level 3 | 0 | 0 | 5,000,000 |
Transfers (out of) level 3 | 0 | 0 | (833,000,000) |
Fair value, ending balance | 744,000,000 | 649,000,000 | 651,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | 15,000,000 | 0 | (1,000,000) |
Non-U.S. government debt securities | |||
Assets: | |||
Fair value, beginning balance | 46,000,000 | 74,000,000 | 302,000,000 |
Total realized/unrealized gains/(losses) | 0 | (4,000,000) | 9,000,000 |
Purchases | 559,000,000 | 91,000,000 | 205,000,000 |
Sales | (518,000,000) | (97,000,000) | (123,000,000) |
Settlements | 0 | (7,000,000) | (64,000,000) |
Transfers into level 3 | 62,000,000 | 19,000,000 | 16,000,000 |
Transfers (out of) level 3 | (71,000,000) | (30,000,000) | (271,000,000) |
Fair value, ending balance | 78,000,000 | 46,000,000 | 74,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | 0 | (7,000,000) | (16,000,000) |
Corporate debt securities | |||
Assets: | |||
Fair value, beginning balance | 576,000,000 | 736,000,000 | 2,989,000,000 |
Total realized/unrealized gains/(losses) | 11,000,000 | 2,000,000 | (77,000,000) |
Purchases | 872,000,000 | 445,000,000 | 1,171,000,000 |
Sales | (612,000,000) | (359,000,000) | (1,038,000,000) |
Settlements | (497,000,000) | (189,000,000) | (125,000,000) |
Transfers into level 3 | 157,000,000 | 148,000,000 | 179,000,000 |
Transfers (out of) level 3 | (195,000,000) | (207,000,000) | (2,363,000,000) |
Fair value, ending balance | 312,000,000 | 576,000,000 | 736,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | 18,000,000 | (22,000,000) | 2,000,000 |
Loans | |||
Assets: | |||
Fair value, beginning balance | 4,837,000,000 | 6,604,000,000 | 13,287,000,000 |
Total realized/unrealized gains/(losses) | 333,000,000 | (343,000,000) | (174,000,000) |
Purchases | 2,389,000,000 | 2,228,000,000 | 3,532,000,000 |
Sales | (2,832,000,000) | (2,598,000,000) | (4,661,000,000) |
Settlements | (1,323,000,000) | (1,311,000,000) | (3,112,000,000) |
Transfers into level 3 | 806,000,000 | 1,044,000,000 | 509,000,000 |
Transfers (out of) level 3 | (1,491,000,000) | (787,000,000) | (2,777,000,000) |
Fair value, ending balance | 2,719,000,000 | 4,837,000,000 | 6,604,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | 43,000,000 | (169,000,000) | (181,000,000) |
Asset-backed securities | |||
Assets: | |||
Fair value, beginning balance | 302,000,000 | 1,832,000,000 | 1,264,000,000 |
Total realized/unrealized gains/(losses) | 32,000,000 | 39,000,000 | (41,000,000) |
Purchases | 354,000,000 | 655,000,000 | 1,920,000,000 |
Sales | (356,000,000) | (712,000,000) | (1,229,000,000) |
Settlements | (56,000,000) | (968,000,000) | (35,000,000) |
Transfers into level 3 | 75,000,000 | 288,000,000 | 205,000,000 |
Transfers (out of) level 3 | (198,000,000) | (832,000,000) | (252,000,000) |
Fair value, ending balance | 153,000,000 | 302,000,000 | 1,832,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | 0 | 19,000,000 | (32,000,000) |
Equity securities | |||
Assets: | |||
Fair value, beginning balance | 231,000,000 | 265,000,000 | 431,000,000 |
Total realized/unrealized gains/(losses) | 39,000,000 | 0 | 96,000,000 |
Purchases | 176,000,000 | 90,000,000 | 89,000,000 |
Sales | (148,000,000) | (108,000,000) | (193,000,000) |
Settlements | (4,000,000) | (40,000,000) | (26,000,000) |
Transfers into level 3 | 59,000,000 | 29,000,000 | 51,000,000 |
Transfers (out of) level 3 | (58,000,000) | (5,000,000) | (183,000,000) |
Fair value, ending balance | 295,000,000 | 231,000,000 | 265,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | 21,000,000 | 7,000,000 | 82,000,000 |
Physical commodities | |||
Assets: | |||
Fair value, beginning balance | 0 | 2,000,000 | |
Total realized/unrealized gains/(losses) | (2,000,000) | ||
Purchases | 0 | ||
Sales | 0 | ||
Settlements | 0 | ||
Transfers into level 3 | 0 | ||
Transfers (out of) level 3 | 0 | ||
Fair value, ending balance | 0 | ||
Change in unrealized gains/(losses) related to financial instruments held | 0 | ||
Other | |||
Assets: | |||
Fair value, beginning balance | 761,000,000 | 744,000,000 | 1,050,000,000 |
Total realized/unrealized gains/(losses) | 100,000,000 | 79,000,000 | 119,000,000 |
Purchases | 30,000,000 | 649,000,000 | 1,581,000,000 |
Sales | (46,000,000) | (287,000,000) | (1,313,000,000) |
Settlements | (162,000,000) | (360,000,000) | 192,000,000 |
Transfers into level 3 | 17,000,000 | 26,000,000 | 33,000,000 |
Transfers (out of) level 3 | (10,000,000) | (90,000,000) | (918,000,000) |
Fair value, ending balance | 690,000,000 | 761,000,000 | 744,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | 39,000,000 | 28,000,000 | 85,000,000 |
Total available-for-sale securities | |||
Assets: | |||
Fair value, beginning balance | 664,000,000 | 824,000,000 | 1,037,000,000 |
Total realized/unrealized gains/(losses) | 15,000,000 | 1,000,000 | (32,000,000) |
Purchases | 0 | 0 | 51,000,000 |
Sales | (50,000,000) | 0 | (43,000,000) |
Settlements | (352,000,000) | (119,000,000) | (90,000,000) |
Transfers into level 3 | 0 | 0 | 0 |
Transfers (out of) level 3 | 0 | (42,000,000) | (99,000,000) |
Fair value, ending balance | 277,000,000 | 664,000,000 | 824,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | 14,000,000 | 1,000,000 | (28,000,000) |
Level 3 Rollforward Supplemental Data [Abstract] | |||
Realized gains/(losses) on assets recorded in income | 0 | 0 | (7,000,000) |
Unrealized gains/(losses) on assets recorded in OCI | 15,000,000 | 1,000,000 | (25,000,000) |
Available-for-sale securities, Asset-backed securities | |||
Assets: | |||
Fair value, beginning balance | 663,000,000 | 823,000,000 | 908,000,000 |
Total realized/unrealized gains/(losses) | 15,000,000 | 1,000,000 | (32,000,000) |
Purchases | 0 | 0 | 51,000,000 |
Sales | (50,000,000) | 0 | (43,000,000) |
Settlements | (352,000,000) | (119,000,000) | (61,000,000) |
Transfers into level 3 | 0 | 0 | 0 |
Transfers (out of) level 3 | 0 | (42,000,000) | 0 |
Fair value, ending balance | 276,000,000 | 663,000,000 | 823,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | 14,000,000 | 1,000,000 | (28,000,000) |
Available-for-sale securities, Other | |||
Assets: | |||
Fair value, beginning balance | 1,000,000 | 1,000,000 | 129,000,000 |
Total realized/unrealized gains/(losses) | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Settlements | 0 | 0 | (29,000,000) |
Transfers into level 3 | 0 | 0 | 0 |
Transfers (out of) level 3 | 0 | 0 | (99,000,000) |
Fair value, ending balance | 1,000,000 | 1,000,000 | 1,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | 0 | 0 | 0 |
Loans | |||
Assets: | |||
Fair value, beginning balance | 570,000,000 | 1,518,000,000 | 2,541,000,000 |
Total realized/unrealized gains/(losses) | 35,000,000 | (49,000,000) | (133,000,000) |
Purchases | 0 | 259,000,000 | 1,290,000,000 |
Sales | (26,000,000) | (7,000,000) | (92,000,000) |
Settlements | (303,000,000) | (838,000,000) | (1,241,000,000) |
Transfers into level 3 | 0 | 0 | 0 |
Transfers (out of) level 3 | 0 | (313,000,000) | (847,000,000) |
Fair value, ending balance | 276,000,000 | 570,000,000 | 1,518,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | 3,000,000 | 0 | (32,000,000) |
Mortgage servicing rights | |||
Assets: | |||
Fair value, beginning balance | 6,096,000,000 | 6,608,000,000 | 7,436,000,000 |
Total realized/unrealized gains/(losses) | (232,000,000) | (163,000,000) | (405,000,000) |
Purchases | 1,103,000,000 | 679,000,000 | 985,000,000 |
Sales | (140,000,000) | (109,000,000) | (486,000,000) |
Settlements | (797,000,000) | (919,000,000) | (922,000,000) |
Transfers into level 3 | 0 | 0 | 0 |
Transfers (out of) level 3 | 0 | 0 | 0 |
Fair value, ending balance | 6,030,000,000 | 6,096,000,000 | 6,608,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | (232,000,000) | (163,000,000) | (405,000,000) |
Other assets | |||
Assets: | |||
Fair value, beginning balance | 2,223,000,000 | 2,401,000,000 | 3,184,000,000 |
Total realized/unrealized gains/(losses) | 244,000,000 | 130,000,000 | (29,000,000) |
Purchases | 66,000,000 | 487,000,000 | 346,000,000 |
Sales | (177,000,000) | (496,000,000) | (509,000,000) |
Settlements | (870,000,000) | (299,000,000) | (411,000,000) |
Transfers into level 3 | 0 | 0 | 0 |
Transfers (out of) level 3 | (221,000,000) | 0 | (180,000,000) |
Fair value, ending balance | 1,265,000,000 | 2,223,000,000 | 2,401,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | $ 74,000,000 | $ 48,000,000 | $ (289,000,000) |
Fair Value Measurement - Leve75
Fair Value Measurement - Level 3 Analysis (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Level 3 Analysis - Supplemental Data [Abstract] | |||
Percentage of level 3 assets in total Firm assets | 0.80% | ||
Total realized/unrealized gains/(losses) on net derivative asset (liability) | $ (615) | $ 130 | $ 1,612 |
Trading loans | |||
Level 3 Analysis - Supplemental Data [Abstract] | |||
Decrease in level 3 assets | 1,491 | 787 | 2,777 |
Recurring | |||
Level 3 Analysis - Supplemental Data [Abstract] | |||
Assets fair value | 625,737 | 647,381 | |
Recurring | Trading assets | |||
Level 3 Analysis - Supplemental Data [Abstract] | |||
Decrease in level 3 assets | 2,500 | ||
Recurring | Trading loans | |||
Level 3 Analysis - Supplemental Data [Abstract] | |||
Decrease in level 3 assets | 2,100 | 2,800 | |
Recurring | Other assets | |||
Level 3 Analysis - Supplemental Data [Abstract] | |||
Decrease in level 3 assets | 1,000 | ||
Recurring | Level 3 | |||
Level 3 Analysis - Supplemental Data [Abstract] | |||
Assets fair value | 19,216 | $ 23,240 | |
Decrease in level 3 assets | 4,000 | ||
Recurring | Level 3 | Liability | |||
Level 3 Analysis - Supplemental Data [Abstract] | |||
Total realized/unrealized gains/(losses) on net derivative asset (liability) | $ (1,300) | $ 1,300 |
Fair Value Measurement - Impact
Fair Value Measurement - Impact of Credit Adjustments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |||
Derivatives CVA | $ 802 | $ (84) | $ 620 |
Derivatives FVA | $ (295) | $ 7 | $ 73 |
Fair Value Measurement - Nonrec
Fair Value Measurement - Nonrecurring Basis (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Residential mortgage | Broker price opinion | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value inputs, liquidation value discount | 13.00% | ||
Residential mortgage | Broker price opinion | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value inputs, liquidation value discount | 48.00% | ||
Residential mortgage | Broker price opinion | Weighted average | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value inputs, liquidation value discount | 27.00% | ||
Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets measured at fair value on a nonrecurring basis | $ 1,300 | $ 1,557 | |
Total nonrecurring fair value gains/(losses) | (308) | (172) | $ (294) |
Nonrecurring | Accounts payable and other liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total nonrecurring fair value gains/(losses) | (1) | 0 | (8) |
Nonrecurring | Loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets measured at fair value on a nonrecurring basis | 834 | 1,320 | |
Total nonrecurring fair value gains/(losses) | (159) | (209) | (226) |
Nonrecurring | Other assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets measured at fair value on a nonrecurring basis | 466 | 237 | |
Total nonrecurring fair value gains/(losses) | (148) | 37 | $ (60) |
Nonrecurring | Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 | |
Nonrecurring | Level 1 | Loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 | |
Nonrecurring | Level 1 | Other assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 | |
Nonrecurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets measured at fair value on a nonrecurring basis | 521 | 735 | |
Nonrecurring | Level 2 | Loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets measured at fair value on a nonrecurring basis | 238 | 730 | |
Nonrecurring | Level 2 | Other assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets measured at fair value on a nonrecurring basis | 283 | 5 | |
Nonrecurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets measured at fair value on a nonrecurring basis | 779 | 822 | |
Nonrecurring | Level 3 | Loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets measured at fair value on a nonrecurring basis | 596 | 590 | |
Nonrecurring | Level 3 | Other assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets measured at fair value on a nonrecurring basis | 183 | $ 232 | |
Nonrecurring | Level 3 | Residential mortgage | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total assets measured at fair value on a nonrecurring basis | $ 442 |
Fair Value Measurement - Carryi
Fair Value Measurement - Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financial assets | ||||
Cash and due from banks | $ 25,827 | $ 23,873 | $ 20,490 | $ 27,831 |
Deposits with banks | 404,294 | 365,762 | ||
Federal funds sold and securities purchased under resale agreements | 198,422 | 229,967 | ||
Securities, held-to-maturity | 48,652 | 50,889 | ||
Loans, net of allowance for loan losses | 2,508 | 2,230 | ||
Financial liabilities | ||||
Beneficial interests issued by consolidated VIEs | 26,081 | 39,047 | ||
Carrying value | ||||
Financial assets | ||||
Cash and due from banks | 25,800 | 23,900 | ||
Deposits with banks | 404,300 | 365,800 | ||
Accrued interest and accounts receivable | 67,000 | 52,300 | ||
Federal funds sold and securities purchased under resale agreements | 183,700 | 208,500 | ||
Securities borrowed | 102,100 | 96,400 | ||
Securities, held-to-maturity | 47,700 | 50,200 | ||
Loans, net of allowance for loan losses | 914,600 | 878,800 | ||
Other | 62,900 | 71,400 | ||
Financial liabilities | ||||
Deposits | 1,422,700 | 1,361,300 | ||
Federal funds purchased and securities loaned or sold under repurchase agreements | 158,200 | 165,000 | ||
Short-term borrowings | 42,600 | 25,300 | ||
Accounts payable and other liabilities | 152,000 | 148,000 | ||
Beneficial interests issued by consolidated VIEs | 26,000 | 38,900 | ||
Long-term debt and junior subordinated deferrable interest debentures | 236,600 | 257,500 | ||
Wholesale lending-related commitments | 1,100 | 1,100 | ||
Fair value | ||||
Financial assets | ||||
Cash and due from banks | 25,800 | 23,900 | ||
Deposits with banks | 404,300 | 365,800 | ||
Accrued interest and accounts receivable | 67,000 | 52,300 | ||
Federal funds sold and securities purchased under resale agreements | 183,700 | 208,500 | ||
Securities borrowed | 102,100 | 96,400 | ||
Securities, held-to-maturity | 48,700 | 50,900 | ||
Loans, net of allowance for loan losses | 920,300 | 875,100 | ||
Other | 69,400 | 75,200 | ||
Financial liabilities | ||||
Deposits | 1,422,700 | 1,361,300 | ||
Federal funds purchased and securities loaned or sold under repurchase agreements | 158,200 | 165,000 | ||
Short-term borrowings | 42,600 | 25,300 | ||
Accounts payable and other liabilities | 151,800 | 148,200 | ||
Beneficial interests issued by consolidated VIEs | 26,000 | 38,900 | ||
Long-term debt and junior subordinated deferrable interest debentures | 243,500 | 262,000 | ||
Wholesale lending-related commitments | 1,600 | 2,100 | ||
Fair value | Level 1 | ||||
Financial assets | ||||
Cash and due from banks | 25,800 | 23,900 | ||
Deposits with banks | 401,800 | 362,000 | ||
Accrued interest and accounts receivable | 0 | 0 | ||
Federal funds sold and securities purchased under resale agreements | 0 | 0 | ||
Securities borrowed | 0 | 0 | ||
Securities, held-to-maturity | 0 | 0 | ||
Loans, net of allowance for loan losses | 0 | 0 | ||
Other | 0 | 100 | ||
Financial liabilities | ||||
Deposits | 0 | 0 | ||
Federal funds purchased and securities loaned or sold under repurchase agreements | 0 | 0 | ||
Short-term borrowings | 0 | 0 | ||
Accounts payable and other liabilities | 0 | 0 | ||
Beneficial interests issued by consolidated VIEs | 0 | 0 | ||
Long-term debt and junior subordinated deferrable interest debentures | 0 | 0 | ||
Wholesale lending-related commitments | 0 | 0 | ||
Fair value | Level 2 | ||||
Financial assets | ||||
Cash and due from banks | 0 | 0 | ||
Deposits with banks | 2,500 | 3,800 | ||
Accrued interest and accounts receivable | 67,000 | 52,200 | ||
Federal funds sold and securities purchased under resale agreements | 183,700 | 208,300 | ||
Securities borrowed | 102,100 | 96,400 | ||
Securities, held-to-maturity | 48,700 | 50,900 | ||
Loans, net of allowance for loan losses | 213,200 | 24,100 | ||
Other | 52,900 | 60,800 | ||
Financial liabilities | ||||
Deposits | 1,422,700 | 1,361,300 | ||
Federal funds purchased and securities loaned or sold under repurchase agreements | 158,200 | 165,000 | ||
Short-term borrowings | 42,400 | 25,300 | ||
Accounts payable and other liabilities | 148,900 | 144,800 | ||
Beneficial interests issued by consolidated VIEs | 26,000 | 38,900 | ||
Long-term debt and junior subordinated deferrable interest debentures | 240,300 | 260,000 | ||
Wholesale lending-related commitments | 0 | 0 | ||
Fair value | Level 3 | ||||
Financial assets | ||||
Cash and due from banks | 0 | 0 | ||
Deposits with banks | 0 | 0 | ||
Accrued interest and accounts receivable | 0 | 100 | ||
Federal funds sold and securities purchased under resale agreements | 0 | 200 | ||
Securities borrowed | 0 | 0 | ||
Securities, held-to-maturity | 0 | 0 | ||
Loans, net of allowance for loan losses | 707,100 | 851,000 | ||
Other | 16,500 | 14,300 | ||
Financial liabilities | ||||
Deposits | 0 | 0 | ||
Federal funds purchased and securities loaned or sold under repurchase agreements | 0 | 0 | ||
Short-term borrowings | 200 | 0 | ||
Accounts payable and other liabilities | 2,900 | 3,400 | ||
Beneficial interests issued by consolidated VIEs | 0 | 0 | ||
Long-term debt and junior subordinated deferrable interest debentures | 3,200 | 2,000 | ||
Wholesale lending-related commitments | $ 1,600 | $ 2,100 |
Fair Value Option - Changes in
Fair Value Option - Changes in fair value under the fair value option (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Federal funds sold and securities purchased under resale agreements | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | $ (97) | $ (76) | $ (38) |
Federal funds sold and securities purchased under resale agreements | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (97) | (76) | (38) |
Federal funds sold and securities purchased under resale agreements | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 0 | 0 | 0 |
Securities borrowed | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 50 | 1 | (6) |
Securities borrowed | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 50 | 1 | (6) |
Securities borrowed | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 0 | 0 | 0 |
Debt and equity instruments, excluding loans | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 1,945 | 119 | 746 |
Debt and equity instruments, excluding loans | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 1,943 | 120 | 756 |
Debt and equity instruments, excluding loans | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 2 | (1) | (10) |
Loans reported as trading assets: Changes in instrument-specific credit risk | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 344 | 504 | 179 |
Loans reported as trading assets: Changes in instrument-specific credit risk | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 330 | 461 | 138 |
Loans reported as trading assets: Changes in instrument-specific credit risk | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 14 | 43 | 41 |
Loans reported as trading assets: Other changes in fair value | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 964 | 763 | 1,050 |
Loans reported as trading assets: Other changes in fair value | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 217 | 79 | 232 |
Loans reported as trading assets: Other changes in fair value | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 747 | 684 | 818 |
Loans: Changes in instrument-specific credit risk | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (1) | 13 | 35 |
Loans: Changes in instrument-specific credit risk | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (1) | 13 | 35 |
Loans: Changes in instrument-specific credit risk | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 0 | 0 | 0 |
Loans: Other changes in fair value | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (9) | (7) | 4 |
Loans: Other changes in fair value | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (12) | (7) | 4 |
Loans: Other changes in fair value | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 3 | 0 | 0 |
Other assets | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (44) | 82 | 78 |
Other assets | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 11 | 20 | 79 |
Other assets | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (55) | 62 | (1) |
Deposits | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (533) | (134) | 93 |
Deposits | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (533) | (134) | 93 |
Deposits | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 0 | 0 | 0 |
Federal funds purchased and securities loaned or sold under repurchase agreements | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 11 | 19 | 8 |
Federal funds purchased and securities loaned or sold under repurchase agreements | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 11 | 19 | 8 |
Federal funds purchased and securities loaned or sold under repurchase agreements | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 0 | 0 | 0 |
Short-term borrowings | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (747) | (236) | 1,996 |
Short-term borrowings | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (747) | (236) | 1,996 |
Short-term borrowings | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 0 | 0 | 0 |
Trading liabilities | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (1) | 6 | (20) |
Trading liabilities | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (1) | 6 | (20) |
Trading liabilities | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 0 | 0 | 0 |
Beneficial interests issued by consolidated VIEs | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 0 | 23 | 49 |
Beneficial interests issued by consolidated VIEs | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 0 | 23 | 49 |
Beneficial interests issued by consolidated VIEs | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 0 | 0 | 0 |
Long-term debt | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (2,022) | (773) | 1,388 |
Long-term debt | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (2,022) | (773) | 1,388 |
Long-term debt | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | $ 0 | $ 0 | $ 0 |
Fair Value Option - Aggregate d
Fair Value Option - Aggregate differences (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Long-term beneficial interests | ||
Performing loans, ninety days or more past due | $ 0 | $ 0 |
Lending-related commitments, fair value option elected | ||
Long-term beneficial interests | ||
Contractual amount of lending-related commitments | 7,400,000,000 | 4,600,000,000 |
Lending-related commitments, fair value | (76,000,000) | (118,000,000) |
Contractual principal outstanding | ||
Loans | ||
Nonaccrual loans | 4,258,000,000 | 3,338,000,000 |
Total loans | 44,954,000,000 | 41,074,000,000 |
Contractual principal outstanding | Principal-protected debt | ||
Long-term debt | ||
Long-term debt | 26,297,000,000 | 21,602,000,000 |
Contractual principal outstanding | Loans reported as trading assets | ||
Loans | ||
Nonaccrual loans | 4,219,000,000 | 3,338,000,000 |
All other performing loans | 38,157,000,000 | 35,477,000,000 |
Contractual principal outstanding | Loans | ||
Loans | ||
Nonaccrual loans | 39,000,000 | 0 |
All other performing loans | 2,539,000,000 | 2,259,000,000 |
Fair value | ||
Loans | ||
Nonaccrual loans | 1,371,000,000 | 748,000,000 |
Total loans | 40,469,000,000 | 36,030,000,000 |
Long-term debt | ||
Long-term debt | 47,519,000,000 | 37,686,000,000 |
Long-term beneficial interests | ||
Long-term beneficial interests | 45,000,000 | 120,000,000 |
Fair value | Principal-protected debt | ||
Long-term debt | ||
Long-term debt | 23,848,000,000 | 19,195,000,000 |
Fair value | Nonprincipal-protected debt | ||
Long-term debt | ||
Long-term debt | 23,671,000,000 | 18,491,000,000 |
Long-term beneficial interests | ||
Long-term beneficial interests | 45,000,000 | 120,000,000 |
Fair value | Loans reported as trading assets | ||
Loans | ||
Nonaccrual loans | 1,371,000,000 | 748,000,000 |
All other performing loans | 36,590,000,000 | 33,054,000,000 |
Fair value | Loans | ||
Loans | ||
Nonaccrual loans | 0 | 0 |
All other performing loans | 2,508,000,000 | 2,228,000,000 |
Fair value over/(under) contractual principal outstanding | ||
Loans | ||
Nonaccrual loans, Fair value over/(under) contractual principal outstanding | (2,887,000,000) | (2,590,000,000) |
Total loans | (4,485,000,000) | (5,044,000,000) |
Fair value over/(under) contractual principal outstanding | Principal-protected debt | ||
Long-term debt | ||
Long-term debt, Fair value over/(under) contractual principal outstanding | (2,449,000,000) | (2,407,000,000) |
Fair value over/(under) contractual principal outstanding | Loans reported as trading assets | ||
Loans | ||
Nonaccrual loans, Fair value over/(under) contractual principal outstanding | (2,848,000,000) | (2,590,000,000) |
All other performing loans | (1,567,000,000) | (2,423,000,000) |
Fair value over/(under) contractual principal outstanding | Loans | ||
Loans | ||
Nonaccrual loans, Fair value over/(under) contractual principal outstanding | (39,000,000) | 0 |
All other performing loans | $ (31,000,000) | $ (31,000,000) |
Fair Value Option - Structured
Fair Value Option - Structured note products by balance sheet classification and risk component (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | $ 74,798 | $ 57,656 |
Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 30,183 | 20,776 |
Credit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 5,641 | 3,492 |
Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 3,026 | 2,506 |
Equity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 31,235 | 28,546 |
Commodity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 4,713 | 2,336 |
Long-term debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 47,037 | 37,247 |
Long-term debt | Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 22,056 | 16,296 |
Long-term debt | Credit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 4,329 | 3,267 |
Long-term debt | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 2,841 | 2,365 |
Long-term debt | Equity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 17,581 | 14,831 |
Long-term debt | Commodity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 230 | 488 |
Short-term borrowings | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 8,649 | 8,815 |
Short-term borrowings | Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 69 | 184 |
Short-term borrowings | Credit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 1,312 | 225 |
Short-term borrowings | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 147 | 135 |
Short-term borrowings | Equity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 7,106 | 8,234 |
Short-term borrowings | Commodity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 15 | 37 |
Deposits | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 19,112 | 11,594 |
Deposits | Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 8,058 | 4,296 |
Deposits | Credit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 0 | 0 |
Deposits | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 38 | 6 |
Deposits | Equity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 6,548 | 5,481 |
Deposits | Commodity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | $ 4,468 | $ 1,811 |
Credit Risk Concentrations (Det
Credit Risk Concentrations (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Concentration Risk [Line Items] | ||
Credit exposure | $ 2,004,974 | $ 1,951,555 |
On-balance sheet, Loans | 930,697 | 894,765 |
On-balance sheet, Derivatives | 56,523 | 64,078 |
Off-balance sheet | 991,482 | 975,152 |
Available-for-sale securities | 201,678 | 237,965 |
Held-to-maturity securities | 47,733 | 50,168 |
Cash Placed with Banks | 421,000 | 380,200 |
Obligations of U.S. states and municipalities | ||
Concentration Risk [Line Items] | ||
Trading securities | 9,800 | 9,100 |
Available-for-sale securities | 32,338 | 31,592 |
Held-to-maturity securities | 14,373 | 14,475 |
Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
On-balance sheet, Derivatives | 56,523 | 64,078 |
Consumer | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 1,143,709 | 1,113,718 |
On-balance sheet, Loans | 522,192 | 506,460 |
Off-balance sheet | 621,384 | 607,138 |
Consumer, excluding credit card | ||
Concentration Risk [Line Items] | ||
On-balance sheet, Loans | 372,681 | 364,644 |
Consumer, excluding credit card | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 421,234 | 417,891 |
On-balance sheet, Loans | 372,681 | 364,644 |
Off-balance sheet | 48,553 | 53,247 |
Consumer, Excluding Credit Card | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 421,367 | 418,011 |
On-balance sheet, Loans | 372,681 | 364,644 |
Off-balance sheet | 48,553 | 53,247 |
Credit card | ||
Concentration Risk [Line Items] | ||
On-balance sheet, Loans | 149,511 | 141,816 |
Credit card | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 722,342 | 695,707 |
On-balance sheet, Loans | 149,511 | 141,816 |
Off-balance sheet | 572,831 | 553,891 |
Wholesale | ||
Concentration Risk [Line Items] | ||
On-balance sheet, Loans | 408,505 | 388,305 |
Wholesale | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 861,265 | 837,837 |
On-balance sheet, Loans | 408,505 | 388,305 |
Off-balance sheet | 370,098 | 368,014 |
Receivables from customers and other(a) | Consumer, Excluding Credit Card | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 133 | 120 |
Receivables from customers and other(a) | Wholesale | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 26,139 | 17,440 |
Wholesale-related | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
On-balance sheet, Derivatives | 56,523 | 64,078 |
Wholesale-related | Wholesale | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 829,519 | 815,882 |
On-balance sheet, Loans | 402,898 | 383,790 |
Off-balance sheet | 370,098 | 368,014 |
Real Estate | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
On-balance sheet, Derivatives | 153 | 207 |
Real Estate | Wholesale | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 139,409 | 134,287 |
On-balance sheet, Loans | 113,648 | 105,802 |
Off-balance sheet | 25,608 | 28,278 |
Consumer & Retail | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
On-balance sheet, Derivatives | 1,114 | 1,082 |
Consumer & Retail | Wholesale | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 87,679 | 84,804 |
On-balance sheet, Loans | 31,044 | 29,929 |
Off-balance sheet | 55,521 | 53,793 |
Technology, Media & Telecommunications | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
On-balance sheet, Derivatives | 2,265 | 1,293 |
Technology, Media & Telecommunications | Wholesale | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 59,274 | 63,324 |
On-balance sheet, Loans | 13,665 | 14,063 |
Off-balance sheet | 43,344 | 47,968 |
Healthcare | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
On-balance sheet, Derivatives | 2,191 | 2,280 |
Healthcare | Wholesale | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 55,997 | 49,445 |
On-balance sheet, Loans | 16,273 | 15,545 |
Off-balance sheet | 37,533 | 31,620 |
Industrials | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
On-balance sheet, Derivatives | 1,163 | 1,658 |
Industrials | Wholesale | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 55,272 | 55,733 |
On-balance sheet, Loans | 18,161 | 17,295 |
Off-balance sheet | 35,948 | 36,780 |
Banks & Finance Cos | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
On-balance sheet, Derivatives | 6,816 | 12,257 |
Banks & Finance Cos | Wholesale | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 49,037 | 48,393 |
On-balance sheet, Loans | 25,879 | 22,714 |
Off-balance sheet | 16,342 | 13,422 |
Oil & Gas | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
On-balance sheet, Derivatives | 1,727 | 1,878 |
Oil & Gas | Wholesale | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 41,317 | 40,367 |
On-balance sheet, Loans | 12,621 | 13,253 |
Off-balance sheet | 26,969 | 25,236 |
Asset Managers | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
On-balance sheet, Derivatives | 7,998 | 10,820 |
Asset Managers | Wholesale | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 32,531 | 33,201 |
On-balance sheet, Loans | 11,480 | 10,339 |
Off-balance sheet | 13,053 | 12,042 |
Utilities | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
On-balance sheet, Derivatives | 2,084 | 888 |
Utilities | Wholesale | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 29,317 | 29,672 |
On-balance sheet, Loans | 6,187 | 7,208 |
Off-balance sheet | 21,046 | 21,576 |
State & Municipal Govt | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
On-balance sheet, Derivatives | 2,888 | 2,096 |
State & Municipal Govt | Wholesale | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 28,633 | 28,263 |
On-balance sheet, Loans | 12,134 | 12,416 |
Off-balance sheet | 13,611 | 13,751 |
Central Govt | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
On-balance sheet, Derivatives | 13,937 | 14,235 |
Central Govt | Wholesale | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 19,182 | 20,408 |
On-balance sheet, Loans | 3,375 | 3,964 |
Off-balance sheet | 1,870 | 2,209 |
Chemicals & Plastics | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
On-balance sheet, Derivatives | 208 | 271 |
Chemicals & Plastics | Wholesale | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 15,945 | 15,043 |
On-balance sheet, Loans | 5,654 | 5,292 |
Off-balance sheet | 10,083 | 9,480 |
Transportation | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
On-balance sheet, Derivatives | 977 | 751 |
Transportation | Wholesale | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 15,797 | 19,096 |
On-balance sheet, Loans | 6,733 | 8,996 |
Off-balance sheet | 8,087 | 9,349 |
Automotive | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
On-balance sheet, Derivatives | 342 | 1,196 |
Automotive | Wholesale | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 14,820 | 16,736 |
On-balance sheet, Loans | 4,903 | 4,964 |
Off-balance sheet | 9,575 | 10,576 |
Metals & Mining | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
On-balance sheet, Derivatives | 702 | 439 |
Metals & Mining | Wholesale | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 14,171 | 13,419 |
On-balance sheet, Loans | 4,728 | 4,350 |
Off-balance sheet | 8,741 | 8,630 |
Insurance | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
On-balance sheet, Derivatives | 2,804 | 3,382 |
Insurance | Wholesale | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 14,089 | 13,510 |
On-balance sheet, Loans | 1,411 | 1,119 |
Off-balance sheet | 9,874 | 9,009 |
Financial Markets Infrastructure | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
On-balance sheet, Derivatives | 3,499 | 3,884 |
Financial Markets Infrastructure | Wholesale | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 5,036 | 8,732 |
On-balance sheet, Loans | 351 | 347 |
Off-balance sheet | 1,186 | 4,501 |
Securities Firms | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
On-balance sheet, Derivatives | 1,692 | 1,913 |
Securities Firms | Wholesale | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 4,113 | 4,211 |
On-balance sheet, Loans | 952 | 1,059 |
Off-balance sheet | 1,469 | 1,239 |
All other | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
On-balance sheet, Derivatives | 3,963 | 3,548 |
All other | Wholesale | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 147,900 | 137,238 |
On-balance sheet, Loans | 113,699 | 105,135 |
Off-balance sheet | 30,238 | 28,555 |
Loans held-for-sale and loans at fair value | Wholesale | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Credit exposure | 5,607 | 4,515 |
On-balance sheet, Loans | $ 5,607 | $ 4,515 |
Derivative Instruments - Notion
Derivative Instruments - Notional Amount of Derivative Contracts (Details) - USD ($) $ in Billions | Dec. 31, 2017 | Dec. 31, 2016 |
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | $ 48,386 | $ 47,537 |
Interest rate contracts | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 33,510 | 33,862 |
Swaps | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 21,043 | 22,000 |
Futures and forwards | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 4,904 | 5,289 |
Options | Written options | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 3,576 | 3,091 |
Options | Purchased options | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 3,987 | 3,482 |
Credit derivatives | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 1,522 | 2,032 |
Foreign exchange contracts | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 11,438 | 10,155 |
Cross-currency swaps | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 3,953 | 3,359 |
Spot, futures and forwards | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 5,923 | 5,341 |
Options | Written options | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 786 | 734 |
Options | Purchased options | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 776 | 721 |
Equity contracts | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 1,441 | 1,079 |
Swaps | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 367 | 258 |
Futures and forwards | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 90 | 59 |
Options | Written options | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 531 | 417 |
Options | Purchased options | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 453 | 345 |
Commodity contracts | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 475 | 409 |
Swaps | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 116 | 102 |
Spot, futures and forwards | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 168 | 130 |
Options | Written options | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 98 | 83 |
Options | Purchased options | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | $ 93 | $ 94 |
Derivative Instruments - Impact
Derivative Instruments - Impact on Balance Sheet (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | $ 922,616 | $ 559,553 |
Net derivative receivables | 64,078 | 56,523 |
Gross derivative payables | 893,239 | 530,806 |
Net derivative payables | 49,231 | 37,777 |
Interest rate | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 605,963 | 315,992 |
Net derivative receivables | 28,302 | 24,673 |
Gross derivative payables | 570,778 | 284,436 |
Net derivative payables | 10,815 | 7,129 |
Credit | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 29,645 | 23,205 |
Net derivative receivables | 1,294 | 869 |
Gross derivative payables | 28,666 | 23,252 |
Net derivative payables | 1,411 | 1,299 |
Foreign exchange | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 233,426 | 160,231 |
Net derivative receivables | 23,271 | 16,151 |
Gross derivative payables | 234,971 | 155,822 |
Net derivative payables | 20,508 | 12,473 |
Equity | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 34,940 | 40,040 |
Net derivative receivables | 4,939 | 7,882 |
Gross derivative payables | 38,362 | 45,395 |
Net derivative payables | 8,140 | 9,192 |
Commodity | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 18,642 | 20,085 |
Net derivative receivables | 6,272 | 6,948 |
Gross derivative payables | 20,462 | 21,901 |
Net derivative payables | 8,357 | 7,684 |
Not designated as hedges | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 916,784 | 556,327 |
Gross derivative payables | 889,028 | 527,838 |
Not designated as hedges | Interest rate | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 601,557 | 313,276 |
Gross derivative payables | 567,894 | 283,092 |
Not designated as hedges | Credit | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 29,645 | 23,205 |
Gross derivative payables | 28,666 | 23,252 |
Not designated as hedges | Foreign exchange | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 232,137 | 159,740 |
Gross derivative payables | 233,823 | 154,601 |
Not designated as hedges | Equity | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 34,940 | 40,040 |
Gross derivative payables | 38,362 | 45,395 |
Not designated as hedges | Commodity | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 18,505 | 20,066 |
Gross derivative payables | 20,283 | 21,498 |
Designated as hedges | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 5,832 | 3,226 |
Gross derivative payables | 4,211 | 2,968 |
Designated as hedges | Interest rate | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 4,406 | 2,716 |
Gross derivative payables | 2,884 | 1,344 |
Designated as hedges | Credit | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 0 | 0 |
Gross derivative payables | 0 | 0 |
Designated as hedges | Foreign exchange | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 1,289 | 491 |
Gross derivative payables | 1,148 | 1,221 |
Designated as hedges | Equity | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 0 | 0 |
Gross derivative payables | 0 | 0 |
Designated as hedges | Commodity | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 137 | 19 |
Gross derivative payables | 179 | $ 403 |
Pro Forma | ||
Derivatives, Fair Value [Line Items] | ||
Reduction in gross derivative receivables | 227,100 | |
Reduction in gross derivative payables | $ 224,700 |
Derivative Instruments - Deriva
Derivative Instruments - Derivatives Netting (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | $ 547,995 | $ 908,028 |
Amounts netted on the Consolidated balance sheets | (503,030) | (858,538) |
Net derivative receivables | 44,965 | 49,490 |
Derivative receivables where an appropriate legal opinion has not been either sought or obtained | 11,558 | 14,588 |
Total derivative receivables recognized on the Consolidated balance sheets, Gross derivate receivables | 559,553 | 922,616 |
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 56,523 | 64,078 |
Collateral not nettable on the Consolidated balance sheets, Net derivative receivables | (13,363) | (18,638) |
Net amounts, Net derivative receivables | 43,160 | 45,440 |
Net cash collateral payables | 55,500 | 71,900 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 521,133 | 881,631 |
Amounts netted on the Consolidated balance sheets | (493,029) | (844,008) |
Net derivative payables | 28,104 | 37,623 |
Derivative payables where an appropriate legal opinion has not been either sought or obtained | 9,673 | 11,608 |
Total derivative payables recognized on the Consolidated balance sheets, Gross derivative payables | 530,806 | 893,239 |
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 37,777 | 49,231 |
Collateral not nettable on the Consolidated balance sheets, Net derivative payables | (4,180) | (8,925) |
Net amounts, Net derivative payables | 33,597 | 40,306 |
Netted cash collateral receivables | 45,500 | 57,300 |
Interest rate contracts | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 312,285 | 600,867 |
Amounts netted on the Consolidated balance sheets | (291,319) | (577,661) |
Net derivative receivables | 20,966 | 23,206 |
Total derivative receivables recognized on the Consolidated balance sheets, Gross derivate receivables | 315,992 | 605,963 |
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 24,673 | 28,302 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 283,091 | 569,162 |
Amounts netted on the Consolidated balance sheets | (277,306) | (559,963) |
Net derivative payables | 5,785 | 9,199 |
Total derivative payables recognized on the Consolidated balance sheets, Gross derivative payables | 284,436 | 570,778 |
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 7,129 | 10,815 |
Interest rate contracts | Over-the-counter (“OTC”) | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 305,569 | 365,227 |
Amounts netted on the Consolidated balance sheets | (284,917) | (342,173) |
Net derivative receivables | 20,652 | 23,054 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 276,960 | 338,502 |
Amounts netted on the Consolidated balance sheets | (271,294) | (329,325) |
Net derivative payables | 5,666 | 9,177 |
Interest rate contracts | OTC–cleared | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 6,531 | 235,399 |
Amounts netted on the Consolidated balance sheets | (6,318) | (235,261) |
Net derivative receivables | 213 | 138 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 6,004 | 230,464 |
Amounts netted on the Consolidated balance sheets | (5,928) | (230,463) |
Net derivative payables | 76 | 1 |
Interest rate contracts | Exchange-traded | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 185 | 241 |
Amounts netted on the Consolidated balance sheets | (84) | (227) |
Net derivative receivables | 101 | 14 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 127 | 196 |
Amounts netted on the Consolidated balance sheets | (84) | (175) |
Net derivative payables | 43 | 21 |
Credit contracts | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 22,615 | 28,876 |
Amounts netted on the Consolidated balance sheets | (22,335) | (28,351) |
Net derivative receivables | 280 | 525 |
Total derivative receivables recognized on the Consolidated balance sheets, Gross derivate receivables | 23,205 | 29,645 |
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 869 | 1,294 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 22,995 | 28,007 |
Amounts netted on the Consolidated balance sheets | (21,954) | (27,255) |
Net derivative payables | 1,041 | 752 |
Total derivative payables recognized on the Consolidated balance sheets, Gross derivative payables | 23,252 | 28,666 |
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 1,299 | 1,411 |
Credit contracts | Over-the-counter (“OTC”) | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 15,390 | 23,130 |
Amounts netted on the Consolidated balance sheets | (15,165) | (22,612) |
Net derivative receivables | 225 | 518 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 16,194 | 22,366 |
Amounts netted on the Consolidated balance sheets | (15,170) | (21,614) |
Net derivative payables | 1,024 | 752 |
Credit contracts | OTC–cleared | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 7,225 | 5,746 |
Amounts netted on the Consolidated balance sheets | (7,170) | (5,739) |
Net derivative receivables | 55 | 7 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 6,801 | 5,641 |
Amounts netted on the Consolidated balance sheets | (6,784) | (5,641) |
Net derivative payables | 17 | 0 |
Foreign exchange contracts | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 157,126 | 227,613 |
Amounts netted on the Consolidated balance sheets | (144,081) | (210,154) |
Net derivative receivables | 13,045 | 17,459 |
Total derivative receivables recognized on the Consolidated balance sheets, Gross derivate receivables | 160,231 | 233,426 |
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 16,151 | 23,271 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 152,619 | 229,786 |
Amounts netted on the Consolidated balance sheets | (143,349) | (214,463) |
Net derivative payables | 9,270 | 15,323 |
Total derivative payables recognized on the Consolidated balance sheets, Gross derivative payables | 155,822 | 234,971 |
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 12,473 | 20,508 |
Foreign exchange contracts | Over-the-counter (“OTC”) | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 155,289 | 226,271 |
Amounts netted on the Consolidated balance sheets | (142,420) | (208,962) |
Net derivative receivables | 12,869 | 17,309 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 150,966 | 228,300 |
Amounts netted on the Consolidated balance sheets | (141,789) | (213,296) |
Net derivative payables | 9,177 | 15,004 |
Foreign exchange contracts | OTC–cleared | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 1,696 | 1,238 |
Amounts netted on the Consolidated balance sheets | (1,654) | (1,165) |
Net derivative receivables | 42 | 73 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 1,555 | 1,158 |
Amounts netted on the Consolidated balance sheets | (1,553) | (1,158) |
Net derivative payables | 2 | 0 |
Foreign exchange contracts | Exchange-traded | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 141 | 104 |
Amounts netted on the Consolidated balance sheets | (7) | (27) |
Net derivative receivables | 134 | 77 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 98 | 328 |
Amounts netted on the Consolidated balance sheets | (7) | (9) |
Net derivative payables | 91 | 319 |
Equity contracts | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 36,212 | 32,307 |
Amounts netted on the Consolidated balance sheets | (32,158) | (30,001) |
Net derivative receivables | 4,054 | 2,306 |
Total derivative receivables recognized on the Consolidated balance sheets, Gross derivate receivables | 40,040 | 34,940 |
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 7,882 | 4,939 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 40,913 | 34,692 |
Amounts netted on the Consolidated balance sheets | (36,203) | (30,222) |
Net derivative payables | 4,710 | 4,470 |
Total derivative payables recognized on the Consolidated balance sheets, Gross derivative payables | 45,395 | 38,362 |
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 9,192 | 8,140 |
Equity contracts | Over-the-counter (“OTC”) | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 22,024 | 20,868 |
Amounts netted on the Consolidated balance sheets | (19,917) | (20,570) |
Net derivative receivables | 2,107 | 298 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 28,193 | 24,688 |
Amounts netted on the Consolidated balance sheets | (23,969) | (20,808) |
Net derivative payables | 4,224 | 3,880 |
Equity contracts | Exchange-traded | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 14,188 | 11,439 |
Amounts netted on the Consolidated balance sheets | (12,241) | (9,431) |
Net derivative receivables | 1,947 | 2,008 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 12,720 | 10,004 |
Amounts netted on the Consolidated balance sheets | (12,234) | (9,414) |
Net derivative payables | 486 | 590 |
Commodity contracts | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 19,757 | 18,365 |
Amounts netted on the Consolidated balance sheets | (13,137) | (12,371) |
Net derivative receivables | 6,620 | 5,994 |
Total derivative receivables recognized on the Consolidated balance sheets, Gross derivate receivables | 20,085 | 18,642 |
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 6,948 | 6,272 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 21,515 | 19,984 |
Amounts netted on the Consolidated balance sheets | (14,217) | (12,105) |
Net derivative payables | 7,298 | 7,879 |
Total derivative payables recognized on the Consolidated balance sheets, Gross derivative payables | 21,901 | 20,462 |
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 7,684 | 8,357 |
Commodity contracts | Over-the-counter (“OTC”) | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 10,903 | 11,571 |
Amounts netted on the Consolidated balance sheets | (4,436) | (5,605) |
Net derivative receivables | 6,467 | 5,966 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 12,645 | 12,885 |
Amounts netted on the Consolidated balance sheets | (5,508) | (5,252) |
Net derivative payables | 7,137 | 7,633 |
Commodity contracts | Exchange-traded | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 8,854 | 6,794 |
Amounts netted on the Consolidated balance sheets | (8,701) | (6,766) |
Net derivative receivables | 153 | 28 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 8,870 | 7,099 |
Amounts netted on the Consolidated balance sheets | (8,709) | (6,853) |
Net derivative payables | $ 161 | $ 246 |
Derivative Instruments - Liquid
Derivative Instruments - Liquidity Risk and Credit-Related Contingent Features (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
OTC and OTC-cleared derivative payables containing downgrade triggers | ||
Aggregate fair value of net derivative payables | $ 11,916 | $ 21,550 |
Collateral posted | 9,973 | 19,383 |
Single-notch downgrade | ||
Liquidity impact of downgrade triggers on OTC and OTC-cleared derivatives | ||
Amount of additional collateral to be posted upon downgrade | 79 | 560 |
Amount required to settle contracts with termination triggers upon downgrade | 320 | 606 |
Two-notch downgrade | ||
Liquidity impact of downgrade triggers on OTC and OTC-cleared derivatives | ||
Amount of additional collateral to be posted upon downgrade | 1,989 | 2,497 |
Amount required to settle contracts with termination triggers upon downgrade | $ 650 | $ 1,049 |
Derivative Instruments - Design
Derivative Instruments - Designated as Hedges (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Amount of transfers accounted for as sale where associated derivative was outstanding | $ 0 | $ 0 |
Derivative Instruments - Impa88
Derivative Instruments - Impact on Statements of Income, Fair Value Hedges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Gains/(losses) recorded in income | |||
Derivatives | $ (5,265) | $ 1,417 | $ 7,221 |
Hedged items | 6,214 | (337) | (6,237) |
Total income statement impact | 949 | 1,080 | 984 |
Income statement impact due to: | |||
Hedge ineffectiveness | 11 | (3) | (10) |
Excluded components | 938 | 1,083 | 994 |
Interest rate | |||
Gains/(losses) recorded in income | |||
Derivatives | (481) | (482) | 38 |
Hedged items | 1,359 | 1,338 | 911 |
Total income statement impact | 878 | 856 | 949 |
Income statement impact due to: | |||
Hedge ineffectiveness | (18) | 6 | 3 |
Excluded components | 896 | 850 | 946 |
Foreign exchange | |||
Gains/(losses) recorded in income | |||
Derivatives | (3,509) | 2,435 | 6,030 |
Hedged items | 3,507 | (2,261) | (6,006) |
Total income statement impact | (2) | 174 | 24 |
Income statement impact due to: | |||
Hedge ineffectiveness | 0 | 0 | 0 |
Excluded components | (2) | 174 | 24 |
Commodity | |||
Gains/(losses) recorded in income | |||
Derivatives | (1,275) | (536) | 1,153 |
Hedged items | 1,348 | 586 | (1,142) |
Total income statement impact | 73 | 50 | 11 |
Income statement impact due to: | |||
Hedge ineffectiveness | 29 | (9) | (13) |
Excluded components | $ 44 | $ 59 | $ 24 |
Derivative Instruments - Impa89
Derivative Instruments - Impact on Statements of Income, Cash Flow Hedges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Gains/(losses) recorded in income and other comprehensive income/(loss) | |||
Net losses reclassified from AOCI to other income | $ 150 | ||
Recognition of net losses related to cash flow hedges in Income | $ (96) | ||
Maximum length of time hedged in forecasted transactions, terminated cash flow hedges | 5 years | ||
Maximum length of time hedged in forecasted transactions, open cash flow hedges | 7 years | ||
Cash Flow Hedging | |||
Gains/(losses) recorded in income and other comprehensive income/(loss) | |||
Derivatives – effective portion reclassified from AOCI to income | $ (134) | $ (360) | (180) |
Hedge ineffectiveness recorded directly in income | 0 | 0 | 0 |
Total income statement impact | (134) | (360) | (180) |
Derivatives – effective portion recorded in OCI | 147 | (450) | (97) |
Total change in OCI for period | 281 | (90) | 83 |
Cash Flow Hedging | Interest rate | |||
Gains/(losses) recorded in income and other comprehensive income/(loss) | |||
Derivatives – effective portion reclassified from AOCI to income | (17) | (74) | (99) |
Hedge ineffectiveness recorded directly in income | 0 | 0 | 0 |
Total income statement impact | (17) | (74) | (99) |
Derivatives – effective portion recorded in OCI | 12 | (55) | (44) |
Total change in OCI for period | 29 | 19 | 55 |
Cash Flow Hedging | Foreign exchange | |||
Gains/(losses) recorded in income and other comprehensive income/(loss) | |||
Derivatives – effective portion reclassified from AOCI to income | (117) | (286) | (81) |
Hedge ineffectiveness recorded directly in income | 0 | 0 | 0 |
Total income statement impact | (117) | (286) | (81) |
Derivatives – effective portion recorded in OCI | 135 | (395) | (53) |
Total change in OCI for period | $ 252 | $ (109) | $ 28 |
Derivative Instruments - Impa90
Derivative Instruments - Impact on Statements of Income, Net Investment Hedges (Details) - Net Investment Hedging - Foreign exchange derivatives - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Gains/(losses) recorded in income and other comprehensive income/(loss) | |||
Excluded components recorded directly in income | $ (172) | $ (282) | $ (379) |
Effective portion recorded in OCI | $ (1,294) | $ 262 | $ 1,885 |
Derivative Instruments - Impa91
Derivative Instruments - Impact on Statements of Income, Risk Management Derivatives (Details) - Risk Management Activities - Not designated as hedges - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Gain (Loss) on Derivative Instruments, Net, Pretax [Abstract] | |||
Derivatives gains/(losses) recorded in income | $ 224 | $ 919 | $ 936 |
Interest rate | |||
Gain (Loss) on Derivative Instruments, Net, Pretax [Abstract] | |||
Derivatives gains/(losses) recorded in income | 331 | 1,174 | 853 |
Credit | |||
Gain (Loss) on Derivative Instruments, Net, Pretax [Abstract] | |||
Derivatives gains/(losses) recorded in income | (74) | (282) | 70 |
Foreign exchange | |||
Gain (Loss) on Derivative Instruments, Net, Pretax [Abstract] | |||
Derivatives gains/(losses) recorded in income | (33) | 27 | 25 |
Commodity | |||
Gain (Loss) on Derivative Instruments, Net, Pretax [Abstract] | |||
Derivatives gains/(losses) recorded in income | $ 0 | $ 0 | $ (12) |
Derivative Instruments - Credit
Derivative Instruments - Credit Derivatives (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Credit Derivatives - supplemental information | ||
Tranche credit default swap realized credit loss protection | $ 1,000,000 | |
Tranche credit default swap portfolio of exposure | 10,000,000 | |
Total credit derivatives and credit-related notes | ||
Protection sold | (744,399,000,000) | $ (997,873,000,000) |
Protection purchased with identical underlyings | 761,256,000,000 | 1,006,111,000,000 |
Net protection (sold)/purchased | 16,857,000,000 | 8,238,000,000 |
Other protection purchased | 24,707,000,000 | 32,431,000,000 |
Total credit derivatives | ||
Total credit derivatives and credit-related notes | ||
Protection sold | (744,381,000,000) | (997,832,000,000) |
Protection purchased with identical underlyings | 761,256,000,000 | 1,006,111,000,000 |
Net protection (sold)/purchased | 16,875,000,000 | 8,279,000,000 |
Other protection purchased | 16,792,000,000 | 27,926,000,000 |
Credit default swaps | ||
Total credit derivatives and credit-related notes | ||
Protection sold | (690,224,000,000) | (961,003,000,000) |
Protection purchased with identical underlyings | 702,098,000,000 | 974,252,000,000 |
Net protection (sold)/purchased | 11,874,000,000 | 13,249,000,000 |
Other protection purchased | 5,045,000,000 | 7,935,000,000 |
Other credit derivatives | ||
Total credit derivatives and credit-related notes | ||
Protection sold | (54,157,000,000) | (36,829,000,000) |
Protection purchased with identical underlyings | 59,158,000,000 | 31,859,000,000 |
Net protection (sold)/purchased | 5,001,000,000 | (4,970,000,000) |
Other protection purchased | 11,747,000,000 | 19,991,000,000 |
Credit-related notes | ||
Total credit derivatives and credit-related notes | ||
Protection sold | (18,000,000) | (41,000,000) |
Protection purchased with identical underlyings | 0 | 0 |
Net protection (sold)/purchased | (18,000,000) | (41,000,000) |
Other protection purchased | $ 7,915,000,000 | $ 4,505,000,000 |
Derivative Instruments - Cred93
Derivative Instruments - Credit Derivatives, Protection Sold, Notional and Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Protection sold credit derivatives and credit related notes ratings/maturity profile | ||
Less than 1 year | $ (232,680) | $ (381,643) |
From 1-5 years | (453,851) | (553,632) |
More than 5 years | (57,868) | (62,598) |
Total notional amount | (744,399) | (997,873) |
Fair value of receivables | 15,923 | 16,025 |
Fair value of payables | (6,447) | (11,625) |
Net fair value | 9,476 | 4,400 |
Investment-grade | ||
Protection sold credit derivatives and credit related notes ratings/maturity profile | ||
Less than 1 year | (159,286) | (273,688) |
From 1-5 years | (319,726) | (383,586) |
More than 5 years | (39,429) | (39,281) |
Total notional amount | (518,441) | (696,555) |
Fair value of receivables | 8,516 | 7,841 |
Fair value of payables | (1,134) | (3,055) |
Net fair value | 7,382 | 4,786 |
Noninvestment-grade | ||
Protection sold credit derivatives and credit related notes ratings/maturity profile | ||
Less than 1 year | (73,394) | (107,955) |
From 1-5 years | (134,125) | (170,046) |
More than 5 years | (18,439) | (23,317) |
Total notional amount | (225,958) | (301,318) |
Fair value of receivables | 7,407 | 8,184 |
Fair value of payables | (5,313) | (8,570) |
Net fair value | $ 2,094 | $ (386) |
Noninterest Revenue and Nonin94
Noninterest Revenue and Noninterest Expense - Investment Banking Fees (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Non interest Revenue [Line Items] | |||
Underwriting | $ 5,104 | $ 4,353 | $ 4,640 |
Advisory | 2,144 | 2,095 | 2,111 |
Total investment banking fees | 7,248 | 6,448 | 6,751 |
Equity | |||
Schedule of Non interest Revenue [Line Items] | |||
Underwriting | 1,394 | 1,146 | 1,408 |
Debt | |||
Schedule of Non interest Revenue [Line Items] | |||
Underwriting | $ 3,710 | $ 3,207 | $ 3,232 |
Noninterest Revenue and Nonin95
Noninterest Revenue and Noninterest Expense - Principal Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Non interest Revenue [Line Items] | |||
Total trading revenue | $ 11,088 | $ 11,309 | $ 10,057 |
Private equity gains | 259 | 257 | 351 |
Principal transactions | 11,347 | 11,566 | 10,408 |
Interest rate | |||
Schedule of Non interest Revenue [Line Items] | |||
Total trading revenue | 2,479 | 2,325 | 1,933 |
Credit | |||
Schedule of Non interest Revenue [Line Items] | |||
Total trading revenue | 1,329 | 2,096 | 1,735 |
Foreign exchange | |||
Schedule of Non interest Revenue [Line Items] | |||
Total trading revenue | 2,746 | 2,827 | 2,557 |
Equity | |||
Schedule of Non interest Revenue [Line Items] | |||
Total trading revenue | 3,873 | 2,994 | 2,990 |
Commodity | |||
Schedule of Non interest Revenue [Line Items] | |||
Total trading revenue | $ 661 | $ 1,067 | $ 842 |
Noninterest Revenue and Nonin96
Noninterest Revenue and Noninterest Expense - Lending and Deposit-Related Fees (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Noninterest Income (Expense) [Abstract] | |||
Lending-related fees | $ 1,110 | $ 1,114 | $ 1,148 |
Deposit-related fees | 4,823 | 4,660 | 4,546 |
Total lending- and deposit-related fees | $ 5,933 | $ 5,774 | $ 5,694 |
Noninterest Revenue and Nonin97
Noninterest Revenue and Noninterest Expense - Asset Management, Administration and Commissions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Asset management fees | |||
Investment management fees | $ 9,526 | $ 8,865 | $ 9,403 |
All other asset management fees | 294 | 336 | 352 |
Total asset management fees | 9,820 | 9,201 | 9,755 |
Total administrative fees | 2,029 | 1,915 | 2,015 |
Commissions and other fees | |||
Brokerage commissions | 2,239 | 2,151 | 2,304 |
All other commissions and fees | 1,289 | 1,324 | 1,435 |
Total commissions and fees | 3,528 | 3,475 | 3,739 |
Total asset management, administration and commissions | $ 15,377 | $ 14,591 | $ 15,509 |
Noninterest Revenue and Nonin98
Noninterest Revenue and Noninterest Expense - Card Income (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Non interest Revenue [Line Items] | |
Credit cost amortization period | 12 months |
Direct loan origination costs amortization period | 12 months |
Minimum | |
Schedule of Non interest Revenue [Line Items] | |
Credit card revenue sharing agreement terms | 5 years |
Maximum | |
Schedule of Non interest Revenue [Line Items] | |
Credit card revenue sharing agreement terms | 10 years |
Noninterest Revenue and Nonin99
Noninterest Revenue and Noninterest Expense - Other Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Noninterest Income (Expense) [Abstract] | |||
Operating lease income | $ 3,613 | $ 2,724 | $ 2,081 |
Noninterest Revenue and Noni100
Noninterest Revenue and Noninterest Expense - Components of Noninterest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Noninterest Income (Expense) [Abstract] | |||
Legal expense/(benefit) | $ (35) | $ (317) | $ 2,969 |
FDIC-related expense | $ 1,492 | $ 1,296 | $ 1,227 |
Interest Income and Interest101
Interest Income and Interest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest Income | |||
Loans | $ 41,008 | $ 36,634 | $ 33,134 |
Taxable securities | 5,535 | 5,538 | 6,550 |
Non-taxable securities | 1,847 | 1,766 | 1,706 |
Total securities | 7,382 | 7,304 | 8,256 |
Trading assets | 7,610 | 7,292 | 6,621 |
Federal funds sold and securities purchased under resale agreements | 2,327 | 2,265 | 1,592 |
Securities borrowed | (37) | (332) | (532) |
Deposits with banks | 4,219 | 1,863 | 1,250 |
All other interest-earning assets | 1,863 | 875 | 652 |
Total interest income | 64,372 | 55,901 | 50,973 |
Interest expense | |||
Interest bearing deposits | 2,857 | 1,356 | 1,252 |
Federal funds purchased and securities loaned or sold under repurchase agreements | 1,611 | 1,089 | 609 |
Short-term borrowings | 481 | 203 | 175 |
Trading liabilities – debt and all other interest-bearing liabilities | 2,070 | 1,102 | 557 |
Long-term debt | 6,753 | 5,564 | 4,435 |
Beneficial interest issued by consolidated VIEs | 503 | 504 | 435 |
Total interest expense | 14,275 | 9,818 | 7,463 |
Net interest income | 50,097 | 46,083 | 43,510 |
Provision for credit losses | 5,290 | 5,361 | 3,827 |
Net interest income after provision for credit losses | $ 44,807 | $ 40,722 | $ 39,683 |
Pension and Other Postretire102
Pension and Other Postretirement Employee Benefit Plans - Defined Benefit Pension Plans (Details) $ in Millions | Dec. 21, 2017USD ($) | Dec. 31, 2017USD ($)plan | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Health care cost trend rate: | ||||
Assumed for next year | 5.00% | 5.00% | ||
Ultimate | 5.00% | 5.00% | 5.00% | |
Year when rate will reach ultimate | 2,018 | 2,017 | ||
Overfunded Plan | ||||
Change in plan assets | ||||
Net funded status | $ 5,600 | $ 4,000 | ||
Underfunded Plan | ||||
Change in plan assets | ||||
Net funded status | $ 612 | $ 639 | ||
Minimum | ||||
Weighted-average actuarial assumptions used to determine benefit obligations | ||||
Rate of compensation increase | 2.25% | 2.25% | ||
Maximum | ||||
Weighted-average actuarial assumptions used to determine benefit obligations | ||||
Rate of compensation increase | 3.00% | 3.00% | ||
U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of qualified defined contribution plans currently provided by the Firm | plan | 2 | |||
Weighted-average actuarial assumptions used to determine benefit obligations | ||||
Rate of compensation increase | 2.30% | 2.30% | ||
Non-U.S. | ||||
Change in plan assets | ||||
Fair value of plan assets, beginning of year | $ 3,400 | |||
Fair value of plan assets, end of year | 3,900 | $ 3,400 | ||
Accumulated benefit obligation, end of year | (3,800) | (3,400) | ||
Defined benefit pension plans | ||||
Change in benefit obligation | ||||
Benefit obligation, beginning of year | (15,594) | (15,259) | ||
Benefits earned during the year | (330) | (332) | $ (377) | |
Interest cost on benefit obligations | (598) | (629) | (610) | |
Employee contributions | (7) | (7) | ||
Net gain/(loss) | (721) | (743) | ||
Benefits paid | 841 | 851 | ||
Plan settlements | 30 | 21 | ||
Foreign exchange impact and other | (321) | 504 | ||
Benefit obligation, end of year | (16,700) | (15,594) | (15,259) | |
Change in plan assets | ||||
Fair value of plan assets, beginning of year | 17,703 | 17,636 | ||
Actual return on plan assets | 2,356 | 1,375 | ||
Firm contributions | 78 | 86 | ||
Employee contributions | 7 | 7 | ||
Benefits paid | (841) | (851) | ||
Plan settlements | (30) | (21) | ||
Foreign exchange impact and other | 330 | (529) | ||
Fair value of plan assets, end of year | 19,603 | 17,703 | 17,636 | |
Net funded status | 2,903 | 2,109 | ||
Accumulated benefit obligation, end of year | (16,530) | (15,421) | ||
Pretax pension and OPEB amounts recorded in AOCI | ||||
Net gain/(loss) | (2,800) | (3,667) | ||
Prior service credit/(loss) | 6 | 42 | ||
Accumulated other comprehensive income/(loss), pretax, end of year | $ (2,794) | $ (3,625) | ||
Defined benefit pension plans | Minimum | ||||
Weighted-average actuarial assumptions used to determine benefit obligations | ||||
Discount rate | 0.60% | 0.60% | ||
Defined benefit pension plans | Maximum | ||||
Weighted-average actuarial assumptions used to determine benefit obligations | ||||
Discount rate | 3.70% | 4.30% | ||
Defined benefit pension plans | U.S. | ||||
Weighted-average actuarial assumptions used to determine benefit obligations | ||||
Discount rate | 3.70% | 4.30% | ||
Defined benefit pension plans | U.S. | Participation rights under participating annuity contracts | ||||
Change in plan assets | ||||
Fair value of plan assets, beginning of year | $ 390 | |||
Fair value of plan assets, end of year | 302 | $ 390 | ||
Defined benefit pension plans | U.S. | Accrued receivables | ||||
Funded status of plan - supplemental information | ||||
Defined benefit plans, amounts not measured at fair value | 377 | 130 | ||
Defined benefit pension plans | U.S. | Accrued liabilities | ||||
Funded status of plan - supplemental information | ||||
Defined benefit plans, amounts not measured at fair value | 587 | 224 | ||
Defined benefit pension plans | Non-U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit pension plan, estimated future employer contributions in next fiscal year | 46 | |||
Defined benefit plan, contractually required future employer contributions in next fiscal year | 30 | |||
OPEB plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Cash contributed to the trust by the Firm | $ 600 | |||
Change in benefit obligation | ||||
Benefit obligation, beginning of year | (708) | (744) | ||
Benefits earned during the year | 0 | 0 | (1) | |
Interest cost on benefit obligations | (28) | (31) | (31) | |
Employee contributions | (16) | (19) | ||
Net gain/(loss) | (4) | 4 | ||
Benefits paid | 76 | 76 | ||
Plan settlements | 0 | 0 | ||
Expected Medicare Part D subsidy receipts | (1) | 0 | ||
Foreign exchange impact and other | (3) | 6 | ||
Benefit obligation, end of year | (684) | (708) | (744) | |
Change in plan assets | ||||
Fair value of plan assets, beginning of year | 1,956 | 1,855 | ||
Actual return on plan assets | 233 | 131 | ||
Firm contributions | 602 | 2 | ||
Employee contributions | 0 | 0 | ||
Benefits paid | (34) | (32) | ||
Plan settlements | 0 | 0 | ||
Foreign exchange impact and other | 0 | 0 | ||
Fair value of plan assets, end of year | 2,757 | 1,956 | $ 1,855 | |
Net funded status | 2,073 | 1,248 | ||
Pretax pension and OPEB amounts recorded in AOCI | ||||
Net gain/(loss) | 271 | 138 | ||
Prior service credit/(loss) | 0 | 0 | ||
Accumulated other comprehensive income/(loss), pretax, end of year | $ 271 | $ 138 | ||
Weighted-average actuarial assumptions used to determine benefit obligations | ||||
Discount rate | 3.70% | 4.20% | ||
OPEB plans | U.K. | ||||
Change in plan assets | ||||
Net funded status | $ 32 | $ 35 |
Pension and Other Postretire103
Pension and Other Postretirement Employee Benefit Plans - Gains and Losses (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Defined benefit pension plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Percent above which amortization of net gains and losses is included in annual net periodic benefit cost | 10.00% |
OPEB plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Percent above which amortization of net gains and losses is included in annual net periodic benefit cost | 10.00% |
Average future service period | 11 years |
Average remaining amortization period | 2 years |
Period over which the firm uses a calculated value that recognizes changes in fair value to determine expected return on plan assets | 5 years |
U.S. | Defined benefit pension plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Average future service period | 8 years |
Average remaining amortization period | 3 years |
Pension and Other Postretire104
Pension and Other Postretirement Employee Benefit Plans - Net Periodic Benefit Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Health care cost trend rate | |||
Assumed for next year | 5.00% | 5.50% | 6.00% |
Ultimate | 5.00% | 5.00% | 5.00% |
Year when rate will reach ultimate | 2,017 | 2,017 | 2,017 |
U.S. | |||
Weighted-average assumptions used to determine net periodic benefit costs | |||
Rate of compensation increase | 2.30% | 3.50% | 3.50% |
Minimum | |||
Weighted-average assumptions used to determine net periodic benefit costs | |||
Rate of compensation increase | 2.25% | 2.25% | 2.75% |
Maximum | |||
Weighted-average assumptions used to determine net periodic benefit costs | |||
Rate of compensation increase | 3.00% | 4.30% | 4.20% |
Pension plans | |||
Components of net periodic benefit cost | |||
Benefits earned during the year | $ 330 | $ 332 | $ 377 |
Interest cost on benefit obligations | 598 | 629 | 610 |
Expected return on plan assets | (968) | (1,030) | (1,079) |
Amortization: | |||
Net (gain)/loss | 250 | 257 | 282 |
Prior service cost/(credit) | (36) | (36) | (36) |
Special termination benefits | 0 | 0 | 1 |
Settlement loss | 2 | 4 | 0 |
Net periodic defined benefit cost | 176 | 156 | 155 |
Other defined benefit pension plans | 24 | 25 | 24 |
Total defined benefit plans | 200 | 181 | 179 |
Total defined contribution plans | 814 | 789 | 769 |
Total pension and OPEB cost included in compensation expense | 1,014 | 970 | 948 |
Changes in plan assets and benefit obligations recognized in other comprehensive income | |||
Net (gain)/loss arising during the year | (669) | 395 | (50) |
Amortization of net loss | (250) | (257) | (282) |
Amortization of prior service (cost)/credit | 36 | 36 | 36 |
Settlement loss | (2) | (4) | 0 |
Foreign exchange impact and other | 54 | (77) | (33) |
Total recognized in other comprehensive income | (831) | 93 | (329) |
Total recognized in net periodic benefit cost and other comprehensive income | $ (655) | $ 249 | $ (174) |
Pension plans | Minimum | |||
Weighted-average assumptions used to determine net periodic benefit costs | |||
Discount rate | 0.60% | 0.90% | 1.00% |
Expected long-term rate of return on plan assets | 0.70% | 0.80% | 0.90% |
Pension plans | Maximum | |||
Weighted-average assumptions used to determine net periodic benefit costs | |||
Discount rate | 4.30% | 4.50% | 4.00% |
Expected long-term rate of return on plan assets | 6.00% | 6.50% | 6.50% |
OPEB plans | |||
Components of net periodic benefit cost | |||
Benefits earned during the year | $ 0 | $ 0 | $ 1 |
Interest cost on benefit obligations | 28 | 31 | 31 |
Expected return on plan assets | (97) | (105) | (106) |
Amortization: | |||
Net (gain)/loss | 0 | 0 | 0 |
Prior service cost/(credit) | 0 | 0 | 0 |
Special termination benefits | 0 | 0 | 0 |
Settlement loss | 0 | ||
Net periodic defined benefit cost | (69) | (74) | (74) |
Total defined benefit plans | (69) | (74) | (74) |
Total pension and OPEB cost included in compensation expense | (69) | (74) | (74) |
Changes in plan assets and benefit obligations recognized in other comprehensive income | |||
Net (gain)/loss arising during the year | (133) | (29) | 21 |
Amortization of net loss | 0 | 0 | 0 |
Amortization of prior service (cost)/credit | 0 | 0 | 0 |
Settlement loss | 0 | 0 | 0 |
Foreign exchange impact and other | 0 | 0 | 0 |
Total recognized in other comprehensive income | (133) | (29) | 21 |
Total recognized in net periodic benefit cost and other comprehensive income | $ (202) | $ (103) | $ (53) |
Weighted-average assumptions used to determine net periodic benefit costs | |||
Discount rate | 4.20% | 4.40% | 4.10% |
Expected long-term rate of return on plan assets | 5.00% | 5.75% | 6.00% |
Pension and Other Postretire105
Pension and Other Postretirement Employee Benefit Plans - Pretax Amortization from AOCI (Details) - Defined benefit pension plans $ in Millions | Dec. 31, 2017USD ($) |
Estimated pretax amounts that will be amortized from AOCI into net periodic benefit cost | |
Net loss/(gain) | $ 106 |
Prior service cost/(credit) | (25) |
Total | $ 81 |
Pension and Other Postretire106
Pension and Other Postretirement Employee Benefit Plans - Plan Assumptions (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Increase in expense due to decreased discount rates | $ 66 |
Interest crediting rate | 5.00% |
U.S. | Defined benefit pension plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected long-term rate of return on plan assets | 5.50% |
U.S. | OPEB plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected long-term rate of return on plan assets | 4.00% |
Pension and Other Postretire107
Pension and Other Postretirement Employee Benefit Plans - Twenty-Five Basis Point Decrease Effects (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Defined benefit pension and OPEB plan expense | |
Expected long-term rate of return | $ 54 |
Discount rate | 59 |
Interest crediting rate for U.S. plans | (41) |
Benefit obligation | |
Discount rate | 583 |
Interest crediting rate for U.S. plans | $ (193) |
Pension and Other Postretire108
Pension and Other Postretirement Employee Benefit Plans - Investment Strategy and Weighted Average Asset Allocation (Details) - USD ($) $ in Billions | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Investments sponsored or managed by affiliates | $ 6 | $ 4.6 |
Defined benefit pension plans | ||
Asset category | ||
Asset Allocation | 100.00% | |
% of plan assets | 100.00% | 100.00% |
Defined benefit pension plans | Debt securities | ||
Asset category | ||
% of plan assets | 42.00% | 35.00% |
Defined benefit pension plans | Debt securities | Minimum | ||
Asset category | ||
Asset Allocation | 0.00% | |
Defined benefit pension plans | Debt securities | Maximum | ||
Asset category | ||
Asset Allocation | 80.00% | |
Defined benefit pension plans | Equity securities | ||
Asset category | ||
% of plan assets | 42.00% | 47.00% |
Defined benefit pension plans | Equity securities | Minimum | ||
Asset category | ||
Asset Allocation | 0.00% | |
Defined benefit pension plans | Equity securities | Maximum | ||
Asset category | ||
Asset Allocation | 85.00% | |
Defined benefit pension plans | Real estate | ||
Asset category | ||
% of plan assets | 3.00% | 4.00% |
Defined benefit pension plans | Real estate | Minimum | ||
Asset category | ||
Asset Allocation | 0.00% | |
Defined benefit pension plans | Real estate | Maximum | ||
Asset category | ||
Asset Allocation | 10.00% | |
Defined benefit pension plans | Alternatives | ||
Asset category | ||
% of plan assets | 13.00% | 14.00% |
Defined benefit pension plans | Alternatives | Minimum | ||
Asset category | ||
Asset Allocation | 0.00% | |
Defined benefit pension plans | Alternatives | Maximum | ||
Asset category | ||
Asset Allocation | 35.00% | |
OPEB plans | ||
Asset category | ||
Asset Allocation | 100.00% | |
% of plan assets | 100.00% | 100.00% |
OPEB plans | Debt securities | ||
Asset category | ||
% of plan assets | 61.00% | 50.00% |
OPEB plans | Debt securities | Minimum | ||
Asset category | ||
Asset Allocation | 30.00% | |
OPEB plans | Debt securities | Maximum | ||
Asset category | ||
Asset Allocation | 70.00% | |
OPEB plans | Equity securities | ||
Asset category | ||
% of plan assets | 39.00% | 50.00% |
OPEB plans | Equity securities | Minimum | ||
Asset category | ||
Asset Allocation | 30.00% | |
OPEB plans | Equity securities | Maximum | ||
Asset category | ||
Asset Allocation | 70.00% | |
OPEB plans | Real estate | ||
Asset category | ||
% of plan assets | 0.00% | 0.00% |
OPEB plans | Alternatives | ||
Asset category | ||
% of plan assets | 0.00% | 0.00% |
Pension and Other Postretire109
Pension and Other Postretirement Employee Benefit Plans - Plan Assets and Liabilities Measured At Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined benefit pension plans | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | $ 19,603 | $ 17,703 | $ 17,636 |
Pension and OPEB plan assets and liabilities - supplemental information | |||
Unfunded commitments to purchase limited partnership investments for the plan | 605 | 735 | |
Excluded amount of receivables for investments sold and dividends and interest receivables | 377 | 130 | |
Excluded amount of payables for investments purchased | 561 | 203 | |
Excluded amount of other liabilities | 26 | 21 | |
Defined benefit pension plans | Total assets measured at fair value | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 15,580 | 13,723 | |
Defined benefit pension plans | Total assets measured at fair value | Level 1 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 11,284 | 9,478 | |
Defined benefit pension plans | Total assets measured at fair value | Level 2 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 3,986 | 3,849 | |
Defined benefit pension plans | Total assets measured at fair value | Level 3 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 310 | 396 | |
Defined benefit pension plans | Cash and cash equivalents | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 174 | 198 | |
Defined benefit pension plans | Cash and cash equivalents | Level 1 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 173 | 196 | |
Defined benefit pension plans | Cash and cash equivalents | Level 2 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 1 | 2 | |
Defined benefit pension plans | Cash and cash equivalents | Level 3 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 0 | 0 | |
Defined benefit pension plans | Equity securities | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 6,603 | 6,326 | |
Defined benefit pension plans | Equity securities | Level 1 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 6,407 | 6,158 | |
Defined benefit pension plans | Equity securities | Level 2 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 194 | 166 | |
Defined benefit pension plans | Equity securities | Level 3 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 2 | 2 | |
Defined benefit pension plans | Mutual funds | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 325 | 0 | |
Defined benefit pension plans | Mutual funds | Level 1 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 325 | 0 | |
Defined benefit pension plans | Mutual funds | Level 2 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 0 | 0 | |
Defined benefit pension plans | Mutual funds | Level 3 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 0 | 0 | |
Defined benefit pension plans | Common/collective trust funds | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 778 | 384 | |
Defined benefit pension plans | Common/collective trust funds | Level 1 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 778 | 384 | |
Defined benefit pension plans | Common/collective trust funds | Level 2 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 0 | 0 | |
Defined benefit pension plans | Common/collective trust funds | Level 3 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 0 | 0 | |
Defined benefit pension plans | Limited partnerships | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 60 | 62 | |
Defined benefit pension plans | Limited partnerships | Level 1 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 60 | 62 | |
Defined benefit pension plans | Limited partnerships | Level 2 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 0 | 0 | |
Defined benefit pension plans | Limited partnerships | Level 3 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 0 | 0 | |
Defined benefit pension plans | Corporate debt securities | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 2,648 | 2,510 | |
Defined benefit pension plans | Corporate debt securities | Level 1 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 0 | 0 | |
Defined benefit pension plans | Corporate debt securities | Level 2 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 2,644 | 2,506 | |
Defined benefit pension plans | Corporate debt securities | Level 3 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 4 | 4 | |
Defined benefit pension plans | U.S. federal, state, local and non-U.S. government debt securities | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 1,880 | 1,943 | |
Defined benefit pension plans | U.S. federal, state, local and non-U.S. government debt securities | Level 1 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 1,096 | 1,139 | |
Defined benefit pension plans | U.S. federal, state, local and non-U.S. government debt securities | Level 2 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 784 | 804 | |
Defined benefit pension plans | U.S. federal, state, local and non-U.S. government debt securities | Level 3 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 0 | 0 | |
Defined benefit pension plans | Mortgage-backed securities | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 194 | 117 | |
Defined benefit pension plans | Mortgage-backed securities | Level 1 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 92 | 42 | |
Defined benefit pension plans | Mortgage-backed securities | Level 2 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 100 | 75 | |
Defined benefit pension plans | Mortgage-backed securities | Level 3 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 2 | 0 | |
Defined benefit pension plans | Derivative receivables | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 203 | 243 | |
Defined benefit pension plans | Derivative receivables | Level 1 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 0 | 0 | |
Defined benefit pension plans | Derivative receivables | Level 2 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 203 | 243 | |
Defined benefit pension plans | Derivative receivables | Level 3 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 0 | 0 | |
Defined benefit pension plans | Other | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 2,715 | 1,940 | |
Defined benefit pension plans | Other | Level 1 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 2,353 | 1,497 | |
Defined benefit pension plans | Other | Level 2 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 60 | 53 | |
Defined benefit pension plans | Other | Level 3 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 302 | 390 | |
Defined benefit pension plans | Certain investments measured at fair value ising net asset value per share as practical expedient | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 4,400 | 4,200 | |
Defined benefit pension plans | Total liabilities measured at fair value | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total liabilities measured at fair value | (141) | (208) | |
Defined benefit pension plans | Total liabilities measured at fair value | Level 1 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total liabilities measured at fair value | 0 | 0 | |
Defined benefit pension plans | Total liabilities measured at fair value | Level 2 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total liabilities measured at fair value | (141) | (208) | |
Defined benefit pension plans | Total liabilities measured at fair value | Level 3 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total liabilities measured at fair value | 0 | 0 | |
Defined benefit pension plans | Derivative payables | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total liabilities measured at fair value | (141) | (208) | |
Defined benefit pension plans | Derivative payables | Level 1 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total liabilities measured at fair value | 0 | 0 | |
Defined benefit pension plans | Derivative payables | Level 2 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total liabilities measured at fair value | (141) | (208) | |
Defined benefit pension plans | Derivative payables | Level 3 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total liabilities measured at fair value | 0 | 0 | |
OPEB plans | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 2,757 | 1,956 | $ 1,855 |
OPEB plans | Cash and cash equivalents | Level 1 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 600 | 0 | |
OPEB plans | COLI Policies | Level 3 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | $ 2,200 | $ 2,000 |
Pension and Other Postretire110
Pension and Other Postretirement Employee Benefit Plans - Changes In Level 3 Fair Value Measurements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined benefit pension plans | ||
Changes in level 3 fair value measurements using significant unobservable inputs | ||
Fair value of plan assets, beginning of year | $ 17,703 | $ 17,636 |
Fair value of plan assets, end of year | 19,603 | 17,703 |
OPEB plans | ||
Changes in level 3 fair value measurements using significant unobservable inputs | ||
Fair value of plan assets, beginning of year | 1,956 | 1,855 |
Fair value of plan assets, end of year | 2,757 | 1,956 |
Level 3 | Defined benefit pension plans | U.S. | ||
Changes in level 3 fair value measurements using significant unobservable inputs | ||
Fair value of plan assets, beginning of year | 396 | 539 |
Actual return on plan assets, Realized gains/(losses) | 0 | 0 |
Actual return on plan assets, Unrealized gains/(losses) | 1 | (157) |
Purchases, sales and settlements, net | (87) | 0 |
Transfers in and/or out of level 3 | 0 | 14 |
Fair value of plan assets, end of year | 310 | 396 |
Level 3 | OPEB plans | U.S. | ||
Changes in level 3 fair value measurements using significant unobservable inputs | ||
Fair value of plan assets, beginning of year | 1,957 | 1,855 |
Actual return on plan assets, Realized gains/(losses) | 0 | 0 |
Actual return on plan assets, Unrealized gains/(losses) | 200 | 102 |
Purchases, sales and settlements, net | 0 | 0 |
Transfers in and/or out of level 3 | 0 | 0 |
Fair value of plan assets, end of year | $ 2,157 | $ 1,957 |
Pension and Other Postretire111
Pension and Other Postretirement Employee Benefit Plans - Estimated Future Benefit Payments (Details) $ in Millions | Dec. 31, 2017USD ($) |
Defined benefit pension plans | |
Defined benefit pension and OPEB before Medicare | |
2,018 | $ 926 |
2,019 | 922 |
2,020 | 927 |
2,021 | 944 |
2,022 | 960 |
Years 2023–2027 | 4,925 |
OPEB plans | |
Defined benefit pension and OPEB before Medicare | |
2,018 | 65 |
2,019 | 63 |
2,020 | 60 |
2,021 | 57 |
2,022 | 55 |
Years 2023–2027 | 235 |
Medicare Part D subsidy | |
2,018 | 1 |
2,019 | 1 |
2,020 | 1 |
2,021 | 0 |
2,022 | 0 |
Years 2023–2027 | $ 2 |
Employee Share-Based Incenti112
Employee Share-Based Incentives - Employee Share-Based Awards (Details) - $ / shares | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2017 | Dec. 31, 2017 | Jan. 31, 2008 | |
Lont-Term Incentive Plan | |||
Employee stock-based awards general disclosures | |||
Shares of common stock available for issuance (in shares) | 67,000,000 | ||
PSUs | |||
Employee stock-based awards general disclosures | |||
Award vesting period | 3 years | ||
Holding period | 2 years | ||
Combined vesting and holding period | 5 years | ||
PSUs | Minimum | |||
Employee stock-based awards general disclosures | |||
Award vesting percentage | 0.00% | ||
PSUs | Maximum | |||
Employee stock-based awards general disclosures | |||
Award vesting percentage | 150.00% | ||
Stock Appreciation Rights (SARs) | |||
Employee stock-based awards general disclosures | |||
Award expiration period | 10 years | ||
1st 50% | RSUs | |||
Employee stock-based awards general disclosures | |||
Award vesting period | 2 years | ||
Award vesting percentage | 50.00% | ||
2nd 50% | RSUs | |||
Employee stock-based awards general disclosures | |||
Award vesting period | 3 years | ||
Award vesting percentage | 50.00% | ||
Chief Executive Officer | Stock Appreciation Rights (SARs) | |||
Employee stock-based awards general disclosures | |||
Shares awarded (up to) (in shares) | 2,000,000 | ||
Exercise price (in dollars per share) | $ 39.83 |
Employee Share-Based Incenti113
Employee Share-Based Incentives - RSUs, Employee Stock Options and SARS Activities (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
RSUs/PSUs | |||
RSUs/PSUs Number of Units: | |||
Outstanding, January 1 (in shares) | 81,707 | ||
Granted (in shares) | 26,017 | ||
Exercised or vested (in shares) | (32,961) | ||
Forfeited (in shares) | (2,030) | ||
Outstanding, December 31 (in shares) | 72,733 | 81,707 | |
RSUs/PSUs Weighted-Average Grant Date Fair Value (in dollars per share): | |||
Outstanding, January 1 (in dollars per share) | $ 57.15 | ||
Granted (in dollars per share) | 84.30 | ||
Exercised or vested (in dollars per share) | 57.80 | ||
Forfeited (in dollars per share) | 63.34 | ||
Outstanding, December 31 (in dollars per share) | $ 66.36 | $ 57.15 | |
Options/SARs | |||
Options/SARs Number of Awards: | |||
Outstanding, January 1 (in shares) | 30,267 | ||
Granted (in shares) | 109 | ||
Exercised or vested (in shares) | (12,816) | ||
Forfeited (in shares) | (54) | ||
Canceled (in shares) | (13) | ||
Outstanding, December 31 (in shares) | 17,493 | 30,267 | |
Exercisable, December 31 (in shares) | 15,828 | ||
Options/SARs Weighted-Average Exercise Price (in dollars per share): | |||
Outstanding, January 1 (in dollars per share) | $ 40.65 | ||
Granted (in dollars per share) | 90.94 | ||
Exercised or vested (in dollars per share) | 40.50 | ||
Forfeited (in dollars per share) | 55.82 | ||
Canceled (in dollars per share) | 405.47 | ||
Outstanding, December 31 (in dollars per share) | 40.76 | $ 40.65 | |
Exercisable, December 31 (in dollars per share) | $ 40 | ||
Weighted-average remaining contractual life, Outstanding | 3 years 5 months 5 days | ||
Weighted-average remaining contractual life, Exercisable | 3 years 3 months 19 days | ||
Aggregate intrinsic value, Outstanding | $ 1,169,470 | ||
Aggregate intrinsic value, Exercisable | 1,070,212 | ||
RSUs | |||
Options/SARs Weighted-Average Exercise Price (in dollars per share): | |||
Total fair value of RSUs that vested | 2,900,000 | $ 2,200,000 | $ 2,800,000 |
Stock options | |||
Options/SARs Weighted-Average Exercise Price (in dollars per share): | |||
Total intrinsic value of options exercised | $ 651,000 | $ 338,000 | $ 335,000 |
Employee Share-Based Incenti114
Employee Share-Based Incentives - Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Noncash compensation expense related to employee stock-based incentive plans | |||
Cost of prior grants of RSUs, PSUs and SARs that are amortized over their applicable vesting periods | $ 1,125 | $ 1,046 | $ 1,109 |
Accrual of estimated costs of share-based awards to be granted in future periods including those to full-career eligible employees | 945 | 894 | 878 |
Total noncash compensation expense related to employee share-based incentive plans | 2,070 | $ 1,940 | $ 1,987 |
Compensation cost related to unvested awards not charged to net income | $ 704 | ||
Weighted average period for cost expected to be amortized into compensation expense | 1 year |
Employee Share-Based Incenti115
Employee Share-Based Incentives - Cash Flows and Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefit from compensation expense | $ 1,000 | $ 916 | $ 746 |
Stock options | |||
Cash received from the exercise of stock options under all stock-based incentive arrangements, and the actual income tax benefit realized related to tax deductions from the exercise of the stock options | |||
Cash received for options exercised | 18 | 26 | 20 |
Tax benefit | $ 190 | $ 70 | $ 64 |
Securities - Amortized Costs, F
Securities - Amortized Costs, Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale Debt Securities: | ||
Amortized cost | $ 198,194 | $ 235,516 |
Gross unrealized gains | 3,961 | 4,096 |
Gross unrealized losses | 477 | 1,647 |
Fair value | 201,678 | 237,965 |
Available-for-sale Equity Securities: | ||
Amortized cost | 547 | 914 |
Gross unrealized gains | 0 | 12 |
Gross unrealized losses | 0 | 0 |
Fair value | 547 | 926 |
Available-for-sale Securities: | ||
Amortized cost | 198,741 | 236,430 |
Gross unrealized gains | 3,961 | 4,108 |
Gross unrealized losses | 477 | 1,647 |
Fair value | 202,225 | 238,891 |
Held-to-maturity Securities: | ||
Amortized cost | 47,733 | 50,168 |
Gross unrealized gains | 1,113 | 1,012 |
Gross unrealized losses | 194 | 291 |
Fair value | 48,652 | 50,889 |
Total Securities: | ||
Amortized cost | 246,474 | 286,598 |
Gross unrealized gains | 5,074 | 5,120 |
Gross unrealized losses | 671 | 1,938 |
Fair value | 250,877 | 289,780 |
Total mortgage-backed securities | ||
Available-for-sale Debt Securities: | ||
Amortized cost | 85,886 | 86,589 |
Gross unrealized gains | 1,141 | 1,492 |
Gross unrealized losses | 355 | 529 |
Fair value | 86,672 | 87,552 |
Held-to-maturity Securities: | ||
Amortized cost | 33,360 | 35,693 |
Gross unrealized gains | 559 | 638 |
Gross unrealized losses | 114 | 166 |
Fair value | 33,805 | 36,165 |
U.S. government agencies | ||
Available-for-sale Debt Securities: | ||
Amortized cost | 69,879 | 63,367 |
Gross unrealized gains | 736 | 1,112 |
Gross unrealized losses | 335 | 474 |
Fair value | 70,280 | 64,005 |
Held-to-maturity Securities: | ||
Amortized cost | 27,577 | 29,910 |
Gross unrealized gains | 558 | 638 |
Gross unrealized losses | 40 | 37 |
Fair value | 28,095 | 30,511 |
Residential: U.S. | Residential mortgage-backed securities | ||
Available-for-sale Debt Securities: | ||
Amortized cost | 8,193 | 8,171 |
Gross unrealized gains | 185 | 100 |
Gross unrealized losses | 14 | 28 |
Fair value | 8,364 | 8,243 |
Residential: Non-U.S. | Residential mortgage-backed securities | ||
Available-for-sale Debt Securities: | ||
Amortized cost | 2,882 | 6,049 |
Gross unrealized gains | 122 | 158 |
Gross unrealized losses | 1 | 7 |
Fair value | 3,003 | 6,200 |
Commercial | ||
Available-for-sale Debt Securities: | ||
Amortized cost | 4,932 | 9,002 |
Gross unrealized gains | 98 | 122 |
Gross unrealized losses | 5 | 20 |
Fair value | 5,025 | 9,104 |
Held-to-maturity Securities: | ||
Amortized cost | 5,783 | 5,783 |
Gross unrealized gains | 1 | 0 |
Gross unrealized losses | 74 | 129 |
Fair value | 5,710 | 5,654 |
U.S. Treasury and government agencies | ||
Available-for-sale Debt Securities: | ||
Amortized cost | 22,510 | 44,822 |
Gross unrealized gains | 266 | 75 |
Gross unrealized losses | 31 | 796 |
Fair value | 22,745 | 44,101 |
Obligations of U.S. states and municipalities | ||
Available-for-sale Debt Securities: | ||
Amortized cost | 30,490 | 30,284 |
Gross unrealized gains | 1,881 | 1,492 |
Gross unrealized losses | 33 | 184 |
Fair value | 32,338 | 31,592 |
Held-to-maturity Securities: | ||
Amortized cost | 14,373 | 14,475 |
Gross unrealized gains | 554 | 374 |
Gross unrealized losses | 80 | 125 |
Fair value | 14,847 | 14,724 |
Certificates of deposit | ||
Available-for-sale Debt Securities: | ||
Amortized cost | 59 | 106 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair value | 59 | 106 |
Non-U.S. government debt securities | ||
Available-for-sale Debt Securities: | ||
Amortized cost | 26,900 | 34,497 |
Gross unrealized gains | 426 | 836 |
Gross unrealized losses | 32 | 45 |
Fair value | 27,294 | 35,288 |
Corporate debt securities | ||
Available-for-sale Debt Securities: | ||
Amortized cost | 2,657 | 4,916 |
Gross unrealized gains | 101 | 64 |
Gross unrealized losses | 1 | 22 |
Fair value | 2,757 | 4,958 |
Asset-backed securities: Collateralized loan obligations | ||
Available-for-sale Debt Securities: | ||
Amortized cost | 20,928 | 27,352 |
Gross unrealized gains | 69 | 75 |
Gross unrealized losses | 1 | 26 |
Fair value | 20,996 | 27,401 |
Asset-backed securities: Other | ||
Available-for-sale Debt Securities: | ||
Amortized cost | 8,764 | 6,950 |
Gross unrealized gains | 77 | 62 |
Gross unrealized losses | 24 | 45 |
Fair value | 8,817 | 6,967 |
US government-sponsored and enterprises obligations | ||
Available-for-sale Securities: | ||
Fair value | 45,800 | 45,800 |
Held-to-maturity Securities: | ||
Amortized cost | $ 22,000 | $ 25,600 |
Securities - Continuous Unreali
Securities - Continuous Unrealized Loss Position (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Held-to-maturity Securities, Securities with Gross Unrealized Losses: | ||
Less than 12 months, Fair value | $ 8,360 | $ 12,994 |
Less than 12 months, Gross unrealized losses | 88 | 276 |
12 months or more, Fair value | 4,218 | 441 |
12 months or more, Gross unrealized losses | 106 | 15 |
Total fair value | 12,578 | 13,435 |
Total gross unrealized losses | 194 | 291 |
Total Securities with Gross Unrealized Losses | ||
Less than 12 months, Fair value | 58,841 | 84,047 |
Less than 12 months, Gross unrealized losses | 289 | 1,785 |
12 months or more, Fair value | 17,010 | 12,544 |
12 months or more, Gross unrealized losses | 382 | 153 |
Total fair value | 75,851 | 96,591 |
Total gross unrealized losses | 671 | 1,938 |
Debt securities | ||
Available-for-sale Securities, Securities with Gross Unrealized Losses: | ||
Less than 12 months, Fair value | 50,481 | 71,053 |
Less than 12 months, Gross unrealized losses | 201 | 1,509 |
12 months or more, Fair value | 12,792 | 12,103 |
12 months or more, Gross unrealized losses | 276 | 138 |
Total fair value | 63,273 | 83,156 |
Total gross unrealized losses | 477 | 1,647 |
Total mortgage-backed securities | ||
Available-for-sale Securities, Securities with Gross Unrealized Losses: | ||
Less than 12 months, Fair value | 37,677 | 33,557 |
Less than 12 months, Gross unrealized losses | 148 | 486 |
12 months or more, Fair value | 8,908 | 3,543 |
12 months or more, Gross unrealized losses | 207 | 43 |
Total fair value | 46,585 | 37,100 |
Total gross unrealized losses | 355 | 529 |
Held-to-maturity Securities, Securities with Gross Unrealized Losses: | ||
Less than 12 months, Fair value | 7,776 | 8,292 |
Less than 12 months, Gross unrealized losses | 79 | 151 |
12 months or more, Fair value | 2,087 | 441 |
12 months or more, Gross unrealized losses | 35 | 15 |
Total fair value | 9,863 | 8,733 |
Total gross unrealized losses | 114 | 166 |
U.S. government agencies | ||
Available-for-sale Securities, Securities with Gross Unrealized Losses: | ||
Less than 12 months, Fair value | 36,037 | 29,856 |
Less than 12 months, Gross unrealized losses | 139 | 463 |
12 months or more, Fair value | 7,711 | 506 |
12 months or more, Gross unrealized losses | 196 | 11 |
Total fair value | 43,748 | 30,362 |
Total gross unrealized losses | 335 | 474 |
Held-to-maturity Securities, Securities with Gross Unrealized Losses: | ||
Less than 12 months, Fair value | 4,070 | 3,129 |
Less than 12 months, Gross unrealized losses | 38 | 37 |
12 months or more, Fair value | 205 | 0 |
12 months or more, Gross unrealized losses | 2 | 0 |
Total fair value | 4,275 | 3,129 |
Total gross unrealized losses | 40 | 37 |
Residential: U.S. | Residential mortgage-backed securities | ||
Available-for-sale Securities, Securities with Gross Unrealized Losses: | ||
Less than 12 months, Fair value | 1,112 | 1,373 |
Less than 12 months, Gross unrealized losses | 5 | 6 |
12 months or more, Fair value | 596 | 1,073 |
12 months or more, Gross unrealized losses | 9 | 22 |
Total fair value | 1,708 | 2,446 |
Total gross unrealized losses | 14 | 28 |
Residential: Non-U.S. | Residential mortgage-backed securities | ||
Available-for-sale Securities, Securities with Gross Unrealized Losses: | ||
Less than 12 months, Fair value | 0 | 0 |
Less than 12 months, Gross unrealized losses | 0 | 0 |
12 months or more, Fair value | 266 | 886 |
12 months or more, Gross unrealized losses | 1 | 7 |
Total fair value | 266 | 886 |
Total gross unrealized losses | 1 | 7 |
Commercial | ||
Available-for-sale Securities, Securities with Gross Unrealized Losses: | ||
Less than 12 months, Fair value | 528 | 2,328 |
Less than 12 months, Gross unrealized losses | 4 | 17 |
12 months or more, Fair value | 335 | 1,078 |
12 months or more, Gross unrealized losses | 1 | 3 |
Total fair value | 863 | 3,406 |
Total gross unrealized losses | 5 | 20 |
Held-to-maturity Securities, Securities with Gross Unrealized Losses: | ||
Less than 12 months, Fair value | 3,706 | 5,163 |
Less than 12 months, Gross unrealized losses | 41 | 114 |
12 months or more, Fair value | 1,882 | 441 |
12 months or more, Gross unrealized losses | 33 | 15 |
Total fair value | 5,588 | 5,604 |
Total gross unrealized losses | 74 | 129 |
U.S. Treasury and government agencies | ||
Available-for-sale Securities, Securities with Gross Unrealized Losses: | ||
Less than 12 months, Fair value | 1,834 | 23,543 |
Less than 12 months, Gross unrealized losses | 11 | 796 |
12 months or more, Fair value | 373 | 0 |
12 months or more, Gross unrealized losses | 20 | 0 |
Total fair value | 2,207 | 23,543 |
Total gross unrealized losses | 31 | 796 |
Obligations of U.S. states and municipalities | ||
Available-for-sale Securities, Securities with Gross Unrealized Losses: | ||
Less than 12 months, Fair value | 949 | 7,215 |
Less than 12 months, Gross unrealized losses | 7 | 181 |
12 months or more, Fair value | 1,652 | 55 |
12 months or more, Gross unrealized losses | 26 | 3 |
Total fair value | 2,601 | 7,270 |
Total gross unrealized losses | 33 | 184 |
Held-to-maturity Securities, Securities with Gross Unrealized Losses: | ||
Less than 12 months, Fair value | 584 | 4,702 |
Less than 12 months, Gross unrealized losses | 9 | 125 |
12 months or more, Fair value | 2,131 | 0 |
12 months or more, Gross unrealized losses | 71 | 0 |
Total fair value | 2,715 | 4,702 |
Total gross unrealized losses | 80 | 125 |
Certificates of deposit | ||
Available-for-sale Securities, Securities with Gross Unrealized Losses: | ||
Less than 12 months, Fair value | 0 | 0 |
Less than 12 months, Gross unrealized losses | 0 | 0 |
12 months or more, Fair value | 0 | 0 |
12 months or more, Gross unrealized losses | 0 | 0 |
Total fair value | 0 | 0 |
Total gross unrealized losses | 0 | 0 |
Non-U.S. government debt securities | ||
Available-for-sale Securities, Securities with Gross Unrealized Losses: | ||
Less than 12 months, Fair value | 6,500 | 4,436 |
Less than 12 months, Gross unrealized losses | 15 | 36 |
12 months or more, Fair value | 811 | 421 |
12 months or more, Gross unrealized losses | 17 | 9 |
Total fair value | 7,311 | 4,857 |
Total gross unrealized losses | 32 | 45 |
Corporate debt securities | ||
Available-for-sale Securities, Securities with Gross Unrealized Losses: | ||
Less than 12 months, Fair value | 0 | 797 |
Less than 12 months, Gross unrealized losses | 0 | 2 |
12 months or more, Fair value | 52 | 829 |
12 months or more, Gross unrealized losses | 1 | 20 |
Total fair value | 52 | 1,626 |
Total gross unrealized losses | 1 | 22 |
Asset-backed securities: Collateralized loan obligations | ||
Available-for-sale Securities, Securities with Gross Unrealized Losses: | ||
Less than 12 months, Fair value | 0 | 766 |
Less than 12 months, Gross unrealized losses | 0 | 2 |
12 months or more, Fair value | 276 | 5,263 |
12 months or more, Gross unrealized losses | 1 | 24 |
Total fair value | 276 | 6,029 |
Total gross unrealized losses | 1 | 26 |
Asset-backed securities: Other | ||
Available-for-sale Securities, Securities with Gross Unrealized Losses: | ||
Less than 12 months, Fair value | 3,521 | 739 |
Less than 12 months, Gross unrealized losses | 20 | 6 |
12 months or more, Fair value | 720 | 1,992 |
12 months or more, Gross unrealized losses | 4 | 39 |
Total fair value | 4,241 | 2,731 |
Total gross unrealized losses | 24 | 45 |
Available-for-sale equity securities | ||
Available-for-sale Securities, Securities with Gross Unrealized Losses: | ||
Less than 12 months, Fair value | 0 | 0 |
Less than 12 months, Gross unrealized losses | 0 | 0 |
12 months or more, Fair value | 0 | 0 |
12 months or more, Gross unrealized losses | 0 | 0 |
Total fair value | 0 | 0 |
Total gross unrealized losses | $ 0 | $ 0 |
Securities - Realized Gain (Los
Securities - Realized Gain (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Securities gains and losses | |||
Realized gains | $ 1,013 | $ 401 | $ 351 |
Realized losses | (1,072) | (232) | (127) |
OTTI losses | (7) | (28) | (22) |
Net securities gains/(losses) | (66) | 141 | 202 |
Other than temporary impairment losses investments portion previously recognized in earnings intends to sell net | 6 | 24 | 5 |
Credit losses recognized in income | |||
Securities gains and losses | |||
OTTI losses | 0 | (1) | (1) |
Securities the Firm intends to sell | |||
Securities gains and losses | |||
OTTI losses | $ (7) | $ (27) | $ (21) |
Securities - Amortized Cost, Fa
Securities - Amortized Cost, Fair Value, by Contract Maturity (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Available-for-sale debt securities, Amortized Cost: | ||
Due in one year or less | $ 5,365 | |
Due after one year through five years | 19,644 | |
Due after five years through 10 years | 47,300 | |
Due after 10 years | 125,885 | |
Amortized cost | 198,194 | $ 235,516 |
Available-for-sale debt securities, Fair value | ||
Due in one year or less | 5,367 | |
Due after one year through five years | 19,868 | |
Due after five years through 10 years | 47,922 | |
Due after 10 years | 128,521 | |
Fair value | $ 201,678 | 237,965 |
Available-for-sale debt securities, Average yield | ||
Due in one year or less | 3.03% | |
Due after one year through five years | 1.86% | |
Due after five years through 10 years | 2.28% | |
Due after 10 years | 3.66% | |
Average yield | 3.14% | |
Available-for-sale equity securities, Amortized cost | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 0 | |
Due after five years through 10 years | 0 | |
Due after 10 years | 547 | |
Amortized cost | 547 | |
Available-for-sale equity securities, Fair value | ||
Due in one year or less | 0 | |
Due after one year through five years | 0 | |
Due after five years through 10 years | 0 | |
Due after 10 years | 547 | |
Fair value | $ 547 | |
Available-for-sale equity securities, Average yield | ||
Due in one year or less | 0.00% | |
Due after one year through five years | 0.00% | |
Due after five years through 10 years | 0.00% | |
Due after 10 years | 0.71% | |
Average yield | 0.71% | |
Available-for-sale securities, Amortized cost | ||
Due in one year or less | $ 5,365 | |
Due after one year through five years | 19,644 | |
Due after five years through 10 years | 47,300 | |
Due after 10 years | 126,432 | |
Amortized cost | 198,741 | 236,430 |
Available-for-sale securities, Fair value | ||
Due in one year or less | 5,367 | |
Due after one year through five years | 19,868 | |
Due after five years through 10 years | 47,922 | |
Due after 10 years | 129,068 | |
Fair value | $ 202,225 | 238,891 |
Available-for-sale securities, Average yield | ||
Due in one year or less | 3.03% | |
Due after one year through five years | 1.86% | |
Due after five years through 10 years | 2.28% | |
Due after 10 years | 3.65% | |
Average yield | 3.13% | |
Held-to-maturity securities, Amortized cost | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 66 | |
Due after five years through 10 years | 2,068 | |
Due after 10 years | 45,599 | |
Amortized cost | 47,733 | 50,168 |
Held-to-maturity securities, Fair value | ||
Due in one year or less | 0 | |
Due after one year through five years | 65 | |
Due after five years through 10 years | 2,116 | |
Due after 10 years | 46,471 | |
Fair value | $ 48,652 | 50,889 |
Held-to-maturity securities, Average yield | ||
Due in one year or less | 0.00% | |
Due after one year through five years | 4.75% | |
Due after five years through 10 years | 4.26% | |
Due after 10 years | 3.66% | |
Average yield | 3.69% | |
Supplemental information | ||
US government agencies and US government sponsored enterprises residential mortgage-backed securities estimated duration | 6 years | |
US government agencies and US government sponsored enterprises residential collateralized mortgage obligations estimated duration | 3 years | |
Non-agency residential collateralized mortgage obligations estimated duration | 3 years | |
Minimum | ||
Supplemental information | ||
Due period of mortgage-backed securities and collateralized mortgage obligations | 10 years | |
Mortgage-backed securities | ||
Available-for-sale debt securities, Amortized Cost: | ||
Due in one year or less | $ 3 | |
Due after one year through five years | 698 | |
Due after five years through 10 years | 6,134 | |
Due after 10 years | 79,051 | |
Amortized cost | 85,886 | 86,589 |
Available-for-sale debt securities, Fair value | ||
Due in one year or less | 3 | |
Due after one year through five years | 708 | |
Due after five years through 10 years | 6,294 | |
Due after 10 years | 79,667 | |
Fair value | $ 86,672 | 87,552 |
Available-for-sale debt securities, Average yield | ||
Due in one year or less | 4.76% | |
Due after one year through five years | 2.10% | |
Due after five years through 10 years | 3.10% | |
Due after 10 years | 3.35% | |
Average yield | 3.32% | |
Held-to-maturity securities, Amortized cost | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 0 | |
Due after five years through 10 years | 49 | |
Due after 10 years | 33,311 | |
Amortized cost | 33,360 | 35,693 |
Held-to-maturity securities, Fair value | ||
Due in one year or less | 0 | |
Due after one year through five years | 0 | |
Due after five years through 10 years | 49 | |
Due after 10 years | 33,756 | |
Fair value | $ 33,805 | 36,165 |
Held-to-maturity securities, Average yield | ||
Due in one year or less | 0.00% | |
Due after one year through five years | 0.00% | |
Due after five years through 10 years | 2.88% | |
Due after 10 years | 3.27% | |
Average yield | 3.27% | |
Mortgage-backed securities | Fannie Mae | ||
Supplemental information | ||
Securities exceeding 10% of total stockholders' equity, Amortized cost | $ 55,100 | |
Securities exceeding 10% of total stockholders' equity, Fair value | 56,000 | |
U.S. Treasury and government agencies | ||
Available-for-sale debt securities, Amortized Cost: | ||
Due in one year or less | 60 | |
Due after one year through five years | 0 | |
Due after five years through 10 years | 17,437 | |
Due after 10 years | 5,013 | |
Amortized cost | 22,510 | 44,822 |
Available-for-sale debt securities, Fair value | ||
Due in one year or less | 60 | |
Due after one year through five years | 0 | |
Due after five years through 10 years | 17,542 | |
Due after 10 years | 5,143 | |
Fair value | $ 22,745 | 44,101 |
Available-for-sale debt securities, Average yield | ||
Due in one year or less | 1.72% | |
Due after one year through five years | 0.00% | |
Due after five years through 10 years | 1.96% | |
Due after 10 years | 1.76% | |
Average yield | 1.91% | |
Obligations of U.S. states and municipalities | ||
Available-for-sale debt securities, Amortized Cost: | ||
Due in one year or less | $ 73 | |
Due after one year through five years | 750 | |
Due after five years through 10 years | 1,265 | |
Due after 10 years | 28,402 | |
Amortized cost | 30,490 | 30,284 |
Available-for-sale debt securities, Fair value | ||
Due in one year or less | 72 | |
Due after one year through five years | 765 | |
Due after five years through 10 years | 1,324 | |
Due after 10 years | 30,177 | |
Fair value | $ 32,338 | 31,592 |
Available-for-sale debt securities, Average yield | ||
Due in one year or less | 1.78% | |
Due after one year through five years | 3.28% | |
Due after five years through 10 years | 5.40% | |
Due after 10 years | 5.50% | |
Average yield | 5.43% | |
Held-to-maturity securities, Amortized cost | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 66 | |
Due after five years through 10 years | 2,019 | |
Due after 10 years | 12,288 | |
Amortized cost | 14,373 | 14,475 |
Held-to-maturity securities, Fair value | ||
Due in one year or less | 0 | |
Due after one year through five years | 65 | |
Due after five years through 10 years | 2,067 | |
Due after 10 years | 12,715 | |
Fair value | $ 14,847 | 14,724 |
Held-to-maturity securities, Average yield | ||
Due in one year or less | 0.00% | |
Due after one year through five years | 4.74% | |
Due after five years through 10 years | 4.30% | |
Due after 10 years | 4.72% | |
Average yield | 4.66% | |
Certificates of deposit | ||
Available-for-sale debt securities, Amortized Cost: | ||
Due in one year or less | $ 59 | |
Due after one year through five years | 0 | |
Due after five years through 10 years | 0 | |
Due after 10 years | 0 | |
Amortized cost | 59 | 106 |
Available-for-sale debt securities, Fair value | ||
Due in one year or less | 59 | |
Due after one year through five years | 0 | |
Due after five years through 10 years | 0 | |
Due after 10 years | 0 | |
Fair value | $ 59 | 106 |
Available-for-sale debt securities, Average yield | ||
Due in one year or less | 0.50% | |
Due after one year through five years | 0.00% | |
Due after five years through 10 years | 0.00% | |
Due after 10 years | 0.00% | |
Average yield | 0.50% | |
Non-U.S. government debt securities | ||
Available-for-sale debt securities, Amortized Cost: | ||
Due in one year or less | $ 5,020 | |
Due after one year through five years | 13,665 | |
Due after five years through 10 years | 8,215 | |
Due after 10 years | 0 | |
Amortized cost | 26,900 | 34,497 |
Available-for-sale debt securities, Fair value | ||
Due in one year or less | 5,022 | |
Due after one year through five years | 13,845 | |
Due after five years through 10 years | 8,427 | |
Due after 10 years | 0 | |
Fair value | $ 27,294 | 35,288 |
Available-for-sale debt securities, Average yield | ||
Due in one year or less | 3.09% | |
Due after one year through five years | 1.55% | |
Due after five years through 10 years | 1.19% | |
Due after 10 years | 0.00% | |
Average yield | 1.73% | |
Corporate debt securities | ||
Available-for-sale debt securities, Amortized Cost: | ||
Due in one year or less | $ 150 | |
Due after one year through five years | 1,159 | |
Due after five years through 10 years | 1,203 | |
Due after 10 years | 145 | |
Amortized cost | 2,657 | 4,916 |
Available-for-sale debt securities, Fair value | ||
Due in one year or less | 151 | |
Due after one year through five years | 1,197 | |
Due after five years through 10 years | 1,255 | |
Due after 10 years | 154 | |
Fair value | $ 2,757 | $ 4,958 |
Available-for-sale debt securities, Average yield | ||
Due in one year or less | 3.07% | |
Due after one year through five years | 3.60% | |
Due after five years through 10 years | 3.58% | |
Due after 10 years | 3.22% | |
Average yield | 3.54% | |
Asset-backed securities | ||
Available-for-sale debt securities, Amortized Cost: | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 3,372 | |
Due after five years through 10 years | 13,046 | |
Due after 10 years | 13,274 | |
Amortized cost | 29,692 | |
Available-for-sale debt securities, Fair value | ||
Due in one year or less | 0 | |
Due after one year through five years | 3,353 | |
Due after five years through 10 years | 13,080 | |
Due after 10 years | 13,380 | |
Fair value | $ 29,813 | |
Available-for-sale debt securities, Average yield | ||
Due in one year or less | 0.00% | |
Due after one year through five years | 2.14% | |
Due after five years through 10 years | 2.58% | |
Due after 10 years | 2.36% | |
Average yield | 2.43% |
Securities Financing Activit120
Securities Financing Activities - Schedule of securities purchased under resale agreements, netting & securities borrowed (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Securities purchased under resale agreements, Gross amounts | $ 448,608,000,000 | $ 480,735,000,000 |
Securities purchased under resale agreements, Amounts netted on the Consolidated balance sheets | (250,505,000,000) | (250,832,000,000) |
Securities purchased under resale agreements, Amounts presented on the Consolidated balance sheets | 198,103,000,000 | 229,903,000,000 |
Securities purchased under resale agreements, Amounts not nettable on the Consolidated balance sheets | (188,502,000,000) | (222,413,000,000) |
Securities purchased under resale agreements, Net amounts | 9,601,000,000 | 7,490,000,000 |
Securities borrowed, Gross amounts | 113,926,000,000 | 96,409,000,000 |
Securities borrowed, Amounts netted on the Consolidated balance sheets | (8,814,000,000) | 0 |
Securities borrowed, Amounts presented on the Consolidated balance sheets | 105,112,000,000 | 96,409,000,000 |
Securities borrowed, Amounts not nettable on the Consolidated balance sheets | (76,805,000,000) | (66,822,000,000) |
Securities borrowed, Net amounts | 28,307,000,000 | 29,587,000,000 |
Liabilities | ||
Securities sold under repurchase agreements, Gross amounts | 398,218,000,000 | 402,465,000,000 |
Securities sold under repurchase agreements, Amounts netted on the Consolidated balance sheets | (250,505,000,000) | (250,832,000,000) |
Securities sold under repurchase agreements, Amounts presented on the Consolidated balance sheets | 147,713,000,000 | 151,633,000,000 |
Securities sold under repurchase agreements, Amounts not nettable on the Consolidated balance sheets | (129,178,000,000) | (133,300,000,000) |
Securities sold under repurchase agreements, Net amounts | 18,535,000,000 | 18,333,000,000 |
Securities loaned and other, Gross amounts | 27,228,000,000 | 22,451,000,000 |
Securities loaned and other, Amounts netted on the Consolidated balance sheets | (8,814,000,000) | 0 |
Securities loaned and other, Amounts presented in the Consolidated balance sheets | 18,414,000,000 | 22,451,000,000 |
Securities loaned and other, Amounts not nettable on the Consolidated balance sheets | (18,151,000,000) | (22,177,000,000) |
Securities loaned and other, Net amounts | 263,000,000 | 274,000,000 |
Securities purchased under resale agreements where an appropriate legal opinion has not been either sought or obtained, Gross asset balance | 7,500,000,000 | 4,800,000,000 |
Securities borrowed where an appropriate legal opinion has not been either sought or obtained | 25,500,000,000 | 27,100,000,000 |
Securities sold under agreements to repurchase | 16,500,000,000 | 15,900,000,000 |
Securities loaned and other | 29,000,000 | 90,000,000 |
Securities-For-Securities | ||
Liabilities | ||
Securities loaned and other, Amounts presented in the Consolidated balance sheets | 9,200,000,000 | 9,100,000,000 |
Securities Financing Transaction, Fair Value | ||
Assets | ||
Securities purchased under resale agreements, Amounts presented on the Consolidated balance sheets | 14,700,000,000 | 21,500,000,000 |
Liabilities | ||
Securities sold under repurchase agreements, Amounts presented on the Consolidated balance sheets | 697,000,000 | 687,000,000 |
Securities borrowed | 3,000,000,000 | 0 |
Securities Financing Transaction, Fair Value | Securities loaned | ||
Liabilities | ||
Securities loaned accounted for at fair value | $ 0 | $ 0 |
Securities Financing Activit121
Securities Financing Activities - Schedule of secured financing transactions by assets pledged & remaining maturity (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | $ 398,218 | $ 402,465 |
Securities loaned and other | 27,228 | 22,451 |
Securities lending transactions at fair value | 18,414 | 22,451 |
Securities-For-Securities | ||
Securities Financing Transaction [Line Items] | ||
Securities lending transactions at fair value | 9,200 | 9,100 |
Overnight and continuous | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 166,425 | 140,318 |
Securities loaned and other | 22,876 | 13,586 |
Up to 30 days | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 156,434 | 157,860 |
Securities loaned and other | 375 | 1,371 |
30 – 90 days | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 41,611 | 55,621 |
Securities loaned and other | 2,328 | 2,877 |
Greater than 90 days | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 33,748 | 48,666 |
Securities loaned and other | 1,649 | 4,617 |
Mortgage-backed securities, U.S. government agencies | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 13,100 | 14,034 |
Securities loaned and other | 0 | 0 |
Mortgage-backed securities, Residential - nonagency | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 2,972 | 6,224 |
Securities loaned and other | 0 | 0 |
Mortgage-backed securities, Commercial - nonagency | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 1,594 | 4,173 |
Securities loaned and other | 0 | 0 |
U.S. Treasury and government agencies | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 177,581 | 185,145 |
Securities loaned and other | 14 | 0 |
Obligations of U.S. states and municipalities | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 1,557 | 2,491 |
Securities loaned and other | 0 | 0 |
Non-U.S. government debt | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 170,196 | 149,008 |
Securities loaned and other | 2,485 | 1,279 |
Corporate debt securities | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 14,231 | 18,140 |
Securities loaned and other | 287 | 108 |
Asset-backed securities | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 3,508 | 7,721 |
Securities loaned and other | 0 | 0 |
Equity securities | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 13,479 | 15,529 |
Securities loaned and other | $ 24,442 | $ 21,064 |
Securities Financing Activit122
Securities Financing Activities - Schedule of transfers not qualifying for sale accounting (Details) - USD ($) $ in Billions | Dec. 31, 2017 | Dec. 31, 2016 |
Securities Financing Transactions Disclosures [Abstract] | ||
Transfers not qualifying for sale accounting | $ 1.5 | $ 5.9 |
Loans - Narrative and Balances
Loans - Narrative and Balances By Portfolio Segment (Details) | 12 Months Ended |
Dec. 31, 2017loan_paymentloan_segment | |
Loans and Leases Receivable Disclosure [Line Items] | |
Number of portfolio segments | loan_segment | 3 |
Consumer, excluding credit card | Minimum | |
Loans and Leases Receivable Disclosure [Line Items] | |
Number of payments under modified terms to recognize interest on cash basis | loan_payment | 6 |
Consumer, excluding credit card | 90 or more days past due | |
Loans and Leases Receivable Disclosure [Line Items] | |
Period past due, credit analysis factors, charge off criteria | 90 days |
Consumer, excluding credit card | 30 or more days past due | |
Loans and Leases Receivable Disclosure [Line Items] | |
Period past due, credit analysis factors, charge off criteria | 30 days |
Residential real estate loans, non-modified credit card loans and scored business ranking loans | 180 or more days past due | |
Loans and Leases Receivable Disclosure [Line Items] | |
Loans, charge-off criteria, period past due | 180 days |
Auto, student, and modified credit card loans | 120 or more, days past due | |
Loans and Leases Receivable Disclosure [Line Items] | |
Loans, charge-off criteria, period past due | 120 days |
Residential real estate and auto loans | Less than 60 days until charge-off | |
Loans and Leases Receivable Disclosure [Line Items] | |
Period past due, credit analysis factors, charge off criteria | 60 days |
Residential mortgage | |
Loans and Leases Receivable Disclosure [Line Items] | |
Number of months the borrower has performed under modified terms | 6 months |
Residential mortgage | Maximum | |
Loans and Leases Receivable Disclosure [Line Items] | |
Number of months before updating exterior opinion on home valuation | 6 months |
Real estate | Minimum | |
Loans and Leases Receivable Disclosure [Line Items] | |
Number of months before updating collateral values on commercial real estate loans | 6 months |
Real estate | Maximum | |
Loans and Leases Receivable Disclosure [Line Items] | |
Number of months before updating collateral values on commercial real estate loans | 12 months |
Loans - By Portfolio Segment (D
Loans - By Portfolio Segment (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 924,838 | $ 889,907 | $ 832,792 |
Held-for-sale | 3,351 | 2,628 | |
At fair value | 2,508 | 2,230 | |
Total | 930,697 | 894,765 | |
Consumer, excluding credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 372,553 | 364,406 | 344,355 |
Held-for-sale | 128 | 238 | |
At fair value | 0 | 0 | |
Total | 372,681 | 364,644 | |
Credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 149,387 | 141,711 | |
Held-for-sale | 124 | 105 | |
At fair value | 0 | 0 | |
Total | 149,511 | 141,816 | |
Wholesale | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 402,898 | 383,790 | $ 357,050 |
Held-for-sale | 3,099 | 2,285 | |
At fair value | 2,508 | 2,230 | |
Total | $ 408,505 | $ 388,305 |
Loans - Purchased, Sold and Rec
Loans - Purchased, Sold and Reclassified to Held-for-Sale (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retained Loans Purchases Sales and Transfer Into Held For Sale By Portfolio Segment [Line Items] | |||
Purchases | $ 5,260 | $ 5,564 | $ 7,433 |
Sales | 14,468 | 15,107 | 14,287 |
Retained loans reclassified to held-for-sale | 7,569 | 2,702 | 2,235 |
Consumer, excluding credit card | |||
Retained Loans Purchases Sales and Transfer Into Held For Sale By Portfolio Segment [Line Items] | |||
Purchases | 3,461 | 4,116 | 5,279 |
Sales | 3,405 | 6,368 | 5,099 |
Retained loans reclassified to held-for-sale | 6,340 | 321 | 1,514 |
Excluded retained loans purchased from correspondents that were originated in accordance with the Firm's underwriting standards | 23,500 | 30,400 | 50,300 |
Credit card | |||
Retained Loans Purchases Sales and Transfer Into Held For Sale By Portfolio Segment [Line Items] | |||
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Retained loans reclassified to held-for-sale | 0 | 0 | 79 |
Wholesale | |||
Retained Loans Purchases Sales and Transfer Into Held For Sale By Portfolio Segment [Line Items] | |||
Purchases | 1,799 | 1,448 | 2,154 |
Sales | 11,063 | 8,739 | 9,188 |
Retained loans reclassified to held-for-sale | $ 1,229 | $ 2,381 | $ 642 |
Loans - Net Gains and Losses on
Loans - Net Gains and Losses on Sale (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total net gains/(losses) on sales of loans (including lower of cost or fair value adjustments) | $ (93) | $ 245 | $ 340 |
Consumer, excluding credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total net gains/(losses) on sales of loans (including lower of cost or fair value adjustments) | (126) | 231 | 305 |
Credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total net gains/(losses) on sales of loans (including lower of cost or fair value adjustments) | (8) | (12) | 1 |
Wholesale | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total net gains/(losses) on sales of loans (including lower of cost or fair value adjustments) | $ 41 | $ 26 | $ 34 |
Loans - Consumer, Excluding Cre
Loans - Consumer, Excluding Credit Card Loan Portfolio (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 924,838 | $ 889,907 | $ 832,792 |
Consumer, excluding credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 372,553 | 364,406 | $ 344,355 |
Consumer, excluding credit card | Residential mortgage | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 216,496 | 192,486 | |
Consumer, excluding credit card | Residential mortgage | Residential real estate – PCI | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 30,576 | 35,679 | |
Consumer, excluding credit card | Home equity | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 33,450 | 39,063 | |
Consumer, excluding credit card | Home equity | Residential real estate – PCI | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 10,799 | 12,902 | |
Consumer, excluding credit card | Auto | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 66,242 | 65,814 | |
Consumer, excluding credit card | Consumer & Business Banking | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 25,789 | 24,307 | |
Consumer, excluding credit card | Student | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 0 | 7,057 | |
Consumer, excluding credit card | Mortgages | Prime mortgage | Residential real estate – PCI | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 6,479 | 7,602 | |
Consumer, excluding credit card | Mortgages | Subprime mortgage | Residential real estate – PCI | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 2,609 | 2,941 | |
Consumer, excluding credit card | Option ARMs | Residential real estate – PCI | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 10,689 | $ 12,234 |
Loans - Consumer, Excluding 128
Loans - Consumer, Excluding Credit Card Loans, Residential Real Estate, Excluding PCI Loans (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 924,838,000,000 | $ 889,907,000,000 | $ 832,792,000,000 |
Consumer, excluding credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 372,553,000,000 | 364,406,000,000 | $ 344,355,000,000 |
90 or more days past due and government guaranteed | 0 | 0 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 249,946,000,000 | $ 231,549,000,000 | |
% of 30 plus days past due to total retained loans | 1.09% | 1.11% | |
Nonaccrual loans | $ 3,785,000,000 | $ 4,101,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | California | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 75,437,000,000 | 67,446,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | New York | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 34,339,000,000 | 32,894,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | Illinois | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 17,022,000,000 | 16,073,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | Texas | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 14,529,000,000 | 12,997,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | Florida | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 11,445,000,000 | 10,528,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | New Jersey | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 9,099,000,000 | 8,627,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | Washington | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 7,988,000,000 | 6,680,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | Colorado | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 7,967,000,000 | 6,983,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | Massachusetts | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 6,618,000,000 | 6,205,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | Arizona | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 5,548,000,000 | 5,367,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | All other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 59,954,000,000 | 57,749,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | No FICO/LTV available | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 2,948,000,000 | 4,136,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | Greater than 125% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 47,000,000 | 100,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | Greater than 125% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 22,000,000 | 63,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | 101 percent to 125 percent and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 332,000,000 | 803,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | 101 percent to 125 percent and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 183,000,000 | 398,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | 80% to 100% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 6,045,000,000 | 6,987,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | 80% to 100% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 1,052,000,000 | 1,663,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | Less than 80% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 220,020,000,000 | 196,896,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | Less than 80% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 10,802,000,000 | 11,139,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | U.S. government-guaranteed | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 8,495,000,000 | 9,364,000,000 | |
90 or more days past due and government guaranteed | 4,172,000,000 | 4,858,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | U.S. government-guaranteed | All other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 8,500,000,000 | 9,400,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | Current | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 241,104,000,000 | 222,074,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | Current | U.S. government-guaranteed | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 2,400,000,000 | 2,500,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | 30–149 days past due | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 4,905,000,000 | 4,474,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | 30–149 days past due | U.S. government-guaranteed | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 3,200,000,000 | 3,100,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | 150 or more days past due | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 3,937,000,000 | 5,001,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | 150 or more days past due | U.S. government-guaranteed | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 2,900,000,000 | 3,800,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | 30 or more days past due | U.S. government-guaranteed | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 6,100,000,000 | 6,900,000,000 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | 90 or more days past due | U.S. government-guaranteed | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Nonaccrual loans | 1,500,000,000 | 2,200,000,000 | |
Consumer, excluding credit card | Residential mortgage | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 216,496,000,000 | $ 192,486,000,000 | |
% of 30 plus days past due to total retained loans | 0.77% | 0.75% | |
Nonaccrual loans | $ 2,175,000,000 | $ 2,256,000,000 | |
Consumer, excluding credit card | Residential mortgage | California | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 68,855,000,000 | 59,802,000,000 | |
Consumer, excluding credit card | Residential mortgage | New York | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 27,473,000,000 | 24,916,000,000 | |
Consumer, excluding credit card | Residential mortgage | Illinois | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 14,501,000,000 | 13,126,000,000 | |
Consumer, excluding credit card | Residential mortgage | Texas | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 12,508,000,000 | 10,772,000,000 | |
Consumer, excluding credit card | Residential mortgage | Florida | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 9,598,000,000 | 8,395,000,000 | |
Consumer, excluding credit card | Residential mortgage | New Jersey | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 7,142,000,000 | 6,374,000,000 | |
Consumer, excluding credit card | Residential mortgage | Washington | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 6,962,000,000 | 5,451,000,000 | |
Consumer, excluding credit card | Residential mortgage | Colorado | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 7,335,000,000 | 6,306,000,000 | |
Consumer, excluding credit card | Residential mortgage | Massachusetts | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 6,323,000,000 | 5,834,000,000 | |
Consumer, excluding credit card | Residential mortgage | Arizona | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 4,109,000,000 | 3,595,000,000 | |
Consumer, excluding credit card | Residential mortgage | All other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 51,690,000,000 | 47,915,000,000 | |
Consumer, excluding credit card | Residential mortgage | No FICO/LTV available | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 1,259,000,000 | 1,650,000,000 | |
Consumer, excluding credit card | Residential mortgage | Greater than 125% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 37,000,000 | 30,000,000 | |
Consumer, excluding credit card | Residential mortgage | Greater than 125% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 19,000,000 | 48,000,000 | |
Consumer, excluding credit card | Residential mortgage | 101 percent to 125 percent and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 36,000,000 | 135,000,000 | |
Consumer, excluding credit card | Residential mortgage | 101 percent to 125 percent and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 88,000,000 | 177,000,000 | |
Consumer, excluding credit card | Residential mortgage | 80% to 100% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 4,369,000,000 | 4,026,000,000 | |
Consumer, excluding credit card | Residential mortgage | 80% to 100% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 483,000,000 | 718,000,000 | |
Consumer, excluding credit card | Residential mortgage | Less than 80% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 194,758,000,000 | 169,579,000,000 | |
Consumer, excluding credit card | Residential mortgage | Less than 80% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 6,952,000,000 | 6,759,000,000 | |
Consumer, excluding credit card | Residential mortgage | U.S. government-guaranteed | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 8,495,000,000 | 9,364,000,000 | |
90 or more days past due and government guaranteed | 4,172,000,000 | 4,858,000,000 | |
Consumer, excluding credit card | Residential mortgage | Current | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 208,713,000,000 | 184,133,000,000 | |
Consumer, excluding credit card | Residential mortgage | 30–149 days past due | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 4,234,000,000 | 3,828,000,000 | |
Consumer, excluding credit card | Residential mortgage | 150 or more days past due | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 3,549,000,000 | 4,525,000,000 | |
Consumer, excluding credit card | Residential mortgage | 90 or more days past due | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 0 | 0 | |
Consumer, excluding credit card | Home equity | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 33,450,000,000 | $ 39,063,000,000 | |
% of 30 plus days past due to total retained loans | 3.17% | 2.87% | |
Nonaccrual loans | $ 1,610,000,000 | $ 1,845,000,000 | |
Consumer, excluding credit card | Home equity | California | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 6,582,000,000 | 7,644,000,000 | |
Consumer, excluding credit card | Home equity | New York | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 6,866,000,000 | 7,978,000,000 | |
Consumer, excluding credit card | Home equity | Illinois | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 2,521,000,000 | 2,947,000,000 | |
Consumer, excluding credit card | Home equity | Texas | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 2,021,000,000 | 2,225,000,000 | |
Consumer, excluding credit card | Home equity | Florida | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 1,847,000,000 | 2,133,000,000 | |
Consumer, excluding credit card | Home equity | New Jersey | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 1,957,000,000 | 2,253,000,000 | |
Consumer, excluding credit card | Home equity | Washington | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 1,026,000,000 | 1,229,000,000 | |
Consumer, excluding credit card | Home equity | Colorado | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 632,000,000 | 677,000,000 | |
Consumer, excluding credit card | Home equity | Massachusetts | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 295,000,000 | 371,000,000 | |
Consumer, excluding credit card | Home equity | Arizona | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 1,439,000,000 | 1,772,000,000 | |
Consumer, excluding credit card | Home equity | All other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 8,264,000,000 | 9,834,000,000 | |
Consumer, excluding credit card | Home equity | No FICO/LTV available | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 1,689,000,000 | 2,486,000,000 | |
Consumer, excluding credit card | Home equity | Greater than 125% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 10,000,000 | 70,000,000 | |
Consumer, excluding credit card | Home equity | Greater than 125% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 3,000,000 | 15,000,000 | |
Consumer, excluding credit card | Home equity | 101 percent to 125 percent and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 296,000,000 | 668,000,000 | |
Consumer, excluding credit card | Home equity | 101 percent to 125 percent and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 95,000,000 | 221,000,000 | |
Consumer, excluding credit card | Home equity | 80% to 100% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 1,676,000,000 | 2,961,000,000 | |
Consumer, excluding credit card | Home equity | 80% to 100% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 569,000,000 | 945,000,000 | |
Consumer, excluding credit card | Home equity | Less than 80% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 25,262,000,000 | 27,317,000,000 | |
Consumer, excluding credit card | Home equity | Less than 80% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 3,850,000,000 | 4,380,000,000 | |
Consumer, excluding credit card | Home equity | U.S. government-guaranteed | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 0 | 0 | |
90 or more days past due and government guaranteed | 0 | 0 | |
Consumer, excluding credit card | Home equity | Current | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 32,391,000,000 | 37,941,000,000 | |
Consumer, excluding credit card | Home equity | 30–149 days past due | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 671,000,000 | 646,000,000 | |
Consumer, excluding credit card | Home equity | 150 or more days past due | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 388,000,000 | $ 476,000,000 |
Loans - Consumer, Excluding 129
Loans - Consumer, Excluding Credit Card Loans, Delinquency Statistics Junior Lien Home Equity Loans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | $ 924,838 | $ 889,907 | $ 832,792 |
Consumer, excluding credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 372,553 | 364,406 | $ 344,355 |
Consumer, excluding credit card | Total | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | $ 33,450 | $ 39,063 | |
Total 30 plus day delinquency rate | 3.17% | 2.87% | |
Consumer, excluding credit card | HELOCs | Within the revolving period | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Open-ended revolving period | 10 years | ||
Consumer, excluding credit card | HELOCs | Beyond the revolving period | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Amortization period | 20 years | ||
Consumer, excluding credit card | Junior lien | Total | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | $ 21,266 | $ 25,437 | |
Total 30 plus day delinquency rate | 2.64% | 2.32% | |
Consumer, excluding credit card | Junior lien | HELOCs | Within the revolving period | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | $ 6,363 | $ 10,304 | |
Total 30 plus day delinquency rate | 0.50% | 1.27% | |
Consumer, excluding credit card | Junior lien | HELOCs | Beyond the revolving period | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | $ 13,532 | $ 13,272 | |
Total 30 plus day delinquency rate | 3.56% | 3.05% | |
Consumer, excluding credit card | Junior lien | HELOANs | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | $ 1,371 | $ 1,861 | |
Total 30 plus day delinquency rate | 3.50% | 2.85% |
Loans - Consumer, Excluding 130
Loans - Consumer, Excluding Credit Card Loans, Impaired Loans (Details) - Consumer, excluding credit card $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)payment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Impaired loans | |||
Loans modified subsequent to repurchase from Ginnie Mae | $ 3,800 | $ 3,400 | |
TDRs not having yet made six payments | 2,200 | 2,300 | |
Total residential real estate – excluding PCI | |||
Impaired loans | |||
With an allowance | 5,643 | 5,955 | |
Without an allowance | 2,095 | 2,341 | |
Total impaired loans | 7,738 | 8,296 | |
Allowance for loan losses related to impaired loans | 173 | 189 | |
Unpaid principal balance of impaired loans | 11,442 | 12,132 | |
Impaired loans on nonaccrual status | 2,775 | 2,871 | |
Average impaired loans | 7,986 | 8,687 | $ 10,066 |
Interest income on impaired loans | 414 | 430 | 476 |
Interest income on impaired loans on a cash basis | $ 155 | 157 | 172 |
Number of payments under modified terms to recognize interest on cash basis | payment | 6 | ||
Residential mortgage | |||
Impaired loans | |||
With an allowance | $ 4,407 | 4,689 | |
Without an allowance | 1,213 | 1,343 | |
Total impaired loans | 5,620 | 6,032 | |
Allowance for loan losses related to impaired loans | 62 | 68 | |
Unpaid principal balance of impaired loans | 7,741 | 8,285 | |
Impaired loans on nonaccrual status | 1,743 | 1,755 | |
Average impaired loans | 5,797 | 6,376 | 7,697 |
Interest income on impaired loans | 287 | 305 | 348 |
Interest income on impaired loans on a cash basis | $ 75 | 77 | 87 |
Residential mortgage | Permanent Modification | |||
Impaired loans | |||
Rate of default for modified loans, estimated weighted average | 15.00% | ||
Home equity | |||
Impaired loans | |||
With an allowance | $ 1,236 | 1,266 | |
Without an allowance | 882 | 998 | |
Total impaired loans | 2,118 | 2,264 | |
Allowance for loan losses related to impaired loans | 111 | 121 | |
Unpaid principal balance of impaired loans | 3,701 | 3,847 | |
Impaired loans on nonaccrual status | 1,032 | 1,116 | |
Average impaired loans | 2,189 | 2,311 | 2,369 |
Interest income on impaired loans | 127 | 125 | 128 |
Interest income on impaired loans on a cash basis | $ 80 | $ 80 | $ 85 |
Home equity | Permanent Modification | |||
Impaired loans | |||
Rate of default for modified loans, estimated weighted average | 12.00% |
Loans - Consumer, Excluding 131
Loans - Consumer, Excluding Credit Card Loans, Loan Modifications, New TDRs (Details) - Consumer, excluding credit card - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Total residential real estate – excluding PCI | |||
Financing Receivable, Impaired [Line Items] | |||
New TDRs | $ 694 | $ 639 | $ 668 |
Residential mortgage | |||
Financing Receivable, Impaired [Line Items] | |||
New TDRs | 373 | 254 | 267 |
Home equity | |||
Financing Receivable, Impaired [Line Items] | |||
New TDRs | $ 321 | $ 385 | $ 401 |
Loans - Consumer, Excluding 132
Loans - Consumer, Excluding Credit Card Loans, Loan Modifications, Nature and Extent of Modifications (Details) - Consumer, excluding credit card - loan | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | |||
Percentage, sum of items by type, may exceed | 100.00% | ||
Total residential real estate – excluding PCI | Trial Modification | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loans modified | 3,604 | 5,705 | 6,644 |
Total residential real estate – excluding PCI | Permanent Modification | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loans modified | 8,252 | 8,162 | 7,441 |
Total residential real estate – excluding PCI | Interest rate reduction | |||
Financing Receivable, Impaired [Line Items] | |||
Concession granted | 60.00% | 76.00% | 68.00% |
Total residential real estate – excluding PCI | Term or payment extension | |||
Financing Receivable, Impaired [Line Items] | |||
Concession granted | 70.00% | 86.00% | 86.00% |
Total residential real estate – excluding PCI | Principal and/or interest deferred | |||
Financing Receivable, Impaired [Line Items] | |||
Concession granted | 12.00% | 18.00% | 24.00% |
Total residential real estate – excluding PCI | Principal forgiveness | |||
Financing Receivable, Impaired [Line Items] | |||
Concession granted | 14.00% | 16.00% | 16.00% |
Total residential real estate – excluding PCI | Other | |||
Financing Receivable, Impaired [Line Items] | |||
Concession granted | 32.00% | 14.00% | 5.00% |
Residential mortgage | Trial Modification | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loans modified | 1,283 | 1,945 | 2,711 |
Residential mortgage | Permanent Modification | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loans modified | 2,628 | 3,338 | 3,145 |
Residential mortgage | Interest rate reduction | |||
Financing Receivable, Impaired [Line Items] | |||
Concession granted | 63.00% | 76.00% | 71.00% |
Residential mortgage | Term or payment extension | |||
Financing Receivable, Impaired [Line Items] | |||
Concession granted | 72.00% | 90.00% | 81.00% |
Residential mortgage | Principal and/or interest deferred | |||
Financing Receivable, Impaired [Line Items] | |||
Concession granted | 15.00% | 16.00% | 27.00% |
Residential mortgage | Principal forgiveness | |||
Financing Receivable, Impaired [Line Items] | |||
Concession granted | 16.00% | 26.00% | 28.00% |
Residential mortgage | Other | |||
Financing Receivable, Impaired [Line Items] | |||
Concession granted | 33.00% | 25.00% | 11.00% |
Home equity | Trial Modification | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loans modified | 2,321 | 3,760 | 3,933 |
Home equity | Permanent Modification | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loans modified | 5,624 | 4,824 | 4,296 |
Home equity | Interest rate reduction | |||
Financing Receivable, Impaired [Line Items] | |||
Concession granted | 59.00% | 75.00% | 66.00% |
Home equity | Term or payment extension | |||
Financing Receivable, Impaired [Line Items] | |||
Concession granted | 69.00% | 83.00% | 89.00% |
Home equity | Principal and/or interest deferred | |||
Financing Receivable, Impaired [Line Items] | |||
Concession granted | 10.00% | 19.00% | 23.00% |
Home equity | Principal forgiveness | |||
Financing Receivable, Impaired [Line Items] | |||
Concession granted | 13.00% | 9.00% | 7.00% |
Home equity | Other | |||
Financing Receivable, Impaired [Line Items] | |||
Concession granted | 31.00% | 6.00% | 0.00% |
Loans - Consumer, Excluding 133
Loans - Consumer, Excluding Credit Card Loans, Financial Effects of Modifications and Redefaults (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)loan_payment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Financing Receivable, Impaired [Line Items] | |||
Carrying value | $ 924,838 | $ 889,907 | $ 832,792 |
Consumer, excluding credit card | |||
Financing Receivable, Impaired [Line Items] | |||
Carrying value | 372,553 | 364,406 | $ 344,355 |
Consumer, excluding credit card | In the process of active or suspended foreclosure | |||
Financing Receivable, Impaired [Line Items] | |||
Carrying value | $ 787 | 932 | |
Consumer, excluding credit card | Maximum | |||
Financing Receivable, Impaired [Line Items] | |||
Number of years before payment default under a modified loan | 1 year | ||
Consumer, excluding credit card | Residential mortgage | |||
Financing Receivable, Impaired [Line Items] | |||
Carrying value | $ 216,496 | $ 192,486 | |
Consumer, excluding credit card | Residential mortgage | Permanent Modification | |||
Financing Receivable, Impaired [Line Items] | |||
Weighted-average interest rate of loans with interest rate reductions – before TDR | 5.15% | 5.59% | 5.67% |
Weighted-average interest rate of loans with interest rate reductions – after TDR | 2.99% | 2.93% | 2.79% |
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR | 24 years | 24 years | 25 years |
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR | 38 years | 38 years | 37 years |
Charge-offs recognized upon permanent modification | $ 2 | $ 4 | $ 11 |
Principal deferred | 12 | 30 | 58 |
Principal forgiven | 20 | 44 | 66 |
Balance of loans that redefaulted within one year of permanent modification | $ 124 | 98 | $ 133 |
Modifications, weighted-average remaining life | 14 years | ||
Consumer, excluding credit card | Home equity | |||
Financing Receivable, Impaired [Line Items] | |||
Carrying value | $ 33,450 | $ 39,063 | |
Consumer, excluding credit card | Home equity | Permanent Modification | |||
Financing Receivable, Impaired [Line Items] | |||
Weighted-average interest rate of loans with interest rate reductions – before TDR | 4.94% | 4.99% | 5.20% |
Weighted-average interest rate of loans with interest rate reductions – after TDR | 2.64% | 2.34% | 2.35% |
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR | 21 years | 18 years | 18 years |
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR | 39 years | 38 years | 35 years |
Charge-offs recognized upon permanent modification | $ 1 | $ 1 | $ 4 |
Principal deferred | 10 | 23 | 27 |
Principal forgiven | 13 | 7 | 6 |
Balance of loans that redefaulted within one year of permanent modification | $ 56 | 40 | $ 21 |
Modifications, weighted-average remaining life | 10 years | ||
Consumer, excluding credit card | Total residential real estate – excluding PCI | |||
Financing Receivable, Impaired [Line Items] | |||
Number of payments past due for deemed payment | loan_payment | 2 | ||
Carrying value | $ 249,946 | $ 231,549 | |
Consumer, excluding credit card | Total residential real estate – excluding PCI | Permanent Modification | |||
Financing Receivable, Impaired [Line Items] | |||
Weighted-average interest rate of loans with interest rate reductions – before TDR | 5.06% | 5.36% | 5.51% |
Weighted-average interest rate of loans with interest rate reductions – after TDR | 2.83% | 2.70% | 2.64% |
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR | 23 years | 22 years | 22 years |
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR | 38 years | 38 years | 36 years |
Charge-offs recognized upon permanent modification | $ 3 | $ 5 | $ 15 |
Principal deferred | 22 | 53 | 85 |
Principal forgiven | 33 | 51 | 72 |
Balance of loans that redefaulted within one year of permanent modification | $ 180 | $ 138 | $ 154 |
Consumer, excluding credit card | Total residential real estate – excluding PCI | Maximum | |||
Financing Receivable, Impaired [Line Items] | |||
Number of months before a payment redefault under modified loans | 12 months |
Loans - Consumer, Excluding 134
Loans - Consumer, Excluding Credit Card Loans, Other Consumer Loans (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 924,838,000,000 | $ 889,907,000,000 | $ 832,792,000,000 |
Consumer, excluding credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 372,553,000,000 | 364,406,000,000 | $ 344,355,000,000 |
90 or more days past due and still accruing | 0 | 0 | |
Consumer, excluding credit card | Auto | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 66,242,000,000 | $ 65,814,000,000 | |
% of 30 plus days past due to total retained loans | 0.89% | 1.19% | |
Nonaccrual loans | $ 141,000,000 | $ 214,000,000 | |
Consumer, excluding credit card | Auto | Noncriticized | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 15,604,000,000 | 13,899,000,000 | |
Consumer, excluding credit card | Auto | Criticized performing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 93,000,000 | 201,000,000 | |
Consumer, excluding credit card | Auto | Criticized nonaccrual | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 9,000,000 | 94,000,000 | |
Consumer, excluding credit card | Auto | California | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 8,445,000,000 | 7,975,000,000 | |
Consumer, excluding credit card | Auto | Texas | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 7,013,000,000 | 7,041,000,000 | |
Consumer, excluding credit card | Auto | New York | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 4,023,000,000 | 4,078,000,000 | |
Consumer, excluding credit card | Auto | Illinois | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 3,916,000,000 | 3,984,000,000 | |
Consumer, excluding credit card | Auto | Florida | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 3,350,000,000 | 3,374,000,000 | |
Consumer, excluding credit card | Auto | Arizona | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 2,221,000,000 | 2,209,000,000 | |
Consumer, excluding credit card | Auto | Ohio | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 2,105,000,000 | 2,194,000,000 | |
Consumer, excluding credit card | Auto | Michigan | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 1,418,000,000 | 1,567,000,000 | |
Consumer, excluding credit card | Auto | New Jersey | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 2,044,000,000 | 2,031,000,000 | |
Consumer, excluding credit card | Auto | Louisiana | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 1,656,000,000 | 1,814,000,000 | |
Consumer, excluding credit card | Auto | All other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 30,051,000,000 | 29,547,000,000 | |
Consumer, excluding credit card | Consumer & Business Banking | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 25,789,000,000 | $ 24,307,000,000 | |
% of 30 plus days past due to total retained loans | 1.30% | 1.59% | |
Nonaccrual loans | $ 283,000,000 | $ 287,000,000 | |
Consumer, excluding credit card | Consumer & Business Banking | Noncriticized | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 17,938,000,000 | 16,858,000,000 | |
Consumer, excluding credit card | Consumer & Business Banking | Criticized performing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 791,000,000 | 816,000,000 | |
Consumer, excluding credit card | Consumer & Business Banking | Criticized nonaccrual | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 213,000,000 | 217,000,000 | |
Consumer, excluding credit card | Consumer & Business Banking | California | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 5,032,000,000 | 4,426,000,000 | |
Consumer, excluding credit card | Consumer & Business Banking | Texas | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 2,916,000,000 | 2,954,000,000 | |
Consumer, excluding credit card | Consumer & Business Banking | New York | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 4,195,000,000 | 3,979,000,000 | |
Consumer, excluding credit card | Consumer & Business Banking | Illinois | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 2,017,000,000 | 1,758,000,000 | |
Consumer, excluding credit card | Consumer & Business Banking | Florida | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 1,424,000,000 | 1,195,000,000 | |
Consumer, excluding credit card | Consumer & Business Banking | Arizona | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 1,383,000,000 | 1,307,000,000 | |
Consumer, excluding credit card | Consumer & Business Banking | Ohio | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 1,380,000,000 | 1,402,000,000 | |
Consumer, excluding credit card | Consumer & Business Banking | Michigan | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 1,357,000,000 | 1,343,000,000 | |
Consumer, excluding credit card | Consumer & Business Banking | New Jersey | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 721,000,000 | 623,000,000 | |
Consumer, excluding credit card | Consumer & Business Banking | Louisiana | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 849,000,000 | 979,000,000 | |
Consumer, excluding credit card | Consumer & Business Banking | All other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 4,515,000,000 | 4,341,000,000 | |
Consumer, excluding credit card | Current | Auto | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 65,651,000,000 | 65,029,000,000 | |
Consumer, excluding credit card | Current | Consumer & Business Banking | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 25,454,000,000 | 23,920,000,000 | |
Consumer, excluding credit card | 30–119 days past due | Auto | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 584,000,000 | 773,000,000 | |
Consumer, excluding credit card | 30–119 days past due | Consumer & Business Banking | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 213,000,000 | 247,000,000 | |
Consumer, excluding credit card | 120 or more days past due | Auto | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 7,000,000 | 12,000,000 | |
Consumer, excluding credit card | 120 or more days past due | Consumer & Business Banking | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 122,000,000 | $ 140,000,000 |
Loans - Consumer, Excluding 135
Loans - Consumer, Excluding Credit Card Loans, Other Consumer Impaired Loans and Loan Modifications (Details) - Consumer, excluding credit card - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Residential real estate – PCI | |||
Impaired loans | |||
Remaining weighted-average life of portfolio | 9 years | ||
Total other consumer | |||
Impaired loans | |||
With an allowance | $ 272 | $ 614 | |
Without an allowance | 26 | 30 | |
Total impaired loans | 298 | 644 | |
Allowance for loan losses related to impaired loans | 73 | 119 | |
Unpaid principal balance of impaired loans | 402 | 753 | |
Impaired loans on nonaccrual status | 268 | 508 | |
Average impaired loans | 427 | 635 | $ 566 |
Loans modified in TDRs | 102 | 362 | |
TDRs on nonaccrual status | $ 72 | $ 226 |
Loans - Consumer, Excluding 136
Loans - Consumer, Excluding Credit Card Loans, PCI Loans (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | $ 924,838 | $ 889,907 | $ 832,792 |
Consumer, excluding credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 372,553 | 364,406 | $ 344,355 |
Consumer, excluding credit card | Total PCI | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 216,496 | 192,486 | |
Total unpaid principal balance | 7,741 | 8,285 | |
Consumer, excluding credit card | Total PCI | California | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 68,855 | 59,802 | |
Consumer, excluding credit card | Total PCI | Florida | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 9,598 | 8,395 | |
Consumer, excluding credit card | Total PCI | New York | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 27,473 | 24,916 | |
Consumer, excluding credit card | Total PCI | Washington | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 6,962 | 5,451 | |
Consumer, excluding credit card | Total PCI | Illinois | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 14,501 | 13,126 | |
Consumer, excluding credit card | Total PCI | New Jersey | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 7,142 | 6,374 | |
Consumer, excluding credit card | Total PCI | Massachusetts | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 6,323 | 5,834 | |
Consumer, excluding credit card | Total PCI | Arizona | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 4,109 | 3,595 | |
Consumer, excluding credit card | Total PCI | All other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 51,690 | 47,915 | |
Consumer, excluding credit card | Total PCI | No FICO/LTV available | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 1,259 | 1,650 | |
Consumer, excluding credit card | Total PCI | Greater than 125% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 37 | 30 | |
Consumer, excluding credit card | Total PCI | Greater than 125% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 19 | 48 | |
Consumer, excluding credit card | Total PCI | 101 percent to 125 percent and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 36 | 135 | |
Consumer, excluding credit card | Total PCI | 101 percent to 125 percent and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 88 | 177 | |
Consumer, excluding credit card | Total PCI | 80% to 100% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 4,369 | 4,026 | |
Consumer, excluding credit card | Total PCI | 80% to 100% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 483 | 718 | |
Consumer, excluding credit card | Total PCI | Lower than 80% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 194,758 | 169,579 | |
Consumer, excluding credit card | Total PCI | Lower than 80% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 6,952 | 6,759 | |
Consumer, excluding credit card | Total PCI | Current | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 208,713 | 184,133 | |
Consumer, excluding credit card | Total PCI | 30–149 days past due | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 4,234 | 3,828 | |
Consumer, excluding credit card | Total PCI | 150 or more days past due | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 3,549 | 4,525 | |
Consumer, excluding credit card | Home equity | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 33,450 | 39,063 | |
Total unpaid principal balance | 3,701 | 3,847 | |
Consumer, excluding credit card | Home equity | California | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 6,582 | 7,644 | |
Consumer, excluding credit card | Home equity | Florida | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 1,847 | 2,133 | |
Consumer, excluding credit card | Home equity | New York | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 6,866 | 7,978 | |
Consumer, excluding credit card | Home equity | Washington | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 1,026 | 1,229 | |
Consumer, excluding credit card | Home equity | Illinois | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 2,521 | 2,947 | |
Consumer, excluding credit card | Home equity | New Jersey | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 1,957 | 2,253 | |
Consumer, excluding credit card | Home equity | Massachusetts | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 295 | 371 | |
Consumer, excluding credit card | Home equity | Arizona | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 1,439 | 1,772 | |
Consumer, excluding credit card | Home equity | All other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 8,264 | 9,834 | |
Consumer, excluding credit card | Home equity | No FICO/LTV available | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 1,689 | 2,486 | |
Consumer, excluding credit card | Home equity | Greater than 125% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 10 | 70 | |
Consumer, excluding credit card | Home equity | Greater than 125% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 3 | 15 | |
Consumer, excluding credit card | Home equity | 101 percent to 125 percent and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 296 | 668 | |
Consumer, excluding credit card | Home equity | 101 percent to 125 percent and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 95 | 221 | |
Consumer, excluding credit card | Home equity | 80% to 100% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 1,676 | 2,961 | |
Consumer, excluding credit card | Home equity | 80% to 100% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 569 | 945 | |
Consumer, excluding credit card | Home equity | Lower than 80% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 25,262 | 27,317 | |
Consumer, excluding credit card | Home equity | Lower than 80% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 3,850 | 4,380 | |
Consumer, excluding credit card | Home equity | Current | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 32,391 | 37,941 | |
Consumer, excluding credit card | Home equity | 30–149 days past due | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 671 | 646 | |
Consumer, excluding credit card | Home equity | 150 or more days past due | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 388 | 476 | |
Consumer, excluding credit card | Residential real estate – PCI | Total PCI | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 30,576 | 35,679 | |
Related allowance for loan losses | 2,225 | 2,311 | |
Total unpaid principal balance | $ 31,617 | $ 36,971 | |
% of 30 plus days past due to total loans | 10.13% | 9.82% | |
Consumer, excluding credit card | Residential real estate – PCI | Total PCI | California | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | $ 17,293 | $ 20,322 | |
Consumer, excluding credit card | Residential real estate – PCI | Total PCI | Florida | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 2,739 | 3,165 | |
Consumer, excluding credit card | Residential real estate – PCI | Total PCI | New York | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 2,022 | 2,286 | |
Consumer, excluding credit card | Residential real estate – PCI | Total PCI | Washington | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 966 | 1,198 | |
Consumer, excluding credit card | Residential real estate – PCI | Total PCI | Illinois | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 883 | 1,000 | |
Consumer, excluding credit card | Residential real estate – PCI | Total PCI | New Jersey | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 866 | 1,016 | |
Consumer, excluding credit card | Residential real estate – PCI | Total PCI | Massachusetts | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 633 | 723 | |
Consumer, excluding credit card | Residential real estate – PCI | Total PCI | Maryland | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 550 | 620 | |
Consumer, excluding credit card | Residential real estate – PCI | Total PCI | Arizona | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 525 | 614 | |
Consumer, excluding credit card | Residential real estate – PCI | Total PCI | Virginia | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 520 | 589 | |
Consumer, excluding credit card | Residential real estate – PCI | Total PCI | All other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 4,620 | 5,438 | |
Consumer, excluding credit card | Residential real estate – PCI | Total PCI | No FICO/LTV available | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 1,515 | 1,903 | |
Consumer, excluding credit card | Residential real estate – PCI | Total PCI | Greater than 125% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 45 | 94 | |
Consumer, excluding credit card | Residential real estate – PCI | Total PCI | Greater than 125% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 66 | 105 | |
Consumer, excluding credit card | Residential real estate – PCI | Total PCI | 101 percent to 125 percent and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 353 | 729 | |
Consumer, excluding credit card | Residential real estate – PCI | Total PCI | 101 percent to 125 percent and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 320 | 619 | |
Consumer, excluding credit card | Residential real estate – PCI | Total PCI | 80% to 100% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 1,851 | 3,074 | |
Consumer, excluding credit card | Residential real estate – PCI | Total PCI | 80% to 100% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 1,469 | 2,233 | |
Consumer, excluding credit card | Residential real estate – PCI | Total PCI | Lower than 80% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 16,693 | 18,316 | |
Consumer, excluding credit card | Residential real estate – PCI | Total PCI | Lower than 80% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 9,305 | 9,898 | |
Consumer, excluding credit card | Residential real estate – PCI | Total PCI | Current | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 28,413 | 33,342 | |
Consumer, excluding credit card | Residential real estate – PCI | Total PCI | 30–149 days past due | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 1,620 | 1,543 | |
Consumer, excluding credit card | Residential real estate – PCI | Total PCI | 150 or more days past due | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 1,584 | 2,086 | |
Consumer, excluding credit card | Residential real estate – PCI | Home equity | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 10,799 | 12,902 | |
Related allowance for loan losses | 1,133 | 1,433 | |
Total unpaid principal balance | $ 11,020 | $ 13,192 | |
% of 30 plus days past due to total loans | 6.79% | 5.83% | |
Consumer, excluding credit card | Residential real estate – PCI | Home equity | California | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | $ 6,555 | $ 7,899 | |
Consumer, excluding credit card | Residential real estate – PCI | Home equity | Florida | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 1,137 | 1,306 | |
Consumer, excluding credit card | Residential real estate – PCI | Home equity | New York | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 607 | 697 | |
Consumer, excluding credit card | Residential real estate – PCI | Home equity | Washington | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 532 | 673 | |
Consumer, excluding credit card | Residential real estate – PCI | Home equity | Illinois | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 273 | 314 | |
Consumer, excluding credit card | Residential real estate – PCI | Home equity | New Jersey | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 242 | 280 | |
Consumer, excluding credit card | Residential real estate – PCI | Home equity | Massachusetts | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 79 | 94 | |
Consumer, excluding credit card | Residential real estate – PCI | Home equity | Maryland | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 57 | 64 | |
Consumer, excluding credit card | Residential real estate – PCI | Home equity | Arizona | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 203 | 241 | |
Consumer, excluding credit card | Residential real estate – PCI | Home equity | Virginia | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 66 | 77 | |
Consumer, excluding credit card | Residential real estate – PCI | Home equity | All other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 1,269 | 1,547 | |
Consumer, excluding credit card | Residential real estate – PCI | Home equity | No FICO/LTV available | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 577 | 750 | |
Consumer, excluding credit card | Residential real estate – PCI | Home equity | Greater than 125% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 33 | 69 | |
Consumer, excluding credit card | Residential real estate – PCI | Home equity | Greater than 125% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 21 | 39 | |
Consumer, excluding credit card | Residential real estate – PCI | Home equity | 101 percent to 125 percent and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 274 | 555 | |
Consumer, excluding credit card | Residential real estate – PCI | Home equity | 101 percent to 125 percent and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 132 | 256 | |
Consumer, excluding credit card | Residential real estate – PCI | Home equity | 80% to 100% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 1,195 | 1,860 | |
Consumer, excluding credit card | Residential real estate – PCI | Home equity | 80% to 100% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 559 | 804 | |
Consumer, excluding credit card | Residential real estate – PCI | Home equity | Lower than 80% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 6,134 | 6,676 | |
Consumer, excluding credit card | Residential real estate – PCI | Home equity | Lower than 80% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 2,095 | 2,183 | |
Consumer, excluding credit card | Residential real estate – PCI | Home equity | Current | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 10,272 | 12,423 | |
Consumer, excluding credit card | Residential real estate – PCI | Home equity | 30–149 days past due | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 356 | 291 | |
Consumer, excluding credit card | Residential real estate – PCI | Home equity | 150 or more days past due | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 392 | 478 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Prime mortgage | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 6,479 | 7,602 | |
Related allowance for loan losses | 863 | 829 | |
Total unpaid principal balance | $ 6,502 | $ 7,627 | |
% of 30 plus days past due to total loans | 10.20% | 10.32% | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Prime mortgage | California | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | $ 3,716 | $ 4,396 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Prime mortgage | Florida | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 428 | 501 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Prime mortgage | New York | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 457 | 515 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Prime mortgage | Washington | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 135 | 167 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Prime mortgage | Illinois | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 200 | 226 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Prime mortgage | New Jersey | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 178 | 210 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Prime mortgage | Massachusetts | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 149 | 173 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Prime mortgage | Maryland | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 129 | 144 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Prime mortgage | Arizona | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 106 | 124 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Prime mortgage | Virginia | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 123 | 142 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Prime mortgage | All other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 881 | 1,029 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Prime mortgage | No FICO/LTV available | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 319 | 391 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Prime mortgage | Greater than 125% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 4 | 6 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Prime mortgage | Greater than 125% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 16 | 17 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Prime mortgage | 101 percent to 125 percent and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 16 | 52 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Prime mortgage | 101 percent to 125 percent and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 42 | 84 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Prime mortgage | 80% to 100% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 221 | 442 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Prime mortgage | 80% to 100% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 230 | 381 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Prime mortgage | Lower than 80% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 3,551 | 3,967 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Prime mortgage | Lower than 80% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 2,103 | 2,287 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Prime mortgage | Current | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 5,839 | 6,840 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Prime mortgage | 30–149 days past due | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 336 | 336 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Prime mortgage | 150 or more days past due | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 327 | 451 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Subprime mortgage | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 2,609 | 2,941 | |
Related allowance for loan losses | 150 | 0 | |
Total unpaid principal balance | $ 3,197 | $ 3,606 | |
% of 30 plus days past due to total loans | 17.42% | 16.67% | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Subprime mortgage | California | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | $ 797 | $ 899 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Subprime mortgage | Florida | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 296 | 332 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Subprime mortgage | New York | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 330 | 363 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Subprime mortgage | Washington | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 61 | 68 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Subprime mortgage | Illinois | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 161 | 178 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Subprime mortgage | New Jersey | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 110 | 125 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Subprime mortgage | Massachusetts | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 98 | 110 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Subprime mortgage | Maryland | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 132 | 145 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Subprime mortgage | Arizona | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 60 | 68 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Subprime mortgage | Virginia | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 51 | 56 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Subprime mortgage | All other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 1,101 | 1,262 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Subprime mortgage | No FICO/LTV available | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 149 | 177 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Subprime mortgage | Greater than 125% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 2 | 7 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Subprime mortgage | Greater than 125% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 20 | 31 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Subprime mortgage | 101 percent to 125 percent and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 20 | 39 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Subprime mortgage | 101 percent to 125 percent and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 75 | 135 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Subprime mortgage | 80% to 100% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 119 | 214 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Subprime mortgage | 80% to 100% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 309 | 439 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Subprime mortgage | Lower than 80% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 895 | 919 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Subprime mortgage | Lower than 80% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 1,608 | 1,645 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Subprime mortgage | Current | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 2,640 | 3,005 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Subprime mortgage | 30–149 days past due | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 381 | 361 | |
Consumer, excluding credit card | Residential real estate – PCI | Mortgages | Subprime mortgage | 150 or more days past due | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 176 | 240 | |
Consumer, excluding credit card | Residential real estate – PCI | Option ARMs | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Carrying value | 10,689 | 12,234 | |
Related allowance for loan losses | 79 | 49 | |
Total unpaid principal balance | $ 10,898 | $ 12,546 | |
% of 30 plus days past due to total loans | 11.34% | 11.73% | |
Consumer, excluding credit card | Residential real estate – PCI | Option ARMs | California | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | $ 6,225 | $ 7,128 | |
Consumer, excluding credit card | Residential real estate – PCI | Option ARMs | Florida | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 878 | 1,026 | |
Consumer, excluding credit card | Residential real estate – PCI | Option ARMs | New York | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 628 | 711 | |
Consumer, excluding credit card | Residential real estate – PCI | Option ARMs | Washington | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 238 | 290 | |
Consumer, excluding credit card | Residential real estate – PCI | Option ARMs | Illinois | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 249 | 282 | |
Consumer, excluding credit card | Residential real estate – PCI | Option ARMs | New Jersey | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 336 | 401 | |
Consumer, excluding credit card | Residential real estate – PCI | Option ARMs | Massachusetts | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 307 | 346 | |
Consumer, excluding credit card | Residential real estate – PCI | Option ARMs | Maryland | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 232 | 267 | |
Consumer, excluding credit card | Residential real estate – PCI | Option ARMs | Arizona | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 156 | 181 | |
Consumer, excluding credit card | Residential real estate – PCI | Option ARMs | Virginia | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 280 | 314 | |
Consumer, excluding credit card | Residential real estate – PCI | Option ARMs | All other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 1,369 | 1,600 | |
Consumer, excluding credit card | Residential real estate – PCI | Option ARMs | No FICO/LTV available | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 470 | 585 | |
Consumer, excluding credit card | Residential real estate – PCI | Option ARMs | Greater than 125% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 6 | 12 | |
Consumer, excluding credit card | Residential real estate – PCI | Option ARMs | Greater than 125% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 9 | 18 | |
Consumer, excluding credit card | Residential real estate – PCI | Option ARMs | 101 percent to 125 percent and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 43 | 83 | |
Consumer, excluding credit card | Residential real estate – PCI | Option ARMs | 101 percent to 125 percent and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 71 | 144 | |
Consumer, excluding credit card | Residential real estate – PCI | Option ARMs | 80% to 100% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 316 | 558 | |
Consumer, excluding credit card | Residential real estate – PCI | Option ARMs | 80% to 100% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 371 | 609 | |
Consumer, excluding credit card | Residential real estate – PCI | Option ARMs | Lower than 80% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 6,113 | 6,754 | |
Consumer, excluding credit card | Residential real estate – PCI | Option ARMs | Lower than 80% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 3,499 | 3,783 | |
Consumer, excluding credit card | Residential real estate – PCI | Option ARMs | Current | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 9,662 | 11,074 | |
Consumer, excluding credit card | Residential real estate – PCI | Option ARMs | 30–149 days past due | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | 547 | 555 | |
Consumer, excluding credit card | Residential real estate – PCI | Option ARMs | 150 or more days past due | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total unpaid principal balance | $ 689 | $ 917 |
Loans - Consumer, Excluding 137
Loans - Consumer, Excluding Credit Card Loans, PCI Delinquency Statistics (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | $ 924,838 | $ 889,907 | $ 832,792 |
Consumer, excluding credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | 372,553 | 364,406 | $ 344,355 |
Consumer, excluding credit card | Home equity | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | $ 33,450 | $ 39,063 | |
Total 30 plus day delinquency rate | 3.17% | 2.87% | |
Consumer, excluding credit card | Home equity | Junior lien | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | $ 21,266 | $ 25,437 | |
Total 30 plus day delinquency rate | 2.64% | 2.32% | |
Consumer, excluding credit card | HELOANs | Junior lien | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | $ 1,371 | $ 1,861 | |
Total 30 plus day delinquency rate | 3.50% | 2.85% | |
Consumer, excluding credit card | Residential real estate – PCI | Home equity | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | $ 10,799 | $ 12,902 | |
Consumer, excluding credit card | Residential real estate – PCI | Home equity | Senior lien | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Percentage of senior liens to total financing receivables | 25.00% | ||
Consumer, excluding credit card | Residential real estate – PCI | Home equity | Junior lien | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | $ 8,286 | $ 10,043 | |
Total 30 plus day delinquency rate | 4.65% | 4.01% | |
Consumer, excluding credit card | Residential real estate – PCI | HELOCs | Junior lien | Within the revolving period | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | $ 51 | $ 2,126 | |
Total 30 plus day delinquency rate | 1.96% | 3.67% | |
Open-ended revolving period | 10 years | ||
Consumer, excluding credit card | Residential real estate – PCI | HELOCs | Junior lien | Beyond the revolving period | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | $ 7,875 | $ 7,452 | |
Total 30 plus day delinquency rate | 4.63% | 4.03% | |
Consumer, excluding credit card | Residential real estate – PCI | HELOANs | Junior lien | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans | $ 360 | $ 465 | |
Total 30 plus day delinquency rate | 5.28% | 5.38% |
Loans - Consumer, Excluding 138
Loans - Consumer, Excluding Credit Card Loans, PCI Accretable Yield Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Loans | $ 924,838 | $ 889,907 | $ 832,792 |
Consumer, excluding credit card | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Loans | 372,553 | 364,406 | 344,355 |
Consumer, excluding credit card | In the process of active or suspended foreclosure | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Loans | 787 | 932 | |
Consumer, excluding credit card | Total PCI | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Loans | 216,496 | 192,486 | |
Consumer, excluding credit card | Residential real estate – PCI | Total PCI | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Beginning balance | 11,768 | 13,491 | 14,592 |
Accretion into interest income | (1,396) | (1,555) | (1,700) |
Changes in interest rates on variable-rate loans | 503 | 260 | 279 |
Other changes in expected cash flows | 284 | (428) | 230 |
Reclassification from nonaccretable difference | 0 | 0 | 90 |
Balance at December 31 | $ 11,159 | $ 11,768 | $ 13,491 |
Accretable yield percentage | 4.53% | 4.35% | 4.20% |
Loans | $ 30,576 | $ 35,679 | |
Consumer, excluding credit card | Residential real estate – PCI | Total PCI | In the process of active or suspended foreclosure | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Loans | $ 1,300 | $ 1,700 |
Loans - Credit Card Loan Portfo
Loans - Credit Card Loan Portfolio (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 924,838 | $ 889,907 | $ 832,792 |
Credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Net charge-offs | $ 4,123 | $ 3,442 | |
% of net charge-offs to retained loans | 2.95% | 2.63% | |
Retained | $ 149,387 | $ 141,711 | |
% of 30 plus days past due to total retained loans | 1.80% | 1.61% | |
% of 90 plus days past due to total retained loans | 0.92% | 0.81% | |
Percentage of portfolio based on carrying value with estimated refreshed FICO scores, Equal to or greater than 660 | 84.00% | 84.40% | |
Percentage of portfolio based on carrying value with estimated refreshed FICO scores, Less than 660 | 14.60% | 14.20% | |
Percentage of portfolio based on carrying value with estimated refreshed FICO scores, No FICO available | 1.40% | 1.40% | |
Credit card | California | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 22,245 | $ 20,571 | |
Credit card | Texas | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 14,200 | 13,220 | |
Credit card | New York | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 13,021 | 12,249 | |
Credit card | Florida | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 9,138 | 8,585 | |
Credit card | Illinois | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 8,585 | 8,189 | |
Credit card | New Jersey | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 6,506 | 6,271 | |
Credit card | Ohio | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 4,997 | 4,906 | |
Credit card | Pennsylvania | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 4,883 | 4,787 | |
Credit card | Colorado | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 4,006 | 3,699 | |
Credit card | Michigan | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 3,826 | 3,741 | |
Credit card | All other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 57,980 | 55,493 | |
Credit card | Current and less than 30 days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 146,704 | 139,434 | |
Credit card | 30–89 days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 1,305 | 1,134 | |
Credit card | 90 or more days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 1,378 | $ 1,143 |
Loans - Credit Card Portfolio -
Loans - Credit Card Portfolio - Impaired Loans (Details) - Credit card - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | |||
Credit card loans with modified payments terms | $ 1,215 | $ 1,240 | |
Allowance for loan losses related to impaired credit card loans | 383 | 358 | |
Average impaired credit card loans | 1,214 | 1,325 | $ 1,710 |
Interest income on impaired credit card loans | 59 | 63 | $ 82 |
Modified Payment Terms | |||
Financing Receivable, Impaired [Line Items] | |||
Credit card loans with modified payments terms | 1,135 | 1,098 | |
Modified Loans That Have Reverted to Pre-Modification Terms | |||
Financing Receivable, Impaired [Line Items] | |||
Credit card loans with modified payments terms | 80 | 142 | |
Noncompliance with modified terms | |||
Financing Receivable, Impaired [Line Items] | |||
Credit card loans with modified payments terms | 43 | 94 | |
Completion of short-term modification | |||
Financing Receivable, Impaired [Line Items] | |||
Credit card loans with modified payments terms | $ 37 | $ 48 |
Loans - Credit Card Portfoli141
Loans - Credit Card Portfolio - Loan Modifications (Details) - Credit card - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | |||
Fixed payment plan period | 60 months | ||
New TDRs | $ 756 | $ 636 | $ 638 |
Weighted-average interest rate of loans – before TDR | 16.58% | 15.56% | 15.08% |
Weighted-average interest rate of loans – after TDR | 4.88% | 4.76% | 4.40% |
Loans that redefaulted within one year of modification | $ 75 | $ 79 | $ 85 |
Number of years before payment default under a modified loan | 1 year | ||
Rate of default for modified loans, estimated weighted average | 31.54% | 28.87% | 25.61% |
Loans - Wholesale Loan Portfoli
Loans - Wholesale Loan Portfolio - By Class of Receivable (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 924,838 | $ 889,907 | $ 832,792 |
Wholesale | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 402,898 | $ 383,790 | $ 357,050 |
% of total criticized to total retained loans | 1.71% | 2.43% | |
% of nonaccrual loans to total retained loans | 0.43% | 0.51% | |
Net charge-offs/(recoveries) | $ 119 | $ 341 | |
% of net charge-offs/(recoveries) to end-of-period retained loans | 0.03% | 0.09% | |
Wholesale | Current and less than 30 days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 399,640 | $ 380,518 | |
Wholesale | 30–89 days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 1,383 | 1,186 | |
Wholesale | 90 or more days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 141 | 132 | |
Wholesale | Investment-grade | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 311,681 | 289,923 | |
Wholesale | Total noninvestment- grade | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 91,217 | 93,867 | |
Wholesale | Noncriticized | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 84,321 | 84,560 | |
Wholesale | Criticized performing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 5,162 | 7,353 | |
Wholesale | Criticized nonaccrual | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 1,734 | 1,954 | |
Wholesale | Commercial and industrial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 119,969 | $ 120,895 | |
% of total criticized to total retained loans | 4.45% | 6.35% | |
% of nonaccrual loans to total retained loans | 1.13% | 1.23% | |
Net charge-offs/(recoveries) | $ 117 | $ 345 | |
% of net charge-offs/(recoveries) to end-of-period retained loans | 0.10% | 0.28% | |
Wholesale | Commercial and industrial | Current and less than 30 days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 118,288 | $ 119,050 | |
Wholesale | Commercial and industrial | 30–89 days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 216 | 268 | |
Wholesale | Commercial and industrial | 90 or more days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 108 | 86 | |
Wholesale | Commercial and industrial | Investment-grade | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 68,071 | 65,687 | |
Wholesale | Commercial and industrial | Total noninvestment- grade | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 51,898 | 55,208 | |
Wholesale | Commercial and industrial | Noncriticized | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 46,558 | 47,531 | |
Wholesale | Commercial and industrial | Criticized performing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 3,983 | 6,186 | |
Wholesale | Commercial and industrial | Criticized nonaccrual | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 1,357 | 1,491 | |
Wholesale | Real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 113,648 | $ 105,802 | |
% of total criticized to total retained loans | 0.74% | 0.94% | |
% of nonaccrual loans to total retained loans | 0.12% | 0.19% | |
Net charge-offs/(recoveries) | $ (4) | $ (7) | |
% of net charge-offs/(recoveries) to end-of-period retained loans | 0.00% | (0.01%) | |
Wholesale | Real estate | Current and less than 30 days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 113,258 | $ 105,396 | |
Wholesale | Real estate | 30–89 days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 242 | 204 | |
Wholesale | Real estate | 90 or more days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 12 | 2 | |
Wholesale | Real estate | Investment-grade | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 98,467 | 88,649 | |
Wholesale | Real estate | Total noninvestment- grade | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 15,181 | 17,153 | |
Wholesale | Real estate | Noncriticized | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 14,335 | 16,155 | |
Wholesale | Real estate | Criticized performing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 710 | 798 | |
Wholesale | Real estate | Criticized nonaccrual | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 136 | 200 | |
Wholesale | Financial institutions | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 40,074 | $ 35,578 | |
% of total criticized to total retained loans | 0.53% | 0.59% | |
% of nonaccrual loans to total retained loans | 0.00% | 0.03% | |
Net charge-offs/(recoveries) | $ 6 | $ (1) | |
% of net charge-offs/(recoveries) to end-of-period retained loans | 0.01% | (0.01%) | |
Wholesale | Financial institutions | Current and less than 30 days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 40,042 | $ 35,523 | |
Wholesale | Financial institutions | 30–89 days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 15 | 25 | |
Wholesale | Financial institutions | 90 or more days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 15 | 21 | |
Wholesale | Financial institutions | Investment-grade | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 26,791 | 24,294 | |
Wholesale | Financial institutions | Total noninvestment- grade | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 13,283 | 11,284 | |
Wholesale | Financial institutions | Noncriticized | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 13,071 | 11,075 | |
Wholesale | Financial institutions | Criticized performing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 210 | 200 | |
Wholesale | Financial institutions | Criticized nonaccrual | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 2 | 9 | |
Wholesale | Government agencies | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 15,509 | $ 16,380 | |
% of total criticized to total retained loans | 0.00% | 0.04% | |
% of nonaccrual loans to total retained loans | 0.00% | 0.00% | |
Net charge-offs/(recoveries) | $ 5 | $ (1) | |
% of net charge-offs/(recoveries) to end-of-period retained loans | 0.03% | (0.01%) | |
Wholesale | Government agencies | Current and less than 30 days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 15,493 | $ 16,269 | |
Wholesale | Government agencies | 30–89 days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 12 | 107 | |
Wholesale | Government agencies | 90 or more days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 4 | 4 | |
Wholesale | Government agencies | Investment-grade | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 15,140 | 15,935 | |
Wholesale | Government agencies | Total noninvestment- grade | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 369 | 445 | |
Wholesale | Government agencies | Noncriticized | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 369 | 439 | |
Wholesale | Government agencies | Criticized performing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 0 | 6 | |
Wholesale | Government agencies | Criticized nonaccrual | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 0 | 0 | |
Wholesale | Other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 113,698 | $ 105,135 | |
% of total criticized to total retained loans | 0.44% | 0.40% | |
% of nonaccrual loans to total retained loans | 0.21% | 0.24% | |
Net charge-offs/(recoveries) | $ (5) | $ 5 | |
% of net charge-offs/(recoveries) to end-of-period retained loans | 0.00% | 0.01% | |
Wholesale | Other | Current and less than 30 days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 112,559 | $ 104,280 | |
Wholesale | Other | 30–89 days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 898 | 582 | |
Wholesale | Other | 90 or more days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 2 | 19 | |
Wholesale | Other | Investment-grade | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 103,212 | 95,358 | |
Wholesale | Other | Total noninvestment- grade | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 10,486 | 9,777 | |
Wholesale | Other | Noncriticized | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 9,988 | 9,360 | |
Wholesale | Other | Criticized performing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 259 | 163 | |
Wholesale | Other | Criticized nonaccrual | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 239 | 254 | |
Wholesale | Non-U.S. | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 95,379 | 91,514 | |
Wholesale | Non-U.S. | Commercial and industrial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 28,470 | 30,563 | |
Wholesale | Non-U.S. | Real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 3,101 | 3,302 | |
Wholesale | Non-U.S. | Financial institutions | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 16,790 | 15,147 | |
Wholesale | Non-U.S. | Government agencies | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 2,906 | 3,726 | |
Wholesale | Non-U.S. | Other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 44,112 | 38,776 | |
Wholesale | U.S. | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 307,519 | 292,276 | |
Wholesale | U.S. | Commercial and industrial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 91,499 | 90,332 | |
Wholesale | U.S. | Real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 110,547 | 102,500 | |
Wholesale | U.S. | Financial institutions | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 23,284 | 20,431 | |
Wholesale | U.S. | Government agencies | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 12,603 | 12,654 | |
Wholesale | U.S. | Other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 69,586 | $ 66,359 |
Loans - Wholesale Loan Portf143
Loans - Wholesale Loan Portfolio - Real Estate Class of Loans (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 924,838 | $ 889,907 | $ 832,792 |
Wholesale | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 402,898 | $ 383,790 | $ 357,050 |
% of criticized to total real estate retained loans | 1.71% | 2.43% | |
% of criticized nonaccrual to total real estate retained loans | 0.43% | 0.51% | |
Wholesale | Criticized nonaccrual | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 1,734 | $ 1,954 | |
Wholesale | Real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 113,648 | $ 105,802 | |
% of criticized to total real estate retained loans | 0.74% | 0.94% | |
% of criticized nonaccrual to total real estate retained loans | 0.12% | 0.19% | |
Wholesale | Real estate | Commercial construction and development | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 10,800 | $ 9,200 | |
Wholesale | Real estate | Multifamily | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 77,597 | $ 72,143 | |
% of criticized to total real estate retained loans | 0.63% | 0.75% | |
% of criticized nonaccrual to total real estate retained loans | 0.06% | 0.08% | |
Wholesale | Real estate | Other Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 36,051 | $ 33,659 | |
% of criticized to total real estate retained loans | 0.98% | 1.36% | |
% of criticized nonaccrual to total real estate retained loans | 0.26% | 0.42% | |
Wholesale | Real estate | Criticized | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 846 | $ 998 | |
Wholesale | Real estate | Criticized | Multifamily | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 491 | 539 | |
Wholesale | Real estate | Criticized | Other Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 355 | 459 | |
Wholesale | Real estate | Criticized nonaccrual | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 136 | 200 | |
Wholesale | Real estate | Criticized nonaccrual | Multifamily | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | 44 | 57 | |
Wholesale | Real estate | Criticized nonaccrual | Other Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained | $ 92 | $ 143 |
Loans - Wholesale Loan Portf144
Loans - Wholesale Loan Portfolio - Impaired Loans (Details) - Wholesale - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Impaired loans | |||
With an allowance | $ 1,509 | $ 1,440 | |
Without an allowance | 358 | 577 | |
Total impaired loans | 1,867 | 2,017 | |
Allowance for loan losses related to impaired loans | 461 | 342 | |
Unpaid principal balance of impaired loans | 2,154 | 2,345 | |
Average impaired loans | 1,560 | 1,923 | $ 845 |
Troubled debt restructurings | 614 | 733 | |
Commercial and industrial | |||
Impaired loans | |||
With an allowance | 1,170 | 1,127 | |
Without an allowance | 228 | 414 | |
Total impaired loans | 1,398 | 1,541 | |
Allowance for loan losses related to impaired loans | 404 | 258 | |
Unpaid principal balance of impaired loans | 1,604 | 1,754 | |
Average impaired loans | 1,145 | 1,480 | 453 |
Real estate | |||
Impaired loans | |||
With an allowance | 78 | 124 | |
Without an allowance | 60 | 87 | |
Total impaired loans | 138 | 211 | |
Allowance for loan losses related to impaired loans | 11 | 18 | |
Unpaid principal balance of impaired loans | 201 | 295 | |
Average impaired loans | 164 | 217 | 250 |
Financial institutions | |||
Impaired loans | |||
With an allowance | 93 | 9 | |
Without an allowance | 0 | 0 | |
Total impaired loans | 93 | 9 | |
Allowance for loan losses related to impaired loans | 4 | 3 | |
Unpaid principal balance of impaired loans | 94 | 12 | |
Average impaired loans | 20 | 13 | 13 |
Government agencies | |||
Impaired loans | |||
With an allowance | 0 | 0 | |
Without an allowance | 0 | 0 | |
Total impaired loans | 0 | 0 | |
Allowance for loan losses related to impaired loans | 0 | 0 | |
Unpaid principal balance of impaired loans | 0 | 0 | |
Average impaired loans | 0 | 0 | 0 |
Other | |||
Impaired loans | |||
With an allowance | 168 | 180 | |
Without an allowance | 70 | 76 | |
Total impaired loans | 238 | 256 | |
Allowance for loan losses related to impaired loans | 42 | 63 | |
Unpaid principal balance of impaired loans | 255 | 284 | |
Average impaired loans | $ 231 | $ 213 | $ 129 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Gross charge-offs/Write-offs of PCI loans | $ 86 | $ 156 | $ 208 | |||
Provision for loan losses/lending-related commitments | 5,290 | 5,361 | 3,827 | |||
Loans by impairment methodology | ||||||
Asset-specific | $ 11,118 | $ 12,197 | $ 12,095 | |||
Formula-based | 883,141 | 842,028 | 779,695 | |||
PCI | 30,579 | 35,682 | 41,002 | |||
Total retained loans | 924,838 | 889,907 | 832,792 | |||
Lending-related commitments by impairment methodology | ||||||
Asset-specific | 731 | 506 | 193 | |||
Formula-based | 990,751 | 974,646 | 938,589 | |||
Total lending-related commitments | 991,482 | 975,152 | 938,782 | |||
Impaired collateral-dependent loans | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Net charge-offs | 95 | 105 | 120 | |||
Impaired collateral-dependent loans | ||||||
Loans measured at fair value of collateral less cost to sell | 2,366 | 2,691 | 2,849 | |||
Allowance for loan losses | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 13,776 | 13,555 | 14,185 | |||
Gross charge-offs/Write-offs of PCI loans | 6,512 | 5,697 | 5,241 | |||
Gross recoveries | (1,125) | (1,005) | (1,155) | |||
Net charge-offs | 5,387 | 4,692 | 4,086 | |||
Provision for loan losses/lending-related commitments | 5,300 | 5,080 | 3,663 | |||
Other | 1 | (11) | 1 | |||
Ending balance | 13,604 | 13,776 | 13,555 | |||
Allowance For Lending Related Commitments, by Impairment Methodology [Abstract] | ||||||
Asset-specific | 1,090 | 1,008 | 1,098 | |||
Formula-based | 10,289 | 10,457 | 9,715 | |||
PCI | 2,225 | 2,311 | 2,742 | |||
Total allowance for loan losses/lending-related commitments | 13,776 | 13,555 | 14,185 | 13,604 | 13,776 | 13,555 |
Allowance for lending-related commitments | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 1,078 | 786 | 622 | |||
Provision for loan losses/lending-related commitments | (10) | 281 | 164 | |||
Other | 0 | 11 | 0 | |||
Ending balance | 1,068 | 1,078 | 786 | |||
Allowance For Lending Related Commitments, by Impairment Methodology [Abstract] | ||||||
Allowance for lending-related commitments by impairment methodology, Asset-specific | 187 | 169 | 73 | |||
Allowance for lending-related commitments by impairment methodology, Formula-based | 881 | 909 | 713 | |||
Total allowance for loan losses/lending-related commitments | 1,078 | 786 | 622 | 1,068 | 1,078 | 786 |
Consumer, excluding credit card | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Gross charge-offs/Write-offs of PCI loans | 86 | 156 | 208 | |||
Loans by impairment methodology | ||||||
Asset-specific | 8,036 | 8,940 | 9,606 | |||
Formula-based | 333,941 | 319,787 | 293,751 | |||
PCI | 30,576 | 35,679 | 40,998 | |||
Total retained loans | 372,553 | 364,406 | 344,355 | |||
Lending-related commitments by impairment methodology | ||||||
Asset-specific | 0 | 0 | 0 | |||
Formula-based | 48,553 | 53,247 | 56,865 | |||
Total lending-related commitments | 48,553 | 53,247 | 56,865 | |||
Consumer, excluding credit card | Impaired collateral-dependent loans | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Net charge-offs | 64 | 98 | 104 | |||
Impaired collateral-dependent loans | ||||||
Loans measured at fair value of collateral less cost to sell | 2,133 | 2,391 | 2,566 | |||
Consumer, excluding credit card | Allowance for loan losses | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 5,198 | 5,806 | 7,050 | |||
Gross charge-offs/Write-offs of PCI loans | 1,779 | 1,500 | 1,658 | |||
Gross recoveries | (634) | (591) | (704) | |||
Net charge-offs | 1,145 | 909 | 954 | |||
Provision for loan losses/lending-related commitments | 613 | 467 | (82) | |||
Other | (1) | (10) | 0 | |||
Ending balance | 4,579 | 5,198 | 5,806 | |||
Allowance For Lending Related Commitments, by Impairment Methodology [Abstract] | ||||||
Asset-specific | 246 | 308 | 364 | |||
Formula-based | 2,108 | 2,579 | 2,700 | |||
PCI | 2,225 | 2,311 | 2,742 | |||
Total allowance for loan losses/lending-related commitments | 5,198 | 5,806 | 7,050 | 4,579 | 5,198 | 5,806 |
Consumer, excluding credit card | Allowance for lending-related commitments | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 26 | 14 | 13 | |||
Provision for loan losses/lending-related commitments | 7 | 0 | 1 | |||
Other | 0 | 12 | 0 | |||
Ending balance | 33 | 26 | 14 | |||
Allowance For Lending Related Commitments, by Impairment Methodology [Abstract] | ||||||
Allowance for lending-related commitments by impairment methodology, Asset-specific | 0 | 0 | 0 | |||
Allowance for lending-related commitments by impairment methodology, Formula-based | 33 | 26 | 14 | |||
Total allowance for loan losses/lending-related commitments | 26 | 14 | 13 | 33 | 26 | 14 |
Credit card | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Gross charge-offs/Write-offs of PCI loans | 0 | 0 | 0 | |||
Loans by impairment methodology | ||||||
Asset-specific | 1,215 | 1,240 | 1,465 | |||
Formula-based | 148,172 | 140,471 | 129,922 | |||
PCI | 0 | 0 | 0 | |||
Total retained loans | 149,387 | 141,711 | 131,387 | |||
Lending-related commitments by impairment methodology | ||||||
Asset-specific | 0 | 0 | 0 | |||
Formula-based | 572,831 | 553,891 | 515,518 | |||
Total lending-related commitments | 572,831 | 553,891 | 515,518 | |||
Credit card | Impaired collateral-dependent loans | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Net charge-offs | 0 | 0 | 0 | |||
Impaired collateral-dependent loans | ||||||
Loans measured at fair value of collateral less cost to sell | 0 | 0 | 0 | |||
Credit card | Allowance for loan losses | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 4,034 | 3,434 | 3,439 | |||
Gross charge-offs/Write-offs of PCI loans | 4,521 | 3,799 | 3,488 | |||
Gross recoveries | (398) | (357) | (366) | |||
Net charge-offs | 4,123 | 3,442 | 3,122 | |||
Provision for loan losses/lending-related commitments | 4,973 | 4,042 | 3,122 | |||
Other | 0 | 0 | (5) | |||
Ending balance | 4,884 | 4,034 | 3,434 | |||
Allowance For Lending Related Commitments, by Impairment Methodology [Abstract] | ||||||
Asset-specific | 383 | 358 | 460 | |||
Formula-based | 4,501 | 3,676 | 2,974 | |||
PCI | 0 | 0 | 0 | |||
Total allowance for loan losses/lending-related commitments | 4,034 | 3,434 | 3,439 | 4,884 | 4,034 | 3,434 |
Credit card | Allowance for lending-related commitments | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 0 | 0 | 0 | |||
Provision for loan losses/lending-related commitments | 0 | 0 | 0 | |||
Other | 0 | 0 | 0 | |||
Ending balance | 0 | 0 | 0 | |||
Allowance For Lending Related Commitments, by Impairment Methodology [Abstract] | ||||||
Allowance for lending-related commitments by impairment methodology, Asset-specific | 0 | 0 | 0 | |||
Allowance for lending-related commitments by impairment methodology, Formula-based | 0 | 0 | 0 | |||
Total allowance for loan losses/lending-related commitments | 0 | 0 | 0 | 0 | 0 | 0 |
Wholesale | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Gross charge-offs/Write-offs of PCI loans | 0 | 0 | 0 | |||
Loans by impairment methodology | ||||||
Asset-specific | 1,867 | 2,017 | 1,024 | |||
Formula-based | 401,028 | 381,770 | 356,022 | |||
PCI | 3 | 3 | 4 | |||
Total retained loans | 402,898 | 383,790 | 357,050 | |||
Lending-related commitments by impairment methodology | ||||||
Asset-specific | 731 | 506 | 193 | |||
Formula-based | 369,367 | 367,508 | 366,206 | |||
Total lending-related commitments | 370,098 | 368,014 | 366,399 | |||
Wholesale | Impaired collateral-dependent loans | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Net charge-offs | 31 | 7 | 16 | |||
Impaired collateral-dependent loans | ||||||
Loans measured at fair value of collateral less cost to sell | 233 | 300 | 283 | |||
Wholesale | Allowance for loan losses | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 4,544 | 4,315 | 3,696 | |||
Gross charge-offs/Write-offs of PCI loans | 212 | 398 | 95 | |||
Gross recoveries | (93) | (57) | (85) | |||
Net charge-offs | 119 | 341 | 10 | |||
Provision for loan losses/lending-related commitments | (286) | 571 | 623 | |||
Other | 2 | (1) | 6 | |||
Ending balance | 4,141 | 4,544 | 4,315 | |||
Allowance For Lending Related Commitments, by Impairment Methodology [Abstract] | ||||||
Asset-specific | 461 | 342 | 274 | |||
Formula-based | 3,680 | 4,202 | 4,041 | |||
PCI | 0 | 0 | 0 | |||
Total allowance for loan losses/lending-related commitments | 4,544 | 4,315 | 3,696 | 4,141 | 4,544 | 4,315 |
Wholesale | Allowance for lending-related commitments | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 1,052 | 772 | 609 | |||
Provision for loan losses/lending-related commitments | (17) | 281 | 163 | |||
Other | 0 | (1) | 0 | |||
Ending balance | 1,035 | 1,052 | 772 | |||
Allowance For Lending Related Commitments, by Impairment Methodology [Abstract] | ||||||
Allowance for lending-related commitments by impairment methodology, Asset-specific | 187 | 169 | 73 | |||
Allowance for lending-related commitments by impairment methodology, Formula-based | 848 | 883 | 699 | |||
Total allowance for loan losses/lending-related commitments | $ 1,052 | $ 772 | $ 609 | $ 1,035 | $ 1,052 | $ 772 |
Variable Interest Entities - Cr
Variable Interest Entities - Credit Card Securitizations (Details) - Firm-sponsored credit card trusts - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Variable Interest Entity [Line Items] | ||
Minimum undivided interest in credit card trusts | 26.00% | 16.00% |
Undivided interests in Firm-sponsored credit card securitization trusts | $ 15,800,000,000 | $ 8,900,000,000 |
Senior securities | ||
Variable Interest Entity [Line Items] | ||
Undivided interests in Firm-sponsored credit card securitization trusts | 0 | 0 |
Subordinated securities | ||
Variable Interest Entity [Line Items] | ||
Undivided interests in Firm-sponsored credit card securitization trusts | $ 4,500,000,000 | $ 5,300,000,000 |
Minimum | ||
Variable Interest Entity [Line Items] | ||
Minimum undivided interest in credit card trusts | 5.00% |
Variable Interest Entities - Fi
Variable Interest Entities - Firm Sponsored Variable Interest Entities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Firm-sponsored mortgage and other consumer securitization trusts | ||
Total assets held by securitization VIEs | $ 182,763 | $ 199,596 |
Retained securitization interests, risk-rated 'A' or better, at fair value | 61.00% | 61.00% |
Corporate & Investment Bank | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Senior securities purchased in connection with CIB's secondary market-making activities | $ 88 | $ 180 |
Subordinated securities purchased in connection with CIB's secondary market-making activities | 48 | 49 |
Residential mortgage | Prime/Alt-A and option ARMs | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Total assets held by securitization VIEs | 68,874 | 76,789 |
Residential mortgage | Subprime | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Total assets held by securitization VIEs | 18,984 | 21,542 |
Residential mortgage | Investment-grade | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Fair value of retained interests | 1,300 | 1,500 |
Residential mortgage | Noninvestment-grade | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Fair value of retained interests | 48 | 77 |
Commercial and other | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Total assets held by securitization VIEs | 94,905 | 101,265 |
Commercial and other | Investment-grade | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Fair value of retained interests | 1,600 | 2,400 |
Commercial and other | Noninvestment-grade | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Fair value of retained interests | 412 | 210 |
VIEs consolidated by the Firm | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Assets held in consolidated securitization VIEs | 3,685 | 4,316 |
VIEs consolidated by the Firm | Residential mortgage | Prime/Alt-A and option ARMs | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Assets held in consolidated securitization VIEs | 3,615 | 4,209 |
VIEs consolidated by the Firm | Residential mortgage | Subprime | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Assets held in consolidated securitization VIEs | 7 | 0 |
VIEs consolidated by the Firm | Commercial and other | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Assets held in consolidated securitization VIEs | 63 | 107 |
Nonconsolidated entities | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Assets held in nonconsolidated securitization VIEs with continuing involvement | 133,303 | 148,910 |
Interest in securitized assets in nonconsolidated VIEs | 3,481 | 4,209 |
Nonconsolidated entities | Trading assets | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 1,248 | 811 |
Nonconsolidated entities | Securities | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 2,076 | 3,398 |
Nonconsolidated entities | Other financial assets | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 157 | 0 |
Nonconsolidated entities | Residential mortgage | Prime/Alt-A and option ARMs | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Assets held in nonconsolidated securitization VIEs with continuing involvement | 52,280 | 57,543 |
Interest in securitized assets in nonconsolidated VIEs | 1,353 | 1,560 |
Nonconsolidated entities | Residential mortgage | Subprime | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Assets held in nonconsolidated securitization VIEs with continuing involvement | 17,612 | 19,903 |
Interest in securitized assets in nonconsolidated VIEs | 93 | 76 |
Nonconsolidated entities | Residential mortgage | Trading assets | Prime/Alt-A and option ARMs | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 410 | 226 |
Nonconsolidated entities | Residential mortgage | Trading assets | Subprime | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 93 | 76 |
Nonconsolidated entities | Residential mortgage | Securities | Prime/Alt-A and option ARMs | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 943 | 1,334 |
Nonconsolidated entities | Residential mortgage | Securities | Subprime | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 0 | 0 |
Nonconsolidated entities | Residential mortgage | Other financial assets | Prime/Alt-A and option ARMs | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 0 | 0 |
Nonconsolidated entities | Residential mortgage | Other financial assets | Subprime | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 0 | 0 |
Nonconsolidated entities | Commercial and other | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Assets held in nonconsolidated securitization VIEs with continuing involvement | 63,411 | 71,464 |
Interest in securitized assets in nonconsolidated VIEs | 2,035 | 2,573 |
Nonconsolidated entities | Commercial and other | Trading assets | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 745 | 509 |
Nonconsolidated entities | Commercial and other | Securities | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 1,133 | 2,064 |
Nonconsolidated entities | Commercial and other | Other financial assets | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | $ 157 | $ 0 |
Variable Interest Entities - Re
Variable Interest Entities - Re-securitizations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Transfers of securities to VIEs | |||
Firm-sponsored private-label | $ 0 | $ 647 | $ 777 |
Agency | 12,617 | 11,241 | $ 21,908 |
Variable Interest Entity [Line Items] | |||
Assets held in VIEs with continuing involvement | 182,763 | 199,596 | |
Firm-sponsored private-label | Nonconsolidated entities | |||
Variable Interest Entity [Line Items] | |||
Assets held in VIEs with continuing involvement | 783 | 875 | |
Interest in VIEs | 29 | 43 | |
Agency | Nonconsolidated entities | |||
Variable Interest Entity [Line Items] | |||
Interest in VIEs | $ 2,250 | $ 1,986 |
Variable Interest Entities - Mu
Variable Interest Entities - Multi-seller Conduits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Variable Interest Entity [Line Items] | |||
Off-balance sheet lending-related financial commitments, contractual amount | $ 991,482 | $ 975,152 | $ 938,782 |
Firm-administered multi-seller conduits | |||
Variable Interest Entity [Line Items] | |||
Commercial paper issued by consolidated Variable Interest Entities eliminated in Consolidation | 20,400 | 21,200 | |
Firm-administered multi-seller conduits | Commercial and other | |||
Variable Interest Entity [Line Items] | |||
Off-balance sheet lending-related financial commitments, contractual amount | $ 8,800 | $ 7,400 | |
Maximum | |||
Variable Interest Entity [Line Items] | |||
Program-wide credit enhancement required amount | 10.00% |
Variable Interest Entities - Co
Variable Interest Entities - Consolidated VIE Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Trading assets | $ 381,844 | $ 372,130 | ||||
Loans | 924,838 | 889,907 | $ 832,792 | |||
Other | 114,770 | 112,076 | ||||
Total assets | 2,533,600 | [1] | 2,490,972 | [1] | $ 2,351,698 | |
Beneficial interests in VIE assets | 26,081 | 39,047 | ||||
Total liabilities | [1] | 2,277,907 | 2,236,782 | |||
VIEs consolidated by the Firm | ||||||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Trading assets | 1,449 | 3,185 | ||||
Loans | 68,995 | 75,614 | ||||
Other | 2,674 | 3,321 | ||||
Total assets | 73,118 | 82,120 | ||||
Beneficial interests in VIE assets | 26,081 | 39,047 | ||||
Other | 349 | 490 | ||||
Total liabilities | 26,430 | 39,537 | ||||
Beneficial interests in VIE assets, long term | 21,800 | 33,400 | ||||
VIEs consolidated by the Firm | Debt and equity securities | ||||||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Trading assets | 1,449 | 3,185 | ||||
Firm-sponsored credit card trusts | VIEs consolidated by the Firm | ||||||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Loans | 41,923 | 45,919 | ||||
Other | 652 | 790 | ||||
Total assets | 42,575 | 46,709 | ||||
Beneficial interests in VIE assets | 21,278 | 31,181 | ||||
Other | 16 | 18 | ||||
Total liabilities | 21,294 | 31,199 | ||||
Firm-sponsored credit card trusts | VIEs consolidated by the Firm | Debt and equity securities | ||||||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Trading assets | 0 | 0 | ||||
Firm-administered multi-seller conduits | VIEs consolidated by the Firm | ||||||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Loans | 23,411 | 23,760 | ||||
Other | 48 | 43 | ||||
Total assets | 23,459 | 23,803 | ||||
Beneficial interests in VIE assets | 3,045 | 2,719 | ||||
Other | 28 | 33 | ||||
Total liabilities | 3,073 | 2,752 | ||||
Firm-administered multi-seller conduits | VIEs consolidated by the Firm | Debt and equity securities | ||||||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Trading assets | 0 | 0 | ||||
Municipal bond vehicles | VIEs consolidated by the Firm | ||||||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Loans | 0 | 0 | ||||
Other | 3 | 8 | ||||
Total assets | 1,281 | 2,905 | ||||
Beneficial interests in VIE assets | 1,265 | 2,969 | ||||
Other | 2 | 2 | ||||
Total liabilities | 1,267 | 2,971 | ||||
Municipal bond vehicles | VIEs consolidated by the Firm | Debt and equity securities | ||||||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Trading assets | 1,278 | 2,897 | ||||
Mortgage securitization entities | VIEs consolidated by the Firm | ||||||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Loans | 3,661 | 4,246 | ||||
Other | 55 | 103 | ||||
Total assets | 3,782 | 4,492 | ||||
Beneficial interests in VIE assets | 359 | 468 | ||||
Other | 199 | 313 | ||||
Total liabilities | 558 | 781 | ||||
Mortgage securitization entities | VIEs consolidated by the Firm | Debt and equity securities | ||||||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Trading assets | 66 | 143 | ||||
Student loan securitization entities | VIEs consolidated by the Firm | ||||||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Loans | 0 | 1,689 | ||||
Other | 0 | 59 | ||||
Total assets | 0 | 1,748 | ||||
Beneficial interests in VIE assets | 0 | 1,527 | ||||
Other | 0 | 4 | ||||
Total liabilities | 0 | 1,531 | ||||
Student loan securitization entities | VIEs consolidated by the Firm | Debt and equity securities | ||||||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Trading assets | 0 | 0 | ||||
Other | VIEs consolidated by the Firm | ||||||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Loans | 0 | 0 | ||||
Other | 1,916 | 2,318 | ||||
Total assets | 2,021 | 2,463 | ||||
Beneficial interests in VIE assets | 134 | 183 | ||||
Other | 104 | 120 | ||||
Total liabilities | 238 | 303 | ||||
Other | VIEs consolidated by the Firm | Debt and equity securities | ||||||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Trading assets | $ 105 | $ 145 | ||||
[1] | The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at December 31, 2017 and 2016. The difference between total VIE assets and liabilities represents the Firm’s interests in those entities, which were eliminated in consolidation.December 31, (in millions)2017 2016Assets Trading assets$1,449 $3,185Loans68,995 75,614All other assets2,674 3,321Total assets$73,118 $82,120Liabilities Beneficial interests issued by consolidated VIEs$26,081 $39,047All other liabilities349 490Total liabilities$26,430 $39,537The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests do not have recourse to the general credit of JPMorgan Chase. At December 31, 2017 and 2016, the Firm provided limited program-wide credit enhancement of $2.7 billion and $2.4 billion, respectively, related to its Firm-administered multi-seller conduits, which are eliminated in consolidation. For further discussion, see Note 14. |
Variable Interest Entities - VI
Variable Interest Entities - VIEs Sponsored by Third Parties (Details) - Nonconsolidated entities - USD ($) $ in Billions | Dec. 31, 2017 | Dec. 31, 2016 |
Municipal bond vehicles | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure | $ 5.3 | $ 5 |
Fair value of assets held by VIE | 9.2 | 8.9 |
Tax credit vehicles | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure | 13.4 | 14.8 |
Unfunded commitments | $ 3.2 | $ 3.8 |
Variable Interest Entities - Se
Variable Interest Entities - Securitization Activity (Details) - Securitization entities not consolidated - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Residential mortgage | |||
Securitization activity [Abstract] | |||
Principal securitized | $ 5,532 | $ 1,817 | $ 3,008 |
All cash flows during the period: | |||
Proceeds received from loan sales as financial instruments | 5,661 | 1,831 | 3,022 |
Servicing fees collected | 525 | 477 | 528 |
Purchases of previously transferred financial assets (or the underlying collateral) | 1 | 37 | 3 |
Cash flows received on interests | $ 463 | $ 482 | $ 407 |
Weighted-average life (in years) | 4 years 9 months 18 days | 4 years 6 months | 4 years 2 months 12 days |
Weighted-average discount rate | 2.90% | 4.20% | 2.90% |
Commercial and other | |||
Securitization activity [Abstract] | |||
Principal securitized | $ 10,252 | $ 8,964 | $ 11,933 |
All cash flows during the period: | |||
Proceeds received from loan sales as financial instruments | 10,340 | 9,094 | 12,011 |
Servicing fees collected | 3 | 3 | 3 |
Purchases of previously transferred financial assets (or the underlying collateral) | 0 | 0 | 0 |
Cash flows received on interests | $ 918 | $ 1,441 | $ 597 |
Weighted-average life (in years) | 7 years 1 month 6 days | 6 years 2 months 12 days | 6 years 2 months 12 days |
Weighted-average discount rate | 4.40% | 5.80% | 4.10% |
Variable Interest Entities - Lo
Variable Interest Entities - Loans Sold to Third-Party Sponsored Securitization Entities (Details) - Nonconsolidated entities - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of loan sale activities [Abstract] | |||
Carrying value of loans sold | $ 64,542 | $ 52,869 | $ 42,161 |
Proceeds received from loan sales as cash | 117 | 592 | 313 |
Proceeds from loans sales as securities | 63,542 | 51,852 | 41,615 |
Total proceeds received from loan sales | 63,659 | 52,444 | 41,928 |
Gains on loan sales | $ 163 | $ 222 | $ 299 |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of Loans Repurchased and Option to Repurchase Delinquent Loans (Details) - Nonconsolidated entities - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Variable Interest Entity [Line Items] | ||
Loans repurchased or option to repurchase | $ 8,629 | $ 9,556 |
Real estate acquired through foreclosure | 95 | 142 |
Residential mortgage | ||
Variable Interest Entity [Line Items] | ||
Real estate acquired through foreclosure | $ 527 | $ 1,007 |
Variable Interest Entities -155
Variable Interest Entities - Loan Delinquencies and Net Charge-offs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Securitized loans | ||
Information about delinquencies, net charge-offs, and components of off-balance sheet securitized financial assets [Abstract] | ||
90 days past due | $ 9,103 | $ 12,110 |
Liquidation losses | 1,623 | 2,890 |
Securitized loans | Commercial and other | ||
Information about delinquencies, net charge-offs, and components of off-balance sheet securitized financial assets [Abstract] | ||
90 days past due | 957 | 1,755 |
Liquidation losses | 114 | 643 |
Nonconsolidated entities | ||
Information about delinquencies, net charge-offs, and components of off-balance sheet securitized financial assets [Abstract] | ||
Securitized assets | 133,303 | 148,910 |
Nonconsolidated entities | Commercial and other | ||
Information about delinquencies, net charge-offs, and components of off-balance sheet securitized financial assets [Abstract] | ||
Securitized assets | 63,411 | 71,464 |
Prime/Alt-A and option ARMs | Securitized loans | Residential mortgage | ||
Information about delinquencies, net charge-offs, and components of off-balance sheet securitized financial assets [Abstract] | ||
90 days past due | 4,870 | 6,169 |
Liquidation losses | 790 | 1,160 |
Prime/Alt-A and option ARMs | Nonconsolidated entities | Residential mortgage | ||
Information about delinquencies, net charge-offs, and components of off-balance sheet securitized financial assets [Abstract] | ||
Securitized assets | 52,280 | 57,543 |
Subprime | Securitized loans | Residential mortgage | ||
Information about delinquencies, net charge-offs, and components of off-balance sheet securitized financial assets [Abstract] | ||
90 days past due | 3,276 | 4,186 |
Liquidation losses | 719 | 1,087 |
Subprime | Nonconsolidated entities | Residential mortgage | ||
Information about delinquencies, net charge-offs, and components of off-balance sheet securitized financial assets [Abstract] | ||
Securitized assets | $ 17,612 | $ 19,903 |
Goodwill and Mortgage Servic156
Goodwill and Mortgage Servicing Rights - by Business Segment (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill [Line Items] | ||||
Goodwill | $ 47,507 | $ 47,288 | $ 47,325 | $ 47,647 |
Consumer & Community Banking | ||||
Goodwill [Line Items] | ||||
Goodwill | 31,013 | 30,797 | 30,769 | |
Corporate & Investment Bank | ||||
Goodwill [Line Items] | ||||
Goodwill | 6,776 | 6,772 | 6,772 | |
Commercial Banking | ||||
Goodwill [Line Items] | ||||
Goodwill | 2,860 | 2,861 | 2,861 | |
Asset & Wealth Management | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 6,858 | $ 6,858 | $ 6,923 |
Goodwill and Mortgage Servic157
Goodwill and Mortgage Servicing Rights - Changes During Period (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in the carrying amount of goodwill [Abstract] | |||
Balance at beginning of period | $ 47,288 | $ 47,325 | $ 47,647 |
Changes during the period from: | |||
Business combinations(a) | 199 | 0 | 28 |
Dispositions | 0 | (72) | (160) |
Other | 20 | 35 | (190) |
Balance at end of period | $ 47,507 | 47,288 | 47,325 |
Corporate | |||
Changes in the carrying amount of goodwill [Abstract] | |||
Balance at beginning of period | $ 101 | ||
Changes during the period from: | |||
Balance at end of period | $ 101 |
Goodwill and Mortgage Servic158
Goodwill and Mortgage Servicing Rights - Impairment Testing Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill impairment | $ 0 | $ 0 | $ 0 |
Goodwill and Mortgage Servic159
Goodwill and Mortgage Servicing Rights - Mortgage Servicing Rights (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Mortgage servicing rights activity [Abstract] | |||
Fair value at beginning of period | $ 6,096 | $ 6,608 | $ 7,436 |
MSR activity: | |||
Originations of MSRs | 1,103 | 679 | 550 |
Purchase of MSRs | 0 | 0 | 435 |
Disposition of MSRs | (140) | (109) | (486) |
Net additions | 963 | 570 | 499 |
Changes due to collection/realization of expected cash flows | (797) | (919) | (922) |
Changes in valuation due to inputs and assumptions: | |||
Changes due to market interest rates and other | (202) | (72) | (160) |
Changes in valuation due to other inputs and assumptions: | |||
Projected cash flows (e.g., cost to service) | (102) | (35) | (112) |
Discount rates | (19) | 7 | (10) |
Prepayment model changes and other | 91 | (63) | (123) |
Total changes in valuation due to other inputs and assumptions | (30) | (91) | (245) |
Total changes in valuation due to inputs and assumptions | (232) | (163) | (405) |
Fair value at December 31, | 6,030 | 6,096 | 6,608 |
Change in unrealized gains/(losses) included in income related to MSRs held | (232) | (163) | (405) |
Contractual service fees, late fees and other ancillary fees included in income | 1,886 | 2,124 | 2,533 |
Third-party mortgage loans serviced | 555,000 | 593,300 | 677,000 |
Servicer advances, net of an allowance for uncollectible amounts | $ 4,000 | $ 4,700 | $ 6,500 |
Goodwill and Mortgage Servic160
Goodwill and Mortgage Servicing Rights - Mortgage Fees and Related Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Risk management: | |||
All other | $ 3 | $ 1 | $ 2 |
Mortgage fees and related income | 1,616 | 2,491 | 2,513 |
Consumer & Community Banking | |||
CCB mortgage fees and related income | |||
Net production revenue | 636 | 853 | 769 |
Operating revenue: | |||
Loan servicing revenue | 2,014 | 2,336 | 2,776 |
Changes in MSR asset fair value due to collection/realization of expected cash flows | (795) | (916) | (917) |
Total operating revenue | 1,219 | 1,420 | 1,859 |
Risk management: | |||
Changes in MSR asset fair value due to market interest rates and other | (202) | (72) | (160) |
Other changes in MSR asset fair value due to other inputs and assumptions in model | (30) | (91) | (245) |
Change in derivative fair value and other | (10) | 380 | 288 |
Total risk management | (242) | 217 | (117) |
Total net mortgage servicing revenue | 977 | 1,637 | 1,742 |
Mortgage fees and related income | $ 1,613 | $ 2,490 | $ 2,511 |
Goodwill and Mortgage Servic161
Goodwill and Mortgage Servicing Rights - Key Economic Assumptions (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Weighted-average prepayment speed assumption (“CPR”) | 9.35% | 9.41% |
Impact on fair value of 10% adverse change | $ (221) | $ (231) |
Impact on fair value of 20% adverse change | $ (427) | $ (445) |
Weighted-average option adjusted spread | 9.04% | 8.55% |
Impact on fair value of 100 basis points adverse change | $ (250) | $ (248) |
Impact on fair value of 200 basis points adverse change | $ (481) | $ (477) |
Deposits - Noninterest and Inte
Deposits - Noninterest and Interest-bearing (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
U.S. offices | ||
Noninterest-bearing | $ 393,645 | $ 400,831 |
Interest-bearing (included $14,947 and $12,245 at fair value) | 793,618 | 737,949 |
Total deposits in U.S. offices | 1,187,263 | 1,138,780 |
Non-U.S. offices | ||
Noninterest-bearing | 15,576 | 14,764 |
Interest-bearing (included $6,374 and $1,667 at fair value) | 241,143 | 221,635 |
Total deposits in non-U.S. offices | 256,719 | 236,399 |
Total deposits | 1,443,982 | 1,375,179 |
Fair value | ||
U.S. offices | ||
Interest-bearing, fair value | 14,947 | 12,245 |
Non-U.S. offices | ||
Interest-bearing, fair value | $ 6,374 | $ 1,667 |
Deposits - Time Deposits (Detai
Deposits - Time Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Time Deposits [Line Items] | ||
Total | $ 59,720 | $ 55,832 |
U.S. offices | ||
Time Deposits [Line Items] | ||
Total | 30,671 | 26,180 |
Non-U.S. offices | ||
Time Deposits [Line Items] | ||
Total | $ 29,049 | $ 29,652 |
Deposits - Maturities of Intere
Deposits - Maturities of Interest-Bearing Time Deposits (Details) $ in Millions | Dec. 31, 2017USD ($) |
Maturities of interest bearing time deposits | |
2,018 | $ 65,266 |
2,019 | 3,836 |
2,020 | 2,354 |
2,021 | 4,301 |
2,022 | 2,740 |
After 5 years | 5,088 |
Total | 83,585 |
U.S. | |
Maturities of interest bearing time deposits | |
2,018 | 37,645 |
2,019 | 3,487 |
2,020 | 2,332 |
2,021 | 4,275 |
2,022 | 2,297 |
After 5 years | 3,391 |
Total | 53,427 |
Non-U.S. | |
Maturities of interest bearing time deposits | |
2,018 | 27,621 |
2,019 | 349 |
2,020 | 22 |
2,021 | 26 |
2,022 | 443 |
After 5 years | 1,697 |
Total | $ 30,158 |
Accounts Payable and Other L165
Accounts Payable and Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Brokerage payables | $ 102,727 | $ 109,842 |
Other payables and liabilities | 86,656 | 80,701 |
Total accounts payable and other liabilities | 189,383 | 190,543 |
Credit card rewards liability | $ 4,900 | $ 3,800 |
Long-term Debt - Summary of Lon
Long-term Debt - Summary of Long-Term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 18, 2017 | Dec. 31, 2016 | |
Long-term debt carrying values by contractual maturity | |||
Under 1 year | $ 43,174 | ||
1-5 years | 121,181 | ||
After 5 years | 119,725 | ||
Long-term debt | $ 284,080 | $ 295,245 | |
Long Term Debt - Supplemental Information | |||
Interest rate modified for the effects of hedge accounting, Minimum | (0.19%) | ||
Interest rate modified for the effects of hedge accounting, Maximum | 8.88% | ||
Cancellation of trust preferred securities | $ 1,600 | ||
Collateral used to secure Long-term debt | $ 208,400 | 205,600 | |
Zero-coupon notes | 10,300 | 7,500 | |
Zero-coupon notes - aggregate principal amount at maturity | 33,500 | $ 25,100 | |
Redeemable long-term debt | 111,200 | ||
Long term debt maturing in 2019 | 34,700 | ||
Long term debt maturing in 2020 | 39,300 | ||
Long term debt maturing in 2021 | 33,800 | ||
Long term debt maturing in 2022 | $ 13,400 | ||
Weighted-average contractual interest rates for long term debt | 2.87% | 2.49% | |
Modified weighted-average interest rates total long-term debt | 2.56% | 2.01% | |
Guarantee of Indebtedness of Others | |||
Long Term Debt - Supplemental Information | |||
Guarantee liability | $ 7,900 | $ 3,900 | |
Recurring | |||
Long Term Debt - Supplemental Information | |||
Long-term debt accounted for at fair value | 47,519 | 37,686 | |
Beneficial interest, fair value disclosures | 45 | 120 | |
Long-term beneficial interests | |||
Long-term debt carrying values by contractual maturity | |||
Under 1 year | 9,326 | ||
1-5 years | 12,124 | ||
After 5 years | 321 | ||
Long-term debt | $ 21,771 | 33,359 | |
Under 1 year, Minimum | 1.10% | ||
Under 1 year, Maximum | 2.50% | ||
1-5 years, Minimum | 1.27% | ||
1-5 years, Maximum | 6.54% | ||
After 5 years, Minimum | 0.00% | ||
After 5 years, maximum | 3.75% | ||
Long Term Debt - Supplemental Information | |||
Commercial paper | $ 4,300 | 5,700 | |
Junior subordinated debt | |||
Long-term debt carrying values by contractual maturity | |||
Under 1 year | 0 | ||
1-5 years | 0 | ||
After 5 years | 2,275 | ||
Long-term debt | $ 2,275 | 2,345 | |
Under 1 year, Minimum | 0.00% | ||
Under 1 year, Maximum | 0.00% | ||
1-5 years, Minimum | 0.00% | ||
1-5 years, Maximum | 0.00% | ||
After 5 years, Minimum | 1.88% | ||
After 5 years, maximum | 8.75% | ||
Secured debt | |||
Long Term Debt - Supplemental Information | |||
Long-term debt | $ 63,500 | $ 82,200 | |
Minimum | |||
Long-term debt carrying values by contractual maturity | |||
Interest rate | 0.16% | ||
Minimum | Long-term beneficial interests | |||
Long-term debt carrying values by contractual maturity | |||
Interest rate | 0.00% | 0.39% | |
Minimum | Junior subordinated debt | |||
Long-term debt carrying values by contractual maturity | |||
Interest rate | 1.88% | 1.39% | |
Maximum | |||
Long-term debt carrying values by contractual maturity | |||
Interest rate | 8.75% | ||
Maximum | Long-term beneficial interests | |||
Long-term debt carrying values by contractual maturity | |||
Interest rate | 6.54% | 7.87% | |
Maximum | Junior subordinated debt | |||
Long-term debt carrying values by contractual maturity | |||
Interest rate | 8.75% | 8.75% | |
Fixed rate | |||
Long Term Debt - Supplemental Information | |||
Principal amount of debenture issued to trust | $ 700 | ||
Fixed rate | Long-term beneficial interests | |||
Long-term debt carrying values by contractual maturity | |||
Under 1 year | 5,927 | ||
1-5 years | 7,652 | ||
After 5 years | 0 | ||
Long-term debt | 13,579 | $ 18,678 | |
Fixed rate | Junior subordinated debt | |||
Long-term debt carrying values by contractual maturity | |||
Under 1 year | 0 | ||
1-5 years | 0 | ||
After 5 years | 690 | ||
Long-term debt | 690 | 706 | |
Variable rate | |||
Long Term Debt - Supplemental Information | |||
Principal amount of debenture issued to trust | 1,600 | ||
Variable rate | Long-term beneficial interests | |||
Long-term debt carrying values by contractual maturity | |||
Under 1 year | 3,399 | ||
1-5 years | 4,472 | ||
After 5 years | 321 | ||
Long-term debt | 8,192 | 14,681 | |
Variable rate | Junior subordinated debt | |||
Long-term debt carrying values by contractual maturity | |||
Under 1 year | 0 | ||
1-5 years | 0 | ||
After 5 years | 1,585 | ||
Long-term debt | 1,585 | 1,639 | |
Parent company | |||
Long-term debt carrying values by contractual maturity | |||
Under 1 year | 20,631 | ||
1-5 years | 66,890 | ||
After 5 years | 95,146 | ||
Long-term debt | 182,667 | 181,789 | |
Long Term Debt - Supplemental Information | |||
Long-term debt | 184,252 | $ 181,789 | |
Long term debt maturing in 2019 | 13,300 | ||
Long term debt maturing in 2020 | 22,400 | ||
Long term debt maturing in 2021 | 20,600 | ||
Long term debt maturing in 2022 | $ 10,500 | ||
Parent company | Senior debt | |||
Long-term debt carrying values by contractual maturity | |||
Under 1 year, Minimum | 0.38% | ||
Under 1 year, Maximum | 7.25% | ||
1-5 years, Minimum | 0.16% | ||
1-5 years, Maximum | 6.30% | ||
After 5 years, Minimum | 0.45% | ||
After 5 years, maximum | 6.40% | ||
Parent company | Subordinated debt | |||
Long-term debt carrying values by contractual maturity | |||
Under 1 year, Minimum | |||
Under 1 year, Maximum | |||
1-5 years, Minimum | 8.53% | ||
1-5 years, Maximum | 8.53% | ||
After 5 years, Minimum | 3.38% | ||
After 5 years, maximum | 8.00% | ||
Parent company | Minimum | Senior debt | |||
Long-term debt carrying values by contractual maturity | |||
Interest rate | 0.16% | 0.09% | |
Parent company | Minimum | Subordinated debt | |||
Long-term debt carrying values by contractual maturity | |||
Interest rate | 3.38% | 0.82% | |
Parent company | Maximum | Senior debt | |||
Long-term debt carrying values by contractual maturity | |||
Interest rate | 7.25% | 7.25% | |
Parent company | Maximum | Subordinated debt | |||
Long-term debt carrying values by contractual maturity | |||
Interest rate | 8.53% | 8.53% | |
Parent company | Fixed rate | Senior debt | |||
Long-term debt carrying values by contractual maturity | |||
Under 1 year | $ 15,084 | ||
1-5 years | 53,939 | ||
After 5 years | 72,528 | ||
Long-term debt | 141,551 | $ 128,967 | |
Parent company | Fixed rate | Subordinated debt | |||
Long-term debt carrying values by contractual maturity | |||
Under 1 year | 0 | ||
1-5 years | 149 | ||
After 5 years | 14,497 | ||
Long-term debt | 14,646 | 16,811 | |
Parent company | Variable rate | Senior debt | |||
Long-term debt carrying values by contractual maturity | |||
Under 1 year | 5,547 | ||
1-5 years | 12,802 | ||
After 5 years | 8,112 | ||
Long-term debt | 26,461 | 34,766 | |
Parent company | Variable rate | Subordinated debt | |||
Long-term debt carrying values by contractual maturity | |||
Under 1 year | 0 | ||
1-5 years | 0 | ||
After 5 years | 9 | ||
Long-term debt | 9 | 1,245 | |
Subsidiaries | |||
Long-term debt carrying values by contractual maturity | |||
Under 1 year | 22,543 | ||
1-5 years | 54,291 | ||
After 5 years | 22,304 | ||
Long-term debt | $ 99,138 | $ 111,111 | |
Subsidiaries | Federal Home Loan Banks (“FHLB”) advances | |||
Long-term debt carrying values by contractual maturity | |||
Under 1 year, Minimum | 1.58% | ||
Under 1 year, Maximum | 1.75% | ||
1-5 years, Minimum | 1.46% | ||
1-5 years, Maximum | 2.00% | ||
After 5 years, Minimum | 1.18% | ||
After 5 years, maximum | 1.47% | ||
Subsidiaries | Senior debt | |||
Long-term debt carrying values by contractual maturity | |||
Under 1 year, Minimum | 0.22% | ||
Under 1 year, Maximum | 7.50% | ||
1-5 years, Minimum | 1.65% | ||
1-5 years, Maximum | 7.50% | ||
After 5 years, Minimum | 1.00% | ||
After 5 years, maximum | 7.50% | ||
Subsidiaries | Subordinated debt | |||
Long-term debt carrying values by contractual maturity | |||
Under 1 year, Minimum | |||
Under 1 year, Maximum | |||
1-5 years, Minimum | 0.00% | ||
1-5 years, Maximum | 0.00% | ||
After 5 years, Minimum | 8.25% | ||
After 5 years, maximum | 8.25% | ||
Subsidiaries | Minimum | Federal Home Loan Banks (“FHLB”) advances | |||
Long-term debt carrying values by contractual maturity | |||
Interest rate | 1.18% | 0.41% | |
Subsidiaries | Minimum | Senior debt | |||
Long-term debt carrying values by contractual maturity | |||
Interest rate | 0.22% | 0.00% | |
Subsidiaries | Minimum | Subordinated debt | |||
Long-term debt carrying values by contractual maturity | |||
Interest rate | 8.25% | 6.00% | |
Subsidiaries | Maximum | Federal Home Loan Banks (“FHLB”) advances | |||
Long-term debt carrying values by contractual maturity | |||
Interest rate | 2.00% | 1.21% | |
Subsidiaries | Maximum | Senior debt | |||
Long-term debt carrying values by contractual maturity | |||
Interest rate | 7.50% | 7.50% | |
Subsidiaries | Maximum | Subordinated debt | |||
Long-term debt carrying values by contractual maturity | |||
Interest rate | 8.25% | 8.25% | |
Subsidiaries | Fixed rate | Federal Home Loan Banks (“FHLB”) advances | |||
Long-term debt carrying values by contractual maturity | |||
Under 1 year | $ 4 | ||
1-5 years | 34 | ||
After 5 years | 129 | ||
Long-term debt | 167 | $ 179 | |
Subsidiaries | Fixed rate | Senior debt | |||
Long-term debt carrying values by contractual maturity | |||
Under 1 year | 1,122 | ||
1-5 years | 3,970 | ||
After 5 years | 6,898 | ||
Long-term debt | 11,990 | 8,329 | |
Subsidiaries | Fixed rate | Subordinated debt | |||
Long-term debt carrying values by contractual maturity | |||
Under 1 year | 0 | ||
1-5 years | 0 | ||
After 5 years | 313 | ||
Long-term debt | 313 | 3,884 | |
Subsidiaries | Variable rate | Federal Home Loan Banks (“FHLB”) advances | |||
Long-term debt carrying values by contractual maturity | |||
Under 1 year | 12,450 | ||
1-5 years | 37,000 | ||
After 5 years | 11,000 | ||
Long-term debt | 60,450 | 79,340 | |
Subsidiaries | Variable rate | Senior debt | |||
Long-term debt carrying values by contractual maturity | |||
Under 1 year | 8,967 | ||
1-5 years | 13,287 | ||
After 5 years | 3,964 | ||
Long-term debt | 26,218 | 19,379 | |
Subsidiaries | Variable rate | Subordinated debt | |||
Long-term debt carrying values by contractual maturity | |||
Under 1 year | 0 | ||
1-5 years | 0 | ||
After 5 years | |||
Long-term debt | $ 0 | $ 0 |
Long-term Debt - Junior Subordi
Long-term Debt - Junior Subordinated Debt (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)entity | Dec. 31, 2017USD ($) | Dec. 18, 2017USD ($)entity | |
Debt Instrument [Line Items] | |||
Number of issuer trusts that had issued guaranteed capital debt securities | entity | 8 | ||
Number of liquidated issuer trusts that had issued guaranteed capital debt securities | entity | 7 | ||
Cancellation of trust preferred securities | $ 1,600 | ||
Cancellation of trust common securities | $ 56 | ||
JPMorgan Chase & Co. | |||
Debt Instrument [Line Items] | |||
Payments for repurchase of trust preferred securities | $ 1,600 | ||
JPMorgan Chase & Co. | Basel III | |||
Debt Instrument [Line Items] | |||
Debentures qualified as Tier 2 capital | $ 1,400 | $ 300 |
Preferred Stock (Details)
Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 01, 2017 | Oct. 20, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Shares of preferred stock authorized to issue, in one or more series (in shares) | 200,000,000 | 200,000,000 | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 | ||
Shares (in shares) | 2,606,750 | 2,606,750 | ||
Carrying value | $ 26,068 | $ 26,068 | ||
Liquidation value and redemption price per share (in dollars per share) | $ 10,000 | |||
Series O | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Shares (in shares) | 0 | 125,750 | ||
Carrying value | $ 0 | $ 1,258 | ||
Issue date | Aug. 27, 2012 | |||
Contractual rate in effect | 5.50% | |||
Redemption of outstanding non-cumulative preferred stock | $ 1,300 | |||
Series O | Minimum | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Earliest redemption date | Sep. 1, 2017 | |||
Series P | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Shares (in shares) | 90,000 | 90,000 | ||
Carrying value | $ 900 | $ 900 | ||
Issue date | Feb. 5, 2013 | |||
Contractual rate in effect | 5.45% | |||
Series P | Minimum | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Earliest redemption date | Mar. 1, 2018 | |||
Series T | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Shares (in shares) | 92,500 | 92,500 | ||
Carrying value | $ 925 | $ 925 | ||
Issue date | Jan. 30, 2014 | |||
Contractual rate in effect | 6.70% | |||
Series T | Minimum | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Earliest redemption date | Mar. 1, 2019 | |||
Series W | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Shares (in shares) | 88,000 | 88,000 | ||
Carrying value | $ 880 | $ 880 | ||
Issue date | Jun. 23, 2014 | |||
Contractual rate in effect | 6.30% | |||
Series W | Minimum | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Earliest redemption date | Sep. 1, 2019 | |||
Series Y | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Shares (in shares) | 143,000 | 143,000 | ||
Carrying value | $ 1,430 | $ 1,430 | ||
Issue date | Feb. 12, 2015 | |||
Contractual rate in effect | 6.125% | |||
Series Y | Minimum | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Earliest redemption date | Mar. 1, 2020 | |||
Series AA | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Shares (in shares) | 142,500 | 142,500 | ||
Carrying value | $ 1,425 | $ 1,425 | ||
Issue date | Jun. 4, 2015 | |||
Contractual rate in effect | 6.10% | |||
Series AA | Minimum | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Earliest redemption date | Sep. 1, 2020 | |||
Series BB | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Shares (in shares) | 115,000 | 115,000 | ||
Carrying value | $ 1,150 | $ 1,150 | ||
Issue date | Jul. 29, 2015 | |||
Contractual rate in effect | 6.15% | |||
Series BB | Minimum | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Earliest redemption date | Sep. 1, 2020 | |||
Series I | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Shares (in shares) | 600,000 | 600,000 | ||
Carrying value | $ 6,000 | $ 6,000 | ||
Issue date | Apr. 23, 2008 | |||
Contractual rate in effect | 7.90% | |||
Date at which dividend rate becomes floating | Apr. 30, 2018 | |||
Floating annual rate of three-month LIBOR plus | LIBOR + 3.47% | |||
Preferred stock dividend rate, variable, description of basis | three-month LIBOR | |||
Preferred stock dividend rate, variable, basis spread | 3.47% | |||
Series I | Minimum | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Earliest redemption date | Apr. 30, 2018 | |||
Series Q | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Shares (in shares) | 150,000 | 150,000 | ||
Carrying value | $ 1,500 | $ 1,500 | ||
Issue date | Apr. 23, 2013 | |||
Contractual rate in effect | 5.15% | |||
Date at which dividend rate becomes floating | May 1, 2023 | |||
Floating annual rate of three-month LIBOR plus | LIBOR + 3.25 | |||
Preferred stock dividend rate, variable, description of basis | three-month LIBOR | |||
Preferred stock dividend rate, variable, basis spread | 3.25% | |||
Series Q | Minimum | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Earliest redemption date | May 1, 2023 | |||
Series R | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Shares (in shares) | 150,000 | 150,000 | ||
Carrying value | $ 1,500 | $ 1,500 | ||
Issue date | Jul. 29, 2013 | |||
Contractual rate in effect | 6.00% | |||
Date at which dividend rate becomes floating | Aug. 1, 2023 | |||
Floating annual rate of three-month LIBOR plus | LIBOR + 3.30 | |||
Preferred stock dividend rate, variable, description of basis | three-month LIBOR | |||
Preferred stock dividend rate, variable, basis spread | 3.30% | |||
Series R | Minimum | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Earliest redemption date | Aug. 1, 2023 | |||
Series S | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Shares (in shares) | 200,000 | 200,000 | ||
Carrying value | $ 2,000 | $ 2,000 | ||
Issue date | Jan. 22, 2014 | |||
Contractual rate in effect | 6.75% | |||
Date at which dividend rate becomes floating | Feb. 1, 2024 | |||
Floating annual rate of three-month LIBOR plus | LIBOR + 3.78 | |||
Preferred stock dividend rate, variable, description of basis | three-month LIBOR | |||
Preferred stock dividend rate, variable, basis spread | 3.78% | |||
Series S | Minimum | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Earliest redemption date | Feb. 1, 2024 | |||
Series U | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Shares (in shares) | 100,000 | 100,000 | ||
Carrying value | $ 1,000 | $ 1,000 | ||
Issue date | Mar. 10, 2014 | |||
Contractual rate in effect | 6.125% | |||
Date at which dividend rate becomes floating | Apr. 30, 2024 | |||
Floating annual rate of three-month LIBOR plus | LIBOR + 3.33 | |||
Preferred stock dividend rate, variable, description of basis | three-month LIBOR | |||
Preferred stock dividend rate, variable, basis spread | 3.33% | |||
Series U | Minimum | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Earliest redemption date | Apr. 30, 2024 | |||
Series V | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Shares (in shares) | 250,000 | 250,000 | ||
Carrying value | $ 2,500 | $ 2,500 | ||
Issue date | Jun. 9, 2014 | |||
Contractual rate in effect | 5.00% | |||
Date at which dividend rate becomes floating | Jul. 1, 2019 | |||
Floating annual rate of three-month LIBOR plus | LIBOR + 3.32 | |||
Preferred stock dividend rate, variable, description of basis | three-month LIBOR | |||
Preferred stock dividend rate, variable, basis spread | 3.32% | |||
Series V | Minimum | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Earliest redemption date | Jul. 1, 2019 | |||
Series X | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Shares (in shares) | 160,000 | 160,000 | ||
Carrying value | $ 1,600 | $ 1,600 | ||
Issue date | Sep. 23, 2014 | |||
Contractual rate in effect | 6.10% | |||
Date at which dividend rate becomes floating | Oct. 1, 2024 | |||
Floating annual rate of three-month LIBOR plus | LIBOR + 3.33 | |||
Preferred stock dividend rate, variable, description of basis | three-month LIBOR | |||
Preferred stock dividend rate, variable, basis spread | 3.33% | |||
Series X | Minimum | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Earliest redemption date | Oct. 1, 2024 | |||
Series Z | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Shares (in shares) | 200,000 | 200,000 | ||
Carrying value | $ 2,000 | $ 2,000 | ||
Issue date | Apr. 21, 2015 | |||
Contractual rate in effect | 5.30% | |||
Date at which dividend rate becomes floating | May 1, 2020 | |||
Floating annual rate of three-month LIBOR plus | LIBOR + 3.80 | |||
Preferred stock dividend rate, variable, description of basis | three-month LIBOR | |||
Preferred stock dividend rate, variable, basis spread | 3.80% | |||
Series Z | Minimum | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Earliest redemption date | May 1, 2020 | |||
Series CC | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Shares (in shares) | 125,750 | 0 | ||
Carrying value | $ 1,258 | $ 0 | ||
Issue date | Oct. 20, 2017 | |||
Contractual rate in effect | 4.625% | 4.625% | ||
Date at which dividend rate becomes floating | Nov. 1, 2022 | |||
Floating annual rate of three-month LIBOR plus | LIBOR + 2.58 | |||
Preferred stock dividend rate, variable, description of basis | three-month LIBOR | |||
Preferred stock dividend rate, variable, basis spread | 2.58% | |||
Preferred stock, shares issued (in shares) | 1,300,000,000 | |||
Series CC | Minimum | ||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||
Earliest redemption date | Nov. 1, 2022 |
Common Stock - Narrative (Detai
Common Stock - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2014 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 28, 2017 | |
Class of Stock [Line Items] | |||||
Common stock, shares authorized (in shares) | 9,000,000,000 | 9,000,000,000 | |||
Common stock, par value (in dollars per share) | $ 1 | $ 1 | |||
Original warrant exercise price (in dollars per share) | 42.42 | ||||
Common stock quarterly dividend (in dollars per share) | 2.12 | $ 1.88 | $ 1.72 | ||
Warrant exercisable price (in dollars per share) | $ 41.834 | ||||
Warrant share number (in shares) | 1.01 | ||||
Stock repurchase program, shares authorized (in shares) | $ 19,400,000,000 | ||||
Remaining authorized repurchase amount | $ 9,800,000,000 | ||||
Warrant | JPMorgan Chase & Co. | |||||
Class of Stock [Line Items] | |||||
Warrants outstanding (in shares) | 15,000,000 | 24,900,000 | 47,400,000 | ||
Common stock | |||||
Class of Stock [Line Items] | |||||
Common stock quarterly dividend (in dollars per share) | $ 0.38 | ||||
Common stock capital shares reserved for future issuance (shares) | 120,000,000 |
Common Stock - Shares Issued (D
Common Stock - Shares Issued (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Increase (Decrease) in Common Stock Shares | |||
Total issued - balance at January 1 (in shares) | 4,104,933,895 | 4,104,900,000 | 4,104,900,000 |
Outstanding (in shares) | 3,425,300,000 | 3,561,200,000 | 3,663,500,000 |
Increase (Decrease) in Treasury Stock Shares | |||
Treasury - balance at January 1 (in shares) | (543,744,003) | ||
Total treasury - balance at December 31 (in shares) | (679,635,064) | (543,744,003) | |
Treasury stock | |||
Increase (Decrease) in Treasury Stock Shares | |||
Treasury - balance at January 1 (in shares) | (543,700,000) | (441,400,000) | (390,100,000) |
Repurchase (in shares) | (166,600,000) | (140,400,000) | (89,800,000) |
Reissuance: Employee benefit and compensation plans (in shares) | 30,700,000 | 38,100,000 | 38,500,000 |
Reissuance: Warrant exercise (in shares) | 5,400,000 | 11,100,000 | 4,700,000 |
Reissuance: Employee stock purchase plans (in shares) | 800,000 | 1,000,000 | 1,000,000 |
Total treasury - balance at December 31 (in shares) | (679,600,000) | (543,700,000) | (441,400,000) |
Treasury stock | Employee benefits and compensation plans | |||
Increase (Decrease) in Treasury Stock Shares | |||
Reissuance: Employee benefit and compensation plans (in shares) | 24,500,000 | 26,000,000 | 32,800,000 |
Common Stock - Repurchases (Det
Common Stock - Repurchases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Warrant | |||
Class of Stock [Line Items] | |||
Total warrants repurchased (in shares) | 0 | 0 | 0 |
Common stock | |||
Class of Stock [Line Items] | |||
Total number of shares of common stock repurchased (in shares) | 166,600,000 | 140,400,000 | 89,800,000 |
Aggregate purchase price of common stock repurchases | $ 15,410 | $ 9,082 | $ 5,616 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Basic earnings per share | ||||
Net income | $ 24,441 | $ 24,733 | $ 24,442 | |
Less: Preferred stock dividends | 1,663 | 1,647 | 1,515 | |
Net income applicable to common equity | 22,778 | 23,086 | 22,927 | |
Less: Dividends and undistributed earnings allocated to participating securities | 211 | 252 | 276 | |
Net income applicable to common stockholders | [1] | $ 22,567 | $ 22,834 | $ 22,651 |
Total weighted-average basic shares outstanding (in shares) | [1] | 3,551.6 | 3,658.8 | 3,741.2 |
Net income per share (in dollars per share) | $ 6.35 | $ 6.24 | $ 6.05 | |
Diluted earnings per share | ||||
Net income applicable to common stockholders | [1] | $ 22,567 | $ 22,834 | $ 22,651 |
Total weighted-average basic shares outstanding (in shares) | [1] | 3,551.6 | 3,658.8 | 3,741.2 |
Add: Employee stock options, SARs, warrants, and PSUs (in shares) | 25.2 | 31.2 | 32.4 | |
Total weighted-average diluted shares outstanding (in shares) | [1] | 3,576.8 | 3,690 | 3,773.6 |
Net income per share (in dollars per share) | $ 6.31 | $ 6.19 | $ 6 | |
[1] | The prior period amounts have been revised to conform with the current period presentation. The revision had no impact on the Firm’s reported earnings per share. |
Accumulated Other Comprehens173
Accumulated Other Comprehensive Income/(Loss) - Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | $ 254,190 | $ 247,573 | ||
Net change | 1,056 | (1,521) | $ (1,997) | |
Cumulative effect of change in accounting principle | 154 | |||
Ending balance | 255,693 | 254,190 | 247,573 | |
Unrealized gains/(losses) on investment securities | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | 1,524 | 2,629 | 4,773 | |
Net change | 640 | (1,105) | (2,144) | |
Cumulative effect of change in accounting principle | 0 | |||
Ending balance | 2,164 | 1,524 | 2,629 | |
Translation adjustments, net of hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (164) | (162) | (147) | |
Net change | (306) | (2) | (15) | |
Cumulative effect of change in accounting principle | 0 | |||
Ending balance | (470) | (164) | (162) | |
Cash flow hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (100) | (44) | (95) | |
Net change | 176 | (56) | 51 | |
Cumulative effect of change in accounting principle | 0 | |||
Ending balance | 76 | (100) | (44) | |
Defined benefit pension and OPEB plans | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (2,259) | (2,231) | (2,342) | |
Net change | 738 | (28) | 111 | |
Cumulative effect of change in accounting principle | 0 | |||
Ending balance | (1,521) | (2,259) | (2,231) | |
DVA on fair value option elected liabilities | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (176) | 0 | 0 | |
Net change | (192) | (330) | 0 | |
Cumulative effect of change in accounting principle | 154 | |||
Ending balance | (368) | (176) | 0 | |
Accumulated other comprehensive income/(loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (1,175) | 192 | 2,189 | |
Net change | 1,056 | (1,521) | (1,997) | |
Cumulative effect of change in accounting principle | 0 | 154 | $ 0 | |
Ending balance | $ (119) | $ (1,175) | $ 192 |
Accumulated Other Comprehens174
Accumulated Other Comprehensive Income/(Loss) - Components of Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Unrealized gains/(losses) on AFS securities: | |||
Net change, Pre-tax | $ 1,971 | $ (2,451) | $ (3,117) |
Net change, Tax effect | (915) | 930 | 1,120 |
Total other comprehensive income/(loss), after–tax | 1,056 | (1,521) | (1,997) |
Net losses reclassified from AOCI to other income | 150 | ||
Unrealized gains/(losses) on investment securities | |||
Unrealized gains/(losses) on AFS securities: | |||
Net unrealized gains/(losses) arising during the period/Translation, Pre-tax | 944 | (1,628) | (3,315) |
Net unrealized gains/(losses) arising during the period/Translation, Tax effect | (346) | 611 | 1,297 |
Net unrealized gains/(losses) arising during the period/Translation, After-tax | 598 | (1,017) | (2,018) |
Reclassification, Pre-tax | 66 | (141) | (202) |
Reclassification, Tax effect | (24) | 53 | 76 |
Reclassification, After-tax | 42 | (88) | (126) |
Net change, Pre-tax | 1,010 | (1,769) | (3,517) |
Net change, Tax effect | (370) | 664 | 1,373 |
Total other comprehensive income/(loss), after–tax | 640 | (1,105) | (2,144) |
Translation adjustments | |||
Unrealized gains/(losses) on AFS securities: | |||
Net unrealized gains/(losses) arising during the period/Translation, Pre-tax | 1,313 | (261) | (1,876) |
Net unrealized gains/(losses) arising during the period/Translation, Tax effect | (801) | 99 | 682 |
Net unrealized gains/(losses) arising during the period/Translation, After-tax | 512 | (162) | (1,194) |
Reclassification, Pre-tax | (1,294) | 262 | 1,885 |
Reclassification, Tax effect | 476 | (102) | (706) |
Reclassification, After-tax | (818) | 160 | 1,179 |
Net change, Pre-tax | 19 | 1 | 9 |
Net change, Tax effect | (325) | (3) | (24) |
Total other comprehensive income/(loss), after–tax | (306) | (2) | (15) |
Cash flow hedges | |||
Unrealized gains/(losses) on AFS securities: | |||
Net unrealized gains/(losses) arising during the period/Translation, Pre-tax | 147 | (450) | (97) |
Net unrealized gains/(losses) arising during the period/Translation, Tax effect | (55) | 168 | 35 |
Net unrealized gains/(losses) arising during the period/Translation, After-tax | 92 | (282) | (62) |
Reclassification, Pre-tax | 134 | 360 | 180 |
Reclassification, Tax effect | (50) | (134) | (67) |
Reclassification, After-tax | 84 | 226 | 113 |
Net change, Pre-tax | 281 | (90) | 83 |
Net change, Tax effect | (105) | 34 | (32) |
Total other comprehensive income/(loss), after–tax | 176 | (56) | 51 |
Defined benefit pension and OPEB plans | |||
Unrealized gains/(losses) on AFS securities: | |||
Net change, Pre-tax | 964 | (64) | 308 |
Net change, Tax effect | (226) | 36 | (197) |
Total other comprehensive income/(loss), after–tax | 738 | (28) | 111 |
Amortization of net loss | |||
Unrealized gains/(losses) on AFS securities: | |||
Net unrealized gains/(losses) arising during the period/Translation, Pre-tax | 802 | (366) | 29 |
Net unrealized gains/(losses) arising during the period/Translation, Tax effect | (160) | 145 | (47) |
Net unrealized gains/(losses) arising during the period/Translation, After-tax | 642 | (221) | (18) |
Reclassification, Pre-tax | 250 | 257 | 282 |
Reclassification, Tax effect | (90) | (97) | (106) |
Reclassification, After-tax | 160 | 160 | 176 |
Prior service costs/(credits) | |||
Unrealized gains/(losses) on AFS securities: | |||
Reclassification, Pre-tax | (36) | (36) | (36) |
Reclassification, Tax effect | 13 | 14 | 14 |
Reclassification, After-tax | (23) | (22) | (22) |
Settlement loss/(gain) | |||
Unrealized gains/(losses) on AFS securities: | |||
Reclassification, Pre-tax | 2 | 4 | 0 |
Reclassification, Tax effect | (1) | (1) | 0 |
Reclassification, After-tax | 1 | 3 | 0 |
Foreign exchange and other | |||
Unrealized gains/(losses) on AFS securities: | |||
Reclassification, Pre-tax | (54) | 77 | 33 |
Reclassification, Tax effect | 12 | (25) | (58) |
Reclassification, After-tax | (42) | 52 | (25) |
DVA on fair value option elected liabilities, net change | |||
Unrealized gains/(losses) on AFS securities: | |||
Net change, Pre-tax | (303) | (529) | 0 |
Net change, Tax effect | 111 | 199 | 0 |
Total other comprehensive income/(loss), after–tax | $ (192) | $ (330) | $ 0 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Income Tax Rate (Details) - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of the applicable statutory U.S. income tax rate to the effective tax rate | |||
Statutory U.S. federal tax rate | 35.00% | 35.00% | 35.00% |
Increase/(decrease) in tax rate resulting from: | |||
U.S. state and local income taxes, net of U.S. federal income tax benefit | 2.20% | 2.40% | 1.50% |
Tax-exempt income | (3.30%) | (3.10%) | (3.30%) |
Non-U.S. subsidiary earnings | (3.10%) | (1.70%) | (3.90%) |
Business tax credits | (4.20%) | (3.90%) | (3.70%) |
Nondeductible legal expense | 0.00% | 0.30% | 0.80% |
Tax audit resolutions | 0.00% | 0.00% | (5.70%) |
Impact of the TCJA | 5.40% | 0.00% | 0.00% |
Other, net | (0.10%) | (0.60%) | (0.30%) |
Effective tax rate | 31.90% | 28.40% | 20.40% |
Reconciliation of effective income tax rate, supplemental information [Abstract] | |||
Income tax expense, estimated impact of TCJA enactment | $ 1.9 | ||
Estimated income tax expense from transition tax on accumulated earnings of controlled foreign corporations | 3.7 | ||
Estimated income tax benefit as a result of TCJA remeasurement | $ 2.1 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense/(Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current income tax expense/(benefit) | |||
U.S. federal | $ 5,718 | $ 2,488 | $ 3,160 |
Non-U.S. | 2,400 | 1,760 | 1,220 |
U.S. state and local | 1,029 | 904 | 547 |
Total current income tax expense/(benefit) | 9,147 | 5,152 | 4,927 |
Deferred income tax expense/(benefit) | |||
U.S. federal | 2,174 | 4,364 | 1,213 |
Non-U.S. | (144) | (73) | (95) |
U.S. state and local | 282 | 360 | 215 |
Total deferred income tax expense/(benefit) | 2,312 | 4,651 | 1,333 |
Total income tax expense | 11,459 | 9,803 | 6,260 |
Components of income tax expense/(benefit), supplemental information | |||
Tax benefits recorded as a result of tax audit resolutions | 252 | 55 | 2,400 |
Increase (decrease) to income tax allocated directly to equity | $ (915) | $ 925 | $ 1,500 |
Income Taxes - Results from Non
Income Taxes - Results from Non-U.S. Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 27,103 | $ 26,651 | $ 23,191 |
Non-U.S. | 8,797 | 7,885 | 7,511 |
Income before income tax expense | $ 35,900 | $ 34,536 | $ 30,702 |
Income Taxes - Affordable Housi
Income Taxes - Affordable Housing Tax Credits (Details) - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Tax credit and other tax benefits | $ 1.7 | $ 1.7 | $ 1.6 |
Amount of amortization reported in income tax expense | 1.7 | 1.2 | $ 1.1 |
Carrying value of investments, reported in other assets | 7.8 | 8.8 | |
Amount of commitments, reported in account payable and other liabilities | $ 2.4 | $ 2.8 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets | ||
Allowance for loan losses | $ 3,395 | $ 5,534 |
Employee benefits | 688 | 2,911 |
Accrued expenses and other | 3,528 | 6,831 |
Non-U.S. operations | 327 | 5,368 |
Tax attribute carryforwards | 219 | 2,155 |
Gross deferred tax assets | 8,157 | 22,799 |
Valuation allowance | (46) | (785) |
Deferred tax assets, net of valuation allowance | 8,111 | 22,014 |
Deferred tax liabilities | ||
Depreciation and amortization | 2,299 | 3,294 |
Mortgage servicing rights, net of hedges | 2,757 | 4,807 |
Leasing transactions | 3,483 | 4,053 |
Non-U.S. operations | 200 | 4,572 |
Other, net | 3,502 | 5,493 |
Gross deferred tax liabilities | 12,241 | 22,219 |
Net deferred tax (liabilities)/assets | (4,130) | $ (205) |
U.S. federal | ||
Deferred tax liabilities | ||
NOL carryforwards | 769 | |
Non-U.S. | ||
Deferred tax liabilities | ||
NOL carryforwards | 142 | |
State and local | ||
Deferred tax liabilities | ||
NOL carryforwards | $ 660 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits that would impact effective tax rate | $ 3,500 | $ 2,600 | $ 2,100 |
Amount of potential increase or decrease in gross balance of unrecognized tax benefits | 1,300 | ||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | |||
Balance at January 1, | 3,450 | 3,497 | 4,911 |
Increases based on tax positions related to the current period | 1,355 | 262 | 408 |
Increases based on tax positions related to prior periods | 626 | 583 | 1,028 |
Decreases based on tax positions related to prior periods | (350) | (785) | (2,646) |
Decreases related to cash settlements with taxing authorities | (334) | (56) | (204) |
Decreases related to a lapse of applicable statute of limitations | 0 | (51) | 0 |
Balance at December 31, | 4,747 | 3,450 | 3,497 |
Income tax expense, penalties and interest expense | |||
Penalties and interest expense/(benefit) | 102 | 86 | $ (156) |
Penalties and interest accrued | $ 639 | $ 687 |
Restrictions on Cash and Int181
Restrictions on Cash and Intercompany Funds Transfers (Details) - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 01, 2018 | Dec. 31, 2016 | |
Reserve Balances Deposited with Federal Reserve Banks [Abstract] | |||
Average amount of reserve balances deposited by the Firm's bank subsidiaries with various Federal Reserve Banks | $ 24.9 | $ 19.3 | |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |||
Percentage of total capital loans limited to | 10.00% | ||
Percentage of total capital (limited to) for aggregate covered transactions | 20.00% | ||
Cash and Securities Segregated under Federal and Other Regulations Disclosures [Abstract] | |||
Amount of cash that was segregated in special bank accounts for the benefit of securities and futures brokerage customers | $ 16.8 | 13.4 | |
Receivables within other assets | 18 | 18.2 | |
Amount of securities at fair value that were segregated in special bank accounts for the benefit of securities and futures brokerage customers | 3.5 | 19.3 | |
Restricted cash and cash equivalents | $ 3.3 | $ 3.6 | |
Bank and Bank Holding Company Subsidiaries | Subsequent Event | |||
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |||
Aggregate dividends payable | $ 17.4 |
Regulatory Capital (Details)
Regulatory Capital (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Basel III Standardized Transitional | JPMorgan Chase Bank, N.A. | ||
Regulatory capital | ||
CET1 capital | $ 184,375 | $ 179,319 |
Tier 1 capital | 184,375 | 179,341 |
Total capital | 195,839 | 191,662 |
Assets | ||
Risk-weighted | 1,335,809 | 1,311,240 |
Adjusted average | $ 2,116,031 | $ 2,088,851 |
Capital ratios | ||
CET1 | 13.80% | 13.70% |
Tier 1 | 13.80% | 13.70% |
Total | 14.70% | 14.60% |
Tier 1 leverage | 8.70% | 8.60% |
Basel III Standardized Transitional | Chase Bank USA, N.A. | ||
Regulatory capital | ||
CET1 capital | $ 21,600 | $ 16,784 |
Tier 1 capital | 21,600 | 16,784 |
Total capital | 27,691 | 22,862 |
Assets | ||
Risk-weighted | 113,108 | 112,297 |
Adjusted average | $ 126,517 | $ 120,304 |
Capital ratios | ||
CET1 | 19.10% | 14.90% |
Tier 1 | 19.10% | 14.90% |
Total | 24.50% | 20.40% |
Tier 1 leverage | 17.10% | 14.00% |
Basel III Advanced Transitional | JPMorgan Chase Bank, N.A. | ||
Regulatory capital | ||
CET1 capital | $ 184,375 | $ 179,319 |
Tier 1 capital | 184,375 | 179,341 |
Total capital | 189,419 | 184,637 |
Assets | ||
Risk-weighted | 1,226,534 | 1,262,613 |
Adjusted average | $ 2,116,031 | $ 2,088,851 |
Capital ratios | ||
CET1 | 15.00% | 14.20% |
Tier 1 | 15.00% | 14.20% |
Total | 15.40% | 14.60% |
Tier 1 leverage | 8.70% | 8.60% |
Basel III Advanced Transitional | Chase Bank USA, N.A. | ||
Regulatory capital | ||
CET1 capital | $ 21,600 | $ 16,784 |
Tier 1 capital | 21,600 | 16,784 |
Total capital | 26,250 | 21,434 |
Assets | ||
Risk-weighted | 190,523 | 186,378 |
Adjusted average | $ 126,517 | $ 120,304 |
Capital ratios | ||
CET1 | 11.30% | 9.00% |
Tier 1 | 11.30% | 9.00% |
Total | 13.80% | 11.50% |
Tier 1 leverage | 17.10% | 14.00% |
Basel III | BHC | ||
Minimum capital ratios | ||
CET1 | 7.50% | 6.25% |
Tier 1 | 9.00% | 7.75% |
Total | 11.00% | 9.75% |
Tier 1 leverage | 4.00% | 4.00% |
Well-capitalized ratios | ||
CET1 | 0.00% | |
Tier 1 | 6.00% | |
Total | 10.00% | |
Tier 1 leverage | 0.00% | |
Adjustments to Capital for Deferred Tax Liabilities [Abstract] | ||
Capital conservation buffer phase-in amount | 1.25% | |
Capital conservation buffer | 2.50% | |
GSIB surcharge phase-in amount | 1.75% | |
GSIB surcharge | 3.50% | |
Basel III | IDI | ||
Minimum capital ratios | ||
CET1 | 5.75% | 5.125% |
Tier 1 | 7.25% | 6.625% |
Total | 9.25% | 8.625% |
Tier 1 leverage | 4.00% | 4.00% |
Well-capitalized ratios | ||
CET1 | 6.50% | |
Tier 1 | 8.00% | |
Total | 10.00% | |
Tier 1 leverage | 5.00% | |
Adjustments to Capital for Deferred Tax Liabilities [Abstract] | ||
Capital conservation buffer | 2.50% | |
JPMorgan Chase & Co. | Basel III Standardized Transitional | ||
Regulatory capital | ||
CET1 capital | $ 183,300 | $ 182,967 |
Tier 1 capital | 208,644 | 208,112 |
Total capital | 238,395 | 239,553 |
Assets | ||
Risk-weighted | 1,499,506 | 1,483,132 |
Adjusted average | $ 2,514,270 | $ 2,484,631 |
Capital ratios | ||
CET1 | 12.20% | 12.30% |
Tier 1 | 13.90% | 14.00% |
Total | 15.90% | 16.20% |
Tier 1 leverage | 8.30% | 8.40% |
JPMorgan Chase & Co. | Basel III Advanced Transitional | ||
Regulatory capital | ||
CET1 capital | $ 183,300 | $ 182,967 |
Tier 1 capital | 208,644 | 208,112 |
Total capital | 227,933 | 228,592 |
Assets | ||
Risk-weighted | 1,435,825 | 1,476,915 |
Adjusted average | $ 2,514,270 | $ 2,484,631 |
Capital ratios | ||
CET1 | 12.80% | 12.40% |
Tier 1 | 14.50% | 14.10% |
Total | 15.90% | 15.50% |
Tier 1 leverage | 8.30% | 8.40% |
Off-balance Sheet Lending-re183
Off-balance Sheet Lending-related Financial Instruments, Guarantees, and Other Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Total lending-related commitments | $ 991,482 | $ 975,152 | $ 938,782 |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 680,641 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 132,094 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 148,174 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 30,573 | ||
Off-balance sheet lending-related financial commitments, Carrying value | 1,512 | 1,519 | |
Wholesale | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Total lending-related commitments | 370,098 | 368,014 | $ 366,399 |
Warranty Reserves | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Loan sale and securitization-related indemnifications, Mortgage repurchase liability, Carrying value | 111 | 133 | |
Total consumer | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Total lending-related commitments | 621,384 | 607,138 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 600,368 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 3,168 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 1,783 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 16,065 | ||
Off-balance sheet lending-related financial commitments, Carrying value | 33 | 26 | |
Total consumer, excluding credit card | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Total lending-related commitments | 48,553 | 53,247 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 27,537 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 3,168 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 1,783 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 16,065 | ||
Off-balance sheet lending-related financial commitments, Carrying value | 33 | 26 | |
Home equity | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Total lending-related commitments | 20,360 | 21,714 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 2,165 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 1,370 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 1,379 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 15,446 | ||
Off-balance sheet lending-related financial commitments, Carrying value | 12 | 12 | |
Residential mortgage | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Total lending-related commitments | 5,736 | 10,332 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 5,723 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 0 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 0 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 13 | ||
Off-balance sheet lending-related financial commitments, Carrying value | 0 | 0 | |
Auto | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Total lending-related commitments | 9,255 | 8,468 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 8,007 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 872 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 292 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 84 | ||
Off-balance sheet lending-related financial commitments, Carrying value | 2 | 2 | |
Consumer & Business Banking | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Total lending-related commitments | 13,202 | 12,733 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 11,642 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 926 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 112 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 522 | ||
Off-balance sheet lending-related financial commitments, Carrying value | 19 | 12 | |
Credit card | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Total lending-related commitments | 572,831 | 553,891 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 572,831 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 0 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 0 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 0 | ||
Off-balance sheet lending-related financial commitments, Carrying value | 0 | 0 | |
Total wholesale | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Total lending-related commitments | 370,098 | 368,014 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 80,273 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 128,926 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 146,391 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 14,508 | ||
Off-balance sheet lending-related financial commitments, Carrying value | $ 1,479 | $ 1,493 | |
Total wholesale | Wholesale | U.S. | |||
Off balance sheet lending related financial instruments guarantees and other commitments - supplemental information [Abstract] | |||
Off balance sheet lending related financial commitments | 77.00% | 79.00% | |
Other unfunded commitments to extend credit | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Total lending-related commitments | $ 331,160 | $ 328,497 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 61,536 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 118,907 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 138,289 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 12,428 | ||
Off-balance sheet lending-related financial commitments, Carrying value | 840 | 905 | |
Off balance sheet lending related financial instruments guarantees and other commitments - supplemental information [Abstract] | |||
Risk participations for other unfunded commitments to extend credit | 334 | 328 | |
Standby letters of credit and other financial guarantees | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Total lending-related commitments | 35,226 | 35,947 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 15,278 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 9,905 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 7,963 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 2,080 | ||
Off-balance sheet lending-related financial commitments, Carrying value | 636 | 586 | |
Other guarantees and commitments, Carrying value | 444 | 441 | |
Loan sale and securitization-related indemnifications, Mortgage repurchase liability, Carrying value | 192 | 145 | |
Off balance sheet lending related financial instruments guarantees and other commitments - supplemental information [Abstract] | |||
Risk participations for standby letters of credit and other financial guarantees | 10,400 | 11,100 | |
Other letters of credit | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Total lending-related commitments | 3,712 | 3,570 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 3,459 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 114 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 139 | ||
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 0 | ||
Off-balance sheet lending-related financial commitments, Carrying value | 3 | 2 | |
Other guarantees and commitments, Carrying value | 0 | 0 | |
Loan sale and securitization-related indemnifications, Mortgage repurchase liability, Carrying value | 3 | 2 | |
Off balance sheet lending related financial instruments guarantees and other commitments - supplemental information [Abstract] | |||
Risk participations for other letters of credit | 405 | 265 | |
Securities lending indemnification agreements and guarantees | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Other guarantees and commitments, Contractual amount | 179,490 | 137,209 | |
Other guarantees and commitments, Contractual amount, Expiring in 1 year or less | 179,490 | ||
Other guarantees and commitments, Contractual amount, Expiring after 1 year through 3 years | 0 | ||
Other guarantees and commitments, Contractual amount, Expiring after 3 years through 5 years | 0 | ||
Other guarantees and commitments, Contractual amount, Expiring after 5 years | 0 | ||
Other guarantees and commitments, Carrying value | 0 | 0 | |
Off balance sheet lending related financial instruments guarantees and other commitments - supplemental information [Abstract] | |||
Indemnification agreement securities lending guarantees collateral held in support of | 188,700 | 143,200 | |
Derivatives qualifying as guarantees | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Other guarantees and commitments, Contractual amount | 57,174 | 51,966 | |
Other guarantees and commitments, Contractual amount, Expiring in 1 year or less | 4,529 | ||
Other guarantees and commitments, Contractual amount, Expiring after 1 year through 3 years | 101 | ||
Other guarantees and commitments, Contractual amount, Expiring after 3 years through 5 years | 12,479 | ||
Other guarantees and commitments, Contractual amount, Expiring after 5 years | 40,065 | ||
Other guarantees and commitments, Carrying value | 304 | 80 | |
Unsettled reverse repurchase and securities borrowing agreements | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Other guarantees and commitments, Contractual amount | 76,859 | 50,722 | |
Other guarantees and commitments, Contractual amount, Expiring in 1 year or less | 76,859 | ||
Other guarantees and commitments, Contractual amount, Expiring after 1 year through 3 years | 0 | ||
Other guarantees and commitments, Contractual amount, Expiring after 3 years through 5 years | 0 | ||
Other guarantees and commitments, Contractual amount, Expiring after 5 years | 0 | ||
Other guarantees and commitments, Carrying value | 0 | 0 | |
Unsettled repurchase and securities lending agreements | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Other guarantees and commitments, Contractual amount | 44,205 | 26,948 | |
Other guarantees and commitments, Contractual amount, Expiring in 1 year or less | 44,205 | ||
Other guarantees and commitments, Carrying value | 0 | 0 | |
Loans sold with recourse | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Loan sale and securitization-related indemnifications, Loans sold with recourse, Contractual amount | 1,169 | 2,730 | |
Loan sale and securitization-related indemnifications, Loans sold with recourse, Carrying value | 38 | 64 | |
Other guarantees and commitments | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Other guarantees and commitments, Contractual amount | 11,867 | 5,715 | |
Other guarantees and commitments, Contractual amount, Expiring in 1 year or less | 7,668 | ||
Other guarantees and commitments, Contractual amount, Expiring after 1 year through 3 years | 1,084 | ||
Other guarantees and commitments, Contractual amount, Expiring after 3 years through 5 years | 434 | ||
Other guarantees and commitments, Contractual amount, Expiring after 5 years | 2,681 | ||
Other guarantees and commitments, Carrying value | $ (76) | $ (118) | |
Days Past Due, 60 or More | Credit card | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Line of credit close criteria, period past due | 60 days |
Off-balance Sheet Lending-re184
Off-balance Sheet Lending-related Financial Instruments, Guarantees, and Other Commitments - Other Unfunded Commitments and Standby Letters of Credit (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Standby and Other Letters of Credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Standby and other letters of credit, carrying value | $ 639 | $ 588 |
Carrying values for allowance of lending-related commitments | 195 | 147 |
Guarantee liability and corresponding asset | 444 | 441 |
Maximum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Secured clearance advance facility outstanding commitment | $ 1,500 | $ 2,400 |
Off-balance Sheet Lending-re185
Off-balance Sheet Lending-related Financial Instruments, Guarantees, and Other Commitments - Standby Letters of Credit, Other Financial Guarantees and Other Letters of Credit (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Standby letters of credit and other financial guarantees and other letters of credit [Abstract] | |||
Total lending-related commitments | $ 991,482 | $ 975,152 | $ 938,782 |
Total carrying value | 1,512 | 1,519 | |
Standby letters of credit and other financial guarantees | |||
Standby letters of credit and other financial guarantees and other letters of credit [Abstract] | |||
Investment-grade | 28,492 | 28,245 | |
Noninvestment-grade | 6,734 | 7,702 | |
Total lending-related commitments | 35,226 | 35,947 | |
Allowance for lending-related commitments | 192 | 145 | |
Guarantee liability | 444 | 441 | |
Total carrying value | 636 | 586 | |
Commitments with collateral | 17,421 | 19,346 | |
Other letters of credit | |||
Standby letters of credit and other financial guarantees and other letters of credit [Abstract] | |||
Investment-grade | 2,646 | 2,781 | |
Noninvestment-grade | 1,066 | 789 | |
Total lending-related commitments | 3,712 | 3,570 | |
Allowance for lending-related commitments | 3 | 2 | |
Guarantee liability | 0 | 0 | |
Total carrying value | 3 | 2 | |
Commitments with collateral | $ 878 | $ 940 |
Off-balance Sheet Lending-re186
Off-balance Sheet Lending-related Financial Instruments, Guarantees, and Other Commitments - Securities Lending Indemnifications (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Standby letters of credit and other financial guarantees | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Percentage exceeding value of securities for obtaining cash or other highly liquid collateral | 100.00% |
Off-balance Sheet Lending-re187
Off-balance Sheet Lending-related Financial Instruments, Guarantees, and Other Commitments - Derivatives Qualifying as Guarantees (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Notional amounts | ||
Stable value contracts with contractually limited exposure | $ 48,386,000 | $ 47,537,000 |
Derivatives qualifying as guarantees | ||
Notional amounts | ||
Derivative guarantees | 57,174 | 51,966 |
Stable value contracts with contractually limited exposure | 29,104 | 28,665 |
Maximum exposure of stable value contracts with contractually limited exposure | 3,053 | 3,012 |
Fair value | ||
Derivative payables | 304 | 96 |
Derivative receivables | $ 0 | $ 16 |
Maximum | Put option | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Term of written put option | 5 years |
Off-balance Sheet Lending-re188
Off-balance Sheet Lending-related Financial Instruments, Guarantees, and Other Commitments - Loan Sales- and Securitization-Related Indemnifications (Details) - Loans sold with recourse - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Loans sold with recourse | ||
Unpaid principal balance of loans sold with recourse | $ 1,169 | $ 2,730 |
Carrying value of related liability for recourse obligations | $ 38 | $ 64 |
Off-balance Sheet Lending-re189
Off-balance Sheet Lending-related Financial Instruments, Guarantees, and Other Commitments - Other Off-Balance Sheet Arrangements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other off-balance sheet arrangements - supplemental information [Abstract] | |||
Aggregate losses incurred | $ 6,256 | $ 5,756 | $ 9,593 |
JPMorgan Chase Financial Company LLC | |||
Other off-balance sheet arrangements - supplemental information [Abstract] | |||
Direct-owned finance subsidiary ownership | 100.00% | ||
Merchant Services | |||
Other off-balance sheet arrangements - supplemental information [Abstract] | |||
Aggregate losses incurred | $ 28 | 85 | 12 |
Aggregate volume processed by electronic payment services business | 1,191,700 | 1,063,400 | $ 949,300 |
Carrying value of valuation allowance | 7 | 45 | |
Cash collateral held | $ 141 | $ 125 |
Commitments, Pledged Assets 190
Commitments, Pledged Assets and Collateral - Lease Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Future minimum rental payments under operating leases | |||
2,018 | $ 1,526 | ||
2,019 | 1,450 | ||
2,020 | 1,300 | ||
2,021 | 1,029 | ||
2,022 | 815 | ||
After 2,022 | 3,757 | ||
Total minimum payments required | 9,877 | ||
Less: Sublease rentals under noncancelable subleases | (1,034) | ||
Net minimum payment required | 8,843 | ||
Total rental expense | |||
Gross rental expense | 1,853 | $ 1,860 | $ 2,015 |
Sublease rental income | (251) | (241) | (411) |
Net rental expense | $ 1,602 | $ 1,619 | $ 1,604 |
Commitments, Pledged Assets 191
Commitments, Pledged Assets and Collateral - Pledged Assets and Collateral (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Significant components of assets pledged | ||
Assets that may be sold or repledged or otherwise used by secured parties | $ 129,600 | $ 133,600 |
Assets that may not be sold or repledged or otherwise used by secured parties | 67,900 | 53,500 |
Total assets pledged | 691,200 | 629,000 |
Collateral Received that Can be Resold or Repledged | ||
Collateral permitted to be sold or repledged, delivered, or otherwise used | 968,800 | 914,100 |
Collateral sold, repledged, delivered or otherwise used | 775,300 | 746,600 |
Securities | ||
Significant components of assets pledged | ||
Total assets pledged | 86,200 | 101,100 |
Loans | ||
Significant components of assets pledged | ||
Total assets pledged | 437,700 | 374,900 |
Trading assets and other | ||
Significant components of assets pledged | ||
Assets that may be sold or repledged or otherwise used by secured parties | 110,061 | 115,847 |
Total assets pledged | 167,300 | 153,000 |
Assets pledged at Federal Reserve banks and FHLBs | ||
Significant components of assets pledged | ||
Total assets pledged | $ 493,700 | $ 441,900 |
Litigation (Details)
Litigation (Details) | 1 Months Ended | 12 Months Ended | |||||
Sep. 30, 2017asset | Jan. 31, 2017 | Jan. 31, 2015action | Dec. 31, 2017USD ($)entityclaiminvestordefendanttrust | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | May 31, 2017action | |
Loss Contingencies [Line Items] | |||||||
Legal expense/(benefit) | $ (35,000,000) | $ (317,000,000) | $ 2,969,000,000 | ||||
Threatened or Pending Litigation | Minimum | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency range of possible loss | 0 | ||||||
Threatened or Pending Litigation | Maximum | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency range of possible loss | $ 1,700,000,000 | ||||||
Foreign Exchange Investigations and Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Loss contingency, exemption of disqualification period | 5 years | ||||||
Period of temporary waiver | 1 year | ||||||
Loss contingency disqualification period | 10 years | ||||||
Number of defendants | defendant | 1 | ||||||
Number of actions dismissed | action | 1 | ||||||
General Motors Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Syndicated term loan facility for General Motors Corporation | $ 1,500,000,000 | ||||||
Number of representative assets ruled as fixtures | asset | 33 | ||||||
Total number of representative assets | asset | 40 | ||||||
Hopper Estate Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Damages sought value (in excess of) | 7,000,000 | ||||||
Total amount of possible loss, including punitive damages | 71,000,000 | ||||||
Interchange Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Settlement amount agreed to pay by defendant group | $ 6,100,000,000 | ||||||
Settlement amount consideration percentage | 20.00% | ||||||
Basis points of credit card interchange | 0.10% | ||||||
Settlement agreement consideration period class plaintiffs to receive basis points of interchange | 8 months | ||||||
Period from end of the opt-out period | 60 days | ||||||
LIBOR and Other Benchmark Rate Investigations and Litigation, Common Law Claims | Pending Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Number of actions pending | claim | 2 | ||||||
LIBOR and Other Benchmark Rate Investigations and Litigation | Pending Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Number of legal proceedings | action | 3 | ||||||
LIBOR and Other Benchmark Rate Investigations and Litigation | Defendant Banks and ICAP Manipulation of U.S. Dollar ISDAFIX Rates | Pending Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Number of defendants | defendant | 1 | ||||||
MBS Related to Investor Action | Pending Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Number of actions pending | claim | 1 | ||||||
MBS Related to Individual Purchaser Actions | Pending Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Number of actions pending | claim | 1 | ||||||
MBS Litigation Related to MBS Offerings Sponsored By Washington Mutual | |||||||
Loss Contingencies [Line Items] | |||||||
Number of institutional MBS investors directing or threatening litigation | investor | 21 | ||||||
MBS Litigation Related to MBS Offerings Issued by JPMC and Bear Stearns | |||||||
Loss Contingencies [Line Items] | |||||||
Settlement agreement, consideration | $ 4,500,000,000 | ||||||
Number of MBS for which repurchase and servicing claims have been or could have been assumed | trust | 330 | ||||||
Number of MBS trusts for which an offer is accepted in part or whole | trust | 319 | ||||||
Number of MBS trusts excluded from the settlement in part of in whole | trust | 16 | ||||||
Municipal Derivatives Litigation | Minimum | |||||||
Loss Contingencies [Line Items] | |||||||
Warrants the firm was chosen to underwrite based upon alleged payments made to certain third parties (more than) | $ 3,000,000,000 | ||||||
Petters Bankruptcy and Related Matters | |||||||
Loss Contingencies [Line Items] | |||||||
Number of entities whose trustee in bankruptcy brought actions against JPMorgan Chase | entity | 3 | ||||||
Number of credit facilities entered into with Polaroid | entity | 2 |
International Operations (Detai
International Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Entity-Wide Information by Geographic Areas | |||||
Revenue | $ 99,624 | $ 95,668 | $ 93,543 | ||
Expense | 63,724 | 61,132 | 62,841 | ||
Income before income tax expense | 35,900 | 34,536 | 30,702 | ||
Net income | 24,441 | 24,733 | 24,442 | ||
Total assets | 2,533,600 | [1] | 2,490,972 | [1] | 2,351,698 |
Total international | |||||
Entity-Wide Information by Geographic Areas | |||||
Revenue | 22,225 | 21,913 | 22,280 | ||
Expense | 14,453 | 14,395 | 14,620 | ||
Income before income tax expense | 7,772 | 7,518 | 7,660 | ||
Net income | 5,158 | 5,203 | 5,696 | ||
Total assets | 615,432 | 594,051 | 534,579 | ||
Europe/Middle East/Africa | |||||
Entity-Wide Information by Geographic Areas | |||||
Revenue | 14,426 | 13,842 | 14,206 | ||
Expense | 8,653 | 8,550 | 8,871 | ||
Income before income tax expense | 5,773 | 5,292 | 5,335 | ||
Net income | 4,007 | 3,783 | 4,158 | ||
Total assets | 407,145 | 394,134 | 347,647 | ||
Asia/Pacific | |||||
Entity-Wide Information by Geographic Areas | |||||
Revenue | 5,805 | 6,112 | 6,151 | ||
Expense | 4,277 | 4,213 | 4,241 | ||
Income before income tax expense | 1,528 | 1,899 | 1,910 | ||
Net income | 852 | 1,212 | 1,285 | ||
Total assets | 163,718 | 156,946 | 138,747 | ||
Latin America/Caribbean | |||||
Entity-Wide Information by Geographic Areas | |||||
Revenue | 1,994 | 1,959 | 1,923 | ||
Expense | 1,523 | 1,632 | 1,508 | ||
Income before income tax expense | 471 | 327 | 415 | ||
Net income | 299 | 208 | 253 | ||
Total assets | 44,569 | 42,971 | 48,185 | ||
North America | |||||
Entity-Wide Information by Geographic Areas | |||||
Revenue | 77,399 | 73,755 | 71,263 | ||
Expense | 49,271 | 46,737 | 48,221 | ||
Income before income tax expense | 28,128 | 27,018 | 23,042 | ||
Net income | 19,283 | 19,530 | 18,746 | ||
Total assets | 1,918,168 | 1,896,921 | 1,817,119 | ||
U.K. | |||||
Entity-Wide Information by Geographic Areas | |||||
Total assets | $ 310,000 | $ 310,000 | $ 306,000 | ||
[1] | The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at December 31, 2017 and 2016. The difference between total VIE assets and liabilities represents the Firm’s interests in those entities, which were eliminated in consolidation.December 31, (in millions)2017 2016Assets Trading assets$1,449 $3,185Loans68,995 75,614All other assets2,674 3,321Total assets$73,118 $82,120Liabilities Beneficial interests issued by consolidated VIEs$26,081 $39,047All other liabilities349 490Total liabilities$26,430 $39,537The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests do not have recourse to the general credit of JPMorgan Chase. At December 31, 2017 and 2016, the Firm provided limited program-wide credit enhancement of $2.7 billion and $2.4 billion, respectively, related to its Firm-administered multi-seller conduits, which are eliminated in consolidation. For further discussion, see Note 14. |
Business Segments - Narrative (
Business Segments - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)segment | |
Segment Reporting Information [Line Items] | |
Number of major reportable business segments | segment | 4 |
Asset & Wealth Management | |
Segment Reporting Information [Line Items] | |
AWM client assets | $ 2,800,000 |
Minimum | Commercial Banking | |
Segment Reporting Information [Line Items] | |
Annual client revenue | 20 |
Maximum | Commercial Banking | |
Segment Reporting Information [Line Items] | |
Annual client revenue | $ 2,000 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Segment results and reconciliation | |||||
Noninterest revenue | $ 49,527 | $ 49,585 | $ 50,033 | ||
Net interest income | 50,097 | 46,083 | 43,510 | ||
Total net revenue | 99,624 | 95,668 | 93,543 | ||
Provision for credit losses | 5,290 | 5,361 | 3,827 | ||
Noninterest expense | 58,434 | 55,771 | 59,014 | ||
Income before income tax expense | 35,900 | 34,536 | 30,702 | ||
Income tax expense/(benefit) | 11,459 | 9,803 | 6,260 | ||
Net income | 24,441 | 24,733 | 24,442 | ||
Average equity | 230,350 | 224,631 | 215,690 | ||
Total assets | $ 2,533,600 | [1] | $ 2,490,972 | [1] | $ 2,351,698 |
Return on equity | 10.00% | 10.00% | 11.00% | ||
Overhead ratio | 59.00% | 58.00% | 63.00% | ||
Operating Segments | Consumer & Community Banking | |||||
Segment results and reconciliation | |||||
Noninterest revenue | $ 14,710 | $ 15,255 | $ 15,592 | ||
Net interest income | 31,775 | 29,660 | 28,228 | ||
Total net revenue | 46,485 | 44,915 | 43,820 | ||
Provision for credit losses | 5,572 | 4,494 | 3,059 | ||
Noninterest expense | 26,062 | 24,905 | 24,909 | ||
Income before income tax expense | 14,851 | 15,516 | 15,852 | ||
Income tax expense/(benefit) | 5,456 | 5,802 | 6,063 | ||
Net income | 9,395 | 9,714 | 9,789 | ||
Average equity | 51,000 | 51,000 | 51,000 | ||
Total assets | $ 552,601 | $ 535,310 | $ 502,652 | ||
Return on equity | 17.00% | 18.00% | 18.00% | ||
Overhead ratio | 56.00% | 55.00% | 57.00% | ||
Operating Segments | Corporate & Investment Bank | |||||
Segment results and reconciliation | |||||
Noninterest revenue | $ 24,375 | $ 24,325 | $ 23,693 | ||
Net interest income | 10,118 | 10,891 | 9,849 | ||
Total net revenue | 34,493 | 35,216 | 33,542 | ||
Provision for credit losses | (45) | 563 | 332 | ||
Noninterest expense | 19,243 | 18,992 | 21,361 | ||
Income before income tax expense | 15,295 | 15,661 | 11,849 | ||
Income tax expense/(benefit) | 4,482 | 4,846 | 3,759 | ||
Net income | 10,813 | 10,815 | 8,090 | ||
Average equity | 70,000 | 64,000 | 62,000 | ||
Total assets | $ 826,384 | $ 803,511 | $ 748,691 | ||
Return on equity | 14.00% | 16.00% | 12.00% | ||
Overhead ratio | 56.00% | 54.00% | 64.00% | ||
Operating Segments | Commercial Banking | |||||
Segment results and reconciliation | |||||
Noninterest revenue | $ 2,522 | $ 2,320 | $ 2,365 | ||
Net interest income | 6,083 | 5,133 | 4,520 | ||
Total net revenue | 8,605 | 7,453 | 6,885 | ||
Provision for credit losses | (276) | 282 | 442 | ||
Noninterest expense | 3,327 | 2,934 | 2,881 | ||
Income before income tax expense | 5,554 | 4,237 | 3,562 | ||
Income tax expense/(benefit) | 2,015 | 1,580 | 1,371 | ||
Net income | 3,539 | 2,657 | 2,191 | ||
Average equity | 20,000 | 16,000 | 14,000 | ||
Total assets | $ 221,228 | $ 214,341 | $ 200,700 | ||
Return on equity | 17.00% | 16.00% | 15.00% | ||
Overhead ratio | 39.00% | 39.00% | 42.00% | ||
Operating Segments | Asset & Wealth Management | |||||
Segment results and reconciliation | |||||
Noninterest revenue | $ 9,539 | $ 9,012 | $ 9,563 | ||
Net interest income | 3,379 | 3,033 | 2,556 | ||
Total net revenue | 12,918 | 12,045 | 12,119 | ||
Provision for credit losses | 39 | 26 | 4 | ||
Noninterest expense | 9,301 | 8,478 | 8,886 | ||
Income before income tax expense | 3,578 | 3,541 | 3,229 | ||
Income tax expense/(benefit) | 1,241 | 1,290 | 1,294 | ||
Net income | 2,337 | 2,251 | 1,935 | ||
Average equity | 9,000 | 9,000 | 9,000 | ||
Total assets | $ 151,909 | $ 138,384 | $ 131,451 | ||
Return on equity | 25.00% | 24.00% | 21.00% | ||
Overhead ratio | 72.00% | 70.00% | 73.00% | ||
Operating Segments | Corporate | |||||
Segment results and reconciliation | |||||
Noninterest revenue | $ 1,085 | $ 938 | $ 800 | ||
Net interest income | 55 | (1,425) | (533) | ||
Total net revenue | 1,140 | (487) | 267 | ||
Provision for credit losses | 0 | (4) | (10) | ||
Noninterest expense | 501 | 462 | 977 | ||
Income before income tax expense | 639 | (945) | (700) | ||
Income tax expense/(benefit) | 2,282 | (241) | (3,137) | ||
Net income | (1,643) | (704) | 2,437 | ||
Average equity | 80,350 | 84,631 | 79,690 | ||
Total assets | 781,478 | 799,426 | 768,204 | ||
Reconciling Items | |||||
Segment results and reconciliation | |||||
Noninterest revenue | (2,704) | (2,265) | (1,980) | ||
Net interest income | (1,313) | (1,209) | (1,110) | ||
Total net revenue | (4,017) | (3,474) | (3,090) | ||
Provision for credit losses | 0 | 0 | 0 | ||
Noninterest expense | 0 | 0 | 0 | ||
Income before income tax expense | (4,017) | (3,474) | (3,090) | ||
Income tax expense/(benefit) | (4,017) | (3,474) | (3,090) | ||
Net income | 0 | 0 | 0 | ||
Average equity | 0 | $ 0 | $ 0 | ||
Tax benefit related to tax-oriented investments as a result of the TCJA | $ 375 | ||||
[1] | The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at December 31, 2017 and 2016. The difference between total VIE assets and liabilities represents the Firm’s interests in those entities, which were eliminated in consolidation.December 31, (in millions)2017 2016Assets Trading assets$1,449 $3,185Loans68,995 75,614All other assets2,674 3,321Total assets$73,118 $82,120Liabilities Beneficial interests issued by consolidated VIEs$26,081 $39,047All other liabilities349 490Total liabilities$26,430 $39,537The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests do not have recourse to the general credit of JPMorgan Chase. At December 31, 2017 and 2016, the Firm provided limited program-wide credit enhancement of $2.7 billion and $2.4 billion, respectively, related to its Firm-administered multi-seller conduits, which are eliminated in consolidation. For further discussion, see Note 14. |
Parent Company - Statements of
Parent Company - Statements of Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income | |||
Other income | $ 49,527 | $ 49,585 | $ 50,033 |
Total income | 99,624 | 95,668 | 93,543 |
Expense | |||
Other interest expense | 14,275 | 9,818 | 7,463 |
Noninterest expense | 6,256 | 5,756 | 9,593 |
Income tax benefit | (11,459) | (9,803) | (6,260) |
Net income | 24,441 | 24,733 | 24,442 |
Comprehensive income | 25,497 | 23,212 | 22,445 |
JPMorgan Chase & Co. | |||
Income | |||
Interest income from subsidiaries | 72 | 794 | 443 |
Other interest income | 41 | 207 | 234 |
Other income | (623) | (846) | 1,773 |
Total income | 14,495 | 16,045 | 21,311 |
Expense | |||
Interest expense to subsidiaries and affiliates | 400 | 105 | 98 |
Other interest expense | 5,202 | 4,413 | 3,720 |
Noninterest expense | (1,897) | 1,643 | 2,611 |
Total expense | 3,705 | 6,161 | 6,429 |
Income before income tax benefit and undistributed net income of subsidiaries | 10,790 | 9,884 | 14,882 |
Income tax benefit | 1,007 | 876 | 1,640 |
Equity in undistributed net income of subsidiaries | 12,644 | 13,973 | 7,920 |
Net income | 24,441 | 24,733 | 24,442 |
Other comprehensive income, net | 1,056 | (1,521) | (1,997) |
Comprehensive income | 25,497 | 23,212 | 22,445 |
Bank and bank holding company | JPMorgan Chase & Co. | |||
Income | |||
Dividends from subsidiaries and affiliates | 13,000 | 10,000 | 10,653 |
Other income from subsidiaries, primarily fees | 1,553 | 852 | 1,438 |
Non-bank | JPMorgan Chase & Co. | |||
Income | |||
Dividends from subsidiaries and affiliates | 540 | 3,873 | 8,172 |
Other income from subsidiaries, primarily fees | $ (88) | $ 1,165 | $ (1,402) |
Parent Company - Balance Sheets
Parent Company - Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Assets | |||||||
Cash and due from banks | $ 25,827 | $ 23,873 | $ 20,490 | $ 27,831 | |||
Trading assets | 381,844 | 372,130 | |||||
Available-for-sale securities | 202,225 | 238,891 | |||||
Loans | 924,838 | 889,907 | 832,792 | ||||
Other assets | 114,770 | 112,076 | |||||
Total assets | 2,533,600 | [1] | 2,490,972 | [1] | 2,351,698 | ||
Liabilities and stockholders’ equity | |||||||
Total liabilities | [1] | 2,277,907 | 2,236,782 | ||||
Total stockholders’ equity | 255,693 | 254,190 | 247,573 | ||||
Total liabilities and stockholders’ equity | 2,533,600 | 2,490,972 | |||||
JPMorgan Chase & Co. | |||||||
Assets | |||||||
Cash and due from banks | 163 | 113 | $ 74 | $ 211 | |||
Deposits with banking subsidiaries | 5,306 | 5,450 | |||||
Trading assets | 4,773 | 10,326 | |||||
Available-for-sale securities | 0 | 2,694 | |||||
Loans | 0 | 77 | |||||
Other assets | 10,458 | 10,257 | |||||
Total assets | 475,023 | 464,618 | |||||
Liabilities and stockholders’ equity | |||||||
Borrowings from, and payables to, subsidiaries and affiliates | 23,426 | 13,584 | |||||
Short-term borrowings | 3,350 | 3,831 | |||||
Other liabilities | 8,302 | 11,224 | |||||
Long-term debt | 184,252 | 181,789 | |||||
Total liabilities | 219,330 | 210,428 | |||||
Total stockholders’ equity | 255,693 | 254,190 | |||||
Total liabilities and stockholders’ equity | 475,023 | 464,618 | |||||
Bank and bank holding company | JPMorgan Chase & Co. | |||||||
Assets | |||||||
Advances to, and receivables from, subsidiaries | 2,106 | 524 | |||||
Investments (at equity) in subsidiaries and affiliates | 451,713 | 422,028 | |||||
Non-bank | JPMorgan Chase & Co. | |||||||
Assets | |||||||
Advances to, and receivables from, subsidiaries | 82 | 46 | |||||
Investments (at equity) in subsidiaries and affiliates | $ 422 | $ 13,103 | |||||
[1] | The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at December 31, 2017 and 2016. The difference between total VIE assets and liabilities represents the Firm’s interests in those entities, which were eliminated in consolidation.December 31, (in millions)2017 2016Assets Trading assets$1,449 $3,185Loans68,995 75,614All other assets2,674 3,321Total assets$73,118 $82,120Liabilities Beneficial interests issued by consolidated VIEs$26,081 $39,047All other liabilities349 490Total liabilities$26,430 $39,537The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests do not have recourse to the general credit of JPMorgan Chase. At December 31, 2017 and 2016, the Firm provided limited program-wide credit enhancement of $2.7 billion and $2.4 billion, respectively, related to its Firm-administered multi-seller conduits, which are eliminated in consolidation. For further discussion, see Note 14. |
Parent Company - Statements 198
Parent Company - Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities | |||
Net income | $ 24,441 | $ 24,733 | $ 24,442 |
Other operating adjustments | 7,803 | (1,827) | (5,122) |
Net cash provided by/(used in) operating activities | (2,501) | 20,196 | 73,466 |
Investing activities | |||
Available-for-sale securities: Proceeds from paydowns and maturities | 56,117 | 65,950 | 76,448 |
Other changes in loans, net | (61,650) | (80,996) | (108,962) |
All other investing activities, net | (563) | (2,825) | 3,703 |
Net cash provided by/(used in) investing activities | (10,283) | (114,949) | 106,980 |
Financing activities | |||
Proceeds from long-term borrowings | 56,271 | 83,070 | 79,611 |
Payments of long-term borrowings | (83,079) | (68,949) | (67,247) |
Proceeds from issuance of preferred stock | 1,258 | 0 | 5,893 |
Redemption of preferred stock | (1,258) | 0 | 0 |
Dividends paid | (8,993) | (8,476) | (7,873) |
All other financing activities, net | 407 | (467) | (726) |
Net cash provided by/(used in) financing activities | 14,642 | 98,271 | (187,511) |
Net increase/(decrease) in cash and due from banks | 1,954 | 3,383 | (7,341) |
Cash and due from banks at the beginning of the period | 23,873 | 20,490 | 27,831 |
Cash and due from banks at the end of the period | 25,827 | 23,873 | 20,490 |
Cash interest paid | 14,153 | 9,508 | 7,220 |
JPMorgan Chase & Co. | |||
Operating activities | |||
Net income | 24,441 | 24,733 | 24,442 |
Less: Net income of subsidiaries and affiliates | 26,185 | 27,846 | 26,745 |
Parent company net loss | (1,744) | (3,113) | (2,303) |
Cash dividends from subsidiaries and affiliates | 13,540 | 13,873 | 17,023 |
Other operating adjustments | 4,635 | (18,166) | 2,483 |
Net cash provided by/(used in) operating activities | 16,431 | (7,406) | 17,203 |
Investing activities | |||
Net change in: Deposits with banking subsidiaries | 144 | 60,349 | 30,085 |
Available-for-sale securities: Proceeds from paydowns and maturities | 0 | 353 | 120 |
Other changes in loans, net | 78 | 1,793 | 321 |
Advances to and investments in subsidiaries and affiliates, net | (280) | (51,967) | (81) |
All other investing activities, net | 17 | 114 | 153 |
Net cash provided by/(used in) investing activities | (41) | 10,642 | 30,598 |
Financing activities | |||
Net change in: Borrowings from subsidiaries and affiliates | 13,862 | 2,957 | (4,062) |
Net change in: Other borrowed funds | (481) | 109 | (47,483) |
Proceeds from long-term borrowings | 25,855 | 41,498 | 42,121 |
Payments of long-term borrowings | (29,812) | (29,298) | (30,077) |
Proceeds from issuance of preferred stock | 1,258 | 0 | 5,893 |
Redemption of preferred stock | (1,258) | 0 | |
Treasury stock and warrants repurchased | (15,410) | (9,082) | (5,616) |
Dividends paid | (8,993) | (8,476) | (7,873) |
All other financing activities, net | (1,361) | (905) | (840) |
Net cash provided by/(used in) financing activities | (16,340) | (3,197) | (47,937) |
Net increase/(decrease) in cash and due from banks | 50 | 39 | (137) |
Cash and due from banks at the beginning of the period | 113 | 74 | 211 |
Cash and due from banks at the end of the period | 163 | 113 | 74 |
Cash interest paid | 5,426 | 4,550 | 3,873 |
Cash income taxes paid, net | $ 1,775 | $ 1,053 | $ 8,251 |
Parent Company - Footnote Infor
Parent Company - Footnote Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2017 | |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2,018 | $ 43,174 | |
2,019 | 34,700 | |
2,020 | 39,300 | |
2,021 | 33,800 | |
2,022 | 13,400 | |
JPMorgan Chase & Co. | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2,018 | 20,631 | |
2,019 | 13,300 | |
2,020 | 22,400 | |
2,021 | 20,600 | |
2,022 | 10,500 | |
JPMorgan Chase & Co. | Non-bank | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contributions of substantially all of direct subsidiaries | $ 55,400 | |
JPMorgan Chase & Co. | Non-bank | Other assets | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contributions to IHC | 160,500 | |
JPMorgan Chase & Co. | Non-bank | Noncash Assets | ||
Condensed Financial Statements, Captions [Line Items] | ||
Contributions to IHC | $ 62,300 | $ 16,200 |