Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2020shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Transition Report | false |
Document Period End Date | Sep. 30, 2020 |
Entity File Number | 1-5805 |
Entity Registrant Name | JPMorgan Chase & Co |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 13-2624428 |
Entity Address, Address Line One | 383 Madison Avenue, |
Entity Address, City or Town | New York, |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10179 |
City Area Code | 212 |
Local Phone Number | 270-6000 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 3,048,203,063 |
Entity Central Index Key | 0000019617 |
Amendment Flag | false |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q3 |
Current Fiscal Year End Date | --12-31 |
Common stock | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common stock |
Trading Symbol | JPM |
Security Exchange Name | NYSE |
Depositary Shares, each representing a one-four hundredth interest in a share of 6.10% Non-Cumulative Preferred Stock, Series AA | |
Entity Information [Line Items] | |
Title of 12(b) Security | Depositary Shares, each representing a one-four hundredth interest in a share of 6.10% Non-Cumulative Preferred Stock, Series AA |
Trading Symbol | JPM PR G |
Security Exchange Name | NYSE |
Depositary Shares, each representing a one-four hundredth interest in a share of 6.15% Non-Cumulative Preferred Stock, Series BB | |
Entity Information [Line Items] | |
Title of 12(b) Security | Depositary Shares, each representing a one-four hundredth interest in a share of 6.15% Non-Cumulative Preferred Stock, Series BB |
Trading Symbol | JPM PR H |
Security Exchange Name | NYSE |
Depositary Shares, each representing a one-four hundredth interest in a share of 5.75% Non-Cumulative Preferred Stock, Series DD | |
Entity Information [Line Items] | |
Title of 12(b) Security | Depositary Shares, each representing a one-four hundredth interest in a share of 5.75% Non-Cumulative Preferred Stock, Series DD |
Trading Symbol | JPM PR D |
Security Exchange Name | NYSE |
Depositary Shares, each representing a one-four hundredth interest in a share of 6.00% Non-Cumulative Preferred Stock, Series EE | |
Entity Information [Line Items] | |
Title of 12(b) Security | Depositary Shares, each representing a one-four hundredth interest in a share of 6.00% Non-Cumulative Preferred Stock, Series EE |
Trading Symbol | JPM PR C |
Security Exchange Name | NYSE |
Depositary Shares, each representing a one-four hundredth interest in a share of 4.75% Non-Cumulative Preferred Stock, Series GG | |
Entity Information [Line Items] | |
Title of 12(b) Security | Depositary Shares, each representing a one-four hundredth interest in a share of 4.75% Non-Cumulative Preferred Stock, Series GG |
Trading Symbol | JPM PR J |
Security Exchange Name | NYSE |
Alerian MLP Index ETNs due May 24, 2024 | |
Entity Information [Line Items] | |
Title of 12(b) Security | Alerian MLP Index ETNs due May 24, 2024 |
Trading Symbol | AMJ |
Security Exchange Name | NYSEArca |
Guarantee of Callable Step-Up Fixed Rate Notes due April 26, 2028 of JPMorgan Chase Financial Company LLC | |
Entity Information [Line Items] | |
Title of 12(b) Security | Guarantee of Callable Step-Up Fixed Rate Notes due April 26, 2028 of JPMorgan Chase Financial Company LLC |
Trading Symbol | JPM/28 |
Security Exchange Name | NYSE |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Revenue | |||||
Investment banking fees | $ 2,187 | $ 1,967 | $ 6,903 | $ 5,658 | |
Principal transactions | 4,142 | 3,449 | 14,700 | 11,239 | |
Lending- and deposit-related fees | [1] | 1,647 | 1,671 | 4,784 | 4,854 |
Asset management, administration and commissions | [1] | 4,470 | 4,306 | 13,276 | 12,607 |
Investment securities gains | 473 | 78 | 732 | 135 | |
Mortgage fees and related income | 1,087 | 887 | 2,324 | 1,562 | |
Card income | [2] | 1,169 | 1,233 | 3,138 | 3,741 |
Other income | 959 | 1,472 | 3,157 | 4,239 | |
Noninterest revenue | 16,134 | 15,063 | 49,014 | 44,035 | |
Interest income | 14,700 | 21,121 | 49,973 | 64,113 | |
Interest expense | 1,687 | 6,893 | 8,668 | 21,034 | |
Net interest income | 13,013 | 14,228 | 41,305 | 43,079 | |
Total net revenue | 29,147 | 29,291 | 90,319 | 87,114 | |
Provision for credit losses | 611 | 1,514 | 19,369 | 4,158 | |
Noninterest expense | |||||
Compensation expense | 8,630 | 8,583 | 27,034 | 26,067 | |
Occupancy expense | 1,142 | 1,110 | 3,288 | 3,238 | |
Technology, communications and equipment expense | 2,564 | 2,494 | 7,732 | 7,236 | |
Professional and outside services | 2,178 | 2,056 | 6,205 | 6,307 | |
Marketing | [2] | 470 | 895 | 1,751 | 2,504 |
Other expense | 1,891 | 1,234 | 4,598 | 3,624 | |
Total noninterest expense | 16,875 | 16,372 | 50,608 | 48,976 | |
Income before income tax expense | 11,661 | 11,405 | 20,342 | 33,980 | |
Income tax expense | 2,218 | 2,325 | 3,347 | 6,069 | |
Net income | 9,443 | 9,080 | 16,995 | 27,911 | |
Net income applicable to common stockholders | $ 9,015 | $ 8,606 | $ 15,712 | $ 26,551 | |
Net income per common share data | |||||
Basic earnings per share (in dollars per share) | $ 2.93 | $ 2.69 | $ 5.10 | $ 8.17 | |
Diluted earnings per share (in dollars per share) | $ 2.92 | $ 2.68 | $ 5.09 | $ 8.15 | |
Weighted-average basic shares (in shares) | 3,077.8 | 3,198.5 | 3,083.3 | 3,248.7 | |
Weighted-average diluted shares (in shares) | 3,082.8 | 3,207.2 | 3,088.1 | 3,258 | |
[1] | In the first quarter of 2020, the Firm reclassified certain fees from asset management, administration and commissions to lending- and deposit-related fees. Prior-period amounts have been revised to conform with the current presentation. | ||||
[2] | In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 9,443 | $ 9,080 | $ 16,995 | $ 27,911 |
Other comprehensive income/(loss), after–tax | ||||
Unrealized gains/(losses) on investment securities | 514 | 479 | 4,377 | 2,986 |
Translation adjustments, net of hedges | 127 | (165) | (61) | (90) |
Fair value hedges | (69) | (1) | 35 | 87 |
Cash flow hedges | (70) | 195 | 2,629 | 430 |
Defined benefit pension and OPEB plans | (12) | 46 | 14 | 123 |
DVA on fair value option elected liabilities | (339) | 132 | 377 | (229) |
Total other comprehensive income/(loss), after–tax | 151 | 686 | 7,371 | 3,307 |
Comprehensive income | $ 9,594 | $ 9,766 | $ 24,366 | $ 31,218 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Assets | |||
Cash and due from banks | $ 20,816 | $ 21,704 | |
Deposits with banks | 466,706 | 241,927 | |
Federal funds sold and securities purchased under resale agreements (included $284,763 and $14,561 at fair value) | 319,849 | 249,157 | |
Securities borrowed (included $44,493 and $6,237 at fair value) | 142,441 | 139,758 | |
Trading assets (included assets pledged of $152,341 and $111,522) | [1] | 505,822 | 369,687 |
Available-for-sale securities (amortized cost of $382,099 and $345,306; included assets pledged of $34,285 and $10,325) | 389,583 | 350,699 | |
Held-to-maturity securities (net of allowance for credit losses of $120) | 141,553 | 47,540 | |
Investment securities, net of allowance for credit losses | 531,136 | 398,239 | |
Loans (included $38,220 and $44,955 at fair value) | [1] | 989,740 | 997,620 |
Allowance for loan losses | (30,814) | (13,123) | |
Loans, net of allowance for loan losses | 958,926 | 984,497 | |
Accrued interest and accounts receivable | 76,945 | 72,861 | |
Premises and equipment | 26,672 | 25,813 | |
Goodwill, MSRs and other intangible assets | 51,594 | 53,341 | |
Other assets (included $14,088 and $12,676 at fair value and assets pledged of $3,227 and $3,349) | [1] | 145,169 | 130,395 |
Total assets | [2] | 3,246,076 | 2,687,379 |
Liabilities | |||
Deposits (included $19,314 and $28,589 at fair value) | 2,001,416 | 1,562,431 | |
Federal funds purchased and securities loaned or sold under repurchase agreements (included $180,904 and $549 at fair value) | 236,440 | 183,675 | |
Short-term borrowings (included $19,029 and $5,920 at fair value) | 41,992 | 40,920 | |
Trading liabilities | 162,493 | 119,277 | |
Accounts payable and other liabilities (included $3,297 and $3,728 at fair value) | 234,256 | 210,407 | |
Beneficial interests issued by consolidated VIEs (included $39 and $36 at fair value) | 19,191 | 17,841 | |
Long-term debt (included $72,986 and $75,745 at fair value) | 279,175 | 291,498 | |
Total liabilities | [2] | 2,974,963 | 2,426,049 |
Commitments and contingencies (refer to Notes 23, 24 and 25) | |||
Stockholders’ equity | |||
Preferred stock ($1 par value; authorized 200,000,000 shares; issued 3,006,250 and 2,699,250 shares) | 30,063 | 26,993 | |
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 | 88,289 | 88,522 | |
Retained earnings | 228,014 | 223,211 | |
Accumulated other comprehensive income/(loss) | 8,940 | 1,569 | |
Shares held in restricted stock units (“RSU”) Trust, at cost (236,476 and 472,953 shares) | (11) | (21) | |
Treasury stock, at cost (1,056,730,832 and 1,020,912,567 shares) | (88,287) | (83,049) | |
Total stockholders’ equity | 271,113 | 261,330 | |
Total liabilities and stockholders’ equity | 3,246,076 | 2,687,379 | |
VIEs consolidated by the Firm | |||
Assets | |||
Trading assets (included assets pledged of $152,341 and $111,522) | 2,467 | 2,633 | |
Loans, net of allowance for loan losses | 36,974 | 42,931 | |
Other assets (included $14,088 and $12,676 at fair value and assets pledged of $3,227 and $3,349) | 744 | 881 | |
Total assets | 40,185 | 46,445 | |
Liabilities | |||
Beneficial interests issued by consolidated VIEs (included $39 and $36 at fair value) | 19,191 | 17,841 | |
All other liabilities | 236 | 447 | |
Total liabilities | $ 19,427 | $ 18,288 | |
[1] | In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans and other assets. Prior-period amounts have been revised to conform with the current presentation. | ||
[2] | The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at September 30, 2020, and December 31, 2019. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests generally do not have recourse to the general credit of JPMorgan Chase. The assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation. Refer to Note 14 for a further discussion. (in millions) September 30, 2020 December 31, 2019 Assets Trading assets $ 2,467 $ 2,633 Loans 36,974 42,931 All other assets 744 881 Total assets $ 40,185 $ 46,445 Liabilities Beneficial interests issued by consolidated VIEs $ 19,191 $ 17,841 All other liabilities 236 447 Total liabilities $ 19,427 $ 18,288 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Assets pledged | $ 189,900 | $ 125,200 |
Available-for-sale securities, amortized cost | 382,099 | 345,306 |
Held-to-maturity securities, allowance for credit losses | 120 | |
Loans | $ 38,220 | $ 44,955 |
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) | 3,006,250 | 2,699,250 |
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, at cost (in shares) | 236,476 | 472,953 |
Treasury stock, at cost (in shares) | 1,056,730,832 | 1,020,912,567 |
Trading assets | ||
Assets | ||
Assets pledged | $ 152,341 | $ 111,522 |
Investment securities | ||
Assets | ||
Assets pledged | 34,285 | 10,325 |
Other assets | ||
Assets | ||
Assets pledged | 3,227 | 3,349 |
Recurring | ||
Assets | ||
Federal funds sold and securities purchased under resale agreements | 284,763 | 14,561 |
Securities borrowed | 44,493 | 6,237 |
Loans | 38,220 | 44,955 |
Liabilities | ||
Deposits | 19,314 | 28,589 |
Federal funds purchased and securities loaned or sold under repurchase agreements | 180,904 | 549 |
Short-term borrowings | 19,029 | 5,920 |
Accounts payable and other liabilities | 3,297 | 3,728 |
Beneficial interests issued by consolidated VIEs | 39 | 36 |
Long-term debt | 72,986 | 75,745 |
Recurring | Other assets | ||
Assets | ||
Other assets | $ 14,088 | $ 12,676 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Preferred stock | Common stock | Additional paid-in capital | Retained earnings | Retained earningsCumulative effect of a change in accounting principle | Accumulated other comprehensive income/(loss) | Shares held in RSU Trust, at cost | Treasury stock, at cost |
Beginning balance at Dec. 31, 2018 | $ 26,068 | $ 4,105 | $ 89,162 | $ 199,202 | $ 62 | $ (1,507) | $ (21) | $ (60,494) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance | 4,100 | ||||||||
Redemption | (1,805) | ||||||||
Shares issued and commitments to issue common stock for employee shared-based compensation awards, and related tax effects | (604) | ||||||||
Other | (46) | ||||||||
Net income | $ 27,911 | 27,911 | |||||||
Dividends declared: | |||||||||
Preferred stock | (1,201) | ||||||||
Common stock ($0.90 and $0.90 per share and $2.70 and $2.50 per share, respectively) | (8,086) | ||||||||
Other comprehensive income/(loss), after-tax | 3,307 | 3,307 | |||||||
Liquidation of RSU Trust | 0 | ||||||||
Repurchase | (17,250) | ||||||||
Reissuance | 1,445 | ||||||||
Ending balance at Sep. 30, 2019 | 264,348 | 28,363 | 4,105 | 88,512 | 217,888 | 1,800 | (21) | (76,299) | |
Beginning balance at Jun. 30, 2019 | 26,993 | 4,105 | 88,359 | 212,093 | 1,114 | (21) | (69,428) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance | 2,250 | ||||||||
Redemption | (880) | ||||||||
Shares issued and commitments to issue common stock for employee shared-based compensation awards, and related tax effects | 156 | ||||||||
Other | (3) | ||||||||
Net income | 9,080 | 9,080 | |||||||
Dividends declared: | |||||||||
Preferred stock | (423) | ||||||||
Common stock ($0.90 and $0.90 per share and $2.70 and $2.50 per share, respectively) | (2,862) | ||||||||
Other comprehensive income/(loss), after-tax | 686 | 686 | |||||||
Liquidation of RSU Trust | 0 | ||||||||
Repurchase | (6,949) | ||||||||
Reissuance | 78 | ||||||||
Ending balance at Sep. 30, 2019 | 264,348 | 28,363 | 4,105 | 88,512 | 217,888 | 1,800 | (21) | (76,299) | |
Beginning balance at Dec. 31, 2019 | 261,330 | 26,993 | 4,105 | 88,522 | 223,211 | $ (2,650) | 1,569 | (21) | (83,049) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance | 4,500 | ||||||||
Redemption | (1,430) | ||||||||
Shares issued and commitments to issue common stock for employee shared-based compensation awards, and related tax effects | (177) | ||||||||
Other | (56) | ||||||||
Net income | 16,995 | 16,995 | |||||||
Dividends declared: | |||||||||
Preferred stock | (1,203) | ||||||||
Common stock ($0.90 and $0.90 per share and $2.70 and $2.50 per share, respectively) | (8,339) | ||||||||
Other comprehensive income/(loss), after-tax | 7,371 | 7,371 | |||||||
Liquidation of RSU Trust | 10 | ||||||||
Repurchase | (6,397) | ||||||||
Reissuance | 1,159 | ||||||||
Ending balance at Sep. 30, 2020 | 271,113 | 30,063 | 4,105 | 88,289 | 228,014 | 8,940 | (11) | (88,287) | |
Beginning balance at Jun. 30, 2020 | 30,063 | 4,105 | 88,125 | 221,732 | 8,789 | (11) | (88,337) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance | 0 | ||||||||
Redemption | 0 | ||||||||
Shares issued and commitments to issue common stock for employee shared-based compensation awards, and related tax effects | 215 | ||||||||
Other | (51) | ||||||||
Net income | 9,443 | 9,443 | |||||||
Dividends declared: | |||||||||
Preferred stock | (381) | ||||||||
Common stock ($0.90 and $0.90 per share and $2.70 and $2.50 per share, respectively) | (2,780) | ||||||||
Other comprehensive income/(loss), after-tax | 151 | 151 | |||||||
Liquidation of RSU Trust | 0 | ||||||||
Repurchase | 0 | ||||||||
Reissuance | 50 | ||||||||
Ending balance at Sep. 30, 2020 | $ 271,113 | $ 30,063 | $ 4,105 | $ 88,289 | $ 228,014 | $ 8,940 | $ (11) | $ (88,287) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Dividends declared: | ||||
Dividends declared, Common stock (in dollars per share) | $ 0.90 | $ 0.90 | $ 2.70 | $ 2.50 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | ||
Operating activities | |||
Net income | $ 16,995 | $ 27,911 | |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Provision for credit losses | 19,369 | 4,158 | |
Depreciation and amortization | 6,487 | 6,229 | |
Deferred tax (benefit)/expense | (5,436) | (440) | |
Other | 1,245 | 1,645 | |
Originations and purchases of loans held-for-sale | [1] | (112,142) | (119,583) |
Proceeds from sales, securitizations and paydowns of loans held-for-sale | [1] | 120,786 | 122,208 |
Net change in: | |||
Trading assets | [1] | (145,124) | (92,041) |
Securities borrowed | (2,509) | (26,162) | |
Accrued interest and accounts receivable | (4,398) | (16,089) | |
Other assets | [1] | (28,548) | (21,023) |
Trading liabilities | 63,516 | 12,774 | |
Accounts payable and other liabilities | 16,608 | 19,661 | |
Other operating adjustments | [1] | 1,293 | 2,033 |
Net cash (used in) operating activities | (51,858) | (78,719) | |
Net change in: | |||
Federal funds sold and securities purchased under resale agreements | (70,597) | 64,207 | |
Held-to-maturity securities: | |||
Proceeds from paydowns and maturities | 11,498 | 2,239 | |
Purchases | (5,528) | (11,682) | |
Available-for-sale securities: | |||
Proceeds from paydowns and maturities | 43,709 | 41,378 | |
Proceeds from sales | 110,354 | 43,460 | |
Purchases | (281,147) | (200,262) | |
Proceeds from sales and securitizations of loans held-for-investment | 18,509 | 52,739 | |
Other changes in loans, net | [1] | (21,606) | (24,297) |
All other investing activities, net | (3,398) | (4,283) | |
Net cash (used in) investing activities | (198,206) | (36,501) | |
Net change in: | |||
Deposits | 452,454 | 77,147 | |
Federal funds purchased and securities loaned or sold under repurchase agreements | 52,745 | 65,428 | |
Short-term borrowings | 1,945 | ||
Short-term borrowings | (20,577) | ||
Beneficial interests issued by consolidated VIEs | 2,838 | 5,017 | |
Proceeds from long-term borrowings | 64,243 | 45,155 | |
Payments of long-term borrowings | (90,481) | (51,936) | |
Proceeds from issuance of preferred stock | 4,500 | 4,100 | |
Redemption of preferred stock | (1,430) | (1,805) | |
Treasury stock repurchased | (6,517) | (17,250) | |
Dividends paid | (9,551) | (9,056) | |
All other financing activities, net | (59) | (217) | |
Net cash provided by financing activities | 470,687 | 96,006 | |
Effect of exchange rate changes on cash and due from banks and deposits with banks | 3,268 | (2,982) | |
Net increase/(decrease) in cash and due from banks and deposits with banks | 223,891 | (22,196) | |
Cash and due from banks and deposits with banks at the beginning of the period | 263,631 | 278,793 | |
Cash and due from banks and deposits with banks at the end of the period | 487,522 | 256,597 | |
Cash interest paid | 11,576 | 20,790 | |
Cash income taxes paid, net | $ 6,124 | $ 3,478 | |
[1] | In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans and other assets. Prior-period amounts have been revised to conform with the current presentation. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
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 businesses, commercial banking, financial transaction processing and asset management. Refer to Note 26 for a further discussion of the Firm’s business segments. The accounting and financial reporting policies of JPMorgan Chase and its subsidiaries conform to U.S. GAAP. Additionally, where applicable, the policies conform to the accounting and reporting guidelines prescribed by regulatory authorities. The unaudited Consolidated Financial Statements prepared in conformity with U.S. GAAP require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expense, and the disclosures of contingent assets and liabilities. Actual results could be different from these estimates. In the opinion of management, all normal, recurring adjustments have been included such that this interim financial information is fairly stated. These unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements, and related notes thereto, included in JPMorgan Chase’s 2019 Form 10-K. Certain amounts reported in prior periods have been reclassified to conform with the current presentation. Consolidation The Consolidated Financial Statements include the accounts of JPMorgan Chase and other entities in which the Firm has a controlling financial interest. All material intercompany balances and transactions have been eliminated. Assets held for clients in an agency or fiduciary capacity by the Firm are not assets of JPMorgan Chase and are not included on the Consolidated balance sheets. The Firm determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity. Refer to Notes 1 and 14 of JPMorgan Chase’s 2019 Form 10-K for a further description of JPMorgan Chase’s accounting policies regarding consolidation. Offsetting assets and liabilities U.S. GAAP permits entities to present derivative receivables and derivative payables with the same counterparty and the related cash collateral receivables and payables on a net basis on the Consolidated balance sheets when a legally enforceable master netting agreement exists. U.S. GAAP also permits securities financing activities to be presented on a net basis when specified conditions are met, including the existence of a legally enforceable master netting agreement. The Firm has elected to net such balances when the specified conditions are met. Refer to Note 1 of JPMorgan Chase’s 2019 Form 10-K for further information on offsetting assets and liabilities. Accounting standard adopted January 1, 2020 Financial Instruments – Credit Losses (“CECL”) The adoption of this guidance established a single allowance framework for all financial assets measured at amortized cost and certain off-balance sheet credit exposures. This framework requires that management’s estimate reflects credit losses over the instrument’s remaining expected life and considers expected future changes in macroeconomic conditions. Refer to Note 13 for further information. The following table presents the impacts to the allowance for credit losses and retained earnings upon adoption of this guidance on January 1, 2020: (in billions) December 31, 2019 CECL adoption impact January 1, 2020 Allowance for credit losses Consumer, excluding credit card (a) $ 2.6 $ 0.4 $ 3.0 Credit card 5.7 5.5 11.2 Wholesale (a) 6.0 (1.6) 4.4 Firmwide $ 14.3 $ 4.3 $ 18.6 Retained earnings Firmwide allowance increase $ 4.3 Balance sheet reclassification (b) (0.8) Total pre-tax impact 3.5 Tax effect (0.8) Decrease to retained earnings $ 2.7 (a) In conjunction with the adoption of CECL, the Firm reclassified risk-rated business banking and auto dealer loans and lending-related commitments held in CCB from the consumer, excluding credit card portfolio segment to the wholesale portfolio segment, to align with the methodology applied when determining the allowance. Prior-period amounts have been revised to conform with the current presentation. Accordingly, $0.6 billion of the allowance for credit losses at December 31, 2019 and $(0.2) billion of the CECL adoption impact were reclassified. (b) Represents the recognition of the nonaccretable difference on purchased credit deteriorated loans and the Firm's election to recognize the reserve for uncollectible accrued interest on credit card loans in the allowance, both of which resulted in a corresponding increase to loans. Securities Financing Agreements As permitted by the guidance, the Firm elected the fair value option for certain securities financing agreements. The difference between their carrying amount and fair value was immaterial and was recorded as part of the Firm’s cumulative-effect adjustment. Refer to Note 11 for further information. Investment securities Upon adoption, HTM securities are presented net of an allowance for credit losses. The guidance also amended the previous other-than-temporary impairment (“OTTI”) model for AFS securities to incorporate an allowance. Refer to Note 10 for further information. Credit quality disclosures As a result of the adoption of this guidance, the Firm expanded credit quality disclosures for financial assets measured at amortized cost particularly within the retained loan portfolios. Refer to Note 12 for further information. PCD loans The adoption resulted in a change in the accounting for PCI loans, which are considered purchased credit deteriorated (“PCD”) loans under CECL. Upon adoption, the Firm recognized the nonaccretable difference on PCD loans in the allowance, which resulted in a corresponding increase to loans. PCD loans are subject to the Firm’s nonaccrual and charge-off policies and are now reported in the consumer, excluding credit card portfolio’s residential real estate loan class. Refer to Note 12 for further information. Changes in credit portfolio segments and classes In conjunction with the adoption of CECL, the Firm reclassified risk-rated loans and lending-related commitments from the consumer excluding credit card portfolio segment to the wholesale portfolio segment, to align with the methodology applied when determining the allowance. The Firm also revised its loan classes. Prior- period amounts have been revised to conform with the current presentation. Refer to Note 12 for further information. Accrued interest receivables As permitted by the guidance, the Firm elected to continue classifying accrued interest on loans, including accrued but unbilled interest on credit card loans, and investment securities in accrued interest and accounts receivables on the Consolidated balance sheets. For credit card loans, accrued interest once billed is then recognized in the loan balances, with the related allowance recorded in the allowance for credit losses. Changes in the allowance for credit losses on accrued interest on credit card loans are recognized in the provision for credit losses and charge-offs are recognized by reversing interest income. For other loans and securities, the Firm generally does not recognize an allowance for credit losses on accrued interest receivables, consistent with its policy to write them off no later than 90 days past due by reversing interest income. Capital transition provisions As disclosed in the Firm’s 2019 Form 10-K, the Firm initially elected to phase-in the January 1, 2020 (“day 1”) CECL adoption impact to retained earnings of $2.7 billion to CET1 capital, at 25% per year in each of 2020 to 2023. As part of their response to the impact of the COVID-19 pandemic, on March 31, 2020, the federal banking agencies issued an interim final rule (issued as final on August 26, 2020) that provided the option to delay the effects of CECL on regulatory capital for two years, followed by a three-year transition period (“CECL capital transition provisions”). Refer to Note 22 for further information. |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair value measurement Refer to Note 2 of JPMorgan Chase’s 2019 Form 10-K for a discussion of the Firm’s valuation methodologies for assets, liabilities and lending-related commitments measured at fair value and the fair value hierarchy. The following table presents the assets and liabilities reported at fair value as of September 30, 2020, and December 31, 2019, by major product category and fair value hierarchy. Assets and liabilities measured at fair value on a recurring basis Fair value hierarchy Derivative (g) September 30, 2020 (in millions) Level 1 Level 2 Level 3 Total fair value Federal funds sold and securities purchased under resale agreements $ — $ 284,763 $ — $ — $ 284,763 Securities borrowed — 44,493 — — 44,493 Trading assets: Debt instruments: Mortgage-backed securities: U.S. GSEs and government agencies (a) — 73,116 507 — 73,623 Residential – nonagency — 2,459 25 — 2,484 Commercial – nonagency — 1,270 2 — 1,272 Total mortgage-backed securities — 76,845 534 — 77,379 U.S. Treasury, GSEs and government agencies (a) 94,565 12,020 — — 106,585 Obligations of U.S. states and municipalities — 7,485 8 — 7,493 Certificates of deposit, bankers’ acceptances and commercial paper — 2,020 — — 2,020 Non-U.S. government debt securities 32,221 40,926 165 — 73,312 Corporate debt securities — 21,545 649 — 22,194 Loans (b) — 5,548 730 — 6,278 Asset-backed securities — 2,416 33 — 2,449 Total debt instruments 126,786 168,805 2,119 — 297,710 Equity securities 106,856 242 186 — 107,284 Physical commodities (c) 5,511 4,307 — — 9,818 Other — 13,679 653 — 14,332 Total debt and equity instruments (d) 239,153 187,033 2,958 — 429,144 Derivative receivables: Interest rate 1,569 394,734 2,176 (361,421) 37,058 Credit — 14,381 763 (13,751) 1,393 Foreign exchange 180 154,535 773 (144,060) 11,428 Equity — 69,452 4,083 (54,599) 18,936 Commodity — 22,048 208 (14,445) 7,811 Total derivative receivables 1,749 655,150 8,003 (588,276) 76,626 Total trading assets (e) 240,902 842,183 10,961 (588,276) 505,770 Available-for-sale securities: Mortgage-backed securities: U.S. GSEs and government agencies (a) 5 99,589 — — 99,594 Residential – nonagency — 11,423 — — 11,423 Commercial – nonagency — 2,936 — — 2,936 Total mortgage-backed securities 5 113,948 — — 113,953 U.S. Treasury and government agencies 216,579 — — — 216,579 Obligations of U.S. states and municipalities — 20,883 — — 20,883 Certificates of deposit — — — — — Non-U.S. government debt securities 11,905 9,132 — — 21,037 Corporate debt securities — 271 — — 271 Asset-backed securities: Collateralized loan obligations — 10,202 — — 10,202 Other — 6,658 — — 6,658 Total available-for-sale securities 228,489 161,094 — — 389,583 Loans (b)(f) — 36,414 1,806 — 38,220 Mortgage servicing rights — — 3,016 — 3,016 Other assets (b)(e) 7,676 5,145 658 — 13,479 Total assets measured at fair value on a recurring basis $ 477,067 $ 1,374,092 $ 16,441 $ (588,276) $ 1,279,324 Deposits $ — $ 16,258 $ 3,056 $ — $ 19,314 Federal funds purchased and securities loaned or sold under repurchase agreements — 180,904 — — 180,904 Short-term borrowings — 16,421 2,608 — 19,029 Trading liabilities: Debt and equity instruments (d) 85,147 19,631 57 — 104,835 Derivative payables: Interest rate 1,352 355,857 2,148 (346,886) 12,471 Credit — 15,605 812 (14,175) 2,242 Foreign exchange 180 163,589 1,449 (149,705) 15,513 Equity — 66,746 7,186 (54,576) 19,356 Commodity — 22,019 829 (14,772) 8,076 Total derivative payables 1,532 623,816 12,424 (580,114) 57,658 Total trading liabilities 86,679 643,447 12,481 (580,114) 162,493 Accounts payable and other liabilities 2,945 308 44 — 3,297 Beneficial interests issued by consolidated VIEs — 39 — — 39 Long-term debt — 50,770 22,216 — 72,986 Total liabilities measured at fair value on a recurring basis $ 89,624 $ 908,147 $ 40,405 $ (580,114) $ 458,062 Fair value hierarchy Derivative (g) December 31, 2019 (in millions) Level 1 Level 2 Level 3 Total fair value Federal funds sold and securities purchased under resale agreements $ — $ 14,561 $ — $ — $ 14,561 Securities borrowed — 6,237 — — 6,237 Trading assets: Debt instruments: Mortgage-backed securities: U.S. GSEs and government agencies (a) — 44,510 797 — 45,307 Residential – nonagency — 1,977 23 — 2,000 Commercial – nonagency — 1,486 4 — 1,490 Total mortgage-backed securities — 47,973 824 — 48,797 U.S. Treasury, GSEs and government agencies (a) 78,289 10,295 — — 88,584 Obligations of U.S. states and municipalities — 6,468 10 — 6,478 Certificates of deposit, bankers’ acceptances and commercial paper — 252 — — 252 Non-U.S. government debt securities 26,600 27,169 155 — 53,924 Corporate debt securities — 17,956 558 — 18,514 Loans (b) — 6,340 673 — 7,013 Asset-backed securities — 2,593 37 — 2,630 Total debt instruments 104,889 119,046 2,257 — 226,192 Equity securities 71,890 244 196 — 72,330 Physical commodities (c) 3,638 3,579 — — 7,217 Other — 13,896 232 — 14,128 Total debt and equity instruments (d) 180,417 136,765 2,685 — 319,867 Derivative receivables: Interest rate 721 311,173 1,400 (285,873) 27,421 Credit — 14,252 624 (14,175) 701 Foreign exchange 117 137,938 432 (129,482) 9,005 Equity — 43,642 2,085 (39,250) 6,477 Commodity — 17,058 184 (11,080) 6,162 Total derivative receivables 838 524,063 4,725 (479,860) 49,766 Total trading assets (e) 181,255 660,828 7,410 (479,860) 369,633 Available-for-sale securities: Mortgage-backed securities: U.S. GSEs and government agencies (a) — 110,117 — — 110,117 Residential – nonagency — 12,989 1 — 12,990 Commercial – nonagency — 5,188 — — 5,188 Total mortgage-backed securities — 128,294 1 — 128,295 U.S. Treasury and government agencies 139,436 — — — 139,436 Obligations of U.S. states and municipalities — 29,810 — — 29,810 Certificates of deposit — 77 — — 77 Non-U.S. government debt securities 12,966 8,821 — — 21,787 Corporate debt securities — 845 — — 845 Asset-backed securities: Collateralized loan obligations — 24,991 — — 24,991 Other — 5,458 — — 5,458 Total available-for-sale securities 152,402 198,296 1 — 350,699 Loans (b)(f) — 44,439 516 — 44,955 Mortgage servicing rights — — 4,699 — 4,699 Other assets (b)(e) 7,305 3,824 917 — 12,046 Total assets measured at fair value on a recurring basis $ 340,962 $ 928,185 $ 13,543 $ (479,860) $ 802,830 Deposits $ — $ 25,229 $ 3,360 $ — $ 28,589 Federal funds purchased and securities loaned or sold under repurchase agreements — 549 — — 549 Short-term borrowings — 4,246 1,674 — 5,920 Trading liabilities: Debt and equity instruments (d) 59,047 16,481 41 — 75,569 Derivative payables: Interest rate 795 276,746 1,732 (270,670) 8,603 Credit — 14,358 763 (13,469) 1,652 Foreign exchange 109 143,960 1,039 (131,950) 13,158 Equity — 47,261 5,480 (40,204) 12,537 Commodity — 19,685 200 (12,127) 7,758 Total derivative payables 904 502,010 9,214 (468,420) 43,708 Total trading liabilities 59,951 518,491 9,255 (468,420) 119,277 Accounts payable and other liabilities 3,231 452 45 — 3,728 Beneficial interests issued by consolidated VIEs — 36 — — 36 Long-term debt — 52,406 23,339 — 75,745 Total liabilities measured at fair value on a recurring basis $ 63,182 $ 601,409 $ 37,673 $ (468,420) $ 233,844 (a) At September 30, 2020, and December 31, 2019, included total U.S. GSE obligations of $109.5 billion and $104.5 billion, respectively, which were mortgage-related. (b) In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans and other assets. Prior-period amounts have been revised to conform with the current presentation. (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. Refer to Note 5 for a further discussion of the Firm’s hedge accounting relationships. To provide consistent fair value disclosure information, all physical commodities inventories have been included in each period presented. (d) Balances reflect the reduction of securities owned (long positions) by the amount of identical securities sold but not yet purchased (short positions). (e) 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 September 30, 2020, and December 31, 2019, the fair values of these investments, which include certain hedge funds, private equity funds, real estate and other funds, were $661 million and $684 million, respectively. Included in these balances at September 30, 2020, and December 31, 2019, were trading assets of $52 million and $54 million, respectively, and other assets of $609 million and $630 million, respectively. (f) At September 30, 2020, and December 31, 2019, included within loans were $15.6 billion and $19.8 billion, respectively, of residential first-lien mortgages, and $5.2 billion and $8.2 billion, respectively, of commercial first-lien mortgages. Residential mortgage loans include conforming mortgage loans originated with the intent to sell to U.S. GSEs and government agencies of $8.6 billion and $13.6 billion, respectively. (g) As permitted under U.S. GAAP, the Firm has elected to net derivative receivables and derivative payables and the related cash collateral received and paid when a legally enforceable master netting agreement exists. The level 3 balances would be reduced if netting were applied, including the netting benefit associated with cash collateral. Level 3 valuations Refer to Note 2 of JPMorgan Chase’s 2019 Form 10-K for further information on the Firm’s valuation process and a detailed discussion of the determination of fair value for individual financial instruments. The following table presents the Firm’s primary level 3 financial instruments, the valuation techniques used to measure the fair value of those financial instruments, the significant unobservable inputs, the range of values for those inputs and the weighted or arithmetic averages of such inputs. While the determination to classify an instrument within level 3 is based on the significance of the unobservable inputs to the overall fair value measurement, level 3 financial instruments typically include observable components (that is, components that are actively quoted and can be validated to external sources) in addition to the unobservable components. The level 1 and/or level 2 inputs are not included in the table. In addition, the Firm manages the risk of the observable components of level 3 financial instruments using securities and derivative positions that are classified within levels 1 or 2 of the fair value hierarchy. The range of values presented in the table is representative of the highest and lowest level input used to value the significant groups of instruments within a product/instrument classification. Where provided, the weighted averages of the input values presented in the table are calculated based on the fair value of the instruments that the input is being used to value. In the Firm’s view, the input range, weighted and arithmetic average values do not reflect the degree of input uncertainty or an assessment of the reasonableness of the Firm’s estimates and assumptions. Rather, they reflect the characteristics of the various instruments held by the Firm and the relative distribution of instruments within the range of characteristics. For example, two option contracts may have similar levels of market risk exposure and valuation uncertainty, but may have significantly different implied volatility levels because the option contracts have different underlyings, tenors, or strike prices. The input range and weighted average values will therefore vary from period-to-period and parameter-to-parameter based on the characteristics of the instruments held by the Firm at each balance sheet date. Level 3 inputs (a) September 30, 2020 Product/Instrument Fair value (in millions) Principal valuation technique Unobservable inputs (g) Range of input values Average (i) Residential mortgage-backed securities and loans (b) $ 1,249 Discounted cash flows Yield (2)% – 18% 5% Prepayment speed 0% – 45% 10% Conditional default rate 0% – 30% 13% Loss severity 0% – 107% 9% Commercial mortgage-backed securities and loans (c) 451 Market comparables Price $0 – $100 $83 Obligations of U.S. states and municipalities 8 Market comparables Price $81 – $100 $97 Corporate debt securities 649 Market comparables Price $3 – $130 $73 Loans (d) 1,370 Market comparables Price $2 – $108 $76 Asset-backed securities 33 Market comparables Price $1 – $95 $61 Net interest rate derivatives (6) Option pricing Interest rate volatility 8bps – 517bps 115bps Interest rate spread volatility 11bps – 23bps 15bps Interest rate correlation (65)% – 95% 43% IR-FX correlation (35)% – 50% 0% 34 Discounted cash flows Prepayment speed 3% – 30% 10% Net credit derivatives (87) Discounted cash flows Credit correlation 32% – 64% 47% Credit spread 6bps – 1,360 bps 459bps Recovery rate 0% – 70% 46% Conditional default rate 2% – 92% 32% Loss severity 100% 100% 38 Market comparables Price $0 – $115 $71 Net foreign exchange derivatives (527) Option pricing IR-FX correlation (50)% – 65% 19% (149) Discounted cash flows Prepayment speed 9% 9% Net equity derivatives (3,103) Option pricing Forward equity price (h) 67% – 105% 99% Equity volatility 3% – 119% 35% Equity correlation 45% – 100% 83% Equity-FX correlation (77)% – 55% (23)% Equity-IR correlation 20% – 35% 26% Net commodity derivatives (621) Option pricing Forward industrial metal price $1,551 / MT – $2,049 / MT $1,920 / MT Forward power price $14 / MWH – $65 / MWH $23 / MWH Commodity volatility 5% – 94% 10% Commodity correlation (45)% – 95% 34% MSRs 3,016 Discounted cash flows Refer to Note 15 Other assets 623 Discounted cash flows Credit spread 45bps 45bps Yield 4% 30% 7% 688 Market comparables Price $29 – $122 $39 Long-term debt, short-term borrowings, and deposits (e) 27,880 Option pricing Interest rate volatility 8bps – 517bps 115bps Interest rate correlation (65)% – 95% 43% IR-FX correlation (35)% – 50% 0% Equity correlation 45% – 100% 83% Equity-FX correlation (77)% – 55% (23)% Equity-IR correlation 20% – 35% 26% Other level 3 assets and liabilities, net (f) 250 (a) The categories presented in the table have been aggregated based upon the product type, which may differ from their classification on the Consolidated balance sheets. Furthermore, the inputs presented for each valuation technique in the table are, in some cases, not applicable to every instrument valued using the technique as the characteristics of the instruments can differ. (b) Comprises U.S. GSE and government agency securities of $507 million, nonagency securities of $25 million and non-trading loans of $717 million. (c) Comprises nonagency securities of $2 million, trading loans of $44 million and non-trading loans of $405 million. (d) Comprises trading loans of $686 million and non-trading loans of $684 million. (e) Long-term debt, short-term borrowings and deposits include structured notes issued by the Firm that are financial instruments that typically contain embedded derivatives. The estimation of the fair value of structured notes includes the derivative features embedded within the instrument. The significant unobservable inputs are broadly consistent with those presented for derivative receivables. (f) Includes 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. (h) Forward equity price is expressed as a percentage of the current equity price. (i) Amounts represent weighted averages except for derivative related inputs where arithmetic averages are used. Changes in and ranges of unobservable inputs Refer to Note 2 of JPMorgan Chase’s 2019 Form 10-K for a discussion of the impact on fair value of changes in unobservable inputs and the relationships between unobservable inputs as well as a description of attributes of the underlying instruments and external market factors that affect the range of inputs used in the valuation of the Firm’s positions. Changes in level 3 recurring fair value measurements The following tables include a rollforward of the Consolidated balance sheets amounts (including changes in fair value) for financial instruments classified by the Firm within level 3 of the fair value hierarchy for the three and nine months ended September 30, 2020 and 2019. When a determination is made to classify a financial instrument within level 3, the determination is based on the significance of the unobservable inputs to the overall fair value measurement. However, level 3 financial instruments typically include, in addition to the unobservable or level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources); accordingly, the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology. Also, the Firm risk-manages the observable components of level 3 financial instruments using securities and derivative positions that are classified within level 1 or 2 of the fair value hierarchy; as these level 1 and level 2 risk management instruments are not included below, the gains or losses in the following tables do not reflect the effect of the Firm’s risk management activities related to such level 3 instruments. Fair value measurements using significant unobservable inputs Three months ended Fair value at Total realized/unrealized gains/(losses) Transfers into (i) Transfers (out of) level 3 (i) Fair value at Change in unrealized gains/(losses) related Purchases (g) Sales Settlements (h) Assets: (a) Trading assets: Debt instruments: Mortgage-backed securities: U.S. GSEs and government agencies $ 469 $ (4) $ 110 $ (28) $ (40) $ — $ — $ 507 $ (2) Residential – nonagency 23 — 8 (2) (1) — (3) 25 — Commercial – nonagency 2 — — — — — — 2 — Total mortgage-backed securities 494 (4) 118 (30) (41) — (3) 534 (2) Obligations of U.S. states and municipalities 8 — — — — — — 8 — Non-U.S. government debt securities 167 6 25 (23) (2) — (8) 165 6 Corporate debt securities 946 45 114 (33) (225) 4 (202) 649 45 Loans (b) 905 22 240 (173) (21) 69 (312) 730 8 Asset-backed securities 39 3 5 (21) (2) 9 — 33 — Total debt instruments 2,559 72 502 (280) (291) 82 (525) 2,119 57 Equity securities 191 24 13 (104) — 104 (42) 186 29 Other 379 75 203 (4) (2) 2 — 653 77 Total trading assets – debt and equity instruments 3,129 171 (d) 718 (388) (293) 188 (567) 2,958 163 (d) Net derivative receivables: (c) Interest rate (104) 657 15 (30) (647) 35 102 28 323 Credit (137) (62) 22 (16) 154 (12) 2 (49) (21) Foreign exchange (595) (57) 7 (7) (34) 7 3 (676) (90) Equity (2,036) (1,437) 323 (384) 29 33 369 (3,103) (1,051) Commodity (297) 15 11 (79) 36 (302) (5) (621) 39 Total net derivative receivables (3,169) (884) (d) 378 (516) (462) (239) 471 (4,421) (800) (d) Available-for-sale securities: Mortgage-backed securities — — — — — — — — — Total available-for-sale securities — — — — — — — — — Loans (b) 1,874 (44) (d) 197 (44) (324) 316 (169) 1,806 (44) (d) Mortgage servicing rights 3,080 34 (e) 221 (104) (215) — — 3,016 34 (e) Other assets (b) 701 (21) (d) 5 — (27) — — 658 32 (d) Fair value measurements using significant unobservable inputs Three months ended Fair value at Total realized/unrealized (gains)/losses Transfers into (i) Transfers (out of) level 3 (i) Fair value at Change in unrealized (gains)/losses related Purchases Sales Issuances Settlements (h) Liabilities: (a) Deposits $ 3,217 $ 43 (d)(f) $ — $ — $ 170 $ (110) $ — $ (264) $ 3,056 $ 87 (d)(f) Short-term borrowings 2,305 (47) (d)(f) — — 1,421 (1,093) 25 (3) 2,608 (47) (d)(f) Trading liabilities – debt and equity instruments 59 (2) (d) (5) 5 — 1 3 (4) 57 (3) (d) Accounts payable and other liabilities 91 3 (d) (62) 4 — — 8 — 44 3 (d) Beneficial interests issued by consolidated VIEs — — — — — — — — — — Long-term debt 22,728 766 (d)(f) — — 1,225 (2,493) 78 (88) 22,216 646 (d)(f) Fair value measurements using significant unobservable inputs Three months ended Fair value at Total realized/unrealized gains/(losses) Transfers into (i) Transfers (out of) level 3 (i) Fair value at Change in unrealized gains/(losses) related Purchases (g) Sales Settlements (h) Assets: (a) Trading assets: Debt instruments: Mortgage-backed securities: U.S. GSEs and government agencies $ 617 $ (71) $ 424 $ (104) $ (45) $ — $ (10) $ 811 $ (70) Residential – nonagency 42 — 2 (3) — — (17) 24 (1) Commercial – nonagency 9 — 3 (5) — — (2) 5 — Total mortgage-backed securities 668 (71) 429 (112) (45) — (29) 840 (71) Obligations of U.S. states and municipalities 680 (2) 27 (77) (1) — — 627 (2) Non-U.S. government debt securities 190 (1) 40 (74) — 3 (12) 146 (1) Corporate debt securities 562 45 56 (167) — 17 (29) 484 3 Loans (b) 797 (48) 115 (74) (24) 118 (94) 790 (55) Asset-backed securities 33 — 11 (2) (2) 3 (5) 38 (2) Total debt instruments 2,930 (77) 678 (506) (72) 141 (169) 2,925 (128) Equity securities 147 (14) 10 (10) — 46 (9) 170 (16) Other 311 18 35 (15) (15) — (2) 332 23 Total trading assets – debt and equity instruments 3,388 (73) (d) 723 (531) (87) 187 (180) 3,427 (121) (d) Net derivative receivables: (c) Interest rate (544) 88 39 (15) 53 10 50 (319) (15) Credit (232) (65) 3 (3) (23) 3 — (317) (68) Foreign exchange (193) (653) 2 (1) (1) 6 (1) (841) (657) Equity (2,560) (382) 174 (118) (377) (203) (2) (3,468) (362) Commodity (908) 8 22 (69) 6 18 876 (47) 40 Total net derivative receivables (4,437) (1,004) (d) 240 (206) (342) (166) 923 (4,992) (1,062) (d) Available-for-sale securities: Mortgage-backed securities — — 1 — — — — 1 — Total available-for-sale securities — — 1 — — — — 1 — Loans (b) 775 1 (d) 26 (8) (84) 93 (43) 760 6 (d) Mortgage servicing rights 5,093 (447) (e) 388 (359) (256) — — 4,419 (447) (e) Other assets (b) 1,072 (53) (d) 30 (72) (34) — — 943 (53) (d) Fair value measurements using significant unobservable inputs Three months ended Fair value at Total realized/unrealized (gains)/losses Transfers into (i) Transfers (out of) level 3 (i) Fair value at Change in unrealized (gains)/losses related Purchases Sales Issuances Settlements (h) Liabilities: (a) Deposits $ 4,066 $ — $ — $ — $ 153 $ (188) $ 12 $ (407) $ 3,636 $ 16 (d)(f) Short-term borrowings 2,052 24 (d)(f) — — 949 (1,040) 17 (1) 2,001 28 (d)(f) Trading liabilities – debt and equity instruments 45 — (5) 25 — 1 2 — 68 — Accounts payable and other liabilities 92 (6) (d) (71) 4 — — — — 19 (2) (d) Beneficial interests issued by consolidated VIEs — — — — — — — — — — Long-term debt 21,863 187 (d)(f) — — 2,230 (1,758) 49 (222) 22,349 89 (d)(f) Fair value measurements using significant unobservable inputs Nine months ended Fair value at Total realized/unrealized gains/(losses) Transfers into level 3 (i) Transfers (out of) level 3 (i) Fair value at Change in unrealized gains/(losses) related Purchases (g) Sales Settlements (h) Assets: (a) Trading assets: Debt instruments: Mortgage-backed securities: U.S. GSEs and government agencies $ 797 $ (153) $ 134 $ (149) $ (122) $ — $ — $ 507 $ (140) Residential – nonagency 23 (1) 12 (4) (2) — (3) 25 2 Commercial – nonagency 4 — 1 — (1) 1 (3) 2 4 Total mortgage-backed securities 824 (154) 147 (153) (125) 1 (6) 534 (134) Obligations of U.S. states and municipalities 10 — — (1) (1) — — 8 — Non-U.S. government debt securities 155 10 164 (148) (7) — (9) 165 7 Corporate debt securities 558 (10) 475 (131) (234) 296 (305) 649 13 Loans (b) 673 (72) 829 (400) (130) 676 (846) 730 (35) Asset-backed securities 37 (4) 42 (36) (5) 9 (10) 33 (1) Total debt instruments 2,257 (230) 1,657 (869) (502) 982 (1,176) 2,119 (150) Equity securities 196 (79) 37 (109) — 259 (118) 186 (40) Other 232 239 213 (9) (23) 4 (3) 653 263 Total trading assets – debt and equity instruments 2,685 (70) (d) 1,907 (987) (525) 1,245 (1,297) 2,958 73 (d) Net derivative receivables: (c) Interest rate (332) 2,052 102 (97) (1,510) (317) 130 28 290 Credit (139) — 70 (150) 137 59 (26) (49) 24 Foreign exchange (607) (214) 46 (16) 75 15 25 (676) (181) Equity (3,395) 564 912 (1,473) 558 (524) 255 (3,103) 1,342 Commodity (16) (248) 22 (107) 54 (306) (20) (621) 363 Total net derivative receivables (4,489) 2,154 (d) 1,152 (1,843) (686) (1,073) 364 (4,421) 1,838 (d) Available-for-sale securities: Mortgage-backed securities 1 — — — (1) — — — — Total available-for-sale securities 1 — — — (1) — — — — Loans (b) 516 (195) (d) 450 (77) (678) 2,312 (522) 1,806 (147) (d) Mortgage servicing rights 4,699 (1,459) (e) 663 (177) (710) — — 3,016 (1,459) (e) Other assets (b) 917 (56) (d) 66 (28) (281) 40 — 658 4 (d) Fair value measurements using significant unobservable inputs Nine months ended Fair value at Total realized/unrealized (gains)/losses Transfers into level 3 (i) Transfers (out of) level 3 (i) Fair value at Change in unrealized (gains)/losses related Purchases Sales Issuances Settlements (h) Liabilities: (a) Deposits $ 3,360 $ 88 (d)(f) $ — $ — $ 636 $ (538) $ 265 $ (755) $ 3,056 $ 137 (d)(f) Short-term borrowings 1,674 (294) (d)(f) — — 3,961 (2,769) 77 (41) 2,608 (27) (d)(f) Trading liabilities – debt and equity instruments 41 1 (d) (81) 12 — (4) 96 (8) 57 — Accounts payable and other liabilities 45 (1) (d) (85) 37 — — 48 — 44 1 (d) Beneficial interests issued by consolidated VIEs — — — — — — — — — — Long-term debt 23,339 (639) (d)(f) — — 7,432 (7,851) 1,056 (1,121) 22,216 (507) (d)(f) Fair value measurements using significant unobservable inputs Nine months ended Fair value at Total realized/unrealized gains/(losses) Transfers into level 3 (i) Transfers (out of) level 3 (i) Fair value at Change in unrealized gains/(losses) related Purchases (g) Sales Settlements (h) Assets: (a) Trading assets: Debt instruments: Mortgage-backed securities: U.S. GSEs and government agencies $ 549 $ (111) $ 747 $ (272) $ (83) $ 1 $ (20) $ 811 $ (116) Residential – nonagency 64 25 83 (86) (20) 15 (57) 24 (1) Commercial – nonagency 11 2 19 (24) (14) 15 (4) 5 1 Total mortgage-backed securities 624 (84) 849 (382) (117) 31 (81) 840 (116) Obligations of U.S. states and municipalities 689 12 85 (152) (7) — — 627 13 Non-U.S. government debt securities 155 (2) 228 (231) — 14 (18) 146 3 Corporate debt securities 334 74 340 (236) (53) 96 (71) 484 15 Loans (b) 738 28 362 (379) (80) 358 (237) 790 16 Asset-backed securities 127 — 30 (81) (39) 23 (22) 38 (3) Total debt instruments 2,667 28 1,894 (1,461) (296) 522 (429) 2,925 (72) Equity securities 232 (28) 33 (92) (22) 142 (95) 170 (21) Other 301 42 50 (16) (41) 1 (5) 332 55 Total trading assets – debt and equity instruments 3,200 42 (d) 1,977 (1,569) (359) 665 (529) 3,427 (38) (d) Net derivative receivables: (c) Interest rate (38) (575) 86 (102) 174 22 114 (319) (694) Credit (107) (209) 16 (5) (13) 7 (6) (317) (169) Foreign exchange (297) (840) 13 (18) 294 (19) 26 (841) (815) Equity (2,225) 328 335 (573) (1,062) (418) 147 (3,468) (1,193) Commodity (1,129) 370 32 (240) 51 2 867 (47) 634 Total net derivative receivables (3,796) (926) (d) 482 (938) (556) (406) 1,148 (4,992) (2,237) (d) Available-for-sale securities: Mortgage-backed securities 1 — 1 — (1) — — 1 — Total available-for-sale securities 1 — 1 — (1) — — 1 — Loans (b) 856 41 (d) 224 (36) (364) 151 (112) 760 25 (d) Mortgage servicing rights 6,130 (1,572) (e) 1,250 (687) (702) — — 4,419 (1,572) (e) Other assets (b) 1,161 (122) (d) 193 (161) (122) 1 (7) 943 (142) (d) Fair value measurements using significant unobservable inputs Nine months ended Fair value at Total realized/unrealized (gains)/losses Transfers into level 3 (i) Transfers (out of) level 3 (i) Fair value at Change in unrealized (gains)/losses related Purchases Sales Issuances Settlements (h) Liabilities: (a) Deposits $ 4,169 $ 241 (d)(f) $ — $ — $ 580 $ (504) $ 12 $ (862) $ 3,636 $ 250 (d)(f) Short-term borrowings 1,523 142 (d)(f) — — 2,637 (2,265) 85 (121) 2,001 74 (d)(f) Trading liabilities – debt and equity instruments 50 — (12) 41 — 1 9 (21) 68 (1) (d) Accounts payable and other liabilities 10 (7) (d) (79) 94 — — 1 — 19 4 (d) Beneficial interests issued by consolidated VIEs 1 (1) (d) — — — — — — — — Long-term debt 19,418 1,915 (d)(f) — — 6,929 (5,675) 522 (760) 22,349 2,010 (d)(f) (a) Level 3 assets at fair value as a percentage of total Firm assets at fair value (including assets measured at fair value on a nonrecurring basis) were 1% and 2% at September 30, 2020 and December 31, 2019, respectively. Level 3 liabilities at fair value as a percentage of total Firm liabilities at fair value (including liabilities measured at fair value on a nonrecurring basis) were 9% and 16%, at September 30, 2020 and December 31, 2019, respectively. (b) In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans and other assets. Prior-period amounts have been revised to conform with the current presentation. (c) All level 3 derivatives are presented on a net basis, irrespective of the underlying counterparty. (d) 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. (e) Changes in fair value for MSRs are reported in mortgage fees and related income. (f) Realized (gains)/losses due to DVA for fair value option elected liabilities are reported in principal transactions revenue, and were not material for the three and nine months ended September 30, 2020 and 2019, respectively. Unrealized (gains)/losses are reported in OCI, and they were $120 million and $(62) million for the three months ended September 30, 2020 and 2019, respectively and $(78) million and $108 million for the nine months ended September 30, 2020 and 2019, respectively. (g) Loan originations are included in purchases. (h) Includes financial assets and liabilities that have matured, been partially or fully repaid, impacts of modifications deconsolidations associated with beneficial interests in VIEs and other items. (i) All transfers into and/or out of level 3 are based on changes in the observability and/or significance of the valuation inputs and are assumed to occur at the beginning of the quarterly reporting period in which they occur. Level 3 analysis Consolidated balance sheets changes Level 3 assets at fair value, including assets measured at fair value on a nonrecurring basis, were 0.6% of total Firm assets at September 30, 2020. The following describes significant changes to level 3 assets since December 31, 2019, for those items measured at fair value on a recurring basis. Refer to Assets and liabilities measured at fair value on a nonrecurring basis on page 112 for further information on changes impacting items measured at fair value on a nonrecurring basis. Three and nine months ended September 30, 2020 Level 3 assets were $16.4 billion at September 30, 2020, reflecting a decrease of $980 million from June 30, 2020 with no movements that were significant and an increase of $2.9 billion from December 31, 2019. The increase for the nine months ended September 30, 2020 was driven by: • $2.0 billion increase in gross equity derivative receivables due to gains and purchases net of settlements. • $1.3 billion increase in non-trading loans due to net transfers. largely offset by • $1.7 billion decrease in MSRs due to losses. Refer to the sections below for additional information. Transfers between levels for instruments carried at fair value on a recurring basis For the three months ended September 30, 2020, there were no significant transfers from level 2 into level 3. For the nine months ended September 30, 2020, significant transfers from level 2 into level 3 included the following: • |
Fair Value Option
Fair Value Option | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [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 that otherwise would be accounted for on an accrual basis) and the associated risk management arrangements that are accounted for on a fair value basis, as well as to better reflect those instruments that are managed on a fair value basis. The Firm’s election of fair value includes the following instruments: • Loans purchased or originated as part of securitization warehousing activity, subject to bifurcation accounting, or managed on a fair value basis, including lending-related commitments • Certain securities financing agreements • Owned beneficial interests in securitized financial assets that contain embedded credit derivatives, which would otherwise be required to be separately accounted for as a derivative instrument • Structured notes, which are predominantly financial instruments that contain embedded derivatives, that are issued as part of client-driven activities • Certain long-term beneficial interests issued by CIB’s consolidated securitization trusts where the underlying assets are carried at fair value Changes in fair value under the fair value option election The following table presents the changes in fair value included in the Consolidated statements of income for the three and nine months ended September 30, 2020 and 2019, for items for which the fair value option was elected. The profit and loss information presented below only includes the financial instruments that were elected to be measured at fair value; related risk management instruments, which are required to be measured at fair value, are not included in the table. Three months ended September 30, 2020 2019 (in millions) Principal transactions All other income Total changes in fair value recorded (f) Principal transactions All other income Total changes in fair value recorded (f) Federal funds sold and securities purchased under resale agreements $ (148) $ — $ (148) $ (23) $ — $ (23) Securities borrowed 5 — 5 99 — 99 Trading assets: Debt and equity instruments, excluding loans 879 — 879 546 — 546 Loans reported as trading assets: Changes in instrument-specific credit risk (a) 216 — 216 (40) — (40) Other changes in fair value (a) — — — — — — Loans: Changes in instrument-specific credit risk (a) 112 (13) (d) 99 144 (4) (d) 140 Other changes in fair value (a) 93 928 (d) 1,021 76 320 (d) 396 Other assets (a) (28) (7) (e) (35) (5) — (5) Deposits (b) (147) — (147) (397) — (397) Federal funds purchased and securities loaned or sold under repurchase agreements 58 — 58 2 — 2 Short-term borrowings (b) (54) — (54) 173 — 173 Trading liabilities 1 — 1 — — — Other liabilities (8) — (8) 1 — 1 Long-term debt (b)(c) (530) (4) (d) (534) (614) — (614) Nine months ended September 30, 2020 2019 (in millions) Principal transactions All other income Total changes in fair value recorded (f) Principal transactions All other income Total changes in fair value recorded (f) Federal funds sold and securities purchased under resale agreements $ 96 $ — $ 96 $ 10 $ — $ 10 Securities borrowed 173 — 173 179 — 179 Trading assets: Debt and equity instruments, excluding loans (350) (1) (d) (351) 2,104 — 2,104 Loans reported as trading assets: Changes in instrument-specific credit risk (a) (39) — (39) 150 — 150 Other changes in fair value (a) 1 — 1 (1) — (1) Loans: Changes in instrument-specific credit risk (a) 143 2 (d) 145 386 1 (d) 387 Other changes in fair value (a) 357 2,423 (d) 2,780 285 885 (d) 1,170 Other assets (a) 74 1 (e) 75 (2) 3 (e) 1 Deposits (b) (612) — (612) (1,589) — (1,589) Federal funds purchased and securities loaned or sold under repurchase agreements (20) — (20) (18) — (18) Short-term borrowings (b) 1,035 — 1,035 (601) — (601) Trading liabilities 1 — 1 5 — 5 Other liabilities (54) — (54) (7) — (7) Long-term debt (b)(c) 70 (1) (d) 69 (5,220) — (5,220) (a) In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans and other assets. Prior-period amounts have been revised to conform with the current presentation. (b) Unrealized gains/(losses) due to instrument-specific credit risk (DVA) for liabilities for which the fair value option has been elected are recorded in OCI, while realized gains/(losses) are recorded in principal transactions revenue. Realized gains/(losses) due to instrument-specific credit risk recorded in principal transactions revenue were $1 million and $20 million for the three and nine months ended September 30, 2020, respectively. The amounts were not material for the three and nine months ended September 30, 2019. (c) 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. (d) Reported in mortgage fees and related income. (e) Reported in other income. (f) Changes in fair value exclude contractual interest, which is included in interest income and interest expense for all instruments other than hybrid financial instruments. Refer to Note 7 for further information regarding interest income and interest expense. 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 September 30, 2020, and December 31, 2019, for loans, long-term debt and long-term beneficial interests for which the fair value option has been elected. September 30, 2020 December 31, 2019 (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 Nonaccrual loans Loans reported as trading assets (a) $ 2,917 $ 434 $ (2,483) $ 2,563 $ 234 $ (2,329) Loans (a) 2,289 2,008 (281) 964 696 (268) Subtotal 5,206 2,442 (2,764) 3,527 930 (2,597) 90 or more days past due and government guaranteed (b) Loans reported as trading assets — — — — — — Loans 310 297 (13) 138 129 (9) Subtotal 310 297 (13) 138 129 (9) All other performing loans (c) Loans reported as trading assets (a) 7,654 5,844 (1,810) 8,288 6,779 (1,509) Loans (a) 35,493 35,915 422 43,955 44,130 175 Subtotal 43,147 41,759 (1,388) 52,243 50,909 (1,334) Total loans $ 48,663 $ 44,498 $ (4,165) $ 55,908 $ 51,968 $ (3,940) Long-term debt Principal-protected debt $ 40,141 (e) $ 39,536 $ (605) $ 40,124 (e) $ 39,246 $ (878) Nonprincipal-protected debt (d) NA 33,450 NA NA 36,499 NA Total long-term debt NA $ 72,986 NA NA $ 75,745 NA Long-term beneficial interests Nonprincipal-protected debt (d) NA $ 39 NA NA $ 36 NA Total long-term beneficial interests NA $ 39 NA NA $ 36 NA (a) In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans and other assets. Prior-period amounts have been revised to conform with the current presentation. (b) These balances are excluded from nonaccrual loans as the loans are insured and/or guaranteed by U.S. government agencies. (c) There were no performing loans that were ninety days or more past due as of September 30, 2020, and December 31, 2019, respectively. (d) Remaining contractual principal is not applicable to nonprincipal-protected structured notes and long-term beneficial interests. Unlike principal-protected structured notes and long-term beneficial interests, for which the Firm is obligated to return a stated amount of principal at maturity, nonprincipal-protected structured notes and long-term beneficial interests do not obligate the Firm to return a stated amount of principal at maturity, but for structured notes to return an amount based on the performance of an underlying variable or derivative feature embedded in the note. However, investors are exposed to the credit risk of the Firm as issuer for both nonprincipal-protected and principal-protected notes. (e) 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 September 30, 2020, and December 31, 2019, the contractual amount of lending-related commitments for which the fair value option was elected was $13.2 billion and $8.6 billion, respectively, with a corresponding fair value of $(115) million and $(120) million, respectively. Refer to Note 28 of JPMorgan Chase’s 2019 Form 10-K, and Note 23 of this Form 10-Q for further information regarding off-balance sheet lending-related financial instruments. Prior-period amounts have been revised to conform with the current presentation. Structured note products by balance sheet classification and risk component The following table presents the fair value of structured notes, by balance sheet classification and the primary risk type. September 30, 2020 December 31, 2019 (in millions) Long-term debt Short-term borrowings Deposits Total Long-term debt Short-term borrowings Deposits Total Risk exposure Interest rate $ 36,598 $ 59 $ 7,646 $ 44,303 $ 35,470 $ 34 $ 16,692 $ 52,196 Credit 5,302 1,052 — 6,354 5,715 875 — 6,590 Foreign exchange 3,645 134 — 3,779 3,862 48 5 3,915 Equity 26,414 5,902 7,094 39,410 29,294 4,852 8,177 42,323 Commodity 363 26 2,274 2,663 472 32 1,454 1,958 Total structured notes $ 72,322 $ 7,173 $ 17,014 $ 96,509 $ 74,813 $ 5,841 $ 26,328 $ 106,982 |
Credit Risk Concentrations
Credit Risk Concentrations | 9 Months Ended |
Sep. 30, 2020 | |
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 managed 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. Refer to Note 12 for additional information on the geographic composition of the Firm’s consumer loan portfolios. 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. Refer to Note 12 for additional information on loans. The Firm does not believe that its exposure to any particular loan product 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 September 30, 2020, and December 31, 2019. The wholesale industry of risk category is generally based on the client or counterparty’s primary business activity. In conjunction with the adoption of CECL, the Firm reclassified risk-rated loans and lending-related commitments from the consumer, excluding credit card portfolio segment to the wholesale portfolio segment, to align with the methodology applied when determining the allowance. Prior-period amounts have been revised to conform with the current presentation. Refer to Note 1 for further information. September 30, 2020 December 31, 2019 Credit exposure (h)(i) On-balance sheet Off-balance sheet (i)(k) Credit exposure (h)(i) On-balance sheet Off-balance sheet (i)(k) (in millions) Loans (i) Derivatives Loans (i) Derivatives Consumer, excluding credit card $ 368,523 $ 322,098 (j) $ — $ 46,425 $ 357,986 $ 317,817 $ — $ 40,169 Credit card (a) 803,237 140,377 — 662,860 819,644 168,924 — 650,720 Total consumer-related (a) 1,171,760 462,475 — 709,285 1,177,630 486,741 — 690,889 Wholesale-related (b) Real Estate 147,483 120,241 1,491 25,751 150,919 117,709 619 32,591 Individuals and Individual Entities (c) 115,469 102,315 1,744 11,410 105,027 94,616 694 9,717 Consumer & Retail 107,037 41,461 2,802 62,774 106,986 36,985 1,424 68,577 Industrials 68,950 23,247 1,570 44,133 62,483 22,063 878 39,542 Technology, Media & 64,800 15,054 3,294 46,452 60,033 15,322 2,766 41,945 Asset Managers 61,569 26,167 8,758 26,644 54,304 24,008 7,160 23,136 Healthcare 59,864 20,617 3,430 35,817 50,824 17,607 2,078 31,139 Banks & Finance Cos 53,385 28,953 7,206 17,226 50,786 31,191 5,165 14,430 Automotive 40,930 16,819 3,453 20,658 35,118 18,844 368 15,906 Oil & Gas 40,431 12,920 1,340 26,171 41,641 13,101 852 27,688 State & Municipal Govt (d) 37,472 17,245 2,435 17,792 30,095 13,271 2,000 14,824 Utilities 30,135 5,213 3,104 21,818 34,843 5,157 2,573 27,113 Transportation 17,154 7,689 1,713 7,752 14,497 5,253 715 8,529 Chemicals & Plastics 16,780 4,577 755 11,448 17,499 4,864 459 12,176 Central Govt 16,265 3,016 11,693 1,556 14,865 2,840 10,477 1,548 Metals & Mining 15,900 4,959 739 10,202 15,586 5,364 402 9,820 Insurance 13,509 1,215 2,741 9,553 12,348 1,356 2,282 8,710 Financial Markets Infrastructure 10,311 177 6,376 3,758 4,121 13 2,482 1,626 Securities Firms 8,092 599 4,865 2,628 7,381 757 4,507 2,117 All other (e) 93,166 48,357 7,117 37,692 79,598 51,357 1,865 26,376 Subtotal 1,018,702 500,841 76,626 441,235 948,954 481,678 49,766 417,510 Loans held-for-sale and loans at fair value 26,424 26,424 — — 29,201 29,201 — — Receivables from customers and other (f) 30,847 — — — 33,706 — — — Total wholesale-related 1,075,973 527,265 76,626 441,235 1,011,861 510,879 49,766 417,510 Total exposure (g)(h) $ 2,247,733 $ 989,740 $ 76,626 $ 1,150,520 $ 2,189,491 $ 997,620 $ 49,766 $ 1,108,399 (a) Also includes commercial card lending-related commitments primarily in CB and CIB. (b) The industry rankings presented in the table as of December 31, 2019, are based on the industry rankings of the corresponding exposures at September 30, 2020, not actual rankings of such exposures at December 31, 2019. (c) Individuals and Individual Entities predominantly consists of Wealth Management clients within AWM and includes exposure to personal investment companies and personal and testamentary trusts. (d) In addition to the credit risk exposure to states and municipal governments (both U.S. and non-U.S.) at September 30, 2020, and December 31, 2019, noted above, the Firm held: $7.5 billion and $6.5 billion , respectively, of trading assets; $20.9 billion and $29.8 billion, respectively, of AFS securities; and $12.8 billion and $4.8 billion, respectively, of HTM securities, issued by U.S. state and municipal governments. Refer to Note 2 and Note 10 for further information. (e) All other includes: SPEs and Private education and civic organizations, representing approximately 91% and 9% , respectively, at September 30, 2020, and 90% and 10%, respectively, at December 31, 2019. Refer to Note 14 for more information on exposures to SPEs. (f) Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB and AWM that are collateralized by assets maintained in the clients’ brokerage accounts (e.g., cash on deposit, liquid and readily marketable debt or equity securities), as such generally no allowance for credit losses is held against these receivables. To manage its credit risk the Firm establishes margin requirements and monitors the required margin levels on an ongoing basis, and requires clients to deposit additional cash or other collateral, or to reduce positions, when appropriate. These receivables are reported within accrued interest and accounts receivable on the Firm’s Consolidated balance sheets. (g) Excludes cash placed with banks of $478.4 billion and $254.0 billion, at September 30, 2020, and December 31, 2019, respectively, which is predominantly placed with various central banks, primarily Federal Reserve Banks. (h) 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 collateral held against derivative receivables. (i) In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans. Prior-period amounts have been revised to conform with the current presentation. (j) At September 30, 2020, included $20.3 billion of loans in Business Banking under the PPP. PPP loans are guaranteed by the SBA. Other than in certain limited circumstances, the Firm typically does not recognize charge-offs, classify as nonaccrual nor record an allowance for loan losses on these loans. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative instruments JPMorgan Chase makes markets in derivatives for clients and also uses derivatives to hedge or manage its own risk exposures. Refer to Note 5 of JPMorgan Chase’s 2019 Form 10-K for a further discussion of the Firm’s use of and accounting policies regarding derivative instruments. The Firm’s disclosures are based on the accounting treatment and purpose of these derivatives. A limited number of the Firm’s derivatives are designated in hedge accounting relationships and are disclosed according to the type of hedge (fair value hedge, cash flow hedge, or net investment hedge). Derivatives not designated in hedge accounting relationships include certain derivatives that are used to manage risks associated with specified assets and liabilities (“specified risk management” positions) as well as derivatives used in the Firm’s market-making businesses or for other purposes. The following table outlines the Firm’s primary uses of derivatives and the related hedge accounting designation or disclosure category. Type of Derivative Use of Derivative Designation and disclosure Affected 10-Q page reference Manage specifically identified risk exposures in qualifying hedge accounting relationships: • Interest rate Hedge fixed rate assets and liabilities Fair value hedge Corporate 127-128 • Interest rate Hedge floating-rate assets and liabilities Cash flow hedge Corporate 129 • Foreign exchange Hedge foreign currency-denominated assets and liabilities Fair value hedge Corporate 127-128 • Foreign exchange Hedge foreign currency-denominated forecasted revenue and expense Cash flow hedge Corporate 129 • Foreign exchange Hedge the value of the Firm’s investments in non-U.S. dollar functional currency entities Net investment hedge Corporate 130 • Commodity Hedge commodity inventory Fair value hedge CIB 127-128 Manage specifically identified risk exposures not designated in qualifying hedge accounting relationships: • Interest rate Manage the risk associated with mortgage commitments, warehouse loans and MSRs Specified risk management CCB 130 • Credit Manage the credit risk associated with wholesale lending exposures Specified risk management CIB 130 • Interest rate and foreign exchange Manage the risk associated with certain other specified assets and liabilities Specified risk management Corporate 130 Market-making derivatives and other activities: • Various Market-making and related risk management Market-making and other CIB 130 • Various Other derivatives Market-making and other CIB, AWM, Corporate 130 Notional amount of derivative contracts The following table summarizes the notional amount of derivative contracts outstanding as of September 30, 2020, and December 31, 2019. Notional amounts (b) (in billions) September 30, 2020 December 31, 2019 Interest rate contracts Swaps $ 22,746 $ 21,228 Futures and forwards 4,086 3,152 Written options 3,512 3,938 Purchased options 3,875 4,361 Total interest rate contracts 34,219 32,679 Credit derivatives (a) 1,450 1,242 Foreign exchange contracts Cross-currency swaps 3,852 3,604 Spot, futures and forwards 7,304 5,577 Written options 810 700 Purchased options 815 718 Total foreign exchange contracts 12,781 10,599 Equity contracts Swaps 416 406 Futures and forwards 130 142 Written options 752 646 Purchased options 714 611 Total equity contracts 2,012 1,805 Commodity contracts Swaps 134 147 Spot, futures and forwards 219 211 Written options 138 135 Purchased options 125 124 Total commodity contracts 616 617 Total derivative notional amounts $ 51,078 $ 46,942 (a) Refer to the Credit derivatives discussion on page 131 for more information on volumes and types of credit derivative contracts. (b) Represents the sum of gross long and gross short third-party notional derivative contracts. 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 September 30, 2020, and December 31, 2019, by accounting designation (e.g., whether the derivatives were designated in qualifying hedge accounting relationships or not) and contract type. Free-standing derivative receivables and payables (a) Gross derivative receivables Gross derivative payables September 30, 2020 Not designated as hedges Designated as hedges Total derivative receivables Net derivative receivables (b) Not designated as hedges Designated Total derivative payables Net derivative payables (b) Trading assets and liabilities Interest rate $ 397,677 $ 802 $ 398,479 $ 37,058 $ 359,357 $ — $ 359,357 $ 12,471 Credit 15,144 — 15,144 1,393 16,417 — 16,417 2,242 Foreign exchange 155,016 472 155,488 11,428 164,434 784 165,218 15,513 Equity 73,535 — 73,535 18,936 73,932 — 73,932 19,356 Commodity 21,633 623 22,256 7,811 21,831 1,017 22,848 8,076 Total fair value of trading assets and liabilities $ 663,005 $ 1,897 $ 664,902 $ 76,626 $ 635,971 $ 1,801 $ 637,772 $ 57,658 Gross derivative receivables Gross derivative payables December 31, 2019 Not designated as hedges Designated as hedges Total derivative receivables Net derivative receivables (b) Not designated as hedges Designated Total derivative payables Net derivative payables (b) Trading assets and liabilities Interest rate $ 312,451 $ 843 $ 313,294 $ 27,421 $ 279,272 $ 1 $ 279,273 $ 8,603 Credit 14,876 — 14,876 701 15,121 — 15,121 1,652 Foreign exchange 138,179 308 138,487 9,005 144,125 983 145,108 13,158 Equity 45,727 — 45,727 6,477 52,741 — 52,741 12,537 Commodity 16,914 328 17,242 6,162 19,736 149 19,885 7,758 Total fair value of trading assets and liabilities $ 528,147 $ 1,479 $ 529,626 $ 49,766 $ 510,995 $ 1,133 $ 512,128 $ 43,708 (a) Balances exclude structured notes for which the fair value option has been elected. Refer to Note 3 for further information. (b) As permitted under U.S. GAAP, the Firm has elected to net derivative receivables and derivative payables and the related cash collateral receivables and payables when a legally enforceable master netting agreement exists. Derivatives netting The following tables present, as of September 30, 2020, and December 31, 2019, 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. September 30, 2020 December 31, 2019 (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”) $ 376,615 $ (345,771) $ 30,844 $ 299,205 $ (276,255) $ 22,950 OTC–cleared 15,121 (14,984) 137 9,442 (9,360) 82 Exchange-traded (a) 673 (666) 7 347 (258) 89 Total interest rate contracts 392,409 (361,421) 30,988 308,994 (285,873) 23,121 Credit contracts: OTC 10,710 (9,913) 797 10,743 (10,317) 426 OTC–cleared 3,856 (3,838) 18 3,864 (3,858) 6 Total credit contracts 14,566 (13,751) 815 14,607 (14,175) 432 Foreign exchange contracts: OTC 151,749 (143,538) 8,211 136,252 (129,324) 6,928 OTC–cleared 538 (521) 17 185 (152) 33 Exchange-traded (a) 17 (1) 16 10 (6) 4 Total foreign exchange contracts 152,304 (144,060) 8,244 136,447 (129,482) 6,965 Equity contracts: OTC 31,974 (25,914) 6,060 23,106 (20,820) 2,286 Exchange-traded (a) 33,230 (28,685) 4,545 19,654 (18,430) 1,224 Total equity contracts 65,204 (54,599) 10,605 42,760 (39,250) 3,510 Commodity contracts: OTC 11,812 (8,395) 3,417 7,093 (5,149) 1,944 OTC–cleared 22 (22) — 28 (28) — Exchange-traded (a) 6,317 (6,028) 289 6,154 (5,903) 251 Total commodity contracts 18,151 (14,445) 3,706 13,275 (11,080) 2,195 Derivative receivables with appropriate legal opinion 642,634 (588,276) 54,358 (d) 516,083 (479,860) 36,223 (d) Derivative receivables where an appropriate legal opinion has not been either sought or obtained 22,268 22,268 13,543 13,543 Total derivative receivables recognized on the Consolidated balance sheets $ 664,902 $ 76,626 $ 529,626 $ 49,766 Collateral not nettable on the Consolidated balance sheets (b)(c) (17,742) (14,226) Net amounts $ 58,884 $ 35,540 September 30, 2020 December 31, 2019 (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 $ 340,775 $ (330,136) $ 10,639 $ 267,311 $ (260,229) $ 7,082 OTC–cleared 16,396 (16,172) 224 10,217 (10,138) 79 Exchange-traded (a) 584 (578) 6 365 (303) 62 Total interest rate contracts 357,755 (346,886) 10,869 277,893 (270,670) 7,223 Credit contracts: OTC 11,855 (10,369) 1,486 11,570 (10,080) 1,490 OTC–cleared 3,815 (3,806) 9 3,390 (3,389) 1 Total credit contracts 15,670 (14,175) 1,495 14,960 (13,469) 1,491 Foreign exchange contracts: OTC 161,052 (149,114) 11,938 142,360 (131,792) 10,568 OTC–cleared 596 (587) 9 186 (152) 34 Exchange-traded (a) 17 (4) 13 12 (6) 6 Total foreign exchange contracts 161,665 (149,705) 11,960 142,558 (131,950) 10,608 Equity contracts: OTC 31,055 (25,921) 5,134 27,594 (21,778) 5,816 Exchange-traded (a) 32,508 (28,655) 3,853 20,216 (18,426) 1,790 Total equity contracts 63,563 (54,576) 8,987 47,810 (40,204) 7,606 Commodity contracts: OTC 11,868 (8,590) 3,278 8,714 (6,235) 2,479 OTC–cleared 39 (39) — 30 (30) — Exchange-traded (a) 6,201 (6,143) 58 6,012 (5,862) 150 Total commodity contracts 18,108 (14,772) 3,336 14,756 (12,127) 2,629 Derivative payables with appropriate legal opinion 616,761 (580,114) 36,647 (d) 497,977 (468,420) 29,557 (d) Derivative payables where an appropriate legal opinion has not been either sought or obtained 21,011 21,011 14,151 14,151 Total derivative payables recognized on the Consolidated balance sheets $ 637,772 $ 57,658 $ 512,128 $ 43,708 Collateral not nettable on the Consolidated balance sheets (b)(c) (11,359) (7,896) Net amounts $ 46,299 $ 35,812 (a) Exchange-traded derivative balances that relate to futures contracts are settled daily. (b) 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. (c) Derivative collateral relates only to OTC and OTC-cleared derivative instruments. (d) Net derivatives receivable included cash collateral netted of $80.1 billion and $65.9 billion at September 30, 2020, and December 31, 2019, respectively. Net derivatives payable included cash collateral netted of $71.9 billion and $54.4 billion at September 30, 2020, and December 31, 2019, respectively. Derivative cash collateral relates to OTC and OTC-cleared derivative instruments. Liquidity risk and credit-related contingent features Refer to Note 5 of JPMorgan Chase’s 2019 Form 10-K for a more detailed discussion of liquidity risk and credit-related contingent features related to the Firm’s derivative contracts. The following table shows the aggregate fair value of net derivative payables related to OTC and OTC-cleared derivatives that contain contingent collateral or termination features that may be triggered upon a ratings downgrade, and the associated collateral the Firm has posted in the normal course of business, at September 30, 2020, and December 31, 2019. OTC and OTC-cleared derivative payables containing downgrade triggers (in millions) September 30, 2020 December 31, 2019 Aggregate fair value of net derivative payables $ 25,629 $ 14,819 Collateral posted 24,299 13,329 The following table shows the impact of a single-notch and two-notch downgrade of the long-term issuer ratings of JPMorgan Chase & Co. and its subsidiaries, predominantly JPMorgan Chase Bank, N.A., at September 30, 2020, and December 31, 2019, 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 September 30, 2020 December 31, 2019 (in millions) Single-notch downgrade Two-notch downgrade Single-notch downgrade Two-notch downgrade Amount of additional collateral to be posted upon downgrade (a) $ 163 $ 1,273 $ 189 $ 1,467 Amount required to settle contracts with termination triggers upon downgrade (b) 158 1,977 104 1,398 (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. The amount of such transfers accounted for as a sale where the associated derivative was outstanding was not material at September 30, 2020 and December 31, 2019. Impact of derivatives on the Consolidated statements of income The following tables provide information related to gains and losses recorded on derivatives based on their hedge accounting designation or purpose. Fair value hedge gains and losses The following tables present derivative instruments, by contract type, used in fair value hedge accounting relationships, as well as pre-tax gains/(losses) recorded on such derivatives and the related hedged items for the three and nine months ended September 30, 2020 and 2019, respectively. The Firm includes gains/(losses) on the hedging derivative in the same line item in the Consolidated statements of income as the related hedged item. Gains/(losses) recorded in income Income statement impact of (e) OCI impact Three months ended September 30, 2020 Derivatives Hedged items Income statement impact Amortization approach Changes in fair value Derivatives - Gains/(losses) recorded in OCI (f) Contract type Interest rate (a)(b) $ (464) $ 743 $ 279 $ — $ 309 $ — Foreign exchange (c) 307 (280) 27 (79) 27 (91) Commodity (d) (569) 593 24 — 14 — Total $ (726) $ 1,056 $ 330 $ (79) $ 350 $ (91) Gains/(losses) recorded in income Income statement impact of excluded components (e) OCI impact Three months ended September 30, 2019 Derivatives Hedged items Income statement impact Amortization approach Changes in fair value Derivatives - Gains/(losses) recorded in OCI (f) Contract type Interest rate (a)(b) $ 1,770 $ (1,550) $ 220 $ — $ 228 $ — Foreign exchange (c) (167) 293 126 (224) 126 (1) Commodity (d) 278 (232) 46 — 49 — Total $ 1,881 $ (1,489) $ 392 $ (224) $ 403 $ (1) Gains/(losses) recorded in income Income statement impact of excluded components (e) OCI impact Nine months ended September 30, 2020 Derivatives Hedged items Income statement impact Amortization approach Changes in fair value Derivatives - Gains/(losses) recorded in OCI (f) Contract type Interest rate (a)(b) $ 4,087 $ (3,333) $ 754 $ — $ 728 $ — Foreign exchange (c) 579 (430) 149 (379) 149 45 Commodity (d) (771) 882 111 — 107 — Total $ 3,895 $ (2,881) $ 1,014 $ (379) $ 984 $ 45 Gains/(losses) recorded in income Income statement impact of excluded components (e) OCI impact Nine months ended September 30, 2019 Derivatives Hedged items Income statement impact Amortization approach Changes in fair value Derivatives - Gains/(losses) recorded in OCI (f) Contract type Interest rate (a)(b) $ 4,996 $ (4,399) $ 597 $ — $ 596 $ — Foreign exchange (c) (31) 401 370 (675) 370 114 Commodity (d) (164) 237 73 — 67 — Total $ 4,801 $ (3,761) $ 1,040 $ (675) $ 1,033 $ 114 (a) Primarily consists of hedges of the benchmark (e.g., London Interbank Offered Rate (“LIBOR”)) interest rate risk of fixed-rate long-term debt and AFS securities. Gains and losses were recorded in net interest income. (b) Excludes the amortization expense associated with the inception hedge accounting adjustment applied to the hedged item. This expense is recorded in net interest income and substantially offsets the income statement impact of the excluded components. Also excludes the accrual of interest on interest rate swaps and the related hedged items. (c) Primarily consists of hedges of the foreign currency risk of long-term debt and AFS securities for changes in spot foreign currency rates. Gains and losses related to the derivatives and the hedged items due to changes in foreign currency rates and the income statement impact of excluded components were recorded primarily in principal transactions revenue and net interest income. (d) Consists of overall fair value hedges of physical commodities inventories that are generally carried at the lower of cost or net realizable value (net realizable value approximates fair value). Gains and losses were recorded in principal transactions revenue. (e) The assessment of hedge effectiveness excludes certain components of the changes in fair values of the derivatives and hedged items such as forward points on foreign exchange forward contracts, time values and cross-currency basis spreads. Excluded components may impact earnings either through amortization of the initial amount over the life of the derivative, or through fair value changes recognized in the current period. (f) Represents the change in value of amounts excluded from the assessment of effectiveness under the amortization approach, predominantly cross-currency basis spreads. The amount excluded at inception of the hedge is recognized in earnings over the life of the derivative. As of September 30, 2020 and December 31, 2019, the following amounts were recorded on the Consolidated balance sheets related to certain cumulative fair value hedge basis adjustments that are expected to reverse through the income statement in future periods as an adjustment to yield. Carrying amount of the hedged items (a)(b) Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items: September 30, 2020 Active hedging relationships Discontinued hedging relationships (d)(e) Total Assets Investment securities - AFS $ 136,335 (c) $ 5,171 $ 800 $ 5,971 Liabilities Long-term debt $ 173,402 $ 5,324 $ 11,790 $ 17,114 Beneficial interests issued by consolidated VIEs 746 — (3) (3) Carrying amount of the hedged items (a)(b) Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items: December 31, 2019 Active hedging relationships Discontinued hedging relationships (d)(e) Total Assets Investment securities - AFS $ 125,860 (c) $ 2,110 $ 278 $ 2,388 Liabilities Long-term debt $ 157,545 $ 6,719 $ 161 $ 6,880 Beneficial interests issued by consolidated VIEs 2,365 — (8) (8) (a) Excludes physical commodities with a carrying value of $9.5 billion and $6.5 billion at September 30, 2020 and December 31, 2019, respectively, to which the Firm applies fair value hedge accounting. As a result of the application of hedge accounting, these inventories are carried at fair value, thus recognizing unrealized gains and losses in current periods. Since the Firm exits these positions at fair value, there is no incremental impact to net income in future periods. (b) Excludes hedged items where only foreign currency risk is the designated hedged risk, as basis adjustments related to foreign currency hedges will not reverse through the income statement in future periods. At September 30, 2020 and December 31, 2019, the carrying amount excluded for AFS securities is $14.4 billion and $14.9 billion, respectively, and for long-term debt is $6.4 billion and $2.8 billion, respectively. (c) Carrying amount represents the amortized cost. (d) Represents basis adjustments existing on the balance sheet date associated with hedged items that have been de-designated from qualifying fair value hedging relationships. (e) Positive amounts related to assets represent cumulative fair value hedge basis adjustments that will reduce net interest income in future periods. Positive (negative) amounts related to liabilities represent cumulative fair value hedge basis adjustments that will increase (reduce) net interest income in future periods. Cash flow hedge gains and losses The following tables present derivative instruments, by contract type, used in cash flow hedge accounting relationships, and the pre-tax gains/(losses) recorded on such derivatives, for the three and nine months ended September 30, 2020 and 2019, respectively. The Firm includes the gain/(loss) on the hedging derivative in the same line item in the Consolidated statements of income as the change in cash flows on the related hedged item. Derivatives gains/(losses) recorded in income and other comprehensive income/(loss) Three months ended September 30, 2020 Amounts reclassified Amounts recorded Total change Contract type Interest rate (a) $ 214 $ 8 $ (206) Foreign exchange (b) 13 126 113 Total $ 227 $ 134 $ (93) Derivatives gains/(losses) recorded in income and other comprehensive income/(loss) Three months ended September 30, 2019 Amounts reclassified Amounts recorded Total change in OCI for period Contract type Interest rate (a) $ (16) $ 290 $ 306 Foreign exchange (b) (21) (68) (47) Total $ (37) $ 222 $ 259 Derivatives gains/(losses) recorded in income and other comprehensive income/(loss) Nine months ended September 30, 2020 Amounts reclassified Amounts recorded Total change Contract type Interest rate (a) $ 332 $ 3,881 $ 3,549 Foreign exchange (b) (4) (94) (90) Total $ 328 $ 3,787 $ 3,459 Derivatives gains/(losses) recorded in income and other comprehensive income/(loss) Nine months ended September 30, 2019 Amounts reclassified Amounts recorded Total change Contract type Interest rate (a) $ (12) $ 501 $ 513 Foreign exchange (b) (90) (37) 53 Total $ (102) $ 464 $ 566 (a) Primarily consists of hedges of LIBOR-indexed floating-rate assets and floating-rate liabilities. Gains and losses were recorded in net interest income. (b) Primarily consists of hedges of the foreign currency risk of non-U.S. dollar-denominated revenue and expense. The income statement classification of gains and losses follows the hedged item – primarily noninterest revenue and compensation expense. The Firm did not experience any forecasted transactions that failed to occur for the three and nine months ended September 30, 2020 and 2019. Over the next 12 months, the Firm expects that approximately $709 million (after-tax) of net gains recorded in AOCI at September 30, 2020, related to cash flow hedges will be recognized in income. For cash flow hedges that have been terminated, the maximum length of time over which the derivative results recorded in AOCI will be recognized in earnings is approximately nine years, corresponding to the timing of the originally hedged forecasted cash flows. For open cash flow hedges, the maximum length of time over which forecasted transactions are hedged is approximately seven years. The Firm’s longer-dated forecasted transactions relate to core lending and borrowing activities. Net investment hedge gains and losses The following table presents hedging instruments, by contract type, that were used in net investment hedge accounting relationships, and the pre-tax gains/(losses) recorded on such instruments for the three and nine months ended September 30, 2020 and 2019. Gains/(losses) recorded in income and other comprehensive income/(loss) 2020 2019 Three months ended September 30, Amounts recorded in income (a)(b) Amounts recorded in OCI Amounts recorded in income (a)(b) Amounts recorded in OCI Foreign exchange derivatives $ (37) $ (868) $ 17 $ 866 Gains/(losses) recorded in income and other comprehensive income/(loss) 2020 2019 Nine months ended September 30, Amounts recorded in income (a)(b) Amounts recorded in OCI Amounts recorded in income (a)(b) Amounts recorded in OCI Foreign exchange derivatives $ (108) $ 308 $ 65 $ 705 (a) Certain components of hedging derivatives are permitted to be excluded from the assessment of hedge effectiveness, such as forward points on foreign exchange forward contracts. The Firm elects to record changes in fair value of these amounts directly in other income. (b) Excludes amounts reclassified from AOCI to income on the sale or liquidation of hedged entities. During the nine months ended September 30, 2020, the Firm reclassified pre-tax (losses) of $(8) million to other income related to the liquidation of certain legal entities and the amount was not material for the three months ended September 30, 2020. During the nine months ended September 30, 2019, the Firm reclassified net pre-tax gains of $5 million to other income related to the liquidation of certain legal entities. Refer to Note 20 for further information. Gains and losses on derivatives used for specified risk management purposes The following table presents pre-tax gains/(losses) recorded on a limited number of derivatives, not designated in hedge accounting relationships, that are used to manage risks associated with certain specified assets and liabilities, including certain risks arising from mortgage commitments, warehouse loans, MSRs, wholesale lending exposures, and foreign currency-denominated assets and liabilities. Derivatives gains/(losses) Three months ended September 30, Nine months ended September 30, (in millions) 2020 2019 2020 2019 Contract type Interest rate (a) $ 597 $ 769 $ 2,533 $ 1,718 Credit (b) (19) (21) (58) (33) Foreign exchange (c) 18 40 96 15 Total $ 596 $ 788 $ 2,571 $ 1,700 (a) Primarily represents interest rate derivatives used to hedge the interest rate risk inherent in mortgage commitments, warehouse loans and MSRs, as well as written commitments to originate warehouse loans. Gains and losses were recorded predominantly in mortgage fees and related income. (b) Relates to credit derivatives used to mitigate credit risk associated with lending exposures in the Firm’s wholesale businesses. These derivatives do not include credit derivatives used to mitigate counterparty credit risk arising from derivative receivables, which is included in gains and losses on derivatives related to market-making activities and other derivatives. Gains and losses were recorded in principal transactions revenue. (c) Primarily relates to derivatives used to mitigate foreign exchange risk of specified foreign currency-denominated assets and liabilities. Gains and losses were recorded in principal transactions revenue. Credit derivatives Refer to Note 5 of JPMorgan Chase’s 2019 Form 10-K for a more detailed discussion of credit derivatives. The following tables present a summary of the notional amounts of credit derivatives and credit-related notes the Firm sold and purchased as of September 30, 2020 and December 31, 2019. The Firm does not use notional amounts of credit derivatives as the primary measure of risk management for such derivatives, because the notional amount does not take into account the probability of the occurrence of a credit event, the recovery value of the reference obligation, or related cash instruments and economic hedges, each of which reduces, in the Firm’s view, the risks associated with such derivatives. Total credit derivatives and credit-related notes Maximum payout/Notional amount September 30, 2020 (in millions) Protection sold Protection purchased with identical underlyings (b) Net protection (sold)/purchased (c) Other protection purchased (d) Credit derivatives Credit default swaps $ (655,517) $ 671,373 $ 15,856 $ 3,847 Other credit derivatives (a) (45,964) 63,025 17,061 10,197 Total credit derivatives (701,481) 734,398 32,917 14,044 Credit-related notes — — — 9,452 Total $ (701,481) $ 734,398 $ 32,917 $ 23,496 Maximum payout/Notional amount December 31, 2019 (in millions) Protection sold Protection purchased with identical underlyings (b) Net protection (sold)/purchased (c) Other protection purchased (d) Credit derivatives Credit default swaps $ (562,338) $ 571,892 $ 9,554 $ 3,936 Other credit derivatives (a) (50,395) (e) 46,541 (e) (3,854) 7,364 Total credit derivatives (612,733) 618,433 5,700 11,300 Credit-related notes — — — 9,606 Total $ (612,733) $ 618,433 $ 5,700 $ 20,906 (a) Other credit derivatives predominantly consist of credit swap options and total return swaps. (b) Represents the total notional amount of protection purchased where the underlying reference instrument is identical to the reference instrument on protection sold; the notional amount of protection purchased for each individual identical underlying reference instrument may be greater or lower than the notional amount of protection sold. (c) Does not take into account the fair value of the reference obligation at the time of settlement, which would generally reduce the amount the seller of protection pays to the buyer of protection in determining settlement value. (d) Represents protection purchased by the Firm on referenced instruments (single-name, portfolio or index) where the Firm has not sold any protection on the identical reference instrument. (e) Prior-period amounts have been revised to conform with the current presentation. The following tables summarize the notional amounts by the ratings, maturity profile, and total fair value, of credit derivatives and credit-related notes as of September 30, 2020, and December 31, 2019, 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 September 30, 2020 <1 year 1–5 years >5 |
Noninterest Revenue and Noninte
Noninterest Revenue and Noninterest Expense | 9 Months Ended |
Sep. 30, 2020 | |
Noninterest Income (Expense) [Abstract] | |
Noninterest Revenue and Noninterest Expense | Noninterest revenue and noninterest expense Noninterest revenue Refer to Note 6 of JPMorgan Chase’s 2019 Form 10-K for a discussion of the components of and accounting policies for the Firm’s noninterest revenue. Investment banking fees The following table presents the components of investment banking fees. Three months ended September 30, Nine months ended September 30, (in millions) 2020 2019 2020 2019 Underwriting Equity $ 736 $ 517 $ 2,037 $ 1,293 Debt 1,019 955 3,342 2,720 Total underwriting 1,755 1,472 5,379 4,013 Advisory 432 495 1,524 1,645 Total investment banking fees $ 2,187 $ 1,967 $ 6,903 $ 5,658 Principal transactions The following table presents all realized and unrealized gains and losses recorded in principal transactions revenue. This table excludes interest income and interest expense on trading assets and liabilities, which are an integral part of the overall performance of the Firm’s client-driven market-making activities in CIB and cash deployment activities in Treasury and CIO. Refer to 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 LOB. Three months ended September 30, Nine months ended September 30, (in millions) 2020 2019 2020 2019 Trading revenue by instrument type Interest rate (a) $ 287 $ 866 (d) $ 2,258 $ 2,128 (d) Credit (b) 950 (c) 309 (d) 2,201 (c) 1,402 (d) Foreign exchange 714 876 (d) 3,606 2,501 (d) Equity 1,410 1,007 (d) 4,816 4,282 (d) Commodity 747 372 (d) 1,775 984 (d) Total trading 4,108 3,430 14,656 11,297 Private equity gains/(losses) 34 19 44 (58) Principal transactions $ 4,142 $ 3,449 $ 14,700 $ 11,239 (a) Includes the impact of changes in funding valuation adjustments on derivatives. (b) Includes the impact of changes in credit valuation adjustments on derivatives, net of the associated hedging activities. (c) Includes marks on held-for-sale positions, including unfunded commitments, in the bridge financing portfolio. (d) Prior-period amounts were revised to conform with the current presentation. Lending- and deposit-related fees The following table presents the components of lending- and deposit-related fees. Three months ended September 30, Nine months ended September 30, (in millions) 2020 2019 2020 2019 Lending-related fees $ 337 $ 286 $ 916 $ 861 Deposit-related fees (a) 1,310 1,385 3,868 3,993 Total lending- and deposit-related fees $ 1,647 $ 1,671 $ 4,784 $ 4,854 (a) In the first quarter of 2020, the Firm reclassified certain fees from asset management, administration and commissions to lending- and deposit-related fees. Prior-period amounts have been revised to conform with the current presentation. Asset management, administration and commissions The following table presents the components of asset management, administration and commissions. Three months ended September 30, Nine months ended September 30, (in millions) 2020 2019 2020 2019 Asset management fees Investment management fees (a) $ 2,937 $ 2,738 $ 8,439 $ 8,013 All other asset management fees (b) 85 82 253 229 Total asset management fees 3,022 2,820 8,692 8,242 Total administration fees (c) 561 567 1,661 1,646 Commissions and other fees Brokerage commissions (d) 645 634 2,224 1,861 All other commissions and fees (e) 242 285 699 858 Total commissions and fees 887 919 2,923 2,719 Total asset management, administration and commissions $ 4,470 $ 4,306 $ 13,276 $ 12,607 (a) Represents fees earned from managing assets on behalf of the Firm’s clients, including investors in Firm-sponsored funds and owners of separately managed investment accounts. (b) Represents fees for services that are ancillary to investment management services, such as commissions earned on the sales or distribution of mutual funds to clients. (c) Predominantly includes fees for custody, securities lending, funds services and securities clearance. (d) Represents commissions earned when the Firm acts as a broker, by facilitating its clients’ purchases and sales of securities and other financial instruments. (e) In the first quarter of 2020, the Firm reclassified certain fees from asset management, administration and commissions to lending- and deposit-related fees. Prior-period amounts have been revised to conform with the current presentation. Card income The following table presents the components of card income: Three months ended September 30, Nine months ended September 30, (in millions) 2020 2019 2020 2019 Interchange and merchant processing income $ 4,757 $ 5,127 $ 13,479 $ 15,032 Rewards costs and partner payments (a) (3,497) (3,719) (9,895) (10,697) Other card income (b) (91) (175) (446) (594) Total card income $ 1,169 $ 1,233 $ 3,138 $ 3,741 (a) In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation. (b) Predominantly represents the amortization of account origination costs and annual fees. Refer to Note 15 Goodwill and MSRs for information on mortgage fees and related income. Refer to Note 17 for information on operating lease income included within other income. Noninterest expense Other expense Other expense on the Firm’s Consolidated statements of income included the following: Three months ended September 30, Nine months ended September 30, (in millions) 2020 2019 2020 2019 Legal expense/(benefit) $ 524 $ 10 $ 839 $ (2) FDIC-related expense 186 114 503 378 |
Interest Income and Interest Ex
Interest Income and Interest Expense | 9 Months Ended |
Sep. 30, 2020 | |
Interest Income (Expense), Net [Abstract] | |
Interest Income and Interest Expense | Interest income and Interest expense Refer to Note 7 of JPMorgan Chase’s 2019 Form 10-K for a description of JPMorgan Chase’s accounting policies regarding interest income and interest expense. The following table presents the components of interest income and interest expense. Three months ended Nine months ended (in millions) 2020 2019 2020 2019 Interest income Loans (a)(b) $ 10,215 $ 12,977 $ 33,409 $ 39,269 Taxable securities 1,816 2,132 6,203 5,712 Non-taxable securities (c) 294 318 901 1,021 Total investment securities (a) 2,110 2,450 7,104 6,733 Trading assets - debt instruments (b) 1,850 2,216 5,980 7,123 Federal funds sold and securities purchased under resale agreements 401 1,542 2,097 4,865 Securities borrowed (d) (128) 434 (151) 1,298 Deposits with banks 69 898 708 3,200 All other interest-earning assets (b)(e) 183 604 826 1,625 Total interest income 14,700 21,121 49,973 64,113 Interest expense Interest-bearing deposits 245 2,409 2,169 7,010 Federal funds purchased and securities loaned or sold under repurchase agreements 105 1,241 1,023 3,577 Short-term borrowings (f) 60 261 335 1,051 Trading liabilities – debt and all other interest-bearing liabilities (d)(g) (51) 660 278 2,141 Long-term debt 1,293 2,188 4,679 6,796 Beneficial interest issued by consolidated VIEs 35 134 184 459 Total interest expense 1,687 6,893 8,668 21,034 Net interest income 13,013 14,228 41,305 43,079 Provision for credit losses 611 1,514 19,369 4,158 Net interest income after provision for credit losses $ 12,402 $ 12,714 $ 21,936 $ 38,921 (a) Includes the amortization/accretion of unearned income (e.g., purchase premiums/discounts, net deferred fees/costs, etc.). (b) In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans and other assets. Prior-period amounts have been revised to conform with the current presentation. (c) Represents securities which are tax-exempt for U.S. federal income tax purposes. (d) Negative interest income is related to the impact of current interest rates combined with the fees paid on client-driven securities borrowed balances. The negative interest expense related to prime brokerage customer payables is recognized in interest expense and reported within trading liabilities - debt and all other interest-bearing liabilities. (e) Includes interest earned on prime brokerage-related held-for-investment customer receivables, which are classified in accrued interest and accounts receivable, and all other interest-earning assets which are classified in other assets on the Consolidated balance sheets. (f) Includes commercial paper. (g) Other interest-bearing liabilities includes interest expense on prime brokerage-related customer payables. |
Pension and Other Postretiremen
Pension and Other Postretirement Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Employee Benefit Plans | Pension and other postretirement employee benefit plansRefer to Note 8 of JPMorgan Chase’s 2019 Form 10-K for a discussion of JPMorgan Chase’s pension and OPEB plans. The following table presents the components of net periodic benefit costs reported in the Consolidated statements of income for the Firm’s U.S. and non-U.S. defined benefit pension, defined contribution and OPEB plans. (in millions) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 2020 2019 2020 2019 Pension plans OPEB plans Pension plans OPEB plans Components of net periodic benefit cost Benefits earned during the period $ 9 $ 88 $ — $ — $ 25 $ 266 $ — $ — Interest cost on benefit obligations 120 148 5 6 360 447 15 18 Expected return on plan assets (192) (227) (28) (28) (575) (686) (83) (84) Amortization: Net (gain)/loss 4 42 — — 11 125 — — Prior service (credit)/cost — — — — 2 2 — — Net periodic defined benefit (credit)/cost (59) 51 (23) (22) (177) 154 (68) (66) Other defined benefit pension plans (a) 8 7 NA NA 27 20 NA NA Total defined benefit plans (51) 58 (23) (22) (150) 174 (68) (66) Total defined contribution plans 340 255 NA NA 960 718 NA NA Total pension and OPEB cost included in noninterest expense $ 289 $ 313 $ (23) $ (22) $ 810 $ 892 $ (68) $ (66) (a) Includes various defined benefit pension plans which are individually immaterial. The following table presents the fair values of plan assets for the U.S. defined benefit pension and OPEB plans and for the material non-U.S. defined benefit pension plans. (in billions) September 30, December 31, 2019 Fair value of plan assets Defined benefit pension plans $ 21.1 $ 20.4 OPEB plans 3.1 3.0 |
Employee Share-based Incentives
Employee Share-based Incentives | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Employee Share-based Incentives | Employee share-based incentives Refer to Note 9 of JPMorgan Chase’s 2019 Form 10-K for a discussion of the accounting policies and other information relating to employee share-based incentives. The Firm recognized the following noncash compensation expense related to its various employee share-based incentive plans in its Consolidated statements of income. Three months ended Nine months ended (in millions) 2020 2019 2020 2019 Cost of prior grants of RSUs, performance share units (“PSUs”) and employee stock options that are amortized over their applicable vesting periods $ 249 $ 265 $ 859 $ 882 Accrual of estimated costs of share-based awards to be granted in future periods including those to full-career eligible employees 272 294 1,108 900 Total noncash compensation expense related to employee share-based incentive plans $ 521 $ 559 $ 1,967 $ 1,782 In the first quarter of 2020, in connection with its annual incentive grant for the 2019 performance year, the Firm granted 15 million RSUs and 496 thousand PSUs with weighted-average grant date fair values of $135.64 per RSU and $135.30 per PSU. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment securities Investment securities consist of debt securities that are classified as AFS or HTM. Debt securities classified as trading assets are discussed in Note 2. Predominantly all of the Firm’s AFS and HTM securities are held by Treasury and CIO in connection with its asset-liability management activities. Refer to Note 10 of JPMorgan Chase’s 2019 Form 10-K for additional information regarding the investment securities portfolio. Effective January 1, 2020, the Firm adopted the CECL accounting guidance, which also amended the AFS securities impairment guidance. Refer to Note 1 for further information. During the nine months ended September 30, 2020, the Firm transferred $100.5 billion of investment securities, consisting of $74.4 billion in the third quarter of 2020 and $26.1 billion in the first quarter of 2020, from AFS to HTM for capital management purposes. AOCI included pretax unrealized gains of $2.9 billion and $1.0 billion on the securities at the dates of transfer for the quarters ended September 30, 2020, and March 31, 2020, respectively. Unrealized gains or losses at the date of transfer of these securities continue to be reported in AOCI and are amortized into interest income on a level-yield basis over the remaining life of the securities. This amortization will offset the effect on interest income of the amortization of the premium or discount resulting from the transfer recorded at fair value. Transfers of securities from AFS to HTM are non-cash transactions and are recorded at fair value. The amortized costs and estimated fair values of the investment securities portfolio were as follows for the dates indicated. September 30, 2020 December 31, 2019 (in millions) Amortized cost (e) Gross unrealized gains Gross unrealized losses Fair value Amortized cost (e) Gross unrealized gains Gross unrealized losses Fair value Available-for-sale securities Mortgage-backed securities: U.S. GSEs and government agencies (a) $ 96,865 $ 2,807 $ 78 $ 99,594 $ 107,811 $ 2,395 $ 89 $ 110,117 Residential: U.S. 6,954 296 4 7,246 10,223 233 6 10,450 Non-U.S. 4,134 54 11 4,177 2,477 64 1 2,540 Commercial 2,923 62 49 2,936 5,137 64 13 5,188 Total mortgage-backed securities 110,876 3,219 142 113,953 125,648 2,756 109 128,295 U.S. Treasury and government agencies 213,887 2,820 128 216,579 139,162 449 175 139,436 Obligations of U.S. states and municipalities 19,518 1,370 5 20,883 27,693 2,118 1 29,810 Certificates of deposit — — — — 77 — — 77 Non-U.S. government debt securities 20,695 353 11 21,037 21,427 377 17 21,787 Corporate debt securities 270 4 3 271 823 22 — 845 Asset-backed securities: Collateralized loan obligations 10,253 19 70 10,202 25,038 9 56 24,991 Other 6,600 90 32 6,658 5,438 40 20 5,458 Total available-for-sale securities (b) 382,099 7,875 391 389,583 345,306 5,771 378 350,699 Held-to-maturity securities (c) Mortgage-backed securities: U.S. GSEs and government agencies (a) 100,364 2,992 85 103,271 36,523 1,165 62 37,626 U.S. Residential 4,791 5 2 4,794 — — — — Commercial 2,583 44 2 2,681 — — — — Total mortgage-backed securities 107,738 3,041 89 110,746 36,523 1,165 62 37,626 U.S. Treasury and government agencies 51 2 — 53 51 — 1 50 Obligations of U.S. states and municipalities 12,828 413 60 13,245 4,797 299 — 5,096 Asset-backed securities: Collateralized loan obligations 20,936 34 18 20,952 6,169 — — 6,169 Total held-to-maturity securities, net of allowance for credit losses (d) 141,553 3,490 167 144,996 47,540 1,464 63 48,941 Total investment securities, net of allowance for credit losses (d) $ 523,652 $ 11,365 $ 558 $ 534,579 $ 392,846 $ 7,235 $ 441 $ 399,640 (a) Includes AFS U.S. GSE obligations with fair values of $55.6 billion and $78.5 billion, and HTM U.S. GSE obligations with amortized cost of $82.4 billion and $31.6 billion, at September 30, 2020, and December 31, 2019, respectively. As of September 30, 2020, mortgage-backed securities issued by Fannie Mae and Freddie Mac each exceeded 10% of JPMorgan Chase’s total stockholders’ equity; the amortized cost and fair value of such securities were $92.9 billion and $96.5 billion, and $43.0 billion and $44.3 billion, respectively. (b) There was no allowance for credit losses on AFS securities at September 30, 2020. (c) The Firm purchased $514 million and $5.5 billion of HTM securities for the three and nine months ended September 30, 2020, respectively, and $10.9 billion and $11.7 billion for the three and nine months ended September 30, 2019, respectively. (d) HTM securities measured at amortized cost are reported net of allowance for credit losses of $120 million at September 30, 2020. (e) Excludes $2.0 billion and $1.9 billion of accrued interest receivables at September 30, 2020 and December 31, 2019, respectively. The Firm did not reverse through interest income any accrued interest receivables for the three and nine months ended September 30, 2020 and 2019. At September 30, 2020, the investment securities portfolio consisted of debt securities with an average credit rating of AA+ (based upon external ratings where available, and where not available, based primarily upon internal risk ratings). Risk ratings are used to identify the credit quality of securities and differentiate risk within the portfolio. The Firm’s internal risk ratings generally align with the qualitative characteristics (e.g., borrower capacity to meet financial commitments and vulnerability to changes in the economic environment) defined by S&P and Moody’s, however the quantitative characteristics (e.g., probability of default (“PD”) and loss given default (“LGD”)) may differ as they reflect internal historical experiences and assumptions. Risk ratings are assigned at acquisition, are reviewed on a regular and ongoing basis by Credit Risk Management and are adjusted as necessary over the life of the investment for updated information affecting the issuer’s ability to fulfill its obligations. AFS securities impairment The following tables present the fair value and gross unrealized losses by aging category for AFS securities at September 30, 2020 and December 31, 2019. The tables exclude U.S. Treasury and government agency securities and U.S. GSE and government agency MBS with unrealized losses of $206 million and $264 million, at September 30, 2020 and December 31, 2019, respectively; changes in the value of these securities are generally driven by changes in interest rates rather than changes in their credit profile given the explicit or implicit guarantees provided by the U.S. government. Available-for-sale securities with gross unrealized losses Less than 12 months 12 months or more September 30, 2020 (in millions) Fair value Gross Fair value Gross Total fair value Total gross unrealized losses Available-for-sale securities Mortgage-backed securities: Residential: U.S. $ 446 $ 3 $ 119 $ 1 $ 565 $ 4 Non-U.S. 2,678 9 243 2 2,921 11 Commercial 1,069 23 178 26 1,247 49 Total mortgage-backed securities 4,193 35 540 29 4,733 64 Obligations of U.S. states and municipalities 233 5 — — 233 5 Certificates of deposit — — — — — — Non-U.S. government debt securities 3,510 7 922 4 4,432 11 Corporate debt securities 94 3 — — 94 3 Asset-backed securities: Collateralized loan obligations 6,656 48 2,393 22 9,049 70 Other 549 5 734 27 1,283 32 Total available-for-sale securities with gross unrealized losses $ 15,235 $ 103 $ 4,589 $ 82 $ 19,824 $ 185 Available-for-sale securities with gross unrealized losses Less than 12 months 12 months or more December 31, 2019 (in millions) Fair value Gross Fair value Gross Total fair value Total gross unrealized losses Available-for-sale securities Mortgage-backed securities: Residential: U.S. $ 1,072 $ 3 $ 423 $ 3 $ 1,495 $ 6 Non-U.S. 13 — 420 1 433 1 Commercial 1,287 12 199 1 1,486 13 Total mortgage-backed securities 2,372 15 1,042 5 3,414 20 Obligations of U.S. states and municipalities 186 1 — — 186 1 Certificates of deposit 77 — — — 77 — Non-U.S. government debt securities 3,970 13 1,406 4 5,376 17 Corporate debt securities — — — — — — Asset-backed securities: Collateralized loan obligations 10,364 11 7,756 45 18,120 56 Other 1,639 9 753 11 2,392 20 Total available-for-sale securities with gross unrealized losses $ 18,608 $ 49 $ 10,957 $ 65 $ 29,565 $ 114 As a result of the adoption of the amended AFS securities impairment guidance, an allowance for credit losses on AFS securities is required for impaired securities if a credit loss exists. AFS securities are considered impaired if the fair value is less than the amortized cost (excluding accrued interest receivable). The Firm recognizes impairment 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. In these circumstances the impairment loss recognized in earnings is equal to the full difference between the amortized cost (excluding accrued interest receivable and net of allowance if applicable) and the fair value of the securities. For impaired debt securities that the Firm has the intent and ability to hold, the securities are evaluated to determine if a credit loss exists. If it is determined that a credit loss exists, that loss is recognized as an allowance for credit losses through the provision for credit losses in the Consolidated Statements of Income, limited by the amount of impairment. Any impairment not due to credit losses is recorded in OCI. Factors considered in evaluating credit losses include adverse conditions specifically related to the industry, geographic area or financial condition of the issuer or underlying collateral of a security; and payment structure of the security. When assessing securities issued in a securitization for credit losses, the Firm estimates cash flows considering relevant market and economic data, 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. 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 evaluates impairment for credit losses when there is an adverse change in expected cash flows. Allowance for credit losses Based on its assessment, the Firm did not recognize an allowance for credit losses on impaired AFS securities as of January 1, 2020 or September 30, 2020. HTM securities – credit risk The adoption of the CECL accounting guidance requires management to estimate expected credit losses on HTM securities over the remaining expected life and recognize this estimate as an allowance for credit losses. As a result of the adoption of this guidance, the Firm recognized an allowance for credit losses on HTM obligations of U.S. states and municipalities of $10 million as a cumulative-effect adjustment to retained earnings as of January 1, 2020. Credit quality indicator The primary credit quality indicator for HTM securities is the risk rating assigned to each security. At September 30, 2020, all HTM securities were rated investment grade and were current and accruing, with approximately 93% rated AAA. Allowance for credit losses The allowance for credit losses on HTM obligations of U.S. states and municipalities and commercial mortgage-backed securities is calculated by applying statistical credit loss factors (estimated PD and LGD) to the amortized cost (excluding accrued interest receivable). The credit loss factors are derived using a weighted average of five internally developed eight-quarter macroeconomic scenarios, followed by a single year straight-line interpolation to revert to long run historical information for periods beyond the forecast period. Refer to Note 13 for further information on the eight-quarter macroeconomic forecast. The allowance for credit losses on HTM collateralized loan obligations and U.S. residential mortgage-backed securities is calculated as the difference between the amortized cost (excluding accrued interest receivable) and the present value of the cash flows expected to be collected, discounted at the security’s effective interest rate. These cash flow estimates are developed based on expectations of underlying collateral performance derived using the eight-quarter macroeconomic forecast and the single year straight-line interpolation, as well as considering the structural features of the security. The application of different inputs and assumptions into the calculation of the allowance for credit losses is subject to significant 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 on HTM securities. The allowance for credit losses on HTM securities was $120 million as of September 30, 2020, reflecting $97 million and $110 million recognized in the provision for credit losses for the three and nine months ended September 30, 2020, respectively. Selected impacts of investment securities on the Consolidated statements of income Three months ended September 30, Nine months ended September 30, (in millions) 2020 2019 2020 2019 Realized gains $ 1,123 $ 78 $ 2,842 $ 454 Realized losses (648) — (2,108) (319) Intent to sell (a) (2) — (2) — Net investment securities gains $ 473 $ 78 $ 732 $ 135 Provision for credit losses $ 97 NA 110 NA (a) Represents losses recognized in earnings on investment securities the Firm intends to sell. Contractual maturities and yields The following table presents the amortized cost and estimated fair value at September 30, 2020, of JPMorgan Chase’s investment securities portfolio by contractual maturity. By remaining maturity Due in one Due after one year through five years Due after five years through 10 years Due after 10 years (b) Total Available-for-sale securities Mortgage-backed securities Amortized cost $ — $ 433 $ 7,834 $ 102,609 $ 110,876 Fair value — 449 8,149 105,355 113,953 Average yield (a) 3.74 % 2.28 % 1.66 % 2.93 % 2.84 % U.S. Treasury and government agencies Amortized cost $ 38,577 $ 119,641 $ 44,776 $ 10,893 $ 213,887 Fair value 38,629 121,118 46,023 10,809 216,579 Average yield (a) 0.37 % 0.66 % 0.85 % 0.48 % 0.64 % Obligations of U.S. states and municipalities Amortized cost $ 61 $ 187 $ 923 $ 18,347 $ 19,518 Fair value 62 196 980 19,645 20,883 Average yield (a) 3.68 % 4.62 % 4.91 % 4.83 % 4.83 % Non-U.S. government debt securities Amortized cost $ 7,945 $ 7,691 $ 5,059 $ — $ 20,695 Fair value 7,966 7,900 5,171 — 21,037 Average yield (a) 1.22 % 1.77 % 0.79 % — % 1.32 % Corporate debt securities Amortized cost $ 21 $ 129 $ 120 $ — $ 270 Fair value 21 128 122 — 271 Average yield (a) 2.70 % 2.29 % 2.30 % — % 2.33 % Asset-backed securities Amortized cost $ 77 $ 3,088 $ 6,162 $ 7,526 $ 16,853 Fair value 77 3,115 6,141 7,527 16,860 Average yield (a) 0.52 % 2.18 % 1.40 % 1.49 % 1.58 % Total available-for-sale securities Amortized cost $ 46,681 $ 131,169 $ 64,874 $ 139,375 $ 382,099 Fair value 46,755 132,906 66,586 143,336 389,583 Average yield (a) 0.52 % 0.77 % 1.06 % 2.91 % 1.57 % Held-to-maturity securities Mortgage-backed securities Amortized cost $ — $ — $ 11,183 $ 96,611 $ 107,794 Fair value — — 11,999 98,747 110,746 Average yield (a) — % — % 2.42 % 2.98 % 2.92 % U.S. Treasury and government agencies Amortized cost $ — $ 51 $ — $ — $ 51 Fair value — 53 — — 53 Average yield (a) — % 1.47 % — % — % 1.47 % Obligations of U.S. states and municipalities Amortized cost $ — $ 54 $ 481 $ 12,357 $ 12,892 Fair value — 55 506 12,684 13,245 Average yield (a) — % 3.25 % 3.49 % 3.60 % 3.59 % Asset-backed securities Amortized cost $ — $ — $ 10,970 $ 9,966 $ 20,936 Fair value — — 10,977 9,975 20,952 Average yield (a) — % — % 1.46 % 1.37 % 1.42 % Total held-to-maturity securities Amortized cost $ — $ 105 $ 22,634 $ 118,934 $ 141,673 Fair value — 108 23,482 121,406 144,996 Average yield (a) — % 2.39 % 1.97 % 2.91 % 2.76 % (a) Average yield is computed using the effective yield of each security owned at the end of the period, weighted based on the amortized cost of each security. The effective yield considers the contractual coupon, amortization of premiums and accretion of discounts, and the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable. The effective yield excludes unscheduled principal prepayments; and accordingly, actual maturities of securities may differ from their contractual or expected maturities as certain securities may be prepaid. However, for certain callable debt securities, the average yield is calculated to the earliest call date. (b) Substantially all of the Firm’s U.S. residential MBS and collateralized mortgage obligations are due in 10 years or more, based on contractual maturity. The estimated weighted-average life, which reflects anticipated future prepayments, is approximately 4 years for agency residential MBS, 3 years for agency residential collateralized mortgage obligations and 3 years for nonagency residential collateralized mortgage obligations. |
Securities Financing Activities
Securities Financing Activities | 9 Months Ended |
Sep. 30, 2020 | |
Securities Financing Transactions Disclosures [Abstract] | |
Securities Financing Activities | Securities financing activities JPMorgan Chase enters into resale, repurchase, securities borrowed and securities loaned agreements (collectively, “securities financing agreements”) primarily to finance the Firm’s inventory positions, acquire securities to cover short sales, accommodate customers’ financing needs, settle other securities obligations and to deploy the Firm’s excess cash. Securities financing agreements are treated as collateralized financings on the Firm’s Consolidated balance sheets. Where appropriate under applicable accounting guidance, securities financing agreements with the same counterparty are reported on a net basis. Refer to Note 1 for further discussion of the offsetting of assets and liabilities. Fees received and paid in connection with securities financing agreements are recorded over the life of the agreement 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. Refer to Note 3 for further information regarding the fair value option. 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 agreements not elected under the fair value option are measured at amortized cost. As a result of the Firm’s credit risk mitigation practices described below, the Firm did not hold any allowance for credit losses with respect to resale and securities borrowed arrangements as of September 30, 2020 and December 31, 2019. Credit risk mitigation practices Securities financing agreements 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 U.S. GSEs and government agencies 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 and securities borrowed agreements, 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 and securities loaned agreements, credit risk exposure arises to the extent that the value of underlying securities advanced exceeds the value of the initial cash principal received, 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 and securities borrowed agreements. Refer to Note 24 for further information regarding assets pledged and collateral received in securities financing agreements. The table below summarizes the gross and net amounts of the Firm’s securities financing agreements as of September 30, 2020 and December 31, 2019. When the Firm has obtained an appropriate legal opinion with respect to a master netting agreement with a counterparty and where other relevant netting criteria under U.S. GAAP are met, the Firm nets, on the Consolidated balance sheets, the balances outstanding under its securities financing agreements with the same counterparty. In addition, the Firm exchanges securities and/or cash collateral with its counterparty to reduce the economic exposure with the counterparty, but such collateral is not eligible for net Consolidated balance sheet presentation. Where the Firm has obtained an appropriate legal opinion with respect to the counterparty master netting agreement, such collateral, along with securities financing balances that do not meet all these relevant netting criteria under U.S. GAAP, is presented in the table below as “Amounts not nettable on the Consolidated balance sheets,” and reduces the “Net amounts” presented. Where a legal opinion has not been either sought or obtained, the securities financing balances are presented gross in the “Net amounts” below. September 30, 2020 (in millions) Gross amounts Amounts netted on the Consolidated balance sheets Amounts presented on the Consolidated balance sheets Amounts not nettable on the Consolidated balance sheets (b) Net amounts (c) Assets Securities purchased under resale agreements $ 653,504 $ (333,655) $ 319,849 $ (297,189) $ 22,660 Securities borrowed 169,400 (26,959) 142,441 (97,418) 45,023 Liabilities Securities sold under repurchase agreements $ 561,489 $ (333,655) $ 227,834 $ (210,378) $ 17,456 Securities loaned and other (a) 36,307 (26,959) 9,348 (8,884) 464 December 31, 2019 (in millions) Gross amounts Amounts netted on the Consolidated balance sheets Amounts presented on the Consolidated balance sheets Amounts not nettable on the Consolidated balance sheets (b) Net amounts (c) Assets Securities purchased under resale agreements $ 628,609 $ (379,463) $ 249,146 $ (233,818) $ 15,328 Securities borrowed 166,718 (26,960) 139,758 (104,990) 34,768 Liabilities Securities sold under repurchase agreements $ 555,172 $ (379,463) $ 175,709 $ (151,566) $ 24,143 Securities loaned and other (a) 36,649 (26,960) 9,689 (9,654) 35 (a) Includes securities-for-securities lending agreements of $3.3 billion and $3.7 billion at September 30, 2020 and December 31, 2019, respectively, accounted for at fair value, where the Firm is acting as lender. In the Consolidated balance sheets, the Firm recognizes the securities received at fair value within other assets and the obligation to return those securities within accounts payable and other liabilities. (b) In some cases, collateral exchanged with a counterparty exceeds the net asset or liability balance with that counterparty. In such cases, the amounts reported in this column are limited to the related net asset or liability with that counterparty. (c) Includes securities financing agreements that provide collateral rights, but where an appropriate legal opinion with respect to the master netting agreement has not been either sought or obtained. At September 30, 2020 and December 31, 2019, included $15.4 billion and $11.0 billion, respectively, of securities purchased under resale agreements; $41.8 billion and $31.9 billion, respectively, of securities borrowed; $16.3 billion and $22.7 billion, respectively, of securities sold under repurchase agreements; and $36 million and $7 million, respectively, of securities loaned and other. The tables below present as of September 30, 2020, and December 31, 2019 the types of financial assets pledged in securities financing agreements and the remaining contractual maturity of the securities financing agreements. Gross liability balance September 30, 2020 December 31, 2019 (in millions) Securities sold under repurchase agreements Securities loaned and other Securities sold under repurchase agreements Securities loaned and other Mortgage-backed securities U.S. GSEs and government agencies $ 62,739 $ — $ 34,119 $ — Residential - nonagency 588 — 1,239 — Commercial - nonagency 846 — 1,612 — U.S. Treasury, GSEs and government agencies 299,978 155 334,398 29 Obligations of U.S. states and municipalities 1,372 2 1,181 — Non-U.S. government debt 157,840 2,104 145,548 1,528 Corporate debt securities 20,415 1,847 13,826 1,580 Asset-backed securities 1,348 — 1,794 — Equity securities 16,363 32,199 21,455 33,512 Total $ 561,489 $ 36,307 $ 555,172 $ 36,649 Remaining contractual maturity of the agreements Overnight and continuous Greater than September 30, 2020 (in millions) Up to 30 days 30 – 90 days Total Total securities sold under repurchase agreements $ 234,766 $ 215,363 $ 41,042 $ 70,318 $ 561,489 Total securities loaned and other 34,354 9 628 1,316 36,307 Remaining contractual maturity of the agreements Overnight and continuous Greater than December 31, 2019 (in millions) Up to 30 days 30 – 90 days Total Total securities sold under repurchase agreements $ 225,134 $ 195,816 (a) $ 56,020 (a) $ 78,202 (a) $ 555,172 Total securities loaned and other 32,028 1,706 937 1,978 36,649 (a) Prior-period amounts have been revised to conform with the current presentation. Transfers not qualifying for sale accounting At September 30, 2020, and December 31, 2019, the Firm held $526 million and $743 million, respectively, of financial assets for which the rights have been transferred to third parties; however, the transfers did not qualify as a sale in accordance with U.S. GAAP. These transfers have been recognized as collateralized financing transactions. The transferred assets are recorded in trading assets and loans, and the corresponding liabilities are recorded predominantly in short-term borrowings on the Consolidated balance sheets. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Loans | Loans Loan accounting framework The accounting for a loan depends on management’s strategy for the loan. The Firm accounts for loans based on the following categories: • Originated or purchased loans held-for-investment (i.e., “retained”) • Loans held-for-sale • Loans at fair value Effective January 1, 2020, the Firm adopted the CECL accounting guidance. Refer to Note 1 for further information. The following provides a detailed accounting discussion of these loan categories: Loans held-for-investment Originated or purchased loans held-for-investment 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. Interest income Interest income on performing loans held-for-investment 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 as an adjustment of yield. The Firm classifies accrued interest on loans, including accrued but unbilled interest on credit card loans, in accrued interest and accounts receivables on the Consolidated balance sheets. For credit card loans, accrued interest once billed is then recognized in the loan balances, with the related allowance recorded in the allowance for credit losses. Changes in the allowance for credit losses on accrued interest on credit card loans are recognized in the provision for credit losses and charge-offs are recognized by reversing interest income. For other loans, the Firm generally does not recognize an allowance for credit losses on accrued interest receivables, consistent with its policy to write them off no later than 90 days past due by reversing interest income. 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. Allowance for loan losses The allowance for loan losses represents the estimated expected credit losses 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 amortized cost 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. Refer to Note 13 for further information on the Firm’s accounting policies for the allowance for loan losses. Charge-offs Consumer loans are generally charged off or charged down to the net realizable value of the underlying collateral (i.e., fair value less estimated 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, unmodified credit card loans and scored business banking loans are generally charged off no later than 180 days past due. Scored auto and modified credit card loans are charged off no later than 120 days past due. Certain consumer loans are 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 or charged down 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 the government-guaranteed portion of loans. Wholesale loans are charged off when it is highly certain that a loss has been realized. 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 generally 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 utilizes a broker’s price opinion, appraisal and/or an automated valuation model of the home based on an exterior-only valuation (“exterior opinions”), which is then updated at least every twelve months, or more frequently depending on various market factors. 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 Loans held-for-sale Loans held-for-sale 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. Because these 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. However, loans held-for-sale are subject to the nonaccrual policies described above. Loans at fair value Loans for which the fair value option has been elected 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. However, loans at fair value are subject to the nonaccrual policies described above. Refer to Note 3 for further information on the Firm’s elections of fair value accounting under the fair value option. Refer to Note 2 and Note 3 for further information on loans carried at fair value and classified as trading assets. 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 amortized cost on the date of transfer. These loans are subsequently assessed for impairment based on the Firm’s allowance methodology. Refer to Note 13 for a further discussion of the methodologies used in establishing the Firm’s allowance for loan losses. 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 delays, principal forgiveness, or the acceptance of equity or other assets in lieu of payments. Such modifications are accounted for and reported as TDRs. Loans with short-term and other insignificant modifications that are not considered concessions are not TDRs. 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. Loans modified in TDRs are generally 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 component of the allowance throughout its remaining life, regardless of whether the loan is performing and has been returned to accrual status. Refer to Note 13 for further discussion of the methodology used to estimate the Firm’s asset-specific allowance. The Firm has granted various forms of assistance to customers and clients impacted by the COVID-19 pandemic, including payment deferrals and covenant modifications. The majority of the Firm’s COVID-19 related loan modifications have not been considered TDRs as: • they represent short-term or other insignificant modifications, whether under the Firm’s regular loan modification assessments or as permitted by regulatory guidance, or • the Firm has elected to apply the option to suspend the application of accounting guidance for TDRs as provided under section 4013 of the CARES Act. To the extent that certain modifications do not meet any of the above criteria, the Firm accounts for them as TDRs. As permitted by regulatory guidance, the Firm does not place loans with deferrals granted due to COVID-19 on nonaccrual status where such loans are not otherwise reportable as nonaccrual. The Firm considers expected losses of principal and accrued interest associated with all COVID-19 related loan modifications in its allowance for credit losses. Assistance provided in response to the COVID-19 pandemic could delay the recognition of delinquencies, nonaccrual status, and net charge-offs for those customers who would have otherwise moved into past due or nonaccrual status. 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 estimated 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. In conjunction with the adoption of CECL, the Firm revised its loan classes. Prior-period amounts have been revised to conform with the current presentation: • The consumer, excluding credit card portfolio segment’s residential mortgage and home equity loans and lending-related commitments have been combined into a residential real estate class. • Upon adoption of CECL, the Firm elected to discontinue the pool-level accounting for PCI loans and to account for these loans on an individual loan basis. PCI loans are considered PCD loans under CECL and are subject to the Firm’s nonaccrual and charge-off policies. PCD loans are now reported in the consumer, excluding credit card portfolio segment’s residential real estate class. • Risk-rated business banking and auto dealer loans and lending-related commitments held in CCB were reclassified from the consumer, excluding credit card portfolio segment, to the wholesale portfolio segment, to align with the methodology applied when determining the allowance. The remaining scored auto and business banking loans and lending-related commitments have been combined into an auto and other class. • The wholesale portfolio segment’s classes, previously based on the borrower’s primary business activity, have been revised to align with the loan classifications as defined by the bank regulatory agencies, based on the loan’s collateral, purpose, and type of borrower. Consumer, excluding Credit card Wholesale (c) • Residential real estate (a) • Auto and other (b) • Credit card loans • Secured by real estate • Commercial and industrial • Other (d) (a) Includes scored mortgage and home equity loans held in CCB and AWM, and scored mortgage loans held in CIB and Corporate. (b) Includes scored auto and business banking loans and overdrafts. (c) Includes loans held in CIB, CB, AWM, Corporate as well as risk-rated business banking and auto dealer loans held in CCB for which the wholesale methodology is applied when determining the allowance for loan losses. (d) Includes loans to financial institutions, states and political subdivisions, SPEs, nonprofits, personal investment companies and trusts, as well as loans to individuals and individual entities (predominantly Wealth Management clients within AWM). Refer to Note 14 of JPMorgan Chase’s 2019 Form 10-K for more information on SPEs. The following tables summarize the Firm’s loan balances by portfolio segment. September 30, 2020 Consumer, excluding credit card Credit card Wholesale Total (b) (in millions) Retained $ 305,106 $ 139,590 $ 500,841 $ 945,537 (c) Held-for-sale 1,391 787 3,805 5,983 At fair value (a) 15,601 — 22,619 38,220 Total $ 322,098 $ 140,377 $ 527,265 $ 989,740 December 31, 2019 Consumer, excluding credit card Credit card Wholesale Total (b) (in millions) Retained $ 294,999 $ 168,924 $ 481,678 $ 945,601 (c) Held-for-sale 3,002 — 4,062 7,064 At fair value (a) 19,816 — 25,139 44,955 Total $ 317,817 $ 168,924 $ 510,879 $ 997,620 (a) In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans. Prior-period amounts have been revised to conform with the current presentation. (b) Excludes $2.8 billion and $2.9 billion of accrued interest receivables at September 30, 2020, and December 31, 2019, respectively. The Firm wrote off accrued interest receivables of $34 million and $15 million for the three months ended September 30, 2020 and 2019, respectively, and $82 million and $38 million for the nine months ended September 30, 2020 and 2019, respectively. (c) Loans (other than those for which the fair value option has been elected) are presented net of unamortized discounts and premiums and net deferred loan fees or costs. These amounts were not material as of September 30, 2020, and December 31, 2019. The following tables provide information about the carrying value of retained loans purchased, sold and reclassified to held-for-sale during the periods indicated. Loans that were reclassified to held-for-sale and sold in a subsequent period are excluded from the sales line of this table. 2020 2019 Three months ended September 30, Consumer, excluding Credit card Wholesale Total Consumer, excluding Credit card Wholesale Total Purchases $ 1,780 (b)(c) $ — $ 309 $ 2,089 $ 259 (b)(c) $ — $ 453 $ 712 Sales — — 4,578 4,578 14,965 — 5,564 20,529 Retained loans reclassified to held-for-sale (a) 995 787 403 2,185 3,889 — 359 4,248 2020 2019 Nine months ended September 30, Consumer, excluding Credit card Wholesale Total Consumer, excluding Credit card Wholesale Total Purchases $ 3,180 (b)(c) $ — $ 937 $ 4,117 $ 1,044 (b)(c) $ — $ 1,041 $ 2,085 Sales 348 — 13,579 13,927 30,474 — 16,414 46,888 Retained loans reclassified to held-for-sale (a) 1,822 787 1,154 3,763 8,950 — 1,784 10,734 (a) Reclassifications of loans to held-for-sale are non-cash transactions. (b) Predominantly includes purchases of residential real estate loans, including the Firm’s voluntary repurchases of certain delinquent loans from loan pools as permitted by Government National Mortgage Association (“Ginnie Mae”) guidelines for the three and nine months ended September 30, 2020 and 2019. The Firm typically elects to repurchase these delinquent loans as it continues to service them and/or manage the foreclosure process in accordance with applicable requirements of Ginnie Mae, FHA, RHS, and/or VA. (c) Excludes purchases of retained loans sourced through the correspondent origination channel and underwritten in accordance with the Firm’s standards. Such purchases were $3.1 billion and $4.7 billion for the three months ended September 30, 2020 and 2019, respectively, and $10.5 billion and $12.2 billion for the nine months ended September 30, 2020 and 2019, respectively. Gains and losses on sales of loans Net gains/(losses) on sales of loans and lending-related commitments (including adjustments to record loans and lending-related commitments held-for-sale at the lower of cost or fair value) recognized in noninterest revenue were $113 million and $(75) million for the three and nine months ended September 30, 2020, respectively, of which $24 million and $(76) million, respectively, were related to loans. Net gains on sales of loans were $254 million and $433 million for the three and nine months ended September 30, 2019, respectively. In addition, the sale of loans may also result in write downs, recoveries or changes in the allowance recognized in the provision for credit losses. Consumer, excluding credit card loan portfolio Consumer loans, excluding credit card loans, consist primarily of scored residential mortgages, home equity loans and lines of credit, auto and business banking loans, with a focus on serving the prime consumer credit market. The portfolio also includes home equity loans secured by junior liens, prime mortgage loans with an interest-only payment period and certain payment-option loans that may result in negative amortization. The following table provides information about retained consumer loans, excluding credit card, by class. (in millions) September 30, December 31, Residential real estate $ 229,751 $ 243,317 Auto and other (a) 75,355 51,682 Total retained loans $ 305,106 $ 294,999 (a) At September 30, 2020, included $20.3 billion of loans in Business Banking under the PPP. Delinquency rates are the 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, 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 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. Residential real estate The following table provides information on delinquency, which is the primary credit quality indicator for retained residential real estate loans. (in millions, except ratios) September 30, 2020 December 31, 2019 Term loans by origination year Revolving loans Total Total 2020 2019 2018 2017 2016 Prior to 2016 Within the revolving period Converted to term loans Loan delinquency (a)(b) Current $ 40,303 $ 35,666 $ 15,973 $ 23,425 $ 31,870 $ 54,731 $ 7,942 $ 16,553 $ 226,463 $ 239,979 30–149 days past due 11 46 39 59 102 949 12 285 1,503 1,910 150 or more days past due 10 38 53 68 58 1,198 14 346 1,785 1,428 Total retained loans $ 40,324 $ 35,750 $ 16,065 $ 23,552 $ 32,030 $ 56,878 $ 7,968 $ 17,184 $ 229,751 $ 243,317 % of 30+ days past due to total retained loans (c) 0.05 % 0.23 % 0.57 % 0.54 % 0.50 % 3.67 % 0.33 % 3.67 % 1.40 % 1.35 % (a) Individual delinquency classifications include mortgage loans insured by U.S. government agencies as follows: current included $10 million and $17 million; 30–149 days past due included $29 million and $20 million; and 150 or more days past due included $31 million and $26 million at September 30, 2020, and December 31, 2019, respectively. (b) At September 30, 2020, loans under payment deferral programs offered in response to the COVID-19 pandemic which are still within their deferral period and performing according to their modified terms are generally not considered delinquent. (c) At September 30, 2020, and December 31, 2019, residential real estate loans excluded mortgage loans insured by U.S. government agencies of $60 million and $46 million, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee. Approximately 34% of the total revolving loans are senior lien loans; the remaining balance are junior lien loans. The lien position the Firm holds is considered in the Firm’s allowance for credit losses. Revolving loans that have been converted to term loans have higher delinquency rates than those that are still within the revolving period. That is primarily because the fully-amortizing payment that is generally required for those products is higher than the minimum payment options available for revolving loans within the revolving period. Nonaccrual loans and other credit quality indicators The following table provides information on nonaccrual and other credit quality indicators for retained residential real estate loans. (in millions, except weighted-average data) September 30, 2020 December 31, 2019 Nonaccrual loans (a)(b)(c)(d)(e) $ 4,909 $ 2,780 90 or more days past due and government guaranteed (f) 55 38 Current estimated LTV ratios (g)(h) Greater than 125% and refreshed FICO scores: Equal to or greater than 660 $ 26 $ 31 Less than 660 26 38 101% to 125% and refreshed FICO scores: Equal to or greater than 660 123 134 Less than 660 100 132 80% to 100% and refreshed FICO scores: Equal to or greater than 660 6,180 5,953 Less than 660 659 764 Less than 80% and refreshed FICO scores: Equal to or greater than 660 208,422 219,469 Less than 660 12,266 14,681 No FICO/LTV available 1,879 2,052 U.S. government-guaranteed 70 63 Total retained loans $ 229,751 $ 243,317 Weighted average LTV ratio (g)(i) 56 % 55 % Weighted average FICO (h)(i) 763 758 Geographic region (j) California $ 75,807 $ 82,147 New York 32,014 31,996 Texas 13,901 14,474 Florida 13,827 13,668 Illinois 13,800 15,587 Colorado 8,307 8,447 Washington 8,163 8,990 New Jersey 7,395 7,752 Massachusetts 5,857 6,210 Connecticut 4,962 4,954 All other (k) 45,718 49,092 Total retained loans $ 229,751 $ 243,317 (a) Includes collateral-dependent residential real estate loans that are charged down to the fair value of the underlying collateral less costs to sell. The Firm reports, in accordance with regulatory guidance, residential real estate loans that have been discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower (“Chapter 7 loans”) as collateral-dependent nonaccrual TDRs, regardless of their delinquency status. At September 30, 2020, approximately 8% of Chapter 7 residential real estate loans were 30 days or more past due, respectively. (b) At September 30, 2020, nonaccrual loans included $1.5 billion of PCD loans. Prior to the adoption of CECL, nonaccrual loans excluded PCI loans as the Firm recognized interest income on each pool of PCI loans as each of the pools was performing. (c) Generally, all consumer nonaccrual loans have an allowance. In accordance with regulatory guidance, certain nonaccrual loans that are considered collateral-dependent have been charged down to the fair value of their underlying collateral less costs to sell. If the value of the underlying collateral has subsequently improved, the related allowance may be negative. (d) Interest income on nonaccrual loans recognized on a cash basis was $39 million and $40 million for the three months ended September 30, 2020 and 2019, respectively, and $119 million and $124 million for the nine months ended September 30, 2020 and 2019, respectively. (e) Generally excludes loans under payment deferral programs offered in response to the COVID-19 pandemic. Includes loans to customers that have exited COVID-19 payment deferral programs and are 90 or more days past due , predominantly all of which were considered collateral-dependent and charged down to the lower of amortized cost or fair value of the underlying collateral less costs to sell. (f) These balances are excluded from nonaccrual loans as the loans are guaranteed by U.S government agencies. Typically the principal balance of the loans is insured and interest is guaranteed at a specified reimbursement rate subject to meeting agreed-upon servicing guidelines. At September 30, 2020, and December 31, 2019, these balances included $55 million and $34 million, respectively, of loans that are no longer accruing interest based on the agreed-upon servicing guidelines. For the remaining balance, interest is being accrued at the guaranteed reimbursement rate. There were no loans that were not guaranteed by U.S. government agencies that are 90 or more days past due and still accruing interest at September 30, 2020, and December 31, 2019. (g) Represents the aggregate unpaid principal balance of loans divided by the estimated current property value. Current property values are estimated, at a minimum, quarterly, based on home valuation models using nationally recognized home price index valuation estimates incorporating actual data to the extent available and forecasted data where actual data is not available. Current estimated combined LTV for junior lien home equity loans considers all available lien positions, as well as unused lines, related to the property. (h) Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis. (i) Excludes loans with no FICO and/or LTV data available. (j) The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at September 30, 2020. (k) At September 30, 2020, and December 31, 2019, included mortgage loans insured by U.S. government agencies of $70 million and $63 million, respectively. These amounts have been excluded from the geographic regions presented based upon the government guarantee. Loan modifications Modifications of residential real estate loans where the Firm grants concessions to borrowers who are experiencing financial difficulty are generally accounted for and reported as TDRs. Loans with sho |
Allowance for Credit Losses
Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2020 | |
Credit Loss [Abstract] | |
Allowance for Credit Losses | Allowance for credit losses Effective January 1, 2020, the Firm adopted the CECL accounting guidance. The adoption of this guidance established a single allowance framework for all financial assets measured at amortized cost and certain off-balance sheet credit exposures. This framework requires that management’s estimate reflects credit losses over the instrument’s remaining expected life and considers expected future changes in macroeconomic conditions. Refer to Note 1 for further information. JPMorgan Chase’s allowance for credit losses comprises: • the allowance for loan losses, which covers the Firm’s retained loan portfolios (scored and risk-rated) and is presented separately on the balance sheet, • the allowance for lending-related commitments, which is presented on the balance sheet in accounts payable and other liabilities, and • the allowance for credit losses on investment securities, which covers the Firm’s HTM and AFS securities and is recognized within Investment Securities on the balance sheet. The income statement effect of all changes in the allowance for credit losses is recognized in the provision for credit losses. Determining the appropriateness of the allowance for credit losses is complex and requires significant judgment by management about the effect of matters that are inherently uncertain. At least quarterly, the allowance for credit losses is reviewed by the CRO, the CFO and the Controller of the Firm. Subsequent evaluations of credit exposures, considering the macroeconomic conditions, forecasts and other factors then prevailing, may result in significant changes in the allowance for credit losses in future periods. The Firm’s policies used to determine its allowance for loan losses and its allowance for lending-related commitments are described in the following paragraphs. Refer to Note 10 for a description of the policies used to determine the allowance for credit losses on investment securities. Methodology for allowances for loan losses and lending-related commitments The allowance for loan losses and allowance for lending-related commitments represents expected credit losses over the remaining expected life of retained loans and lending-related commitments that are not unconditionally cancellable. The Firm does not record an allowance for future draws on unconditionally cancellable lending-related commitments (e.g., credit cards). Expected losses related to accrued interest on credit card loans and certain performing, modified loans to borrowers impacted by COVID-19 are included in the Firm’s allowance for loan losses. However, the Firm does not record an allowance on other accrued interest receivables, due to its policy to write them off no later than 90 days past due by reversing interest income. The expected life of each instrument is determined by considering its contractual term, expected prepayments, cancellation features, and certain extension and call options. The expected life of funded credit card loans is generally estimated by considering expected future payments on the credit card account, and determining how much of those amounts should be allocated to repayments of the funded loan balance (as of the balance sheet date) versus other account activity. This allocation is made using an approach that incorporates the payment application requirements of the Credit Card Accountability Responsibility and Disclosure Act of 2009, generally paying down the highest interest rate balances first. The estimate of expected credit losses includes expected recoveries of amounts previously charged off or expected to be charged off, even if such recoveries result in a negative allowance. Collective and Individual Assessments When calculating the allowance for loan losses and the allowance for lending-related commitments, the Firm assesses whether exposures share similar risk characteristics. If similar risk characteristics exist, the Firm estimates expected credit losses collectively, considering the risk associated with a particular pool and the probability that the exposures within the pool will deteriorate or default. The assessment of risk characteristics is subject to significant management judgement. Emphasizing one characteristic over another or considering additional characteristics could affect the allowance. • Relevant risk characteristics for the consumer portfolio include product type, delinquency status, current FICO scores, geographic distribution, and, for collateralized loans, current LTV ratios. • Relevant risk characteristics for the wholesale portfolio include LOB, geography, risk rating, delinquency status, level and type of collateral, industry, credit enhancement, product type, facility purpose, tenor, and payment terms. The majority of the Firm’s credit exposures share risk characteristics with other similar exposures, and as a result are collectively assessed for impairment (“portfolio-based component”). The portfolio-based component covers consumer loans, performing risk-rated loans and certain lending-related commitments. If an exposure does not share risk characteristics with other exposures, the Firm generally estimates expected credit losses on an individual basis, considering expected repayment and conditions impacting that individual exposure (“asset-specific component”). The asset-specific component covers modified PCD loans, loans modified or reasonably expected to be modified in a TDR, collateral-dependent loans, as well as, risk-rated loans that have been placed on nonaccrual status. Portfolio-based component The portfolio-based component begins with a quantitative calculation that considers the likelihood of the borrower changing delinquency status or moving from one risk rating to another. The quantitative calculation covers expected credit losses over an instrument’s expected life and is estimated by applying credit loss factors to the Firm’s estimated exposure at default. The credit loss factors incorporate the probability of borrower default as well as loss severity in the event of default. They are derived using a weighted average of five internally developed macroeconomic scenarios over an eight-quarter forecast period, followed by a single year straight-line interpolation to revert to long run historical information for periods beyond the eight-quarter forecast period. The five macroeconomic scenarios consist of a central, relative adverse, extreme adverse, relative upside and extreme upside scenario, and are updated by the Firm’s central forecasting team. The scenarios take into consideration the Firm’s overarching economic outlook, internal perspectives from subject matter experts across the Firm , and market consensus and involve a governed process that incorporates feedback from senior management across LOBs, Corporate Finance and Risk Management. The COVID-19 pandemic has stressed many MEVs to degrees not experienced in recent history, which creates additional challenges in the use of modeled credit loss estimates and increases the reliance on management judgment. During the second and third quarters, certain MEVs were outside the range of historical experience on which the Firm’s models had been calibrated and therefore adjustments were required to appropriately address these economic circumstances. For example, while forecasted U.S. employment rates in certain of the Firm’s scenarios are higher than historical experience, such rates are developed on a reported basis and do not reflect the significant mitigating impact of current government unemployment benefits and other stimulus programs. Consequently, management considered such mitigating impact to arrive at an effective unemployment rate, which informed modeled credit loss estimates, particularly in the consumer portfolio. In addition, for the wholesale portfolio, management used the historical relationship between credit spreads and portfolio default rates to inform the adjustment of the Firm’s modeled loss estimates. The quantitative calculation is further adjusted to take into consideration model imprecision, emerging risk assessments, trends and other subjective factors that are not yet reflected in the calculation. These adjustments are accomplished in part by analyzing the historical loss experience, including during stressed periods, for each major product or model. Management applies judgement in making this adjustment, including taking into account uncertainties associated with the economic and political conditions, quality of underwriting standards, borrower behavior, credit concentrations or deterioration within an industry, product or portfolio, as well as other relevant internal and external factors affecting the credit quality of the portfolio. In certain instances, the interrelationships between these factors create further uncertainties. In the third quarter of 2020, the Firm continued to make qualitative adjustments which placed significant weighting on its adverse scenarios, as a result of continued uncertainty related to the COVID-19 pandemic. The application of different inputs into the quantitative calculation, and the assumptions used by management to adjust the quantitative calculation, are subject to significant management judgment, and emphasizing one input or assumption over another, or considering other inputs or assumptions, could affect the estimate of the allowance for loan losses and the allowance for lending-related commitments. Asset-specific component To determine the asset-specific component of the allowance, collateral-dependent loans (including those loans for which foreclosure is probable) and larger, nonaccrual risk-rated loans in the wholesale portfolio segment are generally evaluated individually, while smaller loans (both scored and risk-rated) are aggregated for evaluation using factors relevant for the respective class of assets. The Firm generally measures the asset-specific allowance as the difference between the amortized cost of 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 generally recognized as an adjustment to the allowance for loan losses. For collateral-dependent loans, the fair value of collateral less estimated costs to sell is used to determine the charge-off amount for declines in value (to reduce the amortized cost of the loan to the fair value of collateral) or the amount of negative allowance that should be recognized (for recoveries of prior charge-offs associated with improvements in the fair value of collateral). The asset-specific component of the allowance for loan losses that have been or are expected to be modified in TDRs incorporates the effect of the modification on the loan’s expected cash flows (including forgone interest, principal forgiveness, as well as other concessions), and also the potential for redefault. For residential real estate loans modified in or expected to be 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 housing 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 or expected to be modified in TDRs, expected losses incorporate projected delinquencies and charge-offs based on the Firm’s historical experience by type of modification program. For wholesale loans modified or expected to be 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. All of 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-related commitments, and includes a breakdown of loans and lending-related commitments by impairment methodology. Refer to Note 10 for further information on the allowance for credit losses on investment securities. The adoption of the CECL accounting guidance resulted in a change in the accounting for PCI loans, which are considered PCD loans. In conjunction with the adoption of CECL, the Firm reclassified risk-rated loans and lending-related commitments from the consumer, excluding credit card portfolio segment to the wholesale portfolio segment, to align with the methodology applied when determining the allowance. Prior-period amounts have been revised to conform with the current presentation. Refer to Note 1 for further information. 2020 (e) 2019 Nine months ended September 30, Consumer, excluding Credit card Wholesale Total Consumer, excluding credit card Credit card Wholesale Total Allowance for loan losses Beginning balance at January 1, $ 2,538 $ 5,683 $ 4,902 $ 13,123 $ 3,434 $ 5,184 $ 4,827 $ 13,445 Cumulative effect of a change in accounting principle 297 5,517 (1,642) 4,172 NA NA NA NA Gross charge-offs 620 4,104 641 5,365 665 4,050 307 5,022 Gross recoveries collected (483) (585) (88) (1,156) (409) (433) (45) (887) Net charge-offs 137 3,519 553 4,209 256 3,617 262 4,135 Write-offs of PCI loans (a) NA NA NA NA 132 — — 132 Provision for loan losses 1,803 10,119 5,802 17,724 (227) 4,017 258 4,048 Other 1 — 3 4 — (1) 10 9 Ending balance at September 30, $ 4,502 $ 17,800 $ 8,512 $ 30,814 $ 2,819 $ 5,583 $ 4,833 $ 13,235 Allowance for lending-related commitments Beginning balance at January 1, $ 12 $ — $ 1,179 $ 1,191 $ 12 $ — $ 1,043 $ 1,055 Cumulative effect of a change in accounting principle 133 — (35) 98 NA NA NA NA Provision for lending-related commitments 71 — 1,464 1,535 — — 110 110 Other — — (1) (1) — — — — Ending balance at September 30, $ 216 $ — $ 2,607 $ 2,823 $ 12 $ — $ 1,153 $ 1,165 Total allowance for credit losses $ 4,718 $ 17,800 $ 11,119 $ 33,637 $ 2,831 $ 5,583 $ 5,986 $ 14,400 Allowance for loan losses by impairment methodology Asset-specific (b) $ 228 $ 652 $ 792 $ 1,672 $ 88 $ 488 $ 399 $ 975 Portfolio-based 4,274 17,148 7,720 29,142 1,475 5,095 4,434 11,004 PCI NA NA NA NA 1,256 — — 1,256 Total allowance for loan losses $ 4,502 $ 17,800 $ 8,512 $ 30,814 $ 2,819 $ 5,583 $ 4,833 $ 13,235 Loans by impairment methodology Asset-specific (b) $ 16,888 $ 1,432 $ 3,856 $ 22,176 $ 6,117 $ 1,423 $ 1,760 $ 9,300 Portfolio-based 288,218 138,158 496,985 923,361 268,179 158,148 471,970 898,297 PCI NA NA NA NA 21,290 — — 21,290 Total retained loans $ 305,106 $ 139,590 $ 500,841 $ 945,537 $ 295,586 $ 159,571 $ 473,730 $ 928,887 Collateral-dependent loans Net charge-offs $ 109 $ — $ 22 $ 131 $ 23 $ — $ 28 $ 51 Loans measured at fair value of collateral less cost to sell 4,517 — 130 4,647 2,079 — 117 2,196 Allowance for lending-related commitments by impairment methodology Asset-specific $ — $ — $ 109 $ 109 $ — $ — $ 135 $ 135 Portfolio-based 216 — 2,498 2,714 12 — 1,018 1,030 Total allowance for lending-related commitments (c) $ 216 $ — $ 2,607 $ 2,823 $ 12 $ — $ 1,153 $ 1,165 Lending-related commitments by impairment methodology Asset-specific $ — $ — $ 607 $ 607 $ — $ — $ 446 $ 446 Portfolio-based (d) 35,587 — 417,402 452,989 32,291 — 386,203 418,494 Total lending-related commitments $ 35,587 $ — $ 418,009 $ 453,596 $ 32,291 $ — $ 386,649 $ 418,940 (a) Prior to the adoption of CECL, write-offs of PCI loans were recorded against the allowance for loan losses when actual losses for a pool exceeded estimated losses that were recorded as purchase accounting adjustments at the time of acquisition. A write-off of a PCI loan was recognized when the underlying loan was removed from a pool. (b) Includes modified PCD loans and loans that have been modified or are reasonably expected to be modified in a TDR. Also includes risk-rated loans that have been placed on nonaccrual status for the wholesale portfolio segment. The asset-specific credit card allowance for loans modified, or reasonably expected to be modified, in a TDR is calculated based on the loans’ original contractual interest rates and does not consider any incremental penalty rates. (c) The allowance for lending-related commitments is reported in accounts payable and other liabilities on the Consolidated balance sheets. (d) At September 30, 2020 and 2019, lending-related commitments excluded $10.8 billion and $9.4 billion, respectively, for the consumer, excluding credit card portfolio segment; $662.9 billion and $645.9 billion, respectively, for the credit card portfolio segment; and $23.2 billion and $24.2 billion. respectively, for the wholesale portfolio segment, which were not subject to the allowance for lending-related commitments. (e) Excludes HTM securities, which had an allowance for credit losses of $120 million and a provision for credit losses of $110 million as of and for the nine months ended September 30, 2020. Discussion of changes in the allowance during 2020 The increase in the allowance for loan losses and lending related commitments was primarily driven by an increase in the provision for credit losses, reflecting the deterioration in and uncertainty around the future macroeconomic environment as a result of the impact of the COVID-19 pandemic. – In the first quarter of 2020, management’s macroeconomic forecast included a decline in the U.S. real GDP of approximately 25% and an increase in the U.S. unemployment rate to above 10%, for the first half of 2020, followed by a solid recovery in the second half of 2020. – In the second quarter of 2020, based on the increased uncertainty around the duration and depth of the downturn and speed of economic recovery, the Firm’s central case assumptions reflected a more protracted downturn with the slower recovery of U.S. real GDP. – In the third quarter of 2020, the Firm’s central case assumptions reflected some near term improvement in economic trends, however there is elevated uncertainty around potential impacts to medium and longer term macroeconomic conditions . In the first, second and third quarters of 2020, the Firm’s central case assumptions reflected forecasted U.S. unemployment rates and cumulative changes in U.S. real GDP as follows : 2020 2021 4Q 2Q 4Q Central case assumptions U.S. unemployment rate (a) 1Q 2020 6.6 % 5.5 % 4.6 % 2Q 2020 10.9 9.0 7.7 3Q 2020 9.5 8.5 7.3 U.S. real GDP - cumulative change from December 31, 2019 1Q 2020 (5.4) (2.3) 0.3 2Q 2020 (6.2) (4.0) (3.0) 3Q 2020 (5.4) (3.7) (2.4) (a) Reflects quarterly average of forecasted reported U.S. unemployment rate. As a result of elevated macroeconomic uncertainty beyond the central case, the Firm continued to place significant weighting on its adverse scenarios, which incorporate more punitive macroeconomic factors than the central case assumptions outlined above, resulting in weighted average U.S. unemployment rates, remaining above ten percent into the fourth quarter of 2021. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2020 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable interest entities Refer to Note 1 of JPMorgan Chase’s 2019 Form 10-K for a further description of JPMorgan Chase’s accounting policies regarding consolidation of VIEs. The following table summarizes the most significant types of Firm-sponsored VIEs by business segment. Line of Business Transaction Type Activity Form 10-Q page reference CCB Credit card securitization trusts Securitization of originated credit card receivables 163 Mortgage securitization trusts Servicing and securitization of both originated and purchased residential mortgages 163-165 CIB Mortgage and other securitization trusts Securitization of both originated and purchased residential and commercial mortgages, and other consumer loans 163-165 Multi-seller conduits Assist clients in accessing the financial markets in a cost-efficient manner and structures transactions to meet investor needs 165 Municipal bond vehicles Financing of municipal bond investments 165 The Firm also invests in and provides financing and other services to VIEs sponsored by third parties. Refer to pages 166–167 of this Note for more information on the VIEs sponsored by third parties. Significant Firm-sponsored VIEs Credit card securitizations Refer to Note 14 of JPMorgan Chase’s 2019 Form 10-K for a more detailed discussion of JPMorgan Chase’s involvement with credit card securitizations. As a result of the Firm’s continuing involvement, the Firm is considered to be the primary beneficiary of its Firm-sponsored credit card securitization trust, the Chase Issuance Trust. Refer to the table on page 166 of this Note for further information on consolidated VIE assets and liabilities. Firm-sponsored mortgage and other securitization trusts The Firm securitizes (or has securitized) originated and purchased residential mortgages, commercial mortgages and other consumer loans primarily in its CCB and CIB businesses. Depending on the particular transaction, as well as the respective business involved, the Firm may act as the servicer of the loans and/or retain certain beneficial interests in the securitization trusts. Refer to Note 14 of JPMorgan Chase’s 2019 Form 10-K for a detailed discussion of the Firm’s involvement with Firm-sponsored mortgage and other securitization trusts, as well as the accounting treatment relating to such trusts. 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 contracts. In certain instances, the Firm’s only continuing involvement is servicing the loans. The Firm’s maximum loss exposure from retained and purchased interests is the carrying value of these interests. Refer to Securitization activity on page 167 of this Note for further information regarding the Firm’s cash flows associated with and interests retained in nonconsolidated VIEs, and pages 167-168 of this Note for information on the Firm’s loan sales and securitization activity related to U.S. GSEs and government agencies. Principal amount outstanding JPMorgan Chase interest in securitized assets in nonconsolidated VIEs (c)(d)(e) September 30, 2020 (in millions) Total assets held by securitization VIEs Assets Assets held in nonconsolidated securitization VIEs with continuing involvement Trading assets Investment securities Other financial assets Total interests held by JPMorgan Securitization-related (a) Residential mortgage: Prime/Alt-A and option ARMs $ 54,012 $ 2,034 $ 44,680 $ 571 $ 884 $ — $ 1,455 Subprime 13,353 48 12,586 3 — — 3 Commercial and other (b) 117,103 — 94,944 887 1,591 280 2,758 Total $ 184,468 $ 2,082 $ 152,210 $ 1,461 $ 2,475 $ 280 $ 4,216 Principal amount outstanding JPMorgan Chase interest in securitized assets in nonconsolidated VIEs (c)(d)(e) December 31, 2019 (in millions) Total assets held by securitization VIEs Assets Assets held in nonconsolidated securitization VIEs with continuing involvement Trading assets Investment securities Other financial assets Total interests held by Securitization-related (a) Residential mortgage: Prime/Alt-A and option ARMs $ 60,348 $ 2,796 $ 48,734 $ 535 $ 625 $ — $ 1,160 Subprime 14,661 — 13,490 7 — — 7 Commercial and other (b) 111,903 — 80,878 785 773 241 1,799 Total $ 186,912 $ 2,796 $ 143,102 $ 1,327 $ 1,398 $ 241 $ 2,966 (a) Excludes U.S. GSEs and government agency securitizations and re-securitizations, which are not Firm-sponsored. Refer to pages 167-168 of this Note for information on the Firm’s loan sales and securitization activity related to U.S. GSEs and government agencies. (b) Consists of securities backed by commercial real estate loans and non-mortgage-related consumer receivables purchased from third parties. (c) Excludes the following: retained servicing (refer to Note 15 for a discussion of MSRs); securities retained from loan sales and securitization activity related to U.S. GSEs and government agencies; interest rate and foreign exchange derivatives primarily used to manage interest rate and foreign exchange risks of securitization entities (refer to Note 5 for further information on derivatives); senior and subordinated securities of $125 million and $24 million, respectively, at September 30, 2020, and $106 million and $94 million, respectively, at December 31, 2019, which the Firm purchased in connection with CIB’s secondary market-making activities. (d) Includes interests held in re-securitization transactions. (e) As of September 30, 2020, and December 31, 2019, 71% and 63%, 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 $1.4 billion and $1.1 billion of investment-grade retained interests, and $53 million and $72 million of noninvestment-grade retained interests at September 30, 2020, and December 31, 2019, respectively. The retained interests in commercial and other securitization trusts consisted of $1.9 billion and $1.2 billion of investment-grade retained interests, and $857 million and $575 million of noninvestment-grade retained interests at September 30, 2020, and December 31, 2019, 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. Refer to Note 14 of JPMorgan Chase’s 2019 Form 10-K for a more detailed description of the Firm’s involvement with residential mortgage securitizations. Refer to the table on page 166 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. Refer to Note 14 of JPMorgan Chase’s 2019 Form 10-K for a more detailed description of the Firm’s involvement with commercial mortgage and other consumer securitizations. Refer to the table on page 166 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 Refer to Note 14 of JPMorgan Chase’s 2019 Form 10-K for a more detailed description of JPMorgan Chase’s participation in certain re-securitization transactions. The following table presents the principal amount of securities transferred to re-securitization VIEs. Three months ended September 30, Nine months ended September 30, (in millions) 2020 2019 2020 2019 Transfers of securities to VIEs U.S. GSEs and government agencies $ 12,488 $ 5,377 $ 27,710 $ 12,444 The Firm did not transfer any private label securities to re-securitization VIEs during the three and nine months ended September 30, 2020 and 2019, respectively, and retained interests in any such Firm-sponsored VIEs as of September 30, 2020 and December 31, 2019 were immaterial. The following table presents information on nonconsolidated re-securitization VIEs. Nonconsolidated (in millions) September 30, 2020 December 31, 2019 U.S. GSEs and government agencies Interest in VIEs $ 3,456 $ 2,928 As of September 30, 2020, and December 31, 2019, the Firm did not consolidate any U.S. GSE and government agency re-securitization VIEs or any Firm-sponsored private-label re-securitization VIEs. Multi-seller conduits Refer to Note 14 of JPMorgan Chase’s 2019 Form 10-K for a more detailed description of JPMorgan Chase’s principal involvement with Firm-administered multi-seller conduits. In the normal course of business, JPMorgan Chase makes markets in and invests in commercial paper issued by the Firm-administered multi-seller conduits. The Firm held $11.4 billion and $16.3 billion of the commercial paper issued by the Firm-administered multi-seller conduits at September 30, 2020, and December 31, 2019, 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 $10.7 billion and $8.9 billion at September 30, 2020, and December 31, 2019, respectively, and are reported as off-balance sheet lending-related commitments in other unfunded commitments to extend credit. Refer to Note 23 for more information on off-balance sheet lending-related commitments. Municipal bond vehicles Municipal bond vehicles or tender option bond (“TOB”) trusts allow institutions to finance their municipal bond investments at short-term rates. TOB transactions are known as customer TOB trusts and non-customer TOB trusts. Customer TOB trusts are sponsored by a third party, refer to pages 166-167 of this Note for further information. The Firm serves as sponsor for all non-customer TOB transactions. Refer to Note 14 of JPMorgan Chase’s 2019 Form 10-K for a more detailed description of JPMorgan Chase’s 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 September 30, 2020, and December 31, 2019. Assets Liabilities September 30, 2020 (in millions) Trading assets Loans Other (b) Total assets (c) Beneficial interests in VIE assets (d) Other (e) Total VIE program type Firm-sponsored credit card trusts $ — $ 11,838 $ 207 $ 12,045 $ 4,942 $ 3 $ 4,945 Firm-administered multi-seller conduits 4 22,957 160 23,121 11,622 30 11,652 Municipal bond vehicles 2,461 — 5 2,466 2,402 1 2,403 Mortgage securitization entities (a) — 2,012 118 2,130 225 113 338 Other 2 167 254 423 — 89 89 Total $ 2,467 $ 36,974 $ 744 $ 40,185 $ 19,191 $ 236 $ 19,427 Assets Liabilities December 31, 2019 (in millions) Trading assets Loans Other (b) Total assets (c) Beneficial interests in VIE assets (d) Other (e) Total VIE program type Firm-sponsored credit card trusts $ — $ 14,986 $ 266 $ 15,252 $ 6,461 $ 6 $ 6,467 Firm-administered multi-seller conduits 1 25,183 355 25,539 9,223 36 9,259 Municipal bond vehicles 1,903 — 4 1,907 1,881 3 1,884 Mortgage securitization entities (a) 66 2,762 64 2,892 276 130 406 Other 663 — 192 855 — 272 272 Total $ 2,633 $ 42,931 $ 881 $ 46,445 $ 17,841 $ 447 $ 18,288 (a) Includes residential and commercial mortgage securitizations. (b) Includes assets classified as cash and other assets on the Consolidated balance sheets. (c) The assets of the consolidated VIEs included in the program types above are used to settle the liabilities of those entities. The assets and liabilities include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation. (d) The interest-bearing beneficial interest liabilities issued by consolidated VIEs are classified in the line item on the Consolidated balance sheets titled, “Beneficial interests issued by consolidated variable interest entities.” The holders of these beneficial interests generally do not have recourse to the general credit of JPMorgan Chase. Refer to Note 14 of JPMorgan Chase’s 2019 Form 10-K for conduits program-wide credit enhancements. Included in beneficial interests in VIE assets are long-term beneficial interests of $5.2 billion and $6.7 billion at September 30, 2020, and December 31, 2019, respectively. (e) Includes liabilities classified as accounts payable and other liabilities on the Consolidated balance sheets. VIEs sponsored by third parties The Firm enters into transactions with VIEs structured by other parties. These include, for example, acting as a derivative counterparty, liquidity provider, investor, underwriter, placement agent, remarketing agent, trustee or custodian. These transactions are conducted at arm’s-length, and individual credit decisions are based on the analysis of the specific VIE, taking into consideration the quality of the underlying assets. Where the Firm does not have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, or a variable interest that could potentially be significant, the Firm generally does not consolidate the VIE, but it records and reports these positions on its Consolidated balance sheets in the same manner it would record and report positions in respect of any other third-party transaction. Tax credit vehicles The Firm holds investments in unconsolidated tax credit vehicles, which are limited partnerships and similar entities that own and operate affordable housing, energy, and other projects. These entities are primarily considered VIEs. A third party is typically the general partner or managing member and has control over the significant activities of the tax credit vehicles, and accordingly the Firm does not consolidate tax credit vehicles. The Firm generally invests in these partnerships as a limited partner and earns a return primarily through the receipt of tax credits allocated to the projects. The maximum loss exposure, represented by equity investments and funding commitments, was $21.5 billion and $19.1 billion, of which $7.8 billion and $5.5 billion was unfunded at September 30, 2020 and December 31, 2019, respectively. In order to reduce the risk of loss, the Firm assesses each project and withholds varying amounts of its capital investment until the project qualifies for tax credits. Refer to Note 25 of JPMorgan Chase’s 2019 Form 10-K for further information on affordable housing tax credits. Refer to Note 23 of this Form 10-Q for more information on off-balance sheet lending-related commitments. 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 September 30, 2020 and December 31, 2019 was $6.4 billion and $5.5 billion, respectively. The fair value of assets held by such VIEs at September 30, 2020 and December 31, 2019, was $9.9 billion and $8.6 billion, respectively. Refer to Note 23 for more information on off-balance sheet lending-related commitments. Loan securitizations The Firm has securitized and sold a variety of loans, including residential mortgage, credit card, and commercial mortgage. Refer to Note 14 of JPMorgan Chase’s 2019 Form 10-K for a further description of the Firm’s accounting policies regarding securitizations. Securitization activity The following table provides information related to the Firm’s securitization activities for the three and nine months ended September 30, 2020 and 2019, related to assets held in Firm-sponsored securitization entities that were not consolidated by the Firm, and where sale accounting was achieved at the time of the securitization. Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (in millions) Residential mortgage (d) Commercial and other (e) Residential mortgage (d) Commercial and other (e) Residential mortgage (d) Commercial and other (e) Residential mortgage (d) Commercial and other (e) Principal securitized $ 2,852 $ 1,330 $ 3,225 $ 1,477 $ 6,450 $ 5,379 $ 7,132 $ 4,215 All cash flows during the period: (a) Proceeds received from loan sales as financial instruments (b)(c) $ 2,955 $ 1,392 $ 3,327 $ 1,506 $ 6,645 $ 5,577 $ 7,337 $ 4,329 Servicing fees collected 54 1 70 — 165 1 220 1 Cash flows received on interests 207 78 115 34 538 138 314 183 (a) Excludes re-securitization transactions. (b) Predominantly includes Level 2 assets. (c) The carrying value of the loans accounted for at fair value approximated the proceeds received upon loan sale. (d) Includes prime mortgages only. Excludes loan securitization activity related to U.S. GSEs and government agencies. (e) Includes commercial mortgage and other consumer loans. Loans and excess MSRs sold to U.S. government-sponsored enterprises and loans in securitization transactions pursuant to Ginnie Mae guidelines In addition to the amounts reported in the securitization activity tables above, the Firm, in the normal course of business, sells originated and purchased mortgage loans and certain originated excess MSRs on a nonrecourse basis, predominantly to U.S. GSEs. These loans and excess MSRs are sold primarily for the purpose of securitization by the U.S. GSEs, who provide certain guarantee provisions (e.g., credit enhancement of the loans). The Firm also sells loans into securitization transactions pursuant to Ginnie Mae guidelines; these loans are typically insured or guaranteed by another U.S. government agency. The Firm does not consolidate the securitization vehicles underlying these transactions as it is not the primary beneficiary. For a limited number of loan sales, the Firm is obligated to share a portion of the credit risk associated with the sold loans with the purchaser. Refer to Note 23 of this Form 10-Q, and Note 28 of JPMorgan Chase’s 2019 Form 10-K for additional information about the Firm’s loan sales- and securitization-related indemnifications. Refer to Note 15 for additional information about the impact of the Firm’s sale of certain excess MSRs. The following table summarizes the activities related to loans sold to the U.S. GSEs, and loans in securitization transactions pursuant to Ginnie Mae guidelines. Three months ended September 30, Nine months ended September 30, (in millions) 2020 2019 2020 2019 Carrying value of loans sold $ 18,065 $ 35,556 $ 60,447 $ 73,873 Proceeds received from loan sales as cash 5 3 27 73 Proceeds from loan sales as securities (a)(b) 17,858 35,512 59,795 73,172 Total proceeds received from loan sales (c) $ 17,863 $ 35,515 $ 59,822 $ 73,245 Gains/(losses) on loan sales (d)(e) $ — $ 342 $ 6 $ 495 (a) Includes securities from U.S. GSEs and Ginnie Mae that are generally sold shortly after receipt or retained as part of the Firm’s investment securities portfolio. (b) Included in level 2 assets. (c) Excludes the value of MSRs retained upon the sale of loans. (d) Gains/(losses) on loan sales include the value of MSRs. (e) The carrying value of the loans accounted for at fair value approximated the proceeds received upon loan sale. Options to repurchase delinquent loans In addition to the Firm’s obligation to repurchase certain loans due to material breaches of representations and warranties as discussed in Note 23, the Firm also has the option to repurchase delinquent loans that it services for Ginnie Mae loan pools, as well as for other U.S. government agencies under certain arrangements. The Firm typically elects to repurchase delinquent loans from Ginnie Mae loan pools as it continues to service them and/or manage the foreclosure process in accordance with the applicable requirements, and such loans continue to be insured or guaranteed. When the Firm’s repurchase option becomes exercisable, such loans must be reported on the Consolidated balance sheets as a loan with a corresponding liability. Refer to Note 12 for additional information. The following table presents loans the Firm repurchased or had an option to repurchase, real estate owned, and foreclosed government-guaranteed residential mortgage loans recognized on the Firm’s Consolidated balance sheets as of September 30, 2020 and December 31, 2019. Substantially all of these loans and real estate are insured or guaranteed by U.S. government agencies. (in millions) Sep 30, Dec 31, Loans repurchased or option to repurchase (a) $ 1,491 $ 2,941 Real estate owned 10 41 Foreclosed government-guaranteed residential mortgage loans (b) 72 198 (a) Predominantly all of these amounts relate to loans that have been repurchased from Ginnie Mae loan pools. (b) Relates to voluntary repurchases of loans, which are included in accrued interest and accounts receivable. Loan delinquencies and liquidation losses The table below includes information about components of and delinquencies related to nonconsolidated securitized financial assets held in Firm-sponsored private-label securitization entities, in which the Firm has continuing involvement as of September 30, 2020, and December 31, 2019. Net liquidation losses Securitized assets 90 days past due Three months ended September 30, Nine months ended September 30, (in millions) Sep 30, Dec 31, Sep 30, Dec 31, 2020 2019 2020 2019 Securitized loans Residential mortgage: Prime / Alt-A & option ARMs $ 44,680 $ 48,734 $ 5,591 $ 2,449 $ 9 $ 146 $ 184 $ 474 Subprime 12,586 13,490 2,417 1,813 24 145 159 456 Commercial and other 94,944 80,878 5,025 187 — 118 11 283 Total loans securitized $ 152,210 $ 143,102 $ 13,033 $ 4,449 $ 33 $ 409 $ 354 $ 1,213 |
Goodwill and Mortgage Servicing
Goodwill and Mortgage Servicing Rights | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Mortgage Servicing Rights | Goodwill and Mortgage servicing rights Refer to Note 15 of JPMorgan Chase’s 2019 Form 10-K for a discussion of the accounting policies related to goodwill and mortgage servicing rights. Goodwill The following table presents goodwill attributed to the business segments. (in millions) September 30, December 31, Consumer & Community Banking (a) $ 30,082 $ 30,082 Corporate & Investment Bank (a) 7,897 7,901 Commercial Banking 2,985 2,982 Asset & Wealth Management 6,855 6,858 Total goodwill $ 47,819 $ 47,823 (a) In the first quarter of 2020, the Merchant Services business was realigned from CCB to CIB, including the associated Goodwill of $959 million. Prior-period amounts have been revised to conform with the current presentation. The following table presents changes in the carrying amount of goodwill. Three months ended September 30, Nine months ended September 30, (in millions) 2020 2019 2020 2019 Balance at beginning of period $ 47,811 $ 47,477 $ 47,823 $ 47,471 Changes during the period from: Business combinations (a) — 348 — 348 Other (b) 8 (7) (4) (1) Balance at September 30, $ 47,819 $ 47,818 $ 47,819 $ 47,818 (a) For the three and nine months ended September 30, 2019, represents goodwill associated with the July 24, 2019 acquisition of InstaMed. This goodwill was allocated to CIB, CB and CCB. (b) Primarily relates to foreign currency adjustments. Goodwill impairment testing Effective January 1, 2020, the Firm adopted new accounting guidance related to goodwill impairment testing. The adoption of the guidance requires recognition of an impairment loss when the estimated fair value of a reporting unit falls below its carrying value. It eliminated the requirement that an impairment loss be recognized only if the estimated implied fair value of the goodwill is below its carrying value. Refer to Note 15 of JPMorgan Chase’s 2019 Form 10-K for a further discussion of the primary method used to estimate the fair value of the reporting units and the assumptions used in the goodwill impairment test. Goodwill is tested for impairment during the fourth quarter of each fiscal year, or more often if events or circumstances, such as adverse changes in the business climate, indicate that there may be an impairment. Unanticipated declines in business performance, increases in credit losses, increases in capital requirements, as well as deterioration in economic or market conditions, adverse regulatory or legislative changes or increases in the estimated market cost of equity, could cause the estimated fair values of the Firm’s reporting units to decline in the future, which could result in a material impairment charge to earnings in a future period related to some portion of the associated goodwill. As of September 30, 2020, the Firm reviewed current economic conditions, including the potential impacts of the COVID-19 pandemic on business performance, estimated market cost of equity, as well as actuals and projections of business performance for all its reporting units. The Firm has concluded that the goodwill allocated to its reporting units was not impaired as of September 30, 2020, or December 31, 2019, nor was goodwill written off due to impairment during the nine months ended September 30, 2020 or 2019. Mortgage servicing rights MSRs represent the fair value of expected future cash flows for performing servicing activities for others. The fair value considers estimated future servicing fees and ancillary revenue, offset by estimated costs to service the loans, and generally declines over time as net servicing cash flows are received, effectively amortizing the MSR asset against contractual servicing and ancillary fee income. MSRs are either purchased from third parties or recognized upon sale or securitization of mortgage loans if servicing is retained. Refer to Notes 2 and 15 of JPMorgan Chase’s 2019 Form 10-K for a further description of the MSR asset, interest rate risk management, and the valuation of MSRs. The following table summarizes MSR activity for the three and nine months ended September 30, 2020 and 2019. As of or for the three months As of or for the nine months (in millions, except where otherwise noted) 2020 2019 2020 2019 Fair value at beginning of period $ 3,080 $ 5,093 $ 4,699 $ 6,130 MSR activity: Originations of MSRs 204 390 639 1,146 Purchase of MSRs 17 (2) 24 104 Disposition of MSRs (a) (104) (359) (177) (687) Net additions/(dispositions) 117 29 486 563 Changes due to collection/realization of expected cash flows (215) (256) (710) (702) Changes in valuation due to inputs and assumptions: Changes due to market interest rates and other (b) (59) (433) (1,573) (1,274) Changes in valuation due to other inputs and assumptions: Projected cash flows (e.g., cost to service) (82) 17 (80) (333) (e) Discount rates 199 — 199 153 Prepayment model changes and other (c) (24) (31) (5) (118) Total changes in valuation due to other inputs and assumptions 93 (14) 114 (298) Total changes in valuation due to inputs and assumptions 34 (447) (1,459) (1,572) Fair value at September 30 $ 3,016 $ 4,419 $ 3,016 $ 4,419 Changes in unrealized gains/(losses) included in income related to MSRs held at September 30, $ 34 $ (447) $ (1,459) $ (1,572) Contractual service fees, late fees and other ancillary fees included in income 333 397 1,026 1,254 Third-party mortgage loans serviced at September 30, (in billions) 456 537 456 537 Servicer advances, net of an allowance for uncollectible amounts, at September 30, (in billions) (d) 1.7 2.0 1.7 2.0 (a) Includes excess MSRs transferred to agency-sponsored trusts in exchange for stripped mortgage backed securities (“SMBS”). In each transaction, a portion of the SMBS was acquired by third parties at the transaction date; the Firm acquired the remaining balance of those SMBS as trading securities. (b) Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments. (c) Represents changes in prepayments other than those attributable to changes in market interest rates. (d) Represents amounts the Firm pays as the servicer (e.g., scheduled principal and interest, taxes and insurance), which will generally be reimbursed within a short period of time after the advance from future cash flows from the trust or the underlying loans. The Firm’s credit risk associated with these servicer advances is minimal because reimbursement of the advances is typically senior to all cash payments to investors. In addition, the Firm maintains the right to stop payment to investors if the collateral is insufficient to cover the advance. However, certain of these servicer advances may not be recoverable if they were not made in accordance with applicable rules and agreements. (e) The decrease in projected cash flows was largely related to default servicing assumption updates. The following table presents the components of mortgage fees and related income (including the impact of MSR risk management activities) for the three and nine months ended September 30, 2020 and 2019. Three months ended September 30, Nine months ended September 30, (in millions) 2020 2019 2020 2019 CCB mortgage fees and related income Net production revenue $ 765 $ 738 $ 1,826 $ 1,291 Net mortgage servicing revenue: Operating revenue: Loan servicing revenue 381 351 1,063 1,172 Changes in MSR asset fair value due to collection/realization of expected cash flows (215) (256) (710) (702) Total operating revenue 166 95 353 470 Risk management: Changes in MSR asset fair value due to market interest rates and other (a) (59) (433) (1,573) (1,274) Other changes in MSR asset fair value due to other inputs and assumptions in model (b) 93 (14) 114 (298) Changes in derivative fair value and other 111 500 1,593 1,372 Total risk management 145 53 134 (200) Total net mortgage servicing revenue 311 148 487 270 Total CCB mortgage fees and related income 1,076 886 2,313 1,561 All other 11 1 11 1 Mortgage fees and related income $ 1,087 $ 887 $ 2,324 $ 1,562 (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 September 30, 2020, and December 31, 2019, and outlines hypothetical sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below. (in millions, except rates) Sep 30, Dec 31, Weighted-average prepayment speed assumption (constant prepayment rate) 16.94 % 11.67 % Impact on fair value of 10% adverse change $ (203) $ (200) Impact on fair value of 20% adverse change (386) (384) Weighted-average option adjusted spread (a) 7.37 % 7.93 % Impact on fair value of a 100 basis point adverse change $ (121) $ (169) Impact on fair value of a 200 basis point adverse change (233) (326) (a) Includes the impact of operational risk and regulatory capital. Changes in fair value based on variations in assumptions generally cannot be easily extrapolated, because the relationship of the change in the assumptions to the change in fair value are often highly interrelated and may not be linear. In 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. |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2020 | |
Deposits [Abstract] | |
Deposits | Deposits Refer to Note 17 of JPMorgan Chase’s 2019 Form 10-K for further information on deposits. At September 30, 2020, and December 31, 2019, noninterest-bearing and interest-bearing deposits were as follows. (in millions) September 30, December 31, 2019 U.S. offices Noninterest-bearing (included $12,699 and $22,637 at fair value) (a) $ 540,116 $ 395,667 Interest-bearing (included $2,567 and $2,534 at fair value) (a) 1,117,149 876,156 Total deposits in U.S. offices 1,657,265 1,271,823 Non-U.S. offices Noninterest-bearing (included $1,481 and $1,980 at fair value) (a) 21,406 20,087 Interest-bearing (included $2,567 and $1,438 at fair value) (a) 322,745 270,521 Total deposits in non-U.S. offices 344,151 290,608 Total deposits $ 2,001,416 $ 1,562,431 (a) Includes structured notes classified as deposits for which the fair value option has been elected. Refer to Note 3 for further information. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases Refer to Note 18 of JPMorgan Chase’s 2019 Form 10-K for a further discussion on leases. Firm as lessee At September 30, 2020, JPMorgan Chase and its subsidiaries were obligated under a number of noncancellable leases, predominantly operating leases for premises and equipment used primarily for business purposes. Operating lease liabilities and ROU assets are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term. The following table provides information related to the Firm’s operating leases: (in millions) September 30, 2020 December 31, 2019 Right-of-use assets $ 7,883 $ 8,190 Lease liabilities 8,335 8,505 The Firm’s net rental expense was $474 million and $468 million for the three months ended September 30, 2020 and 2019, and $1.4 billion for each of the nine months ended September 30, 2020 and 2019. Firm as lessor The Firm’s lease financings are generally operating leases and are included in other assets The following table presents the Firm’s operating lease income, included within other income, and the related depreciation expense, included within technology, communications and equipment expense, on the Consolidated statements of income: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Operating lease income $ 1,425 $ 1,384 $ 4,236 $ 4,027 Depreciation expense 1,035 1,053 3,261 3,038 |
Leases | Leases Refer to Note 18 of JPMorgan Chase’s 2019 Form 10-K for a further discussion on leases. Firm as lessee At September 30, 2020, JPMorgan Chase and its subsidiaries were obligated under a number of noncancellable leases, predominantly operating leases for premises and equipment used primarily for business purposes. Operating lease liabilities and ROU assets are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term. The following table provides information related to the Firm’s operating leases: (in millions) September 30, 2020 December 31, 2019 Right-of-use assets $ 7,883 $ 8,190 Lease liabilities 8,335 8,505 The Firm’s net rental expense was $474 million and $468 million for the three months ended September 30, 2020 and 2019, and $1.4 billion for each of the nine months ended September 30, 2020 and 2019. Firm as lessor The Firm’s lease financings are generally operating leases and are included in other assets The following table presents the Firm’s operating lease income, included within other income, and the related depreciation expense, included within technology, communications and equipment expense, on the Consolidated statements of income: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Operating lease income $ 1,425 $ 1,384 $ 4,236 $ 4,027 Depreciation expense 1,035 1,053 3,261 3,038 |
Preferred Stock
Preferred Stock | 9 Months Ended |
Sep. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Preferred Stock | Preferred stock Refer to Note 21 of JPMorgan Chase’s 2019 Form 10-K for a further discussion on preferred stock. The following is a summary of JPMorgan Chase’s non-cumulative preferred stock outstanding as of September 30, 2020 and December 31, 2019, and the quarterly dividend declarations for the three and nine months ended September 30, 2020 and 2019. Shares Carrying value (in millions) Contractual rate in effect at September 30, 2020 Earliest redemption date Floating annualized rate of three-month LIBOR/ Term SOFR plus: Dividend declared September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 Issue date Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Fixed-rate: Series P — — $ — $ — 2/5/2013 — % 3/1/2018 NA $— $136.25 $— $408.75 Series T — — — — 1/30/2014 — 3/1/2019 NA — NA — 167.50 Series W — — — — 6/23/2014 — 9/1/2019 NA — 157.50 — 472.50 Series Y — 143,000 — 1,430 2/12/2015 — 3/1/2020 NA — 153.13 153.13 459.39 Series AA 142,500 142,500 1,425 1,425 6/4/2015 6.100 9/1/2020 NA 152.50 152.50 457.50 457.50 Series BB 115,000 115,000 1,150 1,150 7/29/2015 6.150 9/1/2020 NA 153.75 153.75 461.25 461.25 Series DD 169,625 169,625 1,696 1,696 9/21/2018 5.750 12/1/2023 NA 143.75 143.75 431.25 431.25 Series EE 185,000 185,000 1,850 1,850 1/24/2019 6.000 3/1/2024 NA 150.00 150.00 450.00 361.67 Series GG 90,000 90,000 900 900 11/7/2019 4.750 12/1/2024 NA 118.75 NA 387.92 NA Fixed-to-floating-rate: Series I 293,375 293,375 $ 2,934 $ 2,934 4/23/2008 LIBOR + 3.47% 4/30/2018 LIBOR + 3.47% $95.53 $146.58 $334.90 $455.09 Series Q 150,000 150,000 1,500 1,500 4/23/2013 5.150 5/1/2023 LIBOR + 3.25 128.75 128.75 386.25 386.25 Series R 150,000 150,000 1,500 1,500 7/29/2013 6.000 8/1/2023 LIBOR + 3.30 150.00 150.00 450.00 450.00 Series S 200,000 200,000 2,000 2,000 1/22/2014 6.750 2/1/2024 LIBOR + 3.78 168.75 168.75 506.25 506.25 Series U 100,000 100,000 1,000 1,000 3/10/2014 6.125 4/30/2024 LIBOR + 3.33 153.13 153.13 459.38 459.38 Series V 250,000 250,000 2,500 2,500 6/9/2014 LIBOR + 3.32 7/1/2019 LIBOR + 3.32 92.41 144.11 343.30 394.11 (a) Series X 160,000 160,000 1,600 1,600 9/23/2014 6.100 10/1/2024 LIBOR + 3.33 152.50 152.50 457.50 457.50 Series Z 200,000 200,000 2,000 2,000 4/21/2015 LIBOR + 3.80 5/1/2020 LIBOR + 3.80 102.40 132.50 352.05 397.50 (b) Series CC 125,750 125,750 1,258 1,258 10/20/2017 4.625 11/1/2022 LIBOR + 2.58 115.63 115.63 346.88 346.88 Series FF 225,000 225,000 2,250 2,250 7/31/2019 5.000 8/1/2024 SOFR + 3.38 125.00 126.39 375.00 126.39 Series HH 300,000 — 3,000 — 1/23/2020 4.600 2/1/2025 SOFR + 3.125 115.00 NA 355.22 NA Series II 150,000 — 1,500 — 2/24/2020 4.000 4/1/2025 SOFR + 2.745 100.00 NA 241.11 NA Total preferred stock 3,006,250 2,699,250 $ 30,063 $ 26,993 (a) Prior to July 1, 2019, the dividend rate was fixed at 5%. (b) Prior to May 1, 2020, the dividend rate was fixed at 5.3%. Each series of preferred stock has a liquidation value and redemption price per share of $10,000, plus accrued but unpaid dividends. The aggregate liquidation value was $30.4 billion at September 30, 2020. Redemptions On March 1, 2020, the Firm redeemed all $1.43 billion of its 6.125% preferred stock, Series Y. On December 1, 2019, the Firm redeemed all $900 million of its 5.45% preferred stock, Series P. On October 30, 2019, the Firm redeemed $1.37 billion of its fixed-to-floating rate perpetual preferred stock, Series I. On September 1, 2019, the Firm redeemed all $880 million of its 6.30% preferred stock, Series W. On March 1, 2019, the Firm redeemed all $925 million of its 6.70% preferred stock, Series T. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per share Refer to Note 23 of JPMorgan Chase’s 2019 Form 10-K for a discussion of the computation of basic and diluted earnings per share (“EPS”). The following table presents the calculation of basic and diluted EPS for the three and nine months ended September 30, 2020 and 2019. (in millions, except per share amounts) Three months ended Nine months ended 2020 2019 2020 2019 Basic earnings per share Net income $ 9,443 $ 9,080 $ 16,995 $ 27,911 Less: Preferred stock dividends 381 423 1,203 1,201 Net income applicable to common equity 9,062 8,657 15,792 26,710 Less: Dividends and undistributed earnings allocated to participating securities 47 51 80 159 Net income applicable to common stockholders $ 9,015 $ 8,606 $ 15,712 $ 26,551 Total weighted-average basic shares outstanding 3,077.8 3,198.5 3,083.3 3,248.7 Net income per share $ 2.93 $ 2.69 $ 5.10 $ 8.17 Diluted earnings per share Net income applicable to common stockholders $ 9,015 $ 8,606 $ 15,712 $ 26,551 Total weighted-average basic shares outstanding 3,077.8 3,198.5 3,083.3 3,248.7 Add: Dilutive impact of SARs and employee stock options, unvested PSUs and nondividend-earning RSUs 5.0 8.7 4.8 9.3 Total weighted-average diluted shares outstanding 3,082.8 3,207.2 3,088.1 3,258.0 Net income per share $ 2.92 $ 2.68 $ 5.09 $ 8.15 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income/(Loss) | 9 Months Ended |
Sep. 30, 2020 | |
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), fair value changes of excluded components on fair value hedges, cash flow hedging activities, net loss and prior service costs/(credit) related to the Firm’s defined benefit pension and OPEB plans, and fair value option-elected liabilities arising from changes in the Firm’s own credit risk (DVA). As of or for the three months ended Unrealized Translation adjustments, net of hedges Fair value hedges Cash flow hedges Defined benefit DVA on fair value option elected liabilities Accumulated other comprehensive income/(loss) Balance at July 1, 2020 $ 7,920 $ (895) $ (27) $ 2,762 $ (1,318) $ 347 $ 8,789 Net change 514 127 (69) (70) (12) (339) 151 Balance at September 30, 2020 $ 8,434 (a) $ (768) $ (96) $ 2,692 $ (1,330) $ 8 $ 8,940 As of or for the three months ended Unrealized Translation adjustments, net of hedges Fair value hedges Cash flow hedges Defined benefit pension and DVA on fair value option elected liabilities Accumulated other comprehensive income/(loss) Balance at July 1, 2019 $ 3,709 $ (652) (73) $ 126 $ (2,231) $ 235 $ 1,114 Net change 479 (165) (1) 195 46 132 686 Balance at September 30, 2019 $ 4,188 $ (817) $ (74) $ 321 $ (2,185) $ 367 $ 1,800 As of or for the nine months ended Unrealized Translation adjustments, net of hedges Fair value hedges Cash flow hedges Defined benefit DVA on fair value option elected liabilities Accumulated other comprehensive income/(loss) Balance at January 1, 2020 $ 4,057 $ (707) $ (131) $ 63 $ (1,344) $ (369) $ 1,569 Net change 4,377 (61) 35 2,629 14 377 7,371 Balance at September 30, 2020 $ 8,434 (a) $ (768) $ (96) $ 2,692 $ (1,330) $ 8 $ 8,940 As of or for the nine months ended Unrealized Translation adjustments, net of hedges Fair value hedges Cash flow hedges Defined benefit pension and DVA on fair value option elected liabilities Accumulated other comprehensive income/(loss) Balance at January 1, 2019 $ 1,202 $ (727) $ (161) $ (109) $ (2,308) $ 596 $ (1,507) Net change 2,986 (90) 87 430 123 (229) 3,307 Balance at September 30, 2019 $ 4,188 $ (817) $ (74) $ 321 $ (2,185) $ 367 $ 1,800 (a) Includes after-tax net unamortized unrealized gains of $2.7 billion related to AFS securities that have been transferred to HTM. Refer to Note 10 for further information. The following table presents the pre-tax and after-tax changes in the components of OCI. 2020 2019 Three months ended September 30, 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 $ 1,143 $ (270) $ 873 $ 708 $ (169) $ 539 Reclassification adjustment for realized (gains)/losses included in net income (a) (473) 114 (359) (78) 18 (60) Net change 670 (156) 514 630 (151) 479 Translation adjustments (b) : Translation 871 (86) 785 (861) 40 (821) Hedges (868) 210 (658) 866 (210) 656 Net change 3 124 127 5 (170) (165) Fair value hedges, net change (c) : (91) 22 (69) (1) — (1) Cash flow hedges: Net unrealized gains/(losses) arising during the period 134 (32) 102 222 (55) 167 Reclassification adjustment for realized (gains)/losses included in net income (d) (227) 55 (172) 37 (9) 28 Net change (93) 23 (70) 259 (64) 195 Defined benefit pension and OPEB plans: Net gain/(loss) arising during the period — — — — — — Reclassification adjustments included in net income (e) : Amortization of net loss 4 (1) 3 42 (10) 32 Amortization of prior service cost/(credit) — 1 1 — — — Foreign exchange and other (22) 6 (16) 18 (4) 14 Net change (18) 6 (12) 60 (14) 46 DVA on fair value option elected liabilities, net change: (445) 106 (339) 173 (41) 132 Total other comprehensive income/(loss) $ 26 $ 125 $ 151 $ 1,126 $ (440) $ 686 2020 2019 Nine months ended September 30, 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 $ 6,494 $ (1,561) $ 4,933 $ 4,074 $ (985) $ 3,089 Reclassification adjustment for realized (gains)/losses included in net income (a) (732) 176 (556) (135) 32 (103) Net change 5,762 (1,385) 4,377 3,939 (953) 2,986 Translation adjustments (b) : Translation (316) 15 (301) (697) 76 (621) Hedges 316 (76) 240 700 (169) 531 Net change — (61) (61) 3 (93) (90) Fair value hedges, net change (c) : 45 (10) 35 114 (27) 87 Cash flow hedges: Net unrealized gains/(losses) arising during the period 3,787 (909) 2,878 464 (112) 352 Reclassification adjustment for realized (gains)/losses included in net income (d) (328) 79 (249) 102 (24) 78 Net change 3,459 (830) 2,629 566 (136) 430 Defined benefit pension and OPEB plans: Net gain/(loss) arising during the period 9 (2) 7 2 (2) — Reclassification adjustments included in net income (e) : Amortization of net loss 11 (3) 8 125 (26) 99 Amortization of prior service cost/(credit) 2 (1) 1 2 (1) 1 Foreign exchange and other 1 (3) (2) 19 4 23 Net change 23 (9) 14 148 (25) 123 DVA on fair value option elected liabilities, net change: 496 (119) 377 (296) 67 (229) Total other comprehensive income/(loss) $ 9,785 $ (2,414) $ 7,371 $ 4,474 $ (1,167) $ 3,307 (a) The pre-tax amount is reported in Investment securities gains in the Consolidated statements of income. (b) Reclassifications of pre-tax realized gains/(losses) on translation adjustments and related hedges are reported in other income/expense in the Consolidated statements of income. The amounts were not material for the three and nine months ended September 30, 2020. During the nine months ended September 30, 2019, the Firm reclassified net pre-tax gains of $6 million to other income and $1 million to other expense, respectively. These amounts, which related to the liquidation of certain legal entities, are comprised of $5 million related to net investment hedge gains and $2 million related to cumulative translation adjustments. (c) Represents changes in fair value of cross-currency swaps attributable to changes in cross-currency basis spreads, which are excluded from the assessment of hedge effectiveness and recorded in other comprehensive income. The initial cost of cross-currency basis spreads is recognized in earnings as part of the accrual of interest on the cross currency swap. (d) The pre-tax amounts are primarily recorded in noninterest revenue, net interest income and compensation expense in the Consolidated statements of income. (e) The pre-tax amount is reported in other expense in the Consolidated statements of income. |
Restricted Cash and Other Restr
Restricted Cash and Other Restricted Assets | 9 Months Ended |
Sep. 30, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash and Other Restricted Assets | Restricted cash and other restricted assets Refer to Note 26 of JPMorgan Chase’s 2019 Form 10-K for a detailed discussion of the Firm’s restricted cash and other restricted assets. Certain of the Firm’s cash and other assets are restricted as to withdrawal or usage. These restrictions are imposed by various regulatory authorities based on the particular activities of the Firm’s subsidiaries. The Firm is also subject to rules and regulations established by other U.S. and non U.S. regulators. As part of its compliance with the respective regulatory requirements, the Firm’s broker-dealer activities are subject to certain restrictions on cash and other assets. The following table presents the components of the Firm’s restricted cash: (in billions) September 30, December 31, 2019 Cash reserves – Federal Reserve Banks (a) $ — $ 26.6 Segregated for the benefit of securities and cleared derivative customers 20.0 16.0 Cash reserves at non-U.S. central banks and held for other general purposes 4.7 3.9 Total restricted cash (b) $ 24.7 $ 46.5 (a) Effective March 26, 2020, the Federal Reserve temporarily eliminated reserve requirements for depository institutions. (b) Comprises $23.1 billion and $45.3 billion in deposits with banks, and $1.6 billion and $1.2 billion in cash and due from banks on the Consolidated balance sheet as of September 30, 2020 and December 31, 2019, respectively. Also, as of September 30, 2020 and December 31, 2019, the Firm had the following other restricted assets: • Cash and securities pledged with clearing organizations for the benefit of customers of $35.1 billion and $24.7 billion, respectively. • Securities with a fair value of $5.6 billion and $8.8 billion, respectively, were also restricted in relation to customer activity. |
Regulatory Capital
Regulatory Capital | 9 Months Ended |
Sep. 30, 2020 | |
Banking Regulation [Abstract] | |
Regulatory Capital | Regulatory capital Refer to Note 27 of JPMorgan Chase’s 2019 Form 10-K for a detailed discussion on regulatory capital. The Federal Reserve establishes capital requirements, including well-capitalized standards, for the consolidated financial holding company. The Office of the Comptroller of the Currency (“OCC”) establishes similar minimum capital requirements and standards for the Firm’s principal IDI subsidiary, JPMorgan Chase Bank, N.A. Under the risk-based capital and leverage-based guidelines of the Federal Reserve, JPMorgan Chase is required to maintain minimum ratios for CET1 capital, Tier 1 capital, Total capital, Tier 1 leverage and the SLR. Failure to meet these minimum requirements could cause the Federal Reserve to take action. IDI subsidiaries are also subject to these capital requirements established by their respective primary regulators. The following table presents the minimum and well-capitalized ratios to which the Firm and its IDI subsidiaries were subject as of September 30, 2020 and December 31, 2019. Minimum capital ratios Well-capitalized ratios BHC (a)(e) IDI (b)(e) BHC (c) IDI (d) Capital ratios CET1 capital 10.5 % 7.0 % N/A 6.5 % Tier 1 capital 12.0 8.5 6.0 8.0 Total capital 14.0 10.5 10.0 10.0 Tier 1 leverage 4.0 4.0 N/A 5.0 SLR 5.0 6.0 N/A 6.0 Note: The table above is as defined by the regulations issued by the Federal Reserve, OCC and FDIC and to which the Firm and its IDI subsidiaries are subject. (a) Represents the minimum capital ratios applicable to the Firm under Basel III. The CET1, Tier 1 and Total capital minimum capital ratios include a capital conservation buffer requirement of 2.5% and GSIB surcharge of 3.5% as calculated under Method 2. (b) Represents requirements for JPMorgan Chase’s IDI subsidiaries. The CET1, Tier 1 and Total capital minimum capital ratios include a capital conservation buffer requirement of 2.5% that is applicable to the IDI subsidiaries. The IDI subsidiaries are not subject to the GSIB surcharge. (c) Represents requirements for bank holding companies pursuant to regulations issued by the Federal Reserve. (d) Represents requirements for IDI subsidiaries pursuant to regulations issued under the FDIC Improvement Act. (e) Represents minimum SLR requirement of 3.0%, as well as supplementary leverage buffer requirements of 2.0% and 3.0% for BHC and IDI, respectively. Current Expected Credit Losses As disclosed in the Firm’s 2019 Form 10-K, the Firm initially elected to phase-in the January 1, 2020 (“day 1”) CECL adoption impact to retained earnings of $2.7 billion to CET1 capital, at 25% per year in each of 2020 to 2023. As part of their response to the impact of the COVID-19 pandemic, on March 31, 2020, the federal banking agencies issued an interim final rule (issued as final on August 26, 2020) that provided the option to delay the effects of CECL on regulatory capital for two years, followed by a three-year transition period. The final rule provides a uniform approach for estimating the effects of CECL compared to the legacy incurred loss model during the first two years of the transition period (the “day 2” transition amount), whereby the Firm may exclude from CET1 capital 25% of the change in the allowance for credit losses (excluding allowances on PCD loans). The cumulative day 2 transition amount as at December 31, 2021 that is not recognized in CET1 capital as well as the $2.7 billion day 1 impact, will be phased into CET1 capital at 25% per year beginning January 1, 2022. The Firm has elected to apply the CECL capital transition provisions, and accordingly, for the period ended September 30, 2020, the capital metrics of the Firm exclude $6.4 billion, which is the $2.7 billion day 1 impact to retained earnings and 25% of the $15.2 billion increase in the allowance for credit losses (excluding allowances on PCD loans). The impacts of the CECL capital transition provisions on Tier 2 capital, adjusted average assets, and total leverage exposure have also been incorporated into the Firm’s capital metrics. Refer to Note 1 for further information on the CECL accounting guidance. The following tables present the risk-based and leverage-based capital metrics for JPMorgan Chase and JPMorgan Chase Bank, N.A. under both the Basel III Standardized and Basel III Advanced Approaches. As of September 30, 2020, the capital metrics are presented applying the CECL capital transition provisions. As of September 30, 2020 and December 31, 2019, JPMorgan Chase and JPMorgan Chase Bank, N.A. were well-capitalized and met all capital requirements to which each was subject. September 30, 2020 Basel III Standardized Basel III Advanced JPMorgan Chase & Co. (d) JPMorgan Chase Bank, N.A. (d) JPMorgan (d) JPMorgan (d) Risk-based capital metrics: (a) CET1 capital $ 197,719 $ 225,547 $ 197,719 $ 225,547 Tier 1 capital 227,486 225,549 227,486 225,549 Total capital 262,397 242,927 249,947 230,846 Risk-weighted assets 1,514,509 1,444,069 1,429,334 1,298,354 CET1 capital ratio 13.1 % 15.6 % 13.8 % 17.4 % Tier 1 capital ratio 15.0 15.6 15.9 17.4 Total capital ratio 17.3 16.8 17.5 17.8 Leverage-based capital metrics: Adjusted average assets (b) $ 3,243,290 $ 2,852,307 $ 3,243,290 $ 2,852,307 Tier 1 leverage ratio 7.0 % 7.9 % 7.0 % 7.9 % Total leverage exposure (c) NA NA $ 3,247,392 $ 3,544,506 SLR (c) NA NA 7.0 % 6.4 % December 31, 2019 Basel III Standardized Basel III Advanced JPMorgan JPMorgan JPMorgan JPMorgan Risk-based capital metrics: (a) CET1 capital $ 187,753 $ 206,848 $ 187,753 $ 206,848 Tier 1 capital 214,432 206,851 214,432 206,851 Total capital 242,589 224,390 232,112 214,091 Risk-weighted assets 1,515,869 1,457,689 1,397,878 1,269,991 CET1 capital ratio 12.4 % 14.2 % 13.4 % 16.3 % Tier 1 capital ratio 14.1 14.2 15.3 16.3 Total capital ratio 16.0 15.4 16.6 16.9 Leverage-based capital metrics: Adjusted average assets (b) $ 2,730,239 $ 2,353,432 $ 2,730,239 $ 2,353,432 Tier 1 leverage ratio 7.9 % 8.8 % 7.9 % 8.8 % Total leverage exposure NA NA $ 3,423,431 $ 3,044,509 SLR NA NA 6.3 % 6.8 % (a) The capital adequacy of the Firm and JPMorgan Chase Bank, N.A. is evaluated against the lower of the two ratios as calculated under Basel III approaches (Standardized or Advanced). (b) Adjusted average assets, for purposes of calculating the leverage ratio, includes total quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill and other intangible assets. (c) As of September 30, 2020, JPMorgan Chase’s total leverage exposure for purposes of calculating the SLR, excludes on-balance sheet amounts of U.S. Treasury securities and deposits at Federal Reserve Banks, as provided by the interim final rule issued by the Federal Reserve on April 1, 2020. On June 1, 2020, the Federal Reserve, OCC and FDIC issued an interim final rule that provides IDI subsidiaries with an option to apply this temporary exclusion subject to certain restrictions. As of September 30, 2020, JPMorgan Chase Bank, N.A. has not elected to apply this exclusion. |
Off-balance Sheet Lending-relat
Off-balance Sheet Lending-related Financial Instruments, Guarantees, and Other Commitments | 9 Months Ended |
Sep. 30, 2020 | |
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 address the financing needs of its customers and clients. The contractual amount of these financial instruments represents the maximum possible credit risk to the Firm should the customer or client draw upon the commitment or the Firm be required to fulfill its obligation under the guarantee, and should the customer or client subsequently fail to perform according to the terms of the contract. Most of these commitments and guarantees have historically been refinanced, extended, cancelled, or expired without being drawn or a default occurring. As a result, the total contractual amount of these instruments is not, in the Firm’s view, representative of its expected future credit exposure or funding requirements. Refer to Note 28 of JPMorgan Chase’s 2019 Form 10-K for a further discussion of lending-related commitments and guarantees, and the Firm’s related accounting policies. To provide for expected credit losses in wholesale and certain consumer lending-related commitments, an allowance for credit losses on lending-related commitments is maintained. Refer to Note 13 for further information regarding the allowance for credit losses on lending-related commitments, including the impact of the Firm’s adoption of the CECL accounting guidance on January 1, 2020. The following table summarizes the contractual amounts and carrying values of off-balance sheet lending-related financial instruments, guarantees and other commitments at September 30, 2020, and December 31, 2019. The amounts in the table below for credit card, home equity and certain scored business banking lending-related commitments represent the total available credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit for these products will be utilized at the same time. The Firm can reduce or cancel credit card and certain scored business banking lines of credit by providing the borrower notice or, in some cases as permitted by law, without notice. In addition, the Firm typically closes credit card lines when the borrower is 60 days or more past due. The Firm may reduce or close HELOCs when there are significant decreases in the value of the underlying property, or when there has been a demonstrable decline in the creditworthiness of the borrower. In conjunction with the adoption of CECL, the Firm reclassified risk-rated loans and lending-related commitments from the consumer, excluding credit card portfolio segment to the wholesale portfolio segment, to align with the methodology applied when determining the allowance. Prior-period amounts have been revised to conform with the current presentation. Refer to Note 1 for further information. Off–balance sheet lending-related financial instruments, guarantees and other commitments Contractual amount Carrying value (j) September 30, 2020 Dec 31, Sep 30, Dec 31, By remaining maturity Expires in 1 year or less Expires after Expires after Expires after 5 years Total Total Lending-related Consumer, excluding credit card: Residential real estate (a) $ 15,739 $ 1,447 $ 3,570 $ 14,816 $ 35,572 $ 30,217 $ 216 $ 12 Auto and other 10,044 1 16 792 10,853 9,952 — — Total consumer, excluding credit card 25,783 1,448 3,586 15,608 46,425 40,169 216 12 Credit card (b) 662,860 — — — 662,860 650,720 — — Total consumer (b)(c) 688,643 1,448 3,586 15,608 709,285 690,889 216 12 Wholesale: Other unfunded commitments to extend credit (d)(e) 96,207 160,733 134,223 15,571 406,734 380,307 2,492 952 Standby letters of credit and other financial guarantees (d) 17,847 8,170 3,915 1,520 31,452 34,242 473 618 Other letters of credit (d) 2,954 76 19 — 3,049 2,961 20 4 Total wholesale (c) 117,008 168,979 138,157 17,091 441,235 417,510 2,985 1,574 Total lending-related $ 805,651 $ 170,427 $ 141,743 $ 32,699 $ 1,150,520 $ 1,108,399 $ 3,201 $ 1,586 Other guarantees and commitments Securities lending indemnification agreements and guarantees (f) $ 220,361 $ — $ — $ — $ 220,361 $ 204,827 $ — $ — Derivatives qualifying as guarantees 2,668 290 12,045 40,377 55,380 53,089 451 159 Unsettled resale and securities borrowed agreements 142,799 3,555 — — 146,354 117,951 1 — Unsettled repurchase and securities loaned agreements 120,904 586 — — 121,490 73,351 (1) — Loan sale and securitization-related indemnifications: Mortgage repurchase liability NA NA NA NA NA NA 84 59 Loans sold with recourse NA NA NA NA 853 944 24 27 Exchange & clearing house guarantees and commitments (g) 89,121 — — — 89,121 206,432 — — Other guarantees and commitments (e)(h) 1,236 499 711 4,052 6,498 6,334 (i) (64) (66) (a) Includes certain commitments to purchase loans from correspondents. (b) Also includes commercial card lending-related commitments primarily in CB and CIB. (c) Predominantly all consumer and wholesale lending-related commitments are in the U.S. (d) At September 30, 2020, and December 31, 2019, reflected the contractual amount net of risk participations totaling $50 million and $76 million, respectively, for other unfunded commitments to extend credit; $8.8 billion and $9.8 billion, respectively, for standby letters of credit and other financial guarantees; and $462 million and $546 million, respectively, for other letters of credit. In regulatory filings with the Federal Reserve these commitments are shown gross of risk participations. (e) In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans, which resulted in a corresponding reclassification of commitments from Other guarantees and commitments to Wholesale other unfunded commitments to extend credit. Prior-period amounts have been revised to conform with the current presentation. (f) At September 30, 2020, and December 31, 2019, collateral held by the Firm in support of securities lending indemnification agreements was $233.0 billion and $216.2 billion, respectively. Securities lending collateral primarily consists of cash, G7 government securities, and securities issued by U.S. GSEs and government agencies. (g) At September 30, 2020, and December 31, 2019, includes guarantees to the Fixed Income Clearing Corporation under the sponsored member repo program and commitments and guarantees associated with the Firm’s membership in certain clearing houses. (h) At September 30, 2020, and December 31, 2019, primarily includes letters of credit hedged by derivative transactions and managed on a market risk basis, and unfunded commitments related to institutional lending. Additionally, includes unfunded commitments predominantly related to certain tax-oriented equity investments. (i) Prior-period amounts have been revised to conform with the current presentation. (j) For lending-related products, the carrying value represents the allowance for lending-related commitments and the guarantee liability; for derivative-related products, and lending-related commitments for which the fair value option was elected, the carrying value represents the fair value. At September 30, 2020, includes net markdowns on held-for-sale positions related to unfunded commitments in the bridge financing portfolio. Other unfunded commitments to extend credit Other unfunded commitments to extend credit generally consist of commitments for working capital and general corporate purposes, extensions of credit to support commercial paper facilities and bond financings in the event that those obligations cannot be remarketed to new investors, as well as committed liquidity facilities to clearing organizations. The Firm also issues commitments under multipurpose facilities which could be drawn upon in several forms, including the issuance of a standby letter of credit. Standby letters of credit and other financial guarantees Standby letters of credit and other financial guarantees are conditional lending commitments issued by the Firm to guarantee the performance of a client or customer to a third party under certain arrangements, such as commercial paper facilities, bond financings, acquisition financings, trade and similar transactions. The following table summarizes the contractual amount and carrying value of standby letters of credit and other financial guarantees and other letters of credit arrangements as of September 30, 2020, and December 31, 2019. Standby letters of credit, other financial guarantees and other letters of credit September 30, 2020 December 31, 2019 (in millions) Standby letters of Other letters Standby letters of Other letters Investment-grade (a) $ 23,461 $ 2,338 $ 26,880 $ 2,137 Noninvestment-grade (a) 7,991 711 7,362 824 Total contractual amount $ 31,452 $ 3,049 $ 34,242 $ 2,961 Allowance for lending-related commitments $ 98 $ 20 $ 216 $ 4 Guarantee liability 375 — 402 — Total carrying value $ 473 $ 20 $ 618 $ 4 Commitments with collateral $ 17,249 $ 417 $ 17,853 $ 728 (a) The ratings scale is based on the Firm’s internal risk ratings. Refer to Note 12 for further information on internal risk ratings. Derivatives qualifying as guarantees The Firm transacts in certain derivative contracts that have the characteristics of a guarantee under U.S. GAAP. Refer to Note 28 of JPMorgan Chase’s 2019 Form 10-K for further information on these derivatives. The following table summarizes the derivatives qualifying as guarantees as of September 30, 2020, and December 31, 2019. (in millions) September 30, 2020 December 31, 2019 Notional amounts Derivative guarantees $ 55,380 $ 53,089 Stable value contracts with contractually limited exposure 28,955 28,877 Maximum exposure of stable value contracts with contractually limited exposure 2,974 2,967 Fair value Derivative payables 451 159 In addition to derivative contracts that meet the characteristics of a guarantee, the Firm is both a purchaser and seller of credit protection in the credit derivatives market. Refer to Note 5 for a further discussion of credit derivatives. Merchant charge-backs Under the rules of payment networks, the Firm, in its role as a merchant acquirer, retains a contingent liability for disputed processed credit and debit card transactions that result in a charge-back to the merchant. If a dispute is resolved in the cardholder’s favor, Merchant Services will (through the cardholder’s issuing bank) credit or refund the amount to the cardholder and will charge back the transaction to the merchant. If Merchant Services is unable to collect the amount from the merchant, Merchant Services will bear the loss for the amount credited or refunded to the cardholder. Merchant Services mitigates this risk by withholding future settlements, retaining cash reserve accounts or obtaining other collateral. In addition, Merchant Services recognizes a valuation allowance that covers the payment or performance risk to the Firm related to charge-backs. The carrying value of the valuation allowance was $14 million and $11 million at September 30, 2020 and December 31, 2019, respectively. Loan sales- and securitization-related indemnifications In connection with the Firm’s mortgage loan sale and securitization activities with GSEs the Firm has made representations and warranties that the loans sold meet certain requirements, and that may require the Firm to repurchase mortgage loans and/or indemnify the loan purchaser if such representations and warranties are breached by the Firm. 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. Refer to Note 28 of JPMorgan Chase’s 2019 Form 10-K for additional information. The liability related to repurchase demands associated with private label securitizations is separately evaluated by the Firm in establishing its litigation reserves. Refer to Note 25 of this Form 10-Q and Note 30 of JPMorgan Chase’s 2019 Form 10-K for additional information regarding litigation. Sponsored member repo program The Firm acts as a sponsoring member to clear eligible overnight resale and repurchase agreements through the Government Securities Division of the Fixed Income Clearing Corporation (“FICC”) on behalf of clients that become sponsored members under the FICC’s rules. The Firm also guarantees to the FICC the prompt and full payment and performance of its sponsored member clients’ respective obligations under the FICC’s rules. The Firm minimizes its liability under these overnight guarantees by obtaining a security interest in the cash or high-quality securities collateral that the clients place with the clearing house therefore the Firm expects the risk of loss to be remote. The Firm’s maximum possible exposure, without taking into consideration the associated collateral, is included in the Exchange & clearing house guarantees and commitments line on page 180. Refer to Note 11 of JPMorgan Chase’s 2019 Form 10-K for additional information on credit risk mitigation practices on resale agreements and the types of collateral pledged under repurchase agreements. Guarantees of subsidiaries The Parent Company has guaranteed certain long-term debt and structured notes of its subsidiaries, including JPMorgan Chase Financial Company LLC (“JPMFC”), a 100%-owned finance subsidiary. All securities issued by JPMFC are fully and unconditionally guaranteed by the Parent Company. These guarantees, which rank on parity with the Firm’s unsecured and unsubordinated indebtedness, are not included in the table on page 180 of this Note. Refer to Note 20 of JPMorgan Chase’s 2019 Form 10-K for additional information. |
Pledged Assets and Collateral
Pledged Assets and Collateral | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Pledged Assets and Collateral | Pledged assets and collateral Refer to Note 29 of JPMorgan Chase’s 2019 Form 10-K for a discussion of the Firm’s pledged assets and collateral. Pledged assets The Firm pledges financial assets that it owns to maintain potential borrowing capacity at discount windows with Federal Reserve banks, various other central banks and FHLBs. Additionally, the Firm pledges assets for other purposes, including to collateralize repurchase and other securities financing agreements, to cover short sales and to collateralize derivative contracts and deposits. Certain of these pledged assets may be sold or repledged or otherwise used by the secured parties and are parenthetically identified on the Consolidated balance sheets as assets pledged. The following table presents the Firm’s pledged assets. (in billions) September 30, 2020 December 31, 2019 Assets that may be sold or repledged or otherwise used by secured parties $ 189.9 $ 125.2 Assets that may not be sold or repledged or otherwise used by secured parties 98.8 80.2 Assets pledged at Federal Reserve banks and FHLBs 441.6 478.9 Total pledged assets $ 730.3 $ 684.3 Total pledged assets do not include assets of consolidated VIEs; these assets are used to settle the liabilities of those entities. Refer to Note 14 for additional information on assets and liabilities of consolidated VIEs. Refer to Note 11 for additional information on the Firm’s securities financing activities. Refer to Note 20 of JPMorgan Chase’s 2019 Form 10-K for additional information on the Firm’s long-term debt. Collateral The Firm accepts financial assets as collateral that it is permitted to sell or repledge, deliver or otherwise use. This collateral is generally obtained under resale and other securities financing agreements, prime brokerage-related held-for-investment customer receivables and derivative contracts. Collateral is generally used under repurchase and other securities financing agreements, to cover short sales and to collateralize derivative contracts and deposits. The following table presents the fair value of collateral accepted. (in billions) September 30, 2020 December 31, 2019 Collateral permitted to be sold or repledged, delivered, or otherwise used $ 1,361.5 $ 1,282.5 Collateral sold, repledged, delivered or otherwise used 999.8 1,000.5 (a) (a) Includes collateral repledged to the Federal Reserve under the Federal Reserve’s open market operations. |
Litigation
Litigation | 9 Months Ended |
Sep. 30, 2020 | |
Litigation [Abstract] | |
Litigation | Litigation Contingencies As of September 30, 2020, the Firm and its subsidiaries and affiliates are defendants, putative defendants or respondents in numerous legal proceedings, including private, civil litigations and regulatory/government investigations. The litigations range from individual actions involving a single plaintiff to class action lawsuits with potentially millions of class members. Investigations involve both formal and informal proceedings, by both governmental agencies and self-regulatory organizations. These legal proceedings are at varying stages of adjudication, arbitration or investigation, and involve each of the Firm’s lines of business and several geographies and a wide variety of claims (including common law tort and contract claims and statutory antitrust, securities and consumer protection claims), some of which present novel legal theories. The Firm believes the estimate of the aggregate range of reasonably possible losses, in excess of reserves established, for its legal proceedings is from $0 to approximately $1.7 billion at September 30, 2020. This estimated aggregate range of reasonably possible losses was based upon information available as of that date for those proceedings in which the Firm believes that an estimate of reasonably possible loss can be made. For certain matters, the Firm does not believe that such an estimate can be made, as of that date. The Firm’s estimate of the aggregate range of reasonably possible losses involves significant judgment, given: • the number, variety and varying stages of the proceedings, including the fact that many are in preliminary stages, • the existence in many such proceedings of multiple defendants, including the Firm, whose share of liability (if any) has yet to be determined, • the numerous yet-unresolved issues in many of the proceedings, including issues regarding class certification and the scope of many of the claims, and • the attendant uncertainty of the various potential outcomes of such proceedings, including where the Firm has made assumptions concerning future rulings by the court or other adjudicator, or about the behavior or incentives of adverse parties or regulatory authorities, and those assumptions prove to be incorrect. In addition, the outcome of a particular proceeding may be a result which the Firm did not take into account in its estimate because the Firm had deemed the likelihood of that outcome to be remote. Accordingly, the Firm’s estimate of the aggregate range of reasonably possible losses will change from time to time, and actual losses may vary significantly. Set forth below are descriptions of the Firm’s material legal proceedings. Advisory and Other Activities . JPMorgan Chase Bank, N.A. has been advised by one of its U.S. regulators of a potential civil money penalty action against the Bank related to historical deficiencies in internal controls and internal audit over certain advisory and other activities. The Bank already has controls in place to address the deficiencies related to the proposed penalty. The Firm is currently engaged in resolution discussions with the U.S. regulator. There is no assurance that such discussions will result in resolution. Amrapali . India’s Enforcement Directorate (“ED”) is investigating JPMorgan India Private Limited in connection with investments made in 2010 and 2012 by two offshore funds formerly managed by JPMorgan Chase entities into residential housing projects developed by the Amrapali Group (“Amrapali”). In 2017, numerous creditors filed civil claims against Amrapali including petitions brought by home buyers relating to delays in delivering or failure to deliver residential units. The home buyers’ petitions have been overseen by the Supreme Court of India since 2017 pursuant to its jurisdiction over public interest litigation. In July 2019, the Supreme Court of India issued an order making preliminary findings that Amrapali and other parties, including unspecified JPMorgan Chase entities and the offshore funds that had invested in the projects, violated certain currency control and money laundering provisions, and ordering the ED to conduct a further inquiry under India’s Prevention of Money Laundering Act (“PMLA”) and Foreign Exchange Management Act (“FEMA”). In May 2020, the Enforcement Directorate issued a provisional attachment order as part of the criminal PMLA proceedings freezing approximately $25 million held by JPMorgan India Private Limited. In June 2020, the funds were transferred to an account held by the Supreme Court of India. A separate civil proceeding relating to alleged FEMA violations is ongoing. The Firm is responding to and cooperating with the investigation. Federal Republic of Nigeria Litigation. JPMorgan Chase Bank, N.A. operated an escrow and depository account for the Federal Government of Nigeria (“FGN”) and two major international oil companies. The account held approximately $1.1 billion in connection with a dispute among the clients over rights to an oil field. Following the settlement of the dispute, JPMorgan Chase Bank, N.A. paid out the monies in the account in 2011 and 2013 in accordance with directions received from its clients. In November 2017, the Federal Republic of Nigeria (“FRN”) commenced a claim in the English High Court for approximately $875 million in payments made out of the accounts. The FRN, claiming to be the same entity as the FGN, alleges that the payments were instructed as part of a complex fraud not involving JPMorgan Chase Bank, N.A., but that JPMorgan Chase Bank, N.A. was or should have been on notice that the payments may be fraudulent. JPMorgan Chase Bank, N.A. applied for summary judgment and was unsuccessful. The claim is ongoing and no trial date has been set. Foreign Exchange Investigations and Litigation. The Firm previously reported settlements with certain government authorities relating to its foreign exchange (“FX”) sales and trading activities and controls related to those activities. Among those resolutions, in May 2015, the Firm pleaded guilty to a single violation of federal antitrust law. In January 2017, the Firm was sentenced, with judgment entered thereafter and a term of probation ending in January 2020. The term of probation has concluded, with the Firm remaining in good standing throughout the probation period. The Department of Labor granted the Firm a five-year exemption of disqualification that allows the Firm and its affiliates to continue to rely on the Qualified Professional Asset Manager exemption under the Employee Retirement Income Security Act (“ERISA”) until January 2023. The Firm will need to reapply in due course for a further exemption to cover the remainder of the ten-year disqualification period. A South Africa Competition Commission matter is the remaining FX-related governmental inquiry, and is currently pending before the South Africa Competition Tribunal. In August 2018, the United States District Court for the Southern District of New York granted final approval to the Firm’s settlement of a consolidated class action brought by U.S.-based plaintiffs, which principally alleged violations of federal antitrust laws based on an alleged conspiracy to manipulate foreign exchange rates and also sought damages on behalf of persons who transacted in FX futures and options on futures. Certain members of the settlement class filed requests to the Court to be excluded from the class, and certain of them filed a complaint against the Firm and a number of other foreign exchange dealers in November 2018. A number of these actions remain pending. Further, putative class actions have been filed against the Firm and a number of other foreign exchange dealers on behalf of certain consumers who purchased foreign currencies at allegedly inflated rates and purported indirect purchasers of FX instruments; these actions also remain pending in the District Court. In 2020, the Firm and 11 other defendants agreed to settle the class action filed by purported indirect purchasers for a total of $10 million. That settlement remains subject to court approval. In addition, some FX-related individual and putative class actions based on similar alleged underlying conduct have been filed outside the U.S., including in the U.K., Israel and Australia. Interchange Litigation. G roups of merchants and retail associations filed a series of class action complaints alleging that Visa and Mastercard, as well as certain banks, conspired to set the price of credit and debit card interchange fees and enacted related rules in violation of antitrust laws. In 2012, the parties initially settled the cases for a cash payment, a temporary reduction of credit card interchange, and modifications to certain credit card network rules. In 2017, after the approval of that settlement was reversed on appeal, the case was remanded to the United States District Court for the Eastern District of New York for further proceedings consistent with the appellate decision. The original class action was divided into two separate actions, one seeking primarily monetary relief and the other seeking primarily injunctive relief. In September 2018, the parties to the class action seeking monetary relief finalized an agreement which amends and supersedes the prior settlement agreement. Pursuant to this settlement, the defendants collectively contributed an additional $900 million to the approximately $5.3 billion previously held in escrow from the original settlement. In December 2019, the amended agreement was approved by the District Court. Certain merchants appealed the District Court’s approval order, and those appeals are pending. Based on the percentage of merchants that opted out of the amended class settlement, $700 million has been returned to the defendants from the settlement escrow in accordance with the settlement agreement. The class action seeking primarily injunctive relief continues separately. In addition, certain merchants have filed individual actions raising similar allegations against Visa and Mastercard, as well as against the Firm and other banks, and some of those actions remain pending. LIBOR and Other Benchmark Rate Investigations and Litigation. JPMorgan Chase has responded to inquiries from various governmental agencies and entities around the world relating primarily to the British Bankers Association’s London Interbank Offered Rate (“LIBOR”) for various currencies and the European Banking Federation’s Euro Interbank Offered Rate (“EURIBOR”). The Swiss Competition Commission’s investigation relating to EURIBOR, to which the Firm and other banks are subject, continues. In December 2016, the European Commission issued a decision against the Firm and other banks finding an infringement of European antitrust rules relating to EURIBOR. The Firm has filed an appeal of that decision with the European General Court, and that appeal is pending. In addition, the Firm has been named as a defendant along with other banks in a series of individual and putative class actions related to benchmarks, including U.S. dollar LIBOR during the period that it was administered by the BBA and, in a separate consolidated putative class action, during the period that it was administered by ICE Benchmark Administration. These actions have been filed, or consolidated for pre-trial purposes, in the United States District Court for the Southern District of New York. In these actions, plaintiffs make varying allegations that in various periods, starting in 2000 or later, defendants either individually or collectively manipulated various benchmark rates by submitting rates that were artificially low or high. Plaintiffs allege that they transacted in loans, derivatives or other financial instruments whose values are affected by changes in these rates and assert a variety of claims including antitrust claims seeking treble damages. In actions related to U.S. dollar LIBOR during the period that it was administered by the BBA, the Firm has resolved certain of these actions, and others are in various stages of litigation. The District Court dismissed certain claims, including antitrust claims brought by some plaintiffs whom the District Court found did not have standing to assert such claims, and permitted certain claims to proceed, including antitrust, Commodity Exchange Act, Section 10(b) of the Securities Exchange Act and common law claims. The plaintiffs whose antitrust claims were dismissed for lack of standing have filed an appeal. The District Court granted class certification of antitrust claims related to bonds and interest rate swaps sold directly by the defendants and denied class certification motions filed by other plaintiffs. In the consolidated putative class action related to the time period that U.S. dollar LIBOR was administered by ICE Benchmark Administration, the District Court granted defendants’ motion to dismiss plaintiffs’ complaint, and the plaintiffs have appealed. The Firm’s settlements of putative class actions related to Swiss franc LIBOR, the Singapore Interbank Offered Rate and the Singapore Swap Offer Rate (“SIBOR”), the Australian Bank Bill Swap Reference Rate, and one of the putative class actions related to U.S. dollar LIBOR remain subject to court approval. In the class actions related to SIBOR and Swiss franc LIBOR, the District Court concluded that the Court lacked subject matter jurisdiction, and plaintiffs’ appeals of those decisions are pending. In addition to the actions pending or consolidated in the Southern District of New York, in August 2020, a group of individual plaintiffs filed a lawsuit asserting antitrust claims in the United States District Court for the Northern District of California, alleging that the Firm and other defendants were engaged in an unlawful agreement to set LIBOR and conspired to monopolize the market for LIBOR-based consumer loans and credit cards. The complaint seeks injunctive relief and monetary damages. Metals and U.S. Treasuries Investigations and Litigation and Related Inquiries. The Firm previously reported that it and/or certain of its subsidiaries had entered into resolutions with the U.S. Department of Justice (“DOJ”), the U.S. Commodity Futures Trading Commission (“CFTC”) and the U.S. Securities and Exchange Commission (“SEC”), which, collectively, resolved those agencies’ respective investigations relating to historical trading practices by former employees in the precious metals and U.S. treasuries markets and related conduct from 2008 to 2016. The Firm entered into a Deferred Prosecution Agreement (“DPA”) with the DOJ in which it agreed to the filing of a criminal information charging JPMorgan Chase & Co. with two counts of wire fraud and agreed, along with JPMorgan Chase Bank, N.A. and J.P. Morgan Securities LLC, to certain terms and obligations as set forth therein. Under the terms of the DPA, the criminal information will be dismissed after three years, provided that JPMorgan Chase & Co., JPMorgan Chase Bank, N.A. and J.P. Morgan Securities LLC fully comply with all of their obligations. Across the three resolutions with the DOJ, CFTC and SEC, JPMorgan Chase & Co., JPMorgan Chase Bank, N.A. and J.P. Morgan Securities LLC agreed to pay a total monetary amount of approximately $920 million. A portion of the total monetary amount includes victim compensation payments. Several putative class action complaints have been filed in the United States District Court for the Southern District of New York against the Firm and certain former employees, alleging a precious metals futures and options price manipulation scheme in violation of the Commodity Exchange Act. Some of the complaints also allege unjust enrichment and deceptive acts or practices under the General Business Law of the State of New York. The Court consolidated these putative class actions in February 2019, and the consolidated action is stayed through May 2021. In addition, several putative class actions have been filed in the United States District Courts for the Northern District of Illinois and Southern District of New York against the Firm, alleging manipulation of U.S. Treasury futures and options, and bringing claims under the Commodity Exchange Act. Some of the complaints also allege unjust enrichment. The actions in the Northern District of Illinois have been transferred to the Southern District of New York. A putative class action complaint has also been filed under the Securities Exchange Act of 1934 in the United States District Court for the Eastern District of New York against the Firm and certain individual defendants on behalf of shareholders who acquired shares during the putative class period alleging that certain SEC filings of the Firm were materially false or misleading in that they did not disclose certain information relating to the above-referenced investigations . 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. In January 2018, the Paris Court of Appeal issued a decision cancelling the mise en examen of JPMorgan Chase Bank, N.A. The Court of Cassation, France’s highest court, ruled in September 2018 that a mise en examen is a prerequisite for an ordonnance de renvoi and in January 2020 ordered the annulment of the ordonnance de renvoi referring JPMorgan Chase Bank, N.A. to the French tribunal correctionnel. Court of Appeal hearings are scheduled in November and December 2020 to further consider JPMorgan Chase’s status in this matter. A trial of the managers of Wendel is due to commence before the tribunal correctionnel in January 2021. In addition, a number of the managers have commenced civil proceedings against JPMorgan Chase Bank, N.A. The claims are separate, involve different allegations and are at various stages of proceedings. * * * In addition to the various legal proceedings discussed above, JPMorgan Chase and its subsidiaries are named as defendants or are otherwise involved in a substantial number of other legal proceedings. The Firm believes it has meritorious defenses to the claims asserted against it in its currently outstanding legal proceedings and it intends to defend itself vigorously. Additional legal proceedings may be initiated from time to time in the future. The Firm has established reserves for several hundred of its currently outstanding legal proceedings. In accordance with the provisions of U.S. GAAP for contingencies, the Firm accrues for a litigation-related liability when it is probable that such a liability has been incurred and the amount of the loss can be reasonably estimated. The Firm evaluates its outstanding legal proceedings each quarter to assess its litigation reserves, and makes adjustments in such reserves, upward or downward, as appropriate, based on management’s best judgment after consultation with counsel. The Firm’s legal expense/(benefit) was $524 million and $10 million for the three months ended September 30, 2020 and 2019, respectively, and $839 million and $(2) million for the nine months ended September 30, 2020 and 2019, respectively. There is no assurance that the Firm’s litigation reserves will not need to be adjusted in the future. In view of the inherent difficulty of predicting the outcome of legal proceedings, particularly where the claimants seek very large or indeterminate damages, or where the matters present novel legal theories, involve a large number of parties or are in early stages of discovery, the Firm cannot state with confidence what will be the eventual outcomes of the currently pending matters, the timing of their ultimate resolution or the eventual losses, fines, penalties or consequences related to those matters. JPMorgan Chase believes, based upon its current knowledge and after consultation with counsel, consideration of the material legal proceedings described above and after taking into account its current litigation reserves and its estimated aggregate range of possible losses, that the other legal proceedings currently pending against it should not have a material adverse effect on the Firm’s consolidated financial condition. The Firm notes, however, that in light of the uncertainties involved in such proceedings, there is no assurance that the ultimate resolution of these matters will not significantly exceed the reserves it has currently accrued or that a matter will not have material reputational consequences. As a result, the outcome of a particular matter may be material to JPMorgan Chase’s operating results for a particular period, depending on, among other factors, the size of the loss or liability imposed and the level of JPMorgan Chase’s income for that period. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Business Segments | Business segments The Firm is managed on an LOB basis. There are four major reportable business segments - Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking and Asset & Wealth Management. In addition, there is a Corporate segment. The business segments are determined based on the products and services provided, or the type of customer served, and they reflect the manner in which financial information is currently evaluated by the Firm’s Operating Committee. Segment results are presented on a managed basis. Refer to Segment results below, and Note 32 of JPMorgan Chase’s 2019 Form 10-K for a further discussion concerning JPMorgan Chase’s business segments. Segment results The following tables provide a summary of the Firm’s segment results as of or for the three and nine months ended September 30, 2020 and 2019, on a managed basis. The Firm’s definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm (and each of the reportable business segments) on an FTE basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. Refer to Note 32 of JPMorgan Chase’s 2019 Form 10-K for additional information on the Firm’s managed basis. Business segment capital allocation The amount of capital assigned to each business is referred to as equity. Periodically, the assumptions and methodologies used to allocate capital are assessed and as a result, the capital allocated to the LOBs may change. Refer to Line of business equity on page 90 of JPMorgan Chase’s 2019 Form 10-K for additional information on business segment capital allocation. Business segment changes In the first quarter of 2020, the Firm began reporting a Wholesale Payments business unit within CIB following a realignment of the Firm’s wholesale payments businesses. The Wholesale Payments business comprises: • Merchant Services, which was realigned from CCB to CIB • Treasury Services and Trade Finance in CIB. Trade Finance was previously reported in Lending in CIB. In connection with the alignment of Wholesale Payments, the assets, liabilities and headcount associated with the Merchant Services business were realigned to CIB from CCB, and the revenue and expenses of the Merchant Services business are reported across CCB, CIB and CB based primarily on client relationships. Prior period amounts have been revised to reflect this realignment and revised allocation methodology. Segment results and reconciliation (a) As of or for the three months ended September 30, Consumer & (b) Corporate & Commercial Banking Asset & Wealth Management 2020 2019 2020 2019 2020 2019 2020 2019 Noninterest revenue $ 4,758 $ 4,806 $ 8,075 $ 7,354 $ 761 $ 666 $ 2,887 $ 2,713 Net interest income 7,997 9,152 3,428 2,168 1,524 1,608 850 855 Total net revenue 12,755 13,958 11,503 9,522 2,285 2,274 3,737 3,568 Provision for credit losses 794 1,311 (81) 92 (147) 67 (51) 44 Noninterest expense 6,770 7,025 5,797 5,504 966 940 2,623 2,622 Income/(loss) before income tax expense/(benefit) 5,191 5,622 5,787 3,926 1,466 1,267 1,165 902 Income tax expense/(benefit) 1,318 1,377 1,483 1,095 378 324 288 234 Net income/(loss) $ 3,873 $ 4,245 $ 4,304 $ 2,831 $ 1,088 $ 943 $ 877 $ 668 Average equity $ 52,000 $ 52,000 $ 80,000 $ 80,000 $ 22,000 $ 22,000 $ 10,500 $ 10,500 Total assets 480,325 525,223 1,089,293 1,030,396 228,587 222,483 194,596 174,226 ROE 29 % 31 % 21 % 13 % 19 % 16 % 32 % 24 % Overhead ratio 53 50 50 58 42 41 70 73 As of or for the three months ended September 30, Corporate Reconciling Items (a) Total (b) 2020 2019 2020 2019 2020 2019 Noninterest revenue $ 343 $ 120 $ (690) $ (596) $ 16,134 $ 15,063 Net interest income (682) 572 (104) (127) 13,013 14,228 Total net revenue (339) 692 (794) (723) 29,147 29,291 Provision for credit losses 96 — — — 611 1,514 Noninterest expense 719 281 — — 16,875 16,372 Income/(loss) before income tax expense/(benefit) (1,154) 411 (794) (723) 11,661 11,405 Income tax expense/(benefit) (455) 18 (794) (723) 2,218 2,325 Net income/(loss) $ (699) $ 393 $ — $ — $ 9,443 $ 9,080 Average equity $ 72,297 $ 71,113 $ — $ — $ 236,797 $ 235,613 Total assets 1,253,275 812,333 NA NA 3,246,076 2,764,661 ROE NM NM NM NM 15 % 15 % Overhead ratio NM NM NM NM 58 56 (a) Segment managed results reflect revenue on an FTE basis with the corresponding income tax impact recorded within income tax expense/(benefit). These adjustments are eliminated in reconciling items to arrive at the Firm’s reported U.S. GAAP results. (b) In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation. Segment results and reconciliation (a) As of or for the nine months ended September 30, Consumer & (b) Corporate & Commercial Banking Asset & Wealth Management 2020 2019 2020 2019 2020 2019 2020 2019 Noninterest revenue $ 12,833 $ 12,948 $ 27,189 $ 22,850 $ 2,197 $ 2,022 $ 8,316 $ 7,989 Net interest income 25,251 27,937 10,614 6,537 4,658 4,950 2,637 2,627 Total net revenue 38,084 40,885 37,803 29,387 6,855 6,972 10,953 10,616 Provision for credit losses 12,394 3,745 3,307 179 3,294 186 266 48 Noninterest expense 20,498 20,784 18,457 16,794 2,853 2,809 7,788 7,865 Income/(loss) before income tax expense/(benefit) 5,192 16,356 16,039 12,414 708 3,977 2,899 2,703 Income tax expense/(benefit) 1,304 4,007 4,283 3,377 164 972 700 655 Net income/(loss) $ 3,888 $ 12,349 $ 11,756 $ 9,037 $ 544 $ 3,005 $ 2,199 $ 2,048 Average equity $ 52,000 $ 52,000 $ 80,000 $ 80,000 $ 22,000 $ 22,000 $ 10,500 $ 10,500 Total assets 480,325 525,223 1,089,293 1,030,396 228,587 222,483 194,596 174,226 Return on equity 9% 31 % 19 % 14 % 2 % 17 % 27 % 25 % Overhead ratio 54 51 49 57 42 40 71 74 As of or for the nine months ended September 30, Corporate Reconciling Items (a) Total (b) 2020 2019 2020 2019 2020 2019 Noninterest revenue $ 607 $ 3 $ (2,128) $ (1,777) $ 49,014 $ 44,035 Net interest income (1,534) 1,436 (321) (408) 41,305 43,079 Total net revenue (927) 1,439 (2,449) (2,185) 90,319 87,114 Provision for credit losses 108 — — — 19,369 4,158 Noninterest expense 1,012 724 — — 50,608 48,976 Income/(loss) before income tax expense/(benefit) (2,047) 715 (2,449) (2,185) 20,342 33,980 Income tax expense/(benefit) (655) (757) (2,449) (2,185) 3,347 6,069 Net income/(loss) $ (1,392) $ 1,472 $ — $ — $ 16,995 $ 27,911 Average equity $ 70,751 $ 68,417 $ — $ — $ 235,251 $ 232,917 Total assets 1,253,275 812,333 NA NA 3,246,076 2,764,661 Return on equity NM NM NM NM 9 % 15 % Overhead ratio NM NM NM NM 56 56 (a) Segment managed results reflect revenue on an FTE basis with the corresponding income tax impact recorded within income tax expense/(benefit). These adjustments are eliminated in reconciling items to arrive at the Firm’s reported U.S. GAAP results. (b) In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
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. |
Use of estimates in the preparation of consolidated financial statements policy | The unaudited Consolidated Financial Statements prepared in conformity with U.S. GAAP require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expense, and the disclosures of contingent assets and liabilities. Actual results could be different from these estimates. In the opinion of management, all normal, recurring adjustments have been included such that this interim financial information is fairly stated. |
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. |
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 financing activities to be presented on a net basis when specified conditions are met, including the existence of a legally enforceable master netting agreement. The Firm has elected to net such balances when the specified conditions are met. Refer to Note 1 of JPMorgan Chase’s 2019 Form 10-K for further information on offsetting assets and liabilities. |
Accounting standard adopted January 1, 2020 policy | Financial Instruments – Credit Losses (“CECL”) The adoption of this guidance established a single allowance framework for all financial assets measured at amortized cost and certain off-balance sheet credit exposures. This framework requires that management’s estimate reflects credit losses over the instrument’s remaining expected life and considers expected future changes in macroeconomic conditions. Refer to Note 13 for further information. The following table presents the impacts to the allowance for credit losses and retained earnings upon adoption of this guidance on January 1, 2020: (in billions) December 31, 2019 CECL adoption impact January 1, 2020 Allowance for credit losses Consumer, excluding credit card (a) $ 2.6 $ 0.4 $ 3.0 Credit card 5.7 5.5 11.2 Wholesale (a) 6.0 (1.6) 4.4 Firmwide $ 14.3 $ 4.3 $ 18.6 Retained earnings Firmwide allowance increase $ 4.3 Balance sheet reclassification (b) (0.8) Total pre-tax impact 3.5 Tax effect (0.8) Decrease to retained earnings $ 2.7 (a) In conjunction with the adoption of CECL, the Firm reclassified risk-rated business banking and auto dealer loans and lending-related commitments held in CCB from the consumer, excluding credit card portfolio segment to the wholesale portfolio segment, to align with the methodology applied when determining the allowance. Prior-period amounts have been revised to conform with the current presentation. Accordingly, $0.6 billion of the allowance for credit losses at December 31, 2019 and $(0.2) billion of the CECL adoption impact were reclassified. (b) Represents the recognition of the nonaccretable difference on purchased credit deteriorated loans and the Firm's election to recognize the reserve for uncollectible accrued interest on credit card loans in the allowance, both of which resulted in a corresponding increase to loans. Securities Financing Agreements As permitted by the guidance, the Firm elected the fair value option for certain securities financing agreements. The difference between their carrying amount and fair value was immaterial and was recorded as part of the Firm’s cumulative-effect adjustment. Refer to Note 11 for further information. Investment securities Upon adoption, HTM securities are presented net of an allowance for credit losses. The guidance also amended the previous other-than-temporary impairment (“OTTI”) model for AFS securities to incorporate an allowance. Refer to Note 10 for further information. Credit quality disclosures As a result of the adoption of this guidance, the Firm expanded credit quality disclosures for financial assets measured at amortized cost particularly within the retained loan portfolios. Refer to Note 12 for further information. PCD loans The adoption resulted in a change in the accounting for PCI loans, which are considered purchased credit deteriorated (“PCD”) loans under CECL. Upon adoption, the Firm recognized the nonaccretable difference on PCD loans in the allowance, which resulted in a corresponding increase to loans. PCD loans are subject to the Firm’s nonaccrual and charge-off policies and are now reported in the consumer, excluding credit card portfolio’s residential real estate loan class. Refer to Note 12 for further information. Changes in credit portfolio segments and classes In conjunction with the adoption of CECL, the Firm reclassified risk-rated loans and lending-related commitments from the consumer excluding credit card portfolio segment to the wholesale portfolio segment, to align with the methodology applied when determining the allowance. The Firm also revised its loan classes. Prior- period amounts have been revised to conform with the current presentation. Refer to Note 12 for further information. Accrued interest receivables As permitted by the guidance, the Firm elected to continue classifying accrued interest on loans, including accrued but unbilled interest on credit card loans, and investment securities in accrued interest and accounts receivables on the Consolidated balance sheets. For credit card loans, accrued interest once billed is then recognized in the loan balances, with the related allowance recorded in the allowance for credit losses. Changes in the allowance for credit losses on accrued interest on credit card loans are recognized in the provision for credit losses and charge-offs are recognized by reversing interest income. For other loans and securities, the Firm generally does not recognize an allowance for credit losses on accrued interest receivables, consistent with its policy to write them off no later than 90 days past due by reversing interest income. Capital transition provisions As disclosed in the Firm’s 2019 Form 10-K, the Firm initially elected to phase-in the January 1, 2020 (“day 1”) CECL adoption impact to retained earnings of $2.7 billion to CET1 capital, at 25% per year in each of 2020 to 2023. As part of their response to the impact of the COVID-19 pandemic, on March 31, 2020, the federal banking agencies issued an interim final rule (issued as final on August 26, 2020) that provided the option to delay the effects of CECL on regulatory capital for two years, followed by a three-year transition period (“CECL capital transition provisions”). Refer to Note 22 for further information. |
Loans receivable policy | Loan accounting framework The accounting for a loan depends on management’s strategy for the loan. The Firm accounts for loans based on the following categories: • Originated or purchased loans held-for-investment (i.e., “retained”) • Loans held-for-sale • Loans at fair value Effective January 1, 2020, the Firm adopted the CECL accounting guidance. Refer to Note 1 for further information. The following provides a detailed accounting discussion of these loan categories: Loans held-for-investment Originated or purchased loans held-for-investment 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. Interest income Interest income on performing loans held-for-investment 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 as an adjustment of yield. The Firm classifies accrued interest on loans, including accrued but unbilled interest on credit card loans, in accrued interest and accounts receivables on the Consolidated balance sheets. For credit card loans, accrued interest once billed is then recognized in the loan balances, with the related allowance recorded in the allowance for credit losses. Changes in the allowance for credit losses on accrued interest on credit card loans are recognized in the provision for credit losses and charge-offs are recognized by reversing interest income. For other loans, the Firm generally does not recognize an allowance for credit losses on accrued interest receivables, consistent with its policy to write them off no later than 90 days past due by reversing interest income. 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. Allowance for loan losses The allowance for loan losses represents the estimated expected credit losses 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 amortized cost 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. Refer to Note 13 for further information on the Firm’s accounting policies for the allowance for loan losses. Charge-offs Consumer loans are generally charged off or charged down to the net realizable value of the underlying collateral (i.e., fair value less estimated 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, unmodified credit card loans and scored business banking loans are generally charged off no later than 180 days past due. Scored auto and modified credit card loans are charged off no later than 120 days past due. Certain consumer loans are 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 or charged down 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 the government-guaranteed portion of loans. Wholesale loans are charged off when it is highly certain that a loss has been realized. 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 generally 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 utilizes a broker’s price opinion, appraisal and/or an automated valuation model of the home based on an exterior-only valuation (“exterior opinions”), which is then updated at least every twelve months, or more frequently depending on various market factors. 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 Loans held-for-sale Loans held-for-sale 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. Because these 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. However, loans held-for-sale are subject to the nonaccrual policies described above. Loans at fair value Loans for which the fair value option has been elected 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. However, loans at fair value are subject to the nonaccrual policies described above. Refer to Note 3 for further information on the Firm’s elections of fair value accounting under the fair value option. Refer to Note 2 and Note 3 for further information on loans carried at fair value and classified as trading assets. 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 amortized cost on the date of transfer. These loans are subsequently assessed for impairment based on the Firm’s allowance methodology. Refer to Note 13 for a further discussion of the methodologies used in establishing the Firm’s allowance for loan losses. 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 delays, principal forgiveness, or the acceptance of equity or other assets in lieu of payments. Such modifications are accounted for and reported as TDRs. Loans with short-term and other insignificant modifications that are not considered concessions are not TDRs. 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. Loans modified in TDRs are generally 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 component of the allowance throughout its remaining life, regardless of whether the loan is performing and has been returned to accrual status. Refer to Note 13 for further discussion of the methodology used to estimate the Firm’s asset-specific allowance. The Firm has granted various forms of assistance to customers and clients impacted by the COVID-19 pandemic, including payment deferrals and covenant modifications. The majority of the Firm’s COVID-19 related loan modifications have not been considered TDRs as: • they represent short-term or other insignificant modifications, whether under the Firm’s regular loan modification assessments or as permitted by regulatory guidance, or • the Firm has elected to apply the option to suspend the application of accounting guidance for TDRs as provided under section 4013 of the CARES Act. To the extent that certain modifications do not meet any of the above criteria, the Firm accounts for them as TDRs. As permitted by regulatory guidance, the Firm does not place loans with deferrals granted due to COVID-19 on nonaccrual status where such loans are not otherwise reportable as nonaccrual. The Firm considers expected losses of principal and accrued interest associated with all COVID-19 related loan modifications in its allowance for credit losses. Assistance provided in response to the COVID-19 pandemic could delay the recognition of delinquencies, nonaccrual status, and net charge-offs for those customers who would have otherwise moved into past due or nonaccrual status. 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). |
Allowance for credit losses policy | Effective January 1, 2020, the Firm adopted the CECL accounting guidance. The adoption of this guidance established a single allowance framework for all financial assets measured at amortized cost and certain off-balance sheet credit exposures. This framework requires that management’s estimate reflects credit losses over the instrument’s remaining expected life and considers expected future changes in macroeconomic conditions. Refer to Note 1 for further information. JPMorgan Chase’s allowance for credit losses comprises: • the allowance for loan losses, which covers the Firm’s retained loan portfolios (scored and risk-rated) and is presented separately on the balance sheet, • the allowance for lending-related commitments, which is presented on the balance sheet in accounts payable and other liabilities, and • the allowance for credit losses on investment securities, which covers the Firm’s HTM and AFS securities and is recognized within Investment Securities on the balance sheet. The income statement effect of all changes in the allowance for credit losses is recognized in the provision for credit losses. Determining the appropriateness of the allowance for credit losses is complex and requires significant judgment by management about the effect of matters that are inherently uncertain. At least quarterly, the allowance for credit losses is reviewed by the CRO, the CFO and the Controller of the Firm. Subsequent evaluations of credit exposures, considering the macroeconomic conditions, forecasts and other factors then prevailing, may result in significant changes in the allowance for credit losses in future periods. The Firm’s policies used to determine its allowance for loan losses and its allowance for lending-related commitments are described in the following paragraphs. Refer to Note 10 for a description of the policies used to determine the allowance for credit losses on investment securities. Methodology for allowances for loan losses and lending-related commitments The allowance for loan losses and allowance for lending-related commitments represents expected credit losses over the remaining expected life of retained loans and lending-related commitments that are not unconditionally cancellable. The Firm does not record an allowance for future draws on unconditionally cancellable lending-related commitments (e.g., credit cards). Expected losses related to accrued interest on credit card loans and certain performing, modified loans to borrowers impacted by COVID-19 are included in the Firm’s allowance for loan losses. However, the Firm does not record an allowance on other accrued interest receivables, due to its policy to write them off no later than 90 days past due by reversing interest income. The expected life of each instrument is determined by considering its contractual term, expected prepayments, cancellation features, and certain extension and call options. The expected life of funded credit card loans is generally estimated by considering expected future payments on the credit card account, and determining how much of those amounts should be allocated to repayments of the funded loan balance (as of the balance sheet date) versus other account activity. This allocation is made using an approach that incorporates the payment application requirements of the Credit Card Accountability Responsibility and Disclosure Act of 2009, generally paying down the highest interest rate balances first. The estimate of expected credit losses includes expected recoveries of amounts previously charged off or expected to be charged off, even if such recoveries result in a negative allowance. Collective and Individual Assessments When calculating the allowance for loan losses and the allowance for lending-related commitments, the Firm assesses whether exposures share similar risk characteristics. If similar risk characteristics exist, the Firm estimates expected credit losses collectively, considering the risk associated with a particular pool and the probability that the exposures within the pool will deteriorate or default. The assessment of risk characteristics is subject to significant management judgement. Emphasizing one characteristic over another or considering additional characteristics could affect the allowance. • Relevant risk characteristics for the consumer portfolio include product type, delinquency status, current FICO scores, geographic distribution, and, for collateralized loans, current LTV ratios. • Relevant risk characteristics for the wholesale portfolio include LOB, geography, risk rating, delinquency status, level and type of collateral, industry, credit enhancement, product type, facility purpose, tenor, and payment terms. The majority of the Firm’s credit exposures share risk characteristics with other similar exposures, and as a result are collectively assessed for impairment (“portfolio-based component”). The portfolio-based component covers consumer loans, performing risk-rated loans and certain lending-related commitments. If an exposure does not share risk characteristics with other exposures, the Firm generally estimates expected credit losses on an individual basis, considering expected repayment and conditions impacting that individual exposure (“asset-specific component”). The asset-specific component covers modified PCD loans, loans modified or reasonably expected to be modified in a TDR, collateral-dependent loans, as well as, risk-rated loans that have been placed on nonaccrual status. Portfolio-based component The portfolio-based component begins with a quantitative calculation that considers the likelihood of the borrower changing delinquency status or moving from one risk rating to another. The quantitative calculation covers expected credit losses over an instrument’s expected life and is estimated by applying credit loss factors to the Firm’s estimated exposure at default. The credit loss factors incorporate the probability of borrower default as well as loss severity in the event of default. They are derived using a weighted average of five internally developed macroeconomic scenarios over an eight-quarter forecast period, followed by a single year straight-line interpolation to revert to long run historical information for periods beyond the eight-quarter forecast period. The five macroeconomic scenarios consist of a central, relative adverse, extreme adverse, relative upside and extreme upside scenario, and are updated by the Firm’s central forecasting team. The scenarios take into consideration the Firm’s overarching economic outlook, internal perspectives from subject matter experts across the Firm , and market consensus and involve a governed process that incorporates feedback from senior management across LOBs, Corporate Finance and Risk Management. The COVID-19 pandemic has stressed many MEVs to degrees not experienced in recent history, which creates additional challenges in the use of modeled credit loss estimates and increases the reliance on management judgment. During the second and third quarters, certain MEVs were outside the range of historical experience on which the Firm’s models had been calibrated and therefore adjustments were required to appropriately address these economic circumstances. For example, while forecasted U.S. employment rates in certain of the Firm’s scenarios are higher than historical experience, such rates are developed on a reported basis and do not reflect the significant mitigating impact of current government unemployment benefits and other stimulus programs. Consequently, management considered such mitigating impact to arrive at an effective unemployment rate, which informed modeled credit loss estimates, particularly in the consumer portfolio. In addition, for the wholesale portfolio, management used the historical relationship between credit spreads and portfolio default rates to inform the adjustment of the Firm’s modeled loss estimates. The quantitative calculation is further adjusted to take into consideration model imprecision, emerging risk assessments, trends and other subjective factors that are not yet reflected in the calculation. These adjustments are accomplished in part by analyzing the historical loss experience, including during stressed periods, for each major product or model. Management applies judgement in making this adjustment, including taking into account uncertainties associated with the economic and political conditions, quality of underwriting standards, borrower behavior, credit concentrations or deterioration within an industry, product or portfolio, as well as other relevant internal and external factors affecting the credit quality of the portfolio. In certain instances, the interrelationships between these factors create further uncertainties. In the third quarter of 2020, the Firm continued to make qualitative adjustments which placed significant weighting on its adverse scenarios, as a result of continued uncertainty related to the COVID-19 pandemic. The application of different inputs into the quantitative calculation, and the assumptions used by management to adjust the quantitative calculation, are subject to significant management judgment, and emphasizing one input or assumption over another, or considering other inputs or assumptions, could affect the estimate of the allowance for loan losses and the allowance for lending-related commitments. Asset-specific component To determine the asset-specific component of the allowance, collateral-dependent loans (including those loans for which foreclosure is probable) and larger, nonaccrual risk-rated loans in the wholesale portfolio segment are generally evaluated individually, while smaller loans (both scored and risk-rated) are aggregated for evaluation using factors relevant for the respective class of assets. The Firm generally measures the asset-specific allowance as the difference between the amortized cost of 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 generally recognized as an adjustment to the allowance for loan losses. For collateral-dependent loans, the fair value of collateral less estimated costs to sell is used to determine the charge-off amount for declines in value (to reduce the amortized cost of the loan to the fair value of collateral) or the amount of negative allowance that should be recognized (for recoveries of prior charge-offs associated with improvements in the fair value of collateral). The asset-specific component of the allowance for loan losses that have been or are expected to be modified in TDRs incorporates the effect of the modification on the loan’s expected cash flows (including forgone interest, principal forgiveness, as well as other concessions), and also the potential for redefault. For residential real estate loans modified in or expected to be 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 housing 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 or expected to be modified in TDRs, expected losses incorporate projected delinquencies and charge-offs based on the Firm’s historical experience by type of modification program. For wholesale loans modified or expected to be modified in TDRs, expected losses incorporate management’s expectation of the borrower’s ability to repay under the modified terms. |
Loan securitizations policy | The Firm has securitized and sold a variety of loans, including residential mortgage, credit card, and commercial mortgage. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of impact of adoption of new accounting standards | The following table presents the impacts to the allowance for credit losses and retained earnings upon adoption of this guidance on January 1, 2020: (in billions) December 31, 2019 CECL adoption impact January 1, 2020 Allowance for credit losses Consumer, excluding credit card (a) $ 2.6 $ 0.4 $ 3.0 Credit card 5.7 5.5 11.2 Wholesale (a) 6.0 (1.6) 4.4 Firmwide $ 14.3 $ 4.3 $ 18.6 Retained earnings Firmwide allowance increase $ 4.3 Balance sheet reclassification (b) (0.8) Total pre-tax impact 3.5 Tax effect (0.8) Decrease to retained earnings $ 2.7 (a) In conjunction with the adoption of CECL, the Firm reclassified risk-rated business banking and auto dealer loans and lending-related commitments held in CCB from the consumer, excluding credit card portfolio segment to the wholesale portfolio segment, to align with the methodology applied when determining the allowance. Prior-period amounts have been revised to conform with the current presentation. Accordingly, $0.6 billion of the allowance for credit losses at December 31, 2019 and $(0.2) billion of the CECL adoption impact were reclassified. (b) Represents the recognition of the nonaccretable difference on purchased credit deteriorated loans and the Firm's election to recognize the reserve for uncollectible accrued interest on credit card loans in the allowance, both of which resulted in a corresponding increase to loans. |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
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 September 30, 2020, and December 31, 2019, by major product category and fair value hierarchy. Assets and liabilities measured at fair value on a recurring basis Fair value hierarchy Derivative (g) September 30, 2020 (in millions) Level 1 Level 2 Level 3 Total fair value Federal funds sold and securities purchased under resale agreements $ — $ 284,763 $ — $ — $ 284,763 Securities borrowed — 44,493 — — 44,493 Trading assets: Debt instruments: Mortgage-backed securities: U.S. GSEs and government agencies (a) — 73,116 507 — 73,623 Residential – nonagency — 2,459 25 — 2,484 Commercial – nonagency — 1,270 2 — 1,272 Total mortgage-backed securities — 76,845 534 — 77,379 U.S. Treasury, GSEs and government agencies (a) 94,565 12,020 — — 106,585 Obligations of U.S. states and municipalities — 7,485 8 — 7,493 Certificates of deposit, bankers’ acceptances and commercial paper — 2,020 — — 2,020 Non-U.S. government debt securities 32,221 40,926 165 — 73,312 Corporate debt securities — 21,545 649 — 22,194 Loans (b) — 5,548 730 — 6,278 Asset-backed securities — 2,416 33 — 2,449 Total debt instruments 126,786 168,805 2,119 — 297,710 Equity securities 106,856 242 186 — 107,284 Physical commodities (c) 5,511 4,307 — — 9,818 Other — 13,679 653 — 14,332 Total debt and equity instruments (d) 239,153 187,033 2,958 — 429,144 Derivative receivables: Interest rate 1,569 394,734 2,176 (361,421) 37,058 Credit — 14,381 763 (13,751) 1,393 Foreign exchange 180 154,535 773 (144,060) 11,428 Equity — 69,452 4,083 (54,599) 18,936 Commodity — 22,048 208 (14,445) 7,811 Total derivative receivables 1,749 655,150 8,003 (588,276) 76,626 Total trading assets (e) 240,902 842,183 10,961 (588,276) 505,770 Available-for-sale securities: Mortgage-backed securities: U.S. GSEs and government agencies (a) 5 99,589 — — 99,594 Residential – nonagency — 11,423 — — 11,423 Commercial – nonagency — 2,936 — — 2,936 Total mortgage-backed securities 5 113,948 — — 113,953 U.S. Treasury and government agencies 216,579 — — — 216,579 Obligations of U.S. states and municipalities — 20,883 — — 20,883 Certificates of deposit — — — — — Non-U.S. government debt securities 11,905 9,132 — — 21,037 Corporate debt securities — 271 — — 271 Asset-backed securities: Collateralized loan obligations — 10,202 — — 10,202 Other — 6,658 — — 6,658 Total available-for-sale securities 228,489 161,094 — — 389,583 Loans (b)(f) — 36,414 1,806 — 38,220 Mortgage servicing rights — — 3,016 — 3,016 Other assets (b)(e) 7,676 5,145 658 — 13,479 Total assets measured at fair value on a recurring basis $ 477,067 $ 1,374,092 $ 16,441 $ (588,276) $ 1,279,324 Deposits $ — $ 16,258 $ 3,056 $ — $ 19,314 Federal funds purchased and securities loaned or sold under repurchase agreements — 180,904 — — 180,904 Short-term borrowings — 16,421 2,608 — 19,029 Trading liabilities: Debt and equity instruments (d) 85,147 19,631 57 — 104,835 Derivative payables: Interest rate 1,352 355,857 2,148 (346,886) 12,471 Credit — 15,605 812 (14,175) 2,242 Foreign exchange 180 163,589 1,449 (149,705) 15,513 Equity — 66,746 7,186 (54,576) 19,356 Commodity — 22,019 829 (14,772) 8,076 Total derivative payables 1,532 623,816 12,424 (580,114) 57,658 Total trading liabilities 86,679 643,447 12,481 (580,114) 162,493 Accounts payable and other liabilities 2,945 308 44 — 3,297 Beneficial interests issued by consolidated VIEs — 39 — — 39 Long-term debt — 50,770 22,216 — 72,986 Total liabilities measured at fair value on a recurring basis $ 89,624 $ 908,147 $ 40,405 $ (580,114) $ 458,062 Fair value hierarchy Derivative (g) December 31, 2019 (in millions) Level 1 Level 2 Level 3 Total fair value Federal funds sold and securities purchased under resale agreements $ — $ 14,561 $ — $ — $ 14,561 Securities borrowed — 6,237 — — 6,237 Trading assets: Debt instruments: Mortgage-backed securities: U.S. GSEs and government agencies (a) — 44,510 797 — 45,307 Residential – nonagency — 1,977 23 — 2,000 Commercial – nonagency — 1,486 4 — 1,490 Total mortgage-backed securities — 47,973 824 — 48,797 U.S. Treasury, GSEs and government agencies (a) 78,289 10,295 — — 88,584 Obligations of U.S. states and municipalities — 6,468 10 — 6,478 Certificates of deposit, bankers’ acceptances and commercial paper — 252 — — 252 Non-U.S. government debt securities 26,600 27,169 155 — 53,924 Corporate debt securities — 17,956 558 — 18,514 Loans (b) — 6,340 673 — 7,013 Asset-backed securities — 2,593 37 — 2,630 Total debt instruments 104,889 119,046 2,257 — 226,192 Equity securities 71,890 244 196 — 72,330 Physical commodities (c) 3,638 3,579 — — 7,217 Other — 13,896 232 — 14,128 Total debt and equity instruments (d) 180,417 136,765 2,685 — 319,867 Derivative receivables: Interest rate 721 311,173 1,400 (285,873) 27,421 Credit — 14,252 624 (14,175) 701 Foreign exchange 117 137,938 432 (129,482) 9,005 Equity — 43,642 2,085 (39,250) 6,477 Commodity — 17,058 184 (11,080) 6,162 Total derivative receivables 838 524,063 4,725 (479,860) 49,766 Total trading assets (e) 181,255 660,828 7,410 (479,860) 369,633 Available-for-sale securities: Mortgage-backed securities: U.S. GSEs and government agencies (a) — 110,117 — — 110,117 Residential – nonagency — 12,989 1 — 12,990 Commercial – nonagency — 5,188 — — 5,188 Total mortgage-backed securities — 128,294 1 — 128,295 U.S. Treasury and government agencies 139,436 — — — 139,436 Obligations of U.S. states and municipalities — 29,810 — — 29,810 Certificates of deposit — 77 — — 77 Non-U.S. government debt securities 12,966 8,821 — — 21,787 Corporate debt securities — 845 — — 845 Asset-backed securities: Collateralized loan obligations — 24,991 — — 24,991 Other — 5,458 — — 5,458 Total available-for-sale securities 152,402 198,296 1 — 350,699 Loans (b)(f) — 44,439 516 — 44,955 Mortgage servicing rights — — 4,699 — 4,699 Other assets (b)(e) 7,305 3,824 917 — 12,046 Total assets measured at fair value on a recurring basis $ 340,962 $ 928,185 $ 13,543 $ (479,860) $ 802,830 Deposits $ — $ 25,229 $ 3,360 $ — $ 28,589 Federal funds purchased and securities loaned or sold under repurchase agreements — 549 — — 549 Short-term borrowings — 4,246 1,674 — 5,920 Trading liabilities: Debt and equity instruments (d) 59,047 16,481 41 — 75,569 Derivative payables: Interest rate 795 276,746 1,732 (270,670) 8,603 Credit — 14,358 763 (13,469) 1,652 Foreign exchange 109 143,960 1,039 (131,950) 13,158 Equity — 47,261 5,480 (40,204) 12,537 Commodity — 19,685 200 (12,127) 7,758 Total derivative payables 904 502,010 9,214 (468,420) 43,708 Total trading liabilities 59,951 518,491 9,255 (468,420) 119,277 Accounts payable and other liabilities 3,231 452 45 — 3,728 Beneficial interests issued by consolidated VIEs — 36 — — 36 Long-term debt — 52,406 23,339 — 75,745 Total liabilities measured at fair value on a recurring basis $ 63,182 $ 601,409 $ 37,673 $ (468,420) $ 233,844 (a) At September 30, 2020, and December 31, 2019, included total U.S. GSE obligations of $109.5 billion and $104.5 billion, respectively, which were mortgage-related. (b) In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans and other assets. Prior-period amounts have been revised to conform with the current presentation. (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. Refer to Note 5 for a further discussion of the Firm’s hedge accounting relationships. To provide consistent fair value disclosure information, all physical commodities inventories have been included in each period presented. (d) Balances reflect the reduction of securities owned (long positions) by the amount of identical securities sold but not yet purchased (short positions). (e) 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 September 30, 2020, and December 31, 2019, the fair values of these investments, which include certain hedge funds, private equity funds, real estate and other funds, were $661 million and $684 million, respectively. Included in these balances at September 30, 2020, and December 31, 2019, were trading assets of $52 million and $54 million, respectively, and other assets of $609 million and $630 million, respectively. (f) At September 30, 2020, and December 31, 2019, included within loans were $15.6 billion and $19.8 billion, respectively, of residential first-lien mortgages, and $5.2 billion and $8.2 billion, respectively, of commercial first-lien mortgages. Residential mortgage loans include conforming mortgage loans originated with the intent to sell to U.S. GSEs and government agencies of $8.6 billion and $13.6 billion, respectively. (g) As permitted under U.S. GAAP, the Firm has elected to net derivative receivables and derivative payables and the related cash collateral received and paid when a legally enforceable master netting agreement exists. The level 3 balances would be reduced if netting were applied, including the netting benefit associated with cash collateral. |
Fair value inputs, assets and liabilities, quantitative information | Level 3 inputs (a) September 30, 2020 Product/Instrument Fair value (in millions) Principal valuation technique Unobservable inputs (g) Range of input values Average (i) Residential mortgage-backed securities and loans (b) $ 1,249 Discounted cash flows Yield (2)% – 18% 5% Prepayment speed 0% – 45% 10% Conditional default rate 0% – 30% 13% Loss severity 0% – 107% 9% Commercial mortgage-backed securities and loans (c) 451 Market comparables Price $0 – $100 $83 Obligations of U.S. states and municipalities 8 Market comparables Price $81 – $100 $97 Corporate debt securities 649 Market comparables Price $3 – $130 $73 Loans (d) 1,370 Market comparables Price $2 – $108 $76 Asset-backed securities 33 Market comparables Price $1 – $95 $61 Net interest rate derivatives (6) Option pricing Interest rate volatility 8bps – 517bps 115bps Interest rate spread volatility 11bps – 23bps 15bps Interest rate correlation (65)% – 95% 43% IR-FX correlation (35)% – 50% 0% 34 Discounted cash flows Prepayment speed 3% – 30% 10% Net credit derivatives (87) Discounted cash flows Credit correlation 32% – 64% 47% Credit spread 6bps – 1,360 bps 459bps Recovery rate 0% – 70% 46% Conditional default rate 2% – 92% 32% Loss severity 100% 100% 38 Market comparables Price $0 – $115 $71 Net foreign exchange derivatives (527) Option pricing IR-FX correlation (50)% – 65% 19% (149) Discounted cash flows Prepayment speed 9% 9% Net equity derivatives (3,103) Option pricing Forward equity price (h) 67% – 105% 99% Equity volatility 3% – 119% 35% Equity correlation 45% – 100% 83% Equity-FX correlation (77)% – 55% (23)% Equity-IR correlation 20% – 35% 26% Net commodity derivatives (621) Option pricing Forward industrial metal price $1,551 / MT – $2,049 / MT $1,920 / MT Forward power price $14 / MWH – $65 / MWH $23 / MWH Commodity volatility 5% – 94% 10% Commodity correlation (45)% – 95% 34% MSRs 3,016 Discounted cash flows Refer to Note 15 Other assets 623 Discounted cash flows Credit spread 45bps 45bps Yield 4% 30% 7% 688 Market comparables Price $29 – $122 $39 Long-term debt, short-term borrowings, and deposits (e) 27,880 Option pricing Interest rate volatility 8bps – 517bps 115bps Interest rate correlation (65)% – 95% 43% IR-FX correlation (35)% – 50% 0% Equity correlation 45% – 100% 83% Equity-FX correlation (77)% – 55% (23)% Equity-IR correlation 20% – 35% 26% Other level 3 assets and liabilities, net (f) 250 (a) The categories presented in the table have been aggregated based upon the product type, which may differ from their classification on the Consolidated balance sheets. Furthermore, the inputs presented for each valuation technique in the table are, in some cases, not applicable to every instrument valued using the technique as the characteristics of the instruments can differ. (b) Comprises U.S. GSE and government agency securities of $507 million, nonagency securities of $25 million and non-trading loans of $717 million. (c) Comprises nonagency securities of $2 million, trading loans of $44 million and non-trading loans of $405 million. (d) Comprises trading loans of $686 million and non-trading loans of $684 million. (e) Long-term debt, short-term borrowings and deposits include structured notes issued by the Firm that are financial instruments that typically contain embedded derivatives. The estimation of the fair value of structured notes includes the derivative features embedded within the instrument. The significant unobservable inputs are broadly consistent with those presented for derivative receivables. (f) Includes 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. (h) Forward equity price is expressed as a percentage of the current equity price. (i) Amounts represent weighted averages except for derivative related inputs where arithmetic averages are used. |
Changes in level 3 recurring fair value measurements | The following tables include a rollforward of the Consolidated balance sheets amounts (including changes in fair value) for financial instruments classified by the Firm within level 3 of the fair value hierarchy for the three and nine months ended September 30, 2020 and 2019. When a determination is made to classify a financial instrument within level 3, the determination is based on the significance of the unobservable inputs to the overall fair value measurement. However, level 3 financial instruments typically include, in addition to the unobservable or level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources); accordingly, the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology. Also, the Firm risk-manages the observable components of level 3 financial instruments using securities and derivative positions that are classified within level 1 or 2 of the fair value hierarchy; as these level 1 and level 2 risk management instruments are not included below, the gains or losses in the following tables do not reflect the effect of the Firm’s risk management activities related to such level 3 instruments. Fair value measurements using significant unobservable inputs Three months ended Fair value at Total realized/unrealized gains/(losses) Transfers into (i) Transfers (out of) level 3 (i) Fair value at Change in unrealized gains/(losses) related Purchases (g) Sales Settlements (h) Assets: (a) Trading assets: Debt instruments: Mortgage-backed securities: U.S. GSEs and government agencies $ 469 $ (4) $ 110 $ (28) $ (40) $ — $ — $ 507 $ (2) Residential – nonagency 23 — 8 (2) (1) — (3) 25 — Commercial – nonagency 2 — — — — — — 2 — Total mortgage-backed securities 494 (4) 118 (30) (41) — (3) 534 (2) Obligations of U.S. states and municipalities 8 — — — — — — 8 — Non-U.S. government debt securities 167 6 25 (23) (2) — (8) 165 6 Corporate debt securities 946 45 114 (33) (225) 4 (202) 649 45 Loans (b) 905 22 240 (173) (21) 69 (312) 730 8 Asset-backed securities 39 3 5 (21) (2) 9 — 33 — Total debt instruments 2,559 72 502 (280) (291) 82 (525) 2,119 57 Equity securities 191 24 13 (104) — 104 (42) 186 29 Other 379 75 203 (4) (2) 2 — 653 77 Total trading assets – debt and equity instruments 3,129 171 (d) 718 (388) (293) 188 (567) 2,958 163 (d) Net derivative receivables: (c) Interest rate (104) 657 15 (30) (647) 35 102 28 323 Credit (137) (62) 22 (16) 154 (12) 2 (49) (21) Foreign exchange (595) (57) 7 (7) (34) 7 3 (676) (90) Equity (2,036) (1,437) 323 (384) 29 33 369 (3,103) (1,051) Commodity (297) 15 11 (79) 36 (302) (5) (621) 39 Total net derivative receivables (3,169) (884) (d) 378 (516) (462) (239) 471 (4,421) (800) (d) Available-for-sale securities: Mortgage-backed securities — — — — — — — — — Total available-for-sale securities — — — — — — — — — Loans (b) 1,874 (44) (d) 197 (44) (324) 316 (169) 1,806 (44) (d) Mortgage servicing rights 3,080 34 (e) 221 (104) (215) — — 3,016 34 (e) Other assets (b) 701 (21) (d) 5 — (27) — — 658 32 (d) Fair value measurements using significant unobservable inputs Three months ended Fair value at Total realized/unrealized (gains)/losses Transfers into (i) Transfers (out of) level 3 (i) Fair value at Change in unrealized (gains)/losses related Purchases Sales Issuances Settlements (h) Liabilities: (a) Deposits $ 3,217 $ 43 (d)(f) $ — $ — $ 170 $ (110) $ — $ (264) $ 3,056 $ 87 (d)(f) Short-term borrowings 2,305 (47) (d)(f) — — 1,421 (1,093) 25 (3) 2,608 (47) (d)(f) Trading liabilities – debt and equity instruments 59 (2) (d) (5) 5 — 1 3 (4) 57 (3) (d) Accounts payable and other liabilities 91 3 (d) (62) 4 — — 8 — 44 3 (d) Beneficial interests issued by consolidated VIEs — — — — — — — — — — Long-term debt 22,728 766 (d)(f) — — 1,225 (2,493) 78 (88) 22,216 646 (d)(f) Fair value measurements using significant unobservable inputs Three months ended Fair value at Total realized/unrealized gains/(losses) Transfers into (i) Transfers (out of) level 3 (i) Fair value at Change in unrealized gains/(losses) related Purchases (g) Sales Settlements (h) Assets: (a) Trading assets: Debt instruments: Mortgage-backed securities: U.S. GSEs and government agencies $ 617 $ (71) $ 424 $ (104) $ (45) $ — $ (10) $ 811 $ (70) Residential – nonagency 42 — 2 (3) — — (17) 24 (1) Commercial – nonagency 9 — 3 (5) — — (2) 5 — Total mortgage-backed securities 668 (71) 429 (112) (45) — (29) 840 (71) Obligations of U.S. states and municipalities 680 (2) 27 (77) (1) — — 627 (2) Non-U.S. government debt securities 190 (1) 40 (74) — 3 (12) 146 (1) Corporate debt securities 562 45 56 (167) — 17 (29) 484 3 Loans (b) 797 (48) 115 (74) (24) 118 (94) 790 (55) Asset-backed securities 33 — 11 (2) (2) 3 (5) 38 (2) Total debt instruments 2,930 (77) 678 (506) (72) 141 (169) 2,925 (128) Equity securities 147 (14) 10 (10) — 46 (9) 170 (16) Other 311 18 35 (15) (15) — (2) 332 23 Total trading assets – debt and equity instruments 3,388 (73) (d) 723 (531) (87) 187 (180) 3,427 (121) (d) Net derivative receivables: (c) Interest rate (544) 88 39 (15) 53 10 50 (319) (15) Credit (232) (65) 3 (3) (23) 3 — (317) (68) Foreign exchange (193) (653) 2 (1) (1) 6 (1) (841) (657) Equity (2,560) (382) 174 (118) (377) (203) (2) (3,468) (362) Commodity (908) 8 22 (69) 6 18 876 (47) 40 Total net derivative receivables (4,437) (1,004) (d) 240 (206) (342) (166) 923 (4,992) (1,062) (d) Available-for-sale securities: Mortgage-backed securities — — 1 — — — — 1 — Total available-for-sale securities — — 1 — — — — 1 — Loans (b) 775 1 (d) 26 (8) (84) 93 (43) 760 6 (d) Mortgage servicing rights 5,093 (447) (e) 388 (359) (256) — — 4,419 (447) (e) Other assets (b) 1,072 (53) (d) 30 (72) (34) — — 943 (53) (d) Fair value measurements using significant unobservable inputs Three months ended Fair value at Total realized/unrealized (gains)/losses Transfers into (i) Transfers (out of) level 3 (i) Fair value at Change in unrealized (gains)/losses related Purchases Sales Issuances Settlements (h) Liabilities: (a) Deposits $ 4,066 $ — $ — $ — $ 153 $ (188) $ 12 $ (407) $ 3,636 $ 16 (d)(f) Short-term borrowings 2,052 24 (d)(f) — — 949 (1,040) 17 (1) 2,001 28 (d)(f) Trading liabilities – debt and equity instruments 45 — (5) 25 — 1 2 — 68 — Accounts payable and other liabilities 92 (6) (d) (71) 4 — — — — 19 (2) (d) Beneficial interests issued by consolidated VIEs — — — — — — — — — — Long-term debt 21,863 187 (d)(f) — — 2,230 (1,758) 49 (222) 22,349 89 (d)(f) Fair value measurements using significant unobservable inputs Nine months ended Fair value at Total realized/unrealized gains/(losses) Transfers into level 3 (i) Transfers (out of) level 3 (i) Fair value at Change in unrealized gains/(losses) related Purchases (g) Sales Settlements (h) Assets: (a) Trading assets: Debt instruments: Mortgage-backed securities: U.S. GSEs and government agencies $ 797 $ (153) $ 134 $ (149) $ (122) $ — $ — $ 507 $ (140) Residential – nonagency 23 (1) 12 (4) (2) — (3) 25 2 Commercial – nonagency 4 — 1 — (1) 1 (3) 2 4 Total mortgage-backed securities 824 (154) 147 (153) (125) 1 (6) 534 (134) Obligations of U.S. states and municipalities 10 — — (1) (1) — — 8 — Non-U.S. government debt securities 155 10 164 (148) (7) — (9) 165 7 Corporate debt securities 558 (10) 475 (131) (234) 296 (305) 649 13 Loans (b) 673 (72) 829 (400) (130) 676 (846) 730 (35) Asset-backed securities 37 (4) 42 (36) (5) 9 (10) 33 (1) Total debt instruments 2,257 (230) 1,657 (869) (502) 982 (1,176) 2,119 (150) Equity securities 196 (79) 37 (109) — 259 (118) 186 (40) Other 232 239 213 (9) (23) 4 (3) 653 263 Total trading assets – debt and equity instruments 2,685 (70) (d) 1,907 (987) (525) 1,245 (1,297) 2,958 73 (d) Net derivative receivables: (c) Interest rate (332) 2,052 102 (97) (1,510) (317) 130 28 290 Credit (139) — 70 (150) 137 59 (26) (49) 24 Foreign exchange (607) (214) 46 (16) 75 15 25 (676) (181) Equity (3,395) 564 912 (1,473) 558 (524) 255 (3,103) 1,342 Commodity (16) (248) 22 (107) 54 (306) (20) (621) 363 Total net derivative receivables (4,489) 2,154 (d) 1,152 (1,843) (686) (1,073) 364 (4,421) 1,838 (d) Available-for-sale securities: Mortgage-backed securities 1 — — — (1) — — — — Total available-for-sale securities 1 — — — (1) — — — — Loans (b) 516 (195) (d) 450 (77) (678) 2,312 (522) 1,806 (147) (d) Mortgage servicing rights 4,699 (1,459) (e) 663 (177) (710) — — 3,016 (1,459) (e) Other assets (b) 917 (56) (d) 66 (28) (281) 40 — 658 4 (d) Fair value measurements using significant unobservable inputs Nine months ended Fair value at Total realized/unrealized (gains)/losses Transfers into level 3 (i) Transfers (out of) level 3 (i) Fair value at Change in unrealized (gains)/losses related Purchases Sales Issuances Settlements (h) Liabilities: (a) Deposits $ 3,360 $ 88 (d)(f) $ — $ — $ 636 $ (538) $ 265 $ (755) $ 3,056 $ 137 (d)(f) Short-term borrowings 1,674 (294) (d)(f) — — 3,961 (2,769) 77 (41) 2,608 (27) (d)(f) Trading liabilities – debt and equity instruments 41 1 (d) (81) 12 — (4) 96 (8) 57 — Accounts payable and other liabilities 45 (1) (d) (85) 37 — — 48 — 44 1 (d) Beneficial interests issued by consolidated VIEs — — — — — — — — — — Long-term debt 23,339 (639) (d)(f) — — 7,432 (7,851) 1,056 (1,121) 22,216 (507) (d)(f) Fair value measurements using significant unobservable inputs Nine months ended Fair value at Total realized/unrealized gains/(losses) Transfers into level 3 (i) Transfers (out of) level 3 (i) Fair value at Change in unrealized gains/(losses) related Purchases (g) Sales Settlements (h) Assets: (a) Trading assets: Debt instruments: Mortgage-backed securities: U.S. GSEs and government agencies $ 549 $ (111) $ 747 $ (272) $ (83) $ 1 $ (20) $ 811 $ (116) Residential – nonagency 64 25 83 (86) (20) 15 (57) 24 (1) Commercial – nonagency 11 2 19 (24) (14) 15 (4) 5 1 Total mortgage-backed securities 624 (84) 849 (382) (117) 31 (81) 840 (116) Obligations of U.S. states and municipalities 689 12 85 (152) (7) — — 627 13 Non-U.S. government debt securities 155 (2) 228 (231) — 14 (18) 146 3 Corporate debt securities 334 74 340 (236) (53) 96 (71) 484 15 Loans (b) 738 28 362 (379) (80) 358 (237) 790 16 Asset-backed securities 127 — 30 (81) (39) 23 (22) 38 (3) Total debt instruments 2,667 28 1,894 (1,461) (296) 522 (429) 2,925 (72) Equity securities 232 (28) 33 (92) (22) 142 (95) 170 (21) Other 301 42 50 (16) (41) 1 (5) 332 55 Total trading assets – debt and equity instruments 3,200 42 (d) 1,977 (1,569) (359) 665 (529) 3,427 (38) (d) Net derivative receivables: (c) Interest rate (38) (575) 86 (102) 174 22 114 (319) (694) Credit (107) (209) 16 (5) (13) 7 (6) (317) (169) Foreign exchange (297) (840) 13 (18) 294 (19) 26 (841) (815) Equity (2,225) 328 335 (573) (1,062) (418) 147 (3,468) (1,193) Commodity (1,129) 370 32 (240) 51 2 867 (47) 634 Total net derivative receivables (3,796) (926) (d) 482 (938) (556) (406) 1,148 (4,992) (2,237) (d) Available-for-sale securities: Mortgage-backed securities 1 — 1 — (1) — — 1 — Total available-for-sale securities 1 — 1 — (1) — — 1 — Loans (b) 856 41 (d) 224 (36) (364) 151 (112) 760 25 (d) Mortgage servicing rights 6,130 (1,572) (e) 1,250 (687) (702) — — 4,419 (1,572) (e) Other assets (b) 1,161 (122) (d) 193 (161) (122) 1 (7) 943 (142) (d) Fair value measurements using significant unobservable inputs Nine months ended Fair value at Total realized/unrealized (gains)/losses Transfers into level 3 (i) Transfers (out of) level 3 (i) Fair value at Change in unrealized (gains)/losses related Purchases Sales Issuances Settlements (h) Liabilities: (a) Deposits $ 4,169 $ 241 (d)(f) $ — $ — $ 580 $ (504) $ 12 $ (862) $ 3,636 $ 250 (d)(f) Short-term borrowings 1,523 142 (d)(f) — — 2,637 (2,265) 85 (121) 2,001 74 (d)(f) Trading liabilities – debt and equity instruments 50 — (12) 41 — 1 9 (21) 68 (1) (d) Accounts payable and other liabilities 10 (7) (d) (79) 94 — — 1 — 19 4 (d) Beneficial interests issued by consolidated VIEs 1 (1) (d) — — — — — — — — Long-term debt 19,418 1,915 (d)(f) — — 6,929 (5,675) 522 (760) 22,349 2,010 (d)(f) (a) Level 3 assets at fair value as a percentage of total Firm assets at fair value (including assets measured at fair value on a nonrecurring basis) were 1% and 2% at September 30, 2020 and December 31, 2019, respectively. Level 3 liabilities at fair value as a percentage of total Firm liabilities at fair value (including liabilities measured at fair value on a nonrecurring basis) were 9% and 16%, at September 30, 2020 and December 31, 2019, respectively. (b) In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans and other assets. Prior-period amounts have been revised to conform with the current presentation. (c) All level 3 derivatives are presented on a net basis, irrespective of the underlying counterparty. (d) 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. (e) Changes in fair value for MSRs are reported in mortgage fees and related income. (f) Realized (gains)/losses due to DVA for fair value option elected liabilities are reported in principal transactions revenue, and were not material for the three and nine months ended September 30, 2020 and 2019, respectively. Unrealized (gains)/losses are reported in OCI, and they were $120 million and $(62) million for the three months ended September 30, 2020 and 2019, respectively and $(78) million and $108 million for the nine months ended September 30, 2020 and 2019, respectively. (g) Loan originations are included in purchases. (h) Includes financial assets and liabilities that have matured, been partially or fully repaid, impacts of modifications deconsolidations associated with beneficial interests in VIEs and other items. (i) All transfers into and/or out of level 3 are based on changes in the observability and/or significance of the valuation inputs and are assumed to occur at the beginning of the quarterly reporting period in which they occur. |
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 presented below includes the impact of the Firm’s own credit quality on the inception value of liabilities as well as the impact of changes in the Firm’s own credit quality over time. Three months ended September 30, Nine months ended September 30, (in millions) 2020 2019 2020 2019 Credit and funding adjustments: Derivatives CVA $ 144 $ 55 $ (574) $ 71 Derivatives FVA 109 (83) (236) (20) |
Assets and liabilities measured at fair value on a nonrecurring basis | The following tables present the assets and liabilities held as of September 30, 2020 and 2019 , respectively, for which nonrecurring fair value adjustments were recorded during the nine months ended September 30, 2020 and 2019 , respectively, by major product category and fair value hierarchy. Fair value hierarchy Total fair value September 30, 2020 (in millions) Level 1 Level 2 Level 3 Loans $ — $ 1,714 (c) $ 788 (d) $ 2,502 Other assets (a) — 11 945 956 Total assets measured at fair value on a nonrecurring basis $ — $ 1,725 $ 1,733 $ 3,458 Accounts payable and other liabilities (b) — — 3 3 Total liabilities measured at fair value on a nonrecurring basis $ — $ — $ 3 $ 3 Fair value hierarchy Total fair value September 30, 2019 (in millions) Level 1 Level 2 Level 3 Loans $ — $ 5,338 (c) $ 246 $ 5,584 Other assets — 18 789 (e) 807 Total assets measured at fair value on a nonrecurring basis $ — $ 5,356 $ 1,035 $ 6,391 (a) Primarily includes equity securities without readily determinable fair values that were adjusted based on observable price changes in orderly transactions from an identical or similar investment of the same issuer (measurement alternative). Of the $945 million in level 3 assets measured at fair value on a nonrecurring basis as of September 30, 2020, $377 million related to equity securities adjusted based on the measurement alternative. These equity securities are classified as level 3 due to the infrequency of the observable prices and/or the restrictions on the shares. (b) Represents at September 30, 2020 the net markdowns associated with $556 million of held-for-sale positions related to unfunded commitments in the bridge financing portfolio. There were no liabilities measured at fair value on a nonrecurring basis at September 30, 2019. (c) Primarily includes certain mortgage loans that were reclassified to held-for-sale. (d) Of the $788 million in level 3 assets measured at fair value on a nonrecurring basis as of September 30, 2020, $471 million related to residential real estate loans carried at the net realizable value of the underlying collateral (e.g., collateral-dependent loans). These amounts are classified as level 3 as they are valued using information from broker’s price opinions, appraisals and automated valuation models and discounted based upon the Firm’s experience with actual liquidation values. These discounts ranged from 14% to 46% with a weighted average of 30%. (e) Prior-period amounts have been revised to conform with the current presentation. The following table presents the total change in value of assets and liabilities for which fair value adjustments have been recognized for the three and nine months ended September 30, 2020 and 2019 , related to assets and liabilities held at those dates. Three months ended September 30, Nine months ended September 30, (in millions) 2020 2019 2020 2019 Loans (a) $ (35) $ (142) $ (318) $ (232) Other assets (b) (363) 37 (d) (539) 137 (d) Accounts payable and other liabilities 92 (c) — (3) (c) — Total nonrecurring fair value gains/(losses) $ (306) $ (105) $ (860) $ (95) (a) Includes the impact of certain mortgage loans that were reclassified to held-for-sale. (b) Included $2 million and $48 million for the three months ended September 30, 2020 and 2019, respectively and $(155) million and $146 million for the nine months ended September 30, 2020 and 2019, respectively, of net (losses)/gains as a result of the measurement alternative. (c) Represents marks on held-for-sale positions related to unfunded commitments in the bridge financing portfolio. (d) Prior-period amounts have been revised to conform with the current presentation. |
Schedule of equity securities without readily determinable fair values measured under the measurement alternative and related adjustments | The following table presents the carrying value of equity securities without readily determinable fair values still held as of September 30, 2020 and 2019 , that are measured under the measurement alternative and the related adjustments recorded during the periods presented for those securities with observable price changes. These securities are included in the nonrecurring fair value tables when applicable price changes are observable. Three months ended Nine months ended September 30 September 30 As of or for the period ended, (in millions) 2020 2019 2020 2019 Other assets Carrying value (a) $ 2,329 $ 2,771 $ 2,329 $ 2,771 Upward carrying value changes (b) 36 48 (d) 49 183 (d) Downward carrying value changes/impairment (c) (34) — (204) (37) (a) The carrying value as of December 31, 2019 was $2.4 billion. The period-end carrying values reflect cumulative purchases and sales in addition to upward and downward carrying value changes. (b) The cumulative upward carrying value changes between January 1, 2018 and September 30, 2020 were $590 million. (c) The cumulative downward carrying value changes/impairment between January 1, 2018 and September 30, 2020 were $(334) million. (d) Prior-period amounts have been revised to conform with the current presentation. |
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 September 30, 2020, and December 31, 2019, 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. September 30, 2020 December 31, 2019 Estimated fair value hierarchy Estimated fair value hierarchy (in billions) Carrying Level 1 Level 2 Level 3 Total estimated Carrying Level 1 Level 2 Level 3 Total estimated Financial assets Cash and due from banks $ 20.8 $ 20.8 $ — $ — $ 20.8 $ 21.7 $ 21.7 $ — $ — $ 21.7 Deposits with banks 466.7 466.7 — — 466.7 241.9 241.9 — — 241.9 Accrued interest and accounts receivable 76.0 — 75.9 0.1 76.0 71.3 — 71.2 0.1 71.3 Federal funds sold and securities purchased under resale agreements 35.1 — 35.1 — 35.1 234.6 — 234.6 — 234.6 Securities borrowed 97.9 — 97.9 — 97.9 133.5 — 133.5 — 133.5 Investment securities, held-to-maturity 141.6 0.1 144.9 — 145.0 47.5 0.1 48.8 — 48.9 Loans, net of allowance for loan losses (a) 920.7 — 211.7 737.0 948.7 939.5 — 214.1 734.9 949.0 Other 77.0 — 75.8 1.4 77.2 61.3 — 60.6 0.8 61.4 Financial liabilities Deposits $ 1,982.1 $ — $ 1,982.2 $ — $ 1,982.2 $ 1,533.8 $ — $ 1,534.1 $ — $ 1,534.1 Federal funds purchased and securities loaned or sold under repurchase agreements 55.5 — 55.5 — 55.5 183.1 — 183.1 — 183.1 Short-term borrowings 23.0 — 23.0 — 23.0 35.0 — 35.0 — 35.0 Accounts payable and other liabilities 189.5 — 185.4 3.8 189.2 164.0 0.1 160.0 3.5 163.6 Beneficial interests issued by consolidated VIEs 19.2 — 19.2 — 19.2 17.8 — 17.9 — 17.9 Long-term debt 206.2 — 205.5 3.2 208.7 215.5 — 218.3 3.5 221.8 |
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 and the estimated fair value of these wholesale lending-related commitments were as follows for the periods indicated. September 30, 2020 December 31, 2019 Estimated fair value hierarchy Estimated fair value hierarchy (in billions) Carrying value (a) (b) 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 $ 2.6 $ — $ — $ 2.4 $ 2.4 $ 1.2 $ — $ — $ 1.9 $ 1.9 (a) Excludes the current carrying values of the guarantee liability and the offsetting asset, each of which is recognized at fair value at the inception of the guarantees. (b) Includes the wholesale allowance for lending-related commitments and net markdowns associated with held-for-sale positions related to unfunded commitments in the bridge financing portfolio. |
Fair Value Option (Tables)
Fair Value Option (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [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 three and nine months ended September 30, 2020 and 2019, for items for which the fair value option was elected. The profit and loss information presented below only includes the financial instruments that were elected to be measured at fair value; related risk management instruments, which are required to be measured at fair value, are not included in the table. Three months ended September 30, 2020 2019 (in millions) Principal transactions All other income Total changes in fair value recorded (f) Principal transactions All other income Total changes in fair value recorded (f) Federal funds sold and securities purchased under resale agreements $ (148) $ — $ (148) $ (23) $ — $ (23) Securities borrowed 5 — 5 99 — 99 Trading assets: Debt and equity instruments, excluding loans 879 — 879 546 — 546 Loans reported as trading assets: Changes in instrument-specific credit risk (a) 216 — 216 (40) — (40) Other changes in fair value (a) — — — — — — Loans: Changes in instrument-specific credit risk (a) 112 (13) (d) 99 144 (4) (d) 140 Other changes in fair value (a) 93 928 (d) 1,021 76 320 (d) 396 Other assets (a) (28) (7) (e) (35) (5) — (5) Deposits (b) (147) — (147) (397) — (397) Federal funds purchased and securities loaned or sold under repurchase agreements 58 — 58 2 — 2 Short-term borrowings (b) (54) — (54) 173 — 173 Trading liabilities 1 — 1 — — — Other liabilities (8) — (8) 1 — 1 Long-term debt (b)(c) (530) (4) (d) (534) (614) — (614) Nine months ended September 30, 2020 2019 (in millions) Principal transactions All other income Total changes in fair value recorded (f) Principal transactions All other income Total changes in fair value recorded (f) Federal funds sold and securities purchased under resale agreements $ 96 $ — $ 96 $ 10 $ — $ 10 Securities borrowed 173 — 173 179 — 179 Trading assets: Debt and equity instruments, excluding loans (350) (1) (d) (351) 2,104 — 2,104 Loans reported as trading assets: Changes in instrument-specific credit risk (a) (39) — (39) 150 — 150 Other changes in fair value (a) 1 — 1 (1) — (1) Loans: Changes in instrument-specific credit risk (a) 143 2 (d) 145 386 1 (d) 387 Other changes in fair value (a) 357 2,423 (d) 2,780 285 885 (d) 1,170 Other assets (a) 74 1 (e) 75 (2) 3 (e) 1 Deposits (b) (612) — (612) (1,589) — (1,589) Federal funds purchased and securities loaned or sold under repurchase agreements (20) — (20) (18) — (18) Short-term borrowings (b) 1,035 — 1,035 (601) — (601) Trading liabilities 1 — 1 5 — 5 Other liabilities (54) — (54) (7) — (7) Long-term debt (b)(c) 70 (1) (d) 69 (5,220) — (5,220) (a) In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans and other assets. Prior-period amounts have been revised to conform with the current presentation. (b) Unrealized gains/(losses) due to instrument-specific credit risk (DVA) for liabilities for which the fair value option has been elected are recorded in OCI, while realized gains/(losses) are recorded in principal transactions revenue. Realized gains/(losses) due to instrument-specific credit risk recorded in principal transactions revenue were $1 million and $20 million for the three and nine months ended September 30, 2020, respectively. The amounts were not material for the three and nine months ended September 30, 2019. (c) 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. (d) Reported in mortgage fees and related income. (e) Reported in other income. (f) Changes in fair value exclude contractual interest, which is included in interest income and interest expense for all instruments other than hybrid financial instruments. Refer to Note 7 for further information regarding interest income and interest expense. |
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 September 30, 2020, and December 31, 2019, for loans, long-term debt and long-term beneficial interests for which the fair value option has been elected. September 30, 2020 December 31, 2019 (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 Nonaccrual loans Loans reported as trading assets (a) $ 2,917 $ 434 $ (2,483) $ 2,563 $ 234 $ (2,329) Loans (a) 2,289 2,008 (281) 964 696 (268) Subtotal 5,206 2,442 (2,764) 3,527 930 (2,597) 90 or more days past due and government guaranteed (b) Loans reported as trading assets — — — — — — Loans 310 297 (13) 138 129 (9) Subtotal 310 297 (13) 138 129 (9) All other performing loans (c) Loans reported as trading assets (a) 7,654 5,844 (1,810) 8,288 6,779 (1,509) Loans (a) 35,493 35,915 422 43,955 44,130 175 Subtotal 43,147 41,759 (1,388) 52,243 50,909 (1,334) Total loans $ 48,663 $ 44,498 $ (4,165) $ 55,908 $ 51,968 $ (3,940) Long-term debt Principal-protected debt $ 40,141 (e) $ 39,536 $ (605) $ 40,124 (e) $ 39,246 $ (878) Nonprincipal-protected debt (d) NA 33,450 NA NA 36,499 NA Total long-term debt NA $ 72,986 NA NA $ 75,745 NA Long-term beneficial interests Nonprincipal-protected debt (d) NA $ 39 NA NA $ 36 NA Total long-term beneficial interests NA $ 39 NA NA $ 36 NA (a) In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans and other assets. Prior-period amounts have been revised to conform with the current presentation. (b) These balances are excluded from nonaccrual loans as the loans are insured and/or guaranteed by U.S. government agencies. (c) There were no performing loans that were ninety days or more past due as of September 30, 2020, and December 31, 2019, respectively. (d) Remaining contractual principal is not applicable to nonprincipal-protected structured notes and long-term beneficial interests. Unlike principal-protected structured notes and long-term beneficial interests, for which the Firm is obligated to return a stated amount of principal at maturity, nonprincipal-protected structured notes and long-term beneficial interests do not obligate the Firm to return a stated amount of principal at maturity, but for structured notes to return an amount based on the performance of an underlying variable or derivative feature embedded in the note. However, investors are exposed to the credit risk of the Firm as issuer for both nonprincipal-protected and principal-protected notes. (e) 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 structured notes, by balance sheet classification and the primary risk type. September 30, 2020 December 31, 2019 (in millions) Long-term debt Short-term borrowings Deposits Total Long-term debt Short-term borrowings Deposits Total Risk exposure Interest rate $ 36,598 $ 59 $ 7,646 $ 44,303 $ 35,470 $ 34 $ 16,692 $ 52,196 Credit 5,302 1,052 — 6,354 5,715 875 — 6,590 Foreign exchange 3,645 134 — 3,779 3,862 48 5 3,915 Equity 26,414 5,902 7,094 39,410 29,294 4,852 8,177 42,323 Commodity 363 26 2,274 2,663 472 32 1,454 1,958 Total structured notes $ 72,322 $ 7,173 $ 17,014 $ 96,509 $ 74,813 $ 5,841 $ 26,328 $ 106,982 |
Credit Risk Concentrations (Tab
Credit Risk Concentrations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020, and December 31, 2019. The wholesale industry of risk category is generally based on the client or counterparty’s primary business activity. In conjunction with the adoption of CECL, the Firm reclassified risk-rated loans and lending-related commitments from the consumer, excluding credit card portfolio segment to the wholesale portfolio segment, to align with the methodology applied when determining the allowance. Prior-period amounts have been revised to conform with the current presentation. Refer to Note 1 for further information. September 30, 2020 December 31, 2019 Credit exposure (h)(i) On-balance sheet Off-balance sheet (i)(k) Credit exposure (h)(i) On-balance sheet Off-balance sheet (i)(k) (in millions) Loans (i) Derivatives Loans (i) Derivatives Consumer, excluding credit card $ 368,523 $ 322,098 (j) $ — $ 46,425 $ 357,986 $ 317,817 $ — $ 40,169 Credit card (a) 803,237 140,377 — 662,860 819,644 168,924 — 650,720 Total consumer-related (a) 1,171,760 462,475 — 709,285 1,177,630 486,741 — 690,889 Wholesale-related (b) Real Estate 147,483 120,241 1,491 25,751 150,919 117,709 619 32,591 Individuals and Individual Entities (c) 115,469 102,315 1,744 11,410 105,027 94,616 694 9,717 Consumer & Retail 107,037 41,461 2,802 62,774 106,986 36,985 1,424 68,577 Industrials 68,950 23,247 1,570 44,133 62,483 22,063 878 39,542 Technology, Media & 64,800 15,054 3,294 46,452 60,033 15,322 2,766 41,945 Asset Managers 61,569 26,167 8,758 26,644 54,304 24,008 7,160 23,136 Healthcare 59,864 20,617 3,430 35,817 50,824 17,607 2,078 31,139 Banks & Finance Cos 53,385 28,953 7,206 17,226 50,786 31,191 5,165 14,430 Automotive 40,930 16,819 3,453 20,658 35,118 18,844 368 15,906 Oil & Gas 40,431 12,920 1,340 26,171 41,641 13,101 852 27,688 State & Municipal Govt (d) 37,472 17,245 2,435 17,792 30,095 13,271 2,000 14,824 Utilities 30,135 5,213 3,104 21,818 34,843 5,157 2,573 27,113 Transportation 17,154 7,689 1,713 7,752 14,497 5,253 715 8,529 Chemicals & Plastics 16,780 4,577 755 11,448 17,499 4,864 459 12,176 Central Govt 16,265 3,016 11,693 1,556 14,865 2,840 10,477 1,548 Metals & Mining 15,900 4,959 739 10,202 15,586 5,364 402 9,820 Insurance 13,509 1,215 2,741 9,553 12,348 1,356 2,282 8,710 Financial Markets Infrastructure 10,311 177 6,376 3,758 4,121 13 2,482 1,626 Securities Firms 8,092 599 4,865 2,628 7,381 757 4,507 2,117 All other (e) 93,166 48,357 7,117 37,692 79,598 51,357 1,865 26,376 Subtotal 1,018,702 500,841 76,626 441,235 948,954 481,678 49,766 417,510 Loans held-for-sale and loans at fair value 26,424 26,424 — — 29,201 29,201 — — Receivables from customers and other (f) 30,847 — — — 33,706 — — — Total wholesale-related 1,075,973 527,265 76,626 441,235 1,011,861 510,879 49,766 417,510 Total exposure (g)(h) $ 2,247,733 $ 989,740 $ 76,626 $ 1,150,520 $ 2,189,491 $ 997,620 $ 49,766 $ 1,108,399 (a) Also includes commercial card lending-related commitments primarily in CB and CIB. (b) The industry rankings presented in the table as of December 31, 2019, are based on the industry rankings of the corresponding exposures at September 30, 2020, not actual rankings of such exposures at December 31, 2019. (c) Individuals and Individual Entities predominantly consists of Wealth Management clients within AWM and includes exposure to personal investment companies and personal and testamentary trusts. (d) In addition to the credit risk exposure to states and municipal governments (both U.S. and non-U.S.) at September 30, 2020, and December 31, 2019, noted above, the Firm held: $7.5 billion and $6.5 billion , respectively, of trading assets; $20.9 billion and $29.8 billion, respectively, of AFS securities; and $12.8 billion and $4.8 billion, respectively, of HTM securities, issued by U.S. state and municipal governments. Refer to Note 2 and Note 10 for further information. (e) All other includes: SPEs and Private education and civic organizations, representing approximately 91% and 9% , respectively, at September 30, 2020, and 90% and 10%, respectively, at December 31, 2019. Refer to Note 14 for more information on exposures to SPEs. (f) Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB and AWM that are collateralized by assets maintained in the clients’ brokerage accounts (e.g., cash on deposit, liquid and readily marketable debt or equity securities), as such generally no allowance for credit losses is held against these receivables. To manage its credit risk the Firm establishes margin requirements and monitors the required margin levels on an ongoing basis, and requires clients to deposit additional cash or other collateral, or to reduce positions, when appropriate. These receivables are reported within accrued interest and accounts receivable on the Firm’s Consolidated balance sheets. (g) Excludes cash placed with banks of $478.4 billion and $254.0 billion, at September 30, 2020, and December 31, 2019, respectively, which is predominantly placed with various central banks, primarily Federal Reserve Banks. (h) 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 collateral held against derivative receivables. (i) In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans. Prior-period amounts have been revised to conform with the current presentation. (j) At September 30, 2020, included $20.3 billion of loans in Business Banking under the PPP. PPP loans are guaranteed by the SBA. Other than in certain limited circumstances, the Firm typically does not recognize charge-offs, classify as nonaccrual nor record an allowance for loan losses on these loans. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 10-Q page reference Manage specifically identified risk exposures in qualifying hedge accounting relationships: • Interest rate Hedge fixed rate assets and liabilities Fair value hedge Corporate 127-128 • Interest rate Hedge floating-rate assets and liabilities Cash flow hedge Corporate 129 • Foreign exchange Hedge foreign currency-denominated assets and liabilities Fair value hedge Corporate 127-128 • Foreign exchange Hedge foreign currency-denominated forecasted revenue and expense Cash flow hedge Corporate 129 • Foreign exchange Hedge the value of the Firm’s investments in non-U.S. dollar functional currency entities Net investment hedge Corporate 130 • Commodity Hedge commodity inventory Fair value hedge CIB 127-128 Manage specifically identified risk exposures not designated in qualifying hedge accounting relationships: • Interest rate Manage the risk associated with mortgage commitments, warehouse loans and MSRs Specified risk management CCB 130 • Credit Manage the credit risk associated with wholesale lending exposures Specified risk management CIB 130 • Interest rate and foreign exchange Manage the risk associated with certain other specified assets and liabilities Specified risk management Corporate 130 Market-making derivatives and other activities: • Various Market-making and related risk management Market-making and other CIB 130 • Various Other derivatives Market-making and other CIB, AWM, Corporate 130 |
Notional amount of derivative contracts | The following table summarizes the notional amount of derivative contracts outstanding as of September 30, 2020, and December 31, 2019. Notional amounts (b) (in billions) September 30, 2020 December 31, 2019 Interest rate contracts Swaps $ 22,746 $ 21,228 Futures and forwards 4,086 3,152 Written options 3,512 3,938 Purchased options 3,875 4,361 Total interest rate contracts 34,219 32,679 Credit derivatives (a) 1,450 1,242 Foreign exchange contracts Cross-currency swaps 3,852 3,604 Spot, futures and forwards 7,304 5,577 Written options 810 700 Purchased options 815 718 Total foreign exchange contracts 12,781 10,599 Equity contracts Swaps 416 406 Futures and forwards 130 142 Written options 752 646 Purchased options 714 611 Total equity contracts 2,012 1,805 Commodity contracts Swaps 134 147 Spot, futures and forwards 219 211 Written options 138 135 Purchased options 125 124 Total commodity contracts 616 617 Total derivative notional amounts $ 51,078 $ 46,942 (a) Refer to the Credit derivatives discussion on page 131 for more information on volumes and types of credit derivative contracts. (b) Represents the sum of gross long and gross short third-party notional derivative contracts. |
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 September 30, 2020, and December 31, 2019, by accounting designation (e.g., whether the derivatives were designated in qualifying hedge accounting relationships or not) and contract type. Free-standing derivative receivables and payables (a) Gross derivative receivables Gross derivative payables September 30, 2020 Not designated as hedges Designated as hedges Total derivative receivables Net derivative receivables (b) Not designated as hedges Designated Total derivative payables Net derivative payables (b) Trading assets and liabilities Interest rate $ 397,677 $ 802 $ 398,479 $ 37,058 $ 359,357 $ — $ 359,357 $ 12,471 Credit 15,144 — 15,144 1,393 16,417 — 16,417 2,242 Foreign exchange 155,016 472 155,488 11,428 164,434 784 165,218 15,513 Equity 73,535 — 73,535 18,936 73,932 — 73,932 19,356 Commodity 21,633 623 22,256 7,811 21,831 1,017 22,848 8,076 Total fair value of trading assets and liabilities $ 663,005 $ 1,897 $ 664,902 $ 76,626 $ 635,971 $ 1,801 $ 637,772 $ 57,658 Gross derivative receivables Gross derivative payables December 31, 2019 Not designated as hedges Designated as hedges Total derivative receivables Net derivative receivables (b) Not designated as hedges Designated Total derivative payables Net derivative payables (b) Trading assets and liabilities Interest rate $ 312,451 $ 843 $ 313,294 $ 27,421 $ 279,272 $ 1 $ 279,273 $ 8,603 Credit 14,876 — 14,876 701 15,121 — 15,121 1,652 Foreign exchange 138,179 308 138,487 9,005 144,125 983 145,108 13,158 Equity 45,727 — 45,727 6,477 52,741 — 52,741 12,537 Commodity 16,914 328 17,242 6,162 19,736 149 19,885 7,758 Total fair value of trading assets and liabilities $ 528,147 $ 1,479 $ 529,626 $ 49,766 $ 510,995 $ 1,133 $ 512,128 $ 43,708 (a) Balances exclude structured notes for which the fair value option has been elected. Refer to Note 3 for further information. (b) As permitted under U.S. GAAP, the Firm has elected to net derivative receivables and derivative payables and the related cash collateral receivables and payables when a legally enforceable master netting agreement exists. |
Offsetting assets | The following tables present, as of September 30, 2020, and December 31, 2019, 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. September 30, 2020 December 31, 2019 (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”) $ 376,615 $ (345,771) $ 30,844 $ 299,205 $ (276,255) $ 22,950 OTC–cleared 15,121 (14,984) 137 9,442 (9,360) 82 Exchange-traded (a) 673 (666) 7 347 (258) 89 Total interest rate contracts 392,409 (361,421) 30,988 308,994 (285,873) 23,121 Credit contracts: OTC 10,710 (9,913) 797 10,743 (10,317) 426 OTC–cleared 3,856 (3,838) 18 3,864 (3,858) 6 Total credit contracts 14,566 (13,751) 815 14,607 (14,175) 432 Foreign exchange contracts: OTC 151,749 (143,538) 8,211 136,252 (129,324) 6,928 OTC–cleared 538 (521) 17 185 (152) 33 Exchange-traded (a) 17 (1) 16 10 (6) 4 Total foreign exchange contracts 152,304 (144,060) 8,244 136,447 (129,482) 6,965 Equity contracts: OTC 31,974 (25,914) 6,060 23,106 (20,820) 2,286 Exchange-traded (a) 33,230 (28,685) 4,545 19,654 (18,430) 1,224 Total equity contracts 65,204 (54,599) 10,605 42,760 (39,250) 3,510 Commodity contracts: OTC 11,812 (8,395) 3,417 7,093 (5,149) 1,944 OTC–cleared 22 (22) — 28 (28) — Exchange-traded (a) 6,317 (6,028) 289 6,154 (5,903) 251 Total commodity contracts 18,151 (14,445) 3,706 13,275 (11,080) 2,195 Derivative receivables with appropriate legal opinion 642,634 (588,276) 54,358 (d) 516,083 (479,860) 36,223 (d) Derivative receivables where an appropriate legal opinion has not been either sought or obtained 22,268 22,268 13,543 13,543 Total derivative receivables recognized on the Consolidated balance sheets $ 664,902 $ 76,626 $ 529,626 $ 49,766 Collateral not nettable on the Consolidated balance sheets (b)(c) (17,742) (14,226) Net amounts $ 58,884 $ 35,540 |
Offsetting liabilities | September 30, 2020 December 31, 2019 (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 $ 340,775 $ (330,136) $ 10,639 $ 267,311 $ (260,229) $ 7,082 OTC–cleared 16,396 (16,172) 224 10,217 (10,138) 79 Exchange-traded (a) 584 (578) 6 365 (303) 62 Total interest rate contracts 357,755 (346,886) 10,869 277,893 (270,670) 7,223 Credit contracts: OTC 11,855 (10,369) 1,486 11,570 (10,080) 1,490 OTC–cleared 3,815 (3,806) 9 3,390 (3,389) 1 Total credit contracts 15,670 (14,175) 1,495 14,960 (13,469) 1,491 Foreign exchange contracts: OTC 161,052 (149,114) 11,938 142,360 (131,792) 10,568 OTC–cleared 596 (587) 9 186 (152) 34 Exchange-traded (a) 17 (4) 13 12 (6) 6 Total foreign exchange contracts 161,665 (149,705) 11,960 142,558 (131,950) 10,608 Equity contracts: OTC 31,055 (25,921) 5,134 27,594 (21,778) 5,816 Exchange-traded (a) 32,508 (28,655) 3,853 20,216 (18,426) 1,790 Total equity contracts 63,563 (54,576) 8,987 47,810 (40,204) 7,606 Commodity contracts: OTC 11,868 (8,590) 3,278 8,714 (6,235) 2,479 OTC–cleared 39 (39) — 30 (30) — Exchange-traded (a) 6,201 (6,143) 58 6,012 (5,862) 150 Total commodity contracts 18,108 (14,772) 3,336 14,756 (12,127) 2,629 Derivative payables with appropriate legal opinion 616,761 (580,114) 36,647 (d) 497,977 (468,420) 29,557 (d) Derivative payables where an appropriate legal opinion has not been either sought or obtained 21,011 21,011 14,151 14,151 Total derivative payables recognized on the Consolidated balance sheets $ 637,772 $ 57,658 $ 512,128 $ 43,708 Collateral not nettable on the Consolidated balance sheets (b)(c) (11,359) (7,896) Net amounts $ 46,299 $ 35,812 (a) Exchange-traded derivative balances that relate to futures contracts are settled daily. (b) 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. (c) Derivative collateral relates only to OTC and OTC-cleared derivative instruments. (d) Net derivatives receivable included cash collateral netted of $80.1 billion and $65.9 billion at September 30, 2020, and December 31, 2019, respectively. Net derivatives payable included cash collateral netted of $71.9 billion and $54.4 billion at September 30, 2020, and December 31, 2019, respectively. Derivative cash collateral relates to OTC and OTC-cleared derivative instruments. |
Current credit risk of derivative receivables and liquidity risk of derivative payables | 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 September 30, 2020, and December 31, 2019. OTC and OTC-cleared derivative payables containing downgrade triggers (in millions) September 30, 2020 December 31, 2019 Aggregate fair value of net derivative payables $ 25,629 $ 14,819 Collateral posted 24,299 13,329 The following table shows the impact of a single-notch and two-notch downgrade of the long-term issuer ratings of JPMorgan Chase & Co. and its subsidiaries, predominantly JPMorgan Chase Bank, N.A., at September 30, 2020, and December 31, 2019, 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 September 30, 2020 December 31, 2019 (in millions) Single-notch downgrade Two-notch downgrade Single-notch downgrade Two-notch downgrade Amount of additional collateral to be posted upon downgrade (a) $ 163 $ 1,273 $ 189 $ 1,467 Amount required to settle contracts with termination triggers upon downgrade (b) 158 1,977 104 1,398 (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 three and nine months ended September 30, 2020 and 2019, respectively. The Firm includes gains/(losses) on the hedging derivative in the same line item in the Consolidated statements of income as the related hedged item. Gains/(losses) recorded in income Income statement impact of (e) OCI impact Three months ended September 30, 2020 Derivatives Hedged items Income statement impact Amortization approach Changes in fair value Derivatives - Gains/(losses) recorded in OCI (f) Contract type Interest rate (a)(b) $ (464) $ 743 $ 279 $ — $ 309 $ — Foreign exchange (c) 307 (280) 27 (79) 27 (91) Commodity (d) (569) 593 24 — 14 — Total $ (726) $ 1,056 $ 330 $ (79) $ 350 $ (91) Gains/(losses) recorded in income Income statement impact of excluded components (e) OCI impact Three months ended September 30, 2019 Derivatives Hedged items Income statement impact Amortization approach Changes in fair value Derivatives - Gains/(losses) recorded in OCI (f) Contract type Interest rate (a)(b) $ 1,770 $ (1,550) $ 220 $ — $ 228 $ — Foreign exchange (c) (167) 293 126 (224) 126 (1) Commodity (d) 278 (232) 46 — 49 — Total $ 1,881 $ (1,489) $ 392 $ (224) $ 403 $ (1) Gains/(losses) recorded in income Income statement impact of excluded components (e) OCI impact Nine months ended September 30, 2020 Derivatives Hedged items Income statement impact Amortization approach Changes in fair value Derivatives - Gains/(losses) recorded in OCI (f) Contract type Interest rate (a)(b) $ 4,087 $ (3,333) $ 754 $ — $ 728 $ — Foreign exchange (c) 579 (430) 149 (379) 149 45 Commodity (d) (771) 882 111 — 107 — Total $ 3,895 $ (2,881) $ 1,014 $ (379) $ 984 $ 45 Gains/(losses) recorded in income Income statement impact of excluded components (e) OCI impact Nine months ended September 30, 2019 Derivatives Hedged items Income statement impact Amortization approach Changes in fair value Derivatives - Gains/(losses) recorded in OCI (f) Contract type Interest rate (a)(b) $ 4,996 $ (4,399) $ 597 $ — $ 596 $ — Foreign exchange (c) (31) 401 370 (675) 370 114 Commodity (d) (164) 237 73 — 67 — Total $ 4,801 $ (3,761) $ 1,040 $ (675) $ 1,033 $ 114 (a) Primarily consists of hedges of the benchmark (e.g., London Interbank Offered Rate (“LIBOR”)) interest rate risk of fixed-rate long-term debt and AFS securities. Gains and losses were recorded in net interest income. (b) Excludes the amortization expense associated with the inception hedge accounting adjustment applied to the hedged item. This expense is recorded in net interest income and substantially offsets the income statement impact of the excluded components. Also excludes the accrual of interest on interest rate swaps and the related hedged items. (c) Primarily consists of hedges of the foreign currency risk of long-term debt and AFS securities for changes in spot foreign currency rates. Gains and losses related to the derivatives and the hedged items due to changes in foreign currency rates and the income statement impact of excluded components were recorded primarily in principal transactions revenue and net interest income. (d) Consists of overall fair value hedges of physical commodities inventories that are generally carried at the lower of cost or net realizable value (net realizable value approximates fair value). Gains and losses were recorded in principal transactions revenue. (e) The assessment of hedge effectiveness excludes certain components of the changes in fair values of the derivatives and hedged items such as forward points on foreign exchange forward contracts, time values and cross-currency basis spreads. Excluded components may impact earnings either through amortization of the initial amount over the life of the derivative, or through fair value changes recognized in the current period. (f) Represents the change in value of amounts excluded from the assessment of effectiveness under the amortization approach, predominantly cross-currency basis spreads. The amount excluded at inception of the hedge is recognized in earnings over the life of the derivative. |
Schedule of amounts recorded on Consolidated Balance Sheets related to certain cumulative fair value hedge basis adjustments | As of September 30, 2020 and December 31, 2019, the following amounts were recorded on the Consolidated balance sheets related to certain cumulative fair value hedge basis adjustments that are expected to reverse through the income statement in future periods as an adjustment to yield. Carrying amount of the hedged items (a)(b) Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items: September 30, 2020 Active hedging relationships Discontinued hedging relationships (d)(e) Total Assets Investment securities - AFS $ 136,335 (c) $ 5,171 $ 800 $ 5,971 Liabilities Long-term debt $ 173,402 $ 5,324 $ 11,790 $ 17,114 Beneficial interests issued by consolidated VIEs 746 — (3) (3) Carrying amount of the hedged items (a)(b) Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items: December 31, 2019 Active hedging relationships Discontinued hedging relationships (d)(e) Total Assets Investment securities - AFS $ 125,860 (c) $ 2,110 $ 278 $ 2,388 Liabilities Long-term debt $ 157,545 $ 6,719 $ 161 $ 6,880 Beneficial interests issued by consolidated VIEs 2,365 — (8) (8) (a) Excludes physical commodities with a carrying value of $9.5 billion and $6.5 billion at September 30, 2020 and December 31, 2019, respectively, to which the Firm applies fair value hedge accounting. As a result of the application of hedge accounting, these inventories are carried at fair value, thus recognizing unrealized gains and losses in current periods. Since the Firm exits these positions at fair value, there is no incremental impact to net income in future periods. (b) Excludes hedged items where only foreign currency risk is the designated hedged risk, as basis adjustments related to foreign currency hedges will not reverse through the income statement in future periods. At September 30, 2020 and December 31, 2019, the carrying amount excluded for AFS securities is $14.4 billion and $14.9 billion, respectively, and for long-term debt is $6.4 billion and $2.8 billion, respectively. (c) Carrying amount represents the amortized cost. (d) Represents basis adjustments existing on the balance sheet date associated with hedged items that have been de-designated from qualifying fair value hedging relationships. (e) Positive amounts related to assets represent cumulative fair value hedge basis adjustments that will reduce net interest income in future periods. Positive (negative) amounts related to liabilities represent cumulative fair value hedge basis adjustments that will increase (reduce) net interest income in future periods. |
Cash flow hedge gains and losses | The following tables present derivative instruments, by contract type, used in cash flow hedge accounting relationships, and the pre-tax gains/(losses) recorded on such derivatives, for the three and nine months ended September 30, 2020 and 2019, respectively. The Firm includes the gain/(loss) on the hedging derivative in the same line item in the Consolidated statements of income as the change in cash flows on the related hedged item. Derivatives gains/(losses) recorded in income and other comprehensive income/(loss) Three months ended September 30, 2020 Amounts reclassified Amounts recorded Total change Contract type Interest rate (a) $ 214 $ 8 $ (206) Foreign exchange (b) 13 126 113 Total $ 227 $ 134 $ (93) Derivatives gains/(losses) recorded in income and other comprehensive income/(loss) Three months ended September 30, 2019 Amounts reclassified Amounts recorded Total change in OCI for period Contract type Interest rate (a) $ (16) $ 290 $ 306 Foreign exchange (b) (21) (68) (47) Total $ (37) $ 222 $ 259 Derivatives gains/(losses) recorded in income and other comprehensive income/(loss) Nine months ended September 30, 2020 Amounts reclassified Amounts recorded Total change Contract type Interest rate (a) $ 332 $ 3,881 $ 3,549 Foreign exchange (b) (4) (94) (90) Total $ 328 $ 3,787 $ 3,459 Derivatives gains/(losses) recorded in income and other comprehensive income/(loss) Nine months ended September 30, 2019 Amounts reclassified Amounts recorded Total change Contract type Interest rate (a) $ (12) $ 501 $ 513 Foreign exchange (b) (90) (37) 53 Total $ (102) $ 464 $ 566 (a) Primarily consists of hedges of LIBOR-indexed floating-rate assets and floating-rate liabilities. Gains and losses were recorded in net interest income. |
Net investment hedge gains and losses | The following table presents hedging instruments, by contract type, that were used in net investment hedge accounting relationships, and the pre-tax gains/(losses) recorded on such instruments for the three and nine months ended September 30, 2020 and 2019. Gains/(losses) recorded in income and other comprehensive income/(loss) 2020 2019 Three months ended September 30, Amounts recorded in income (a)(b) Amounts recorded in OCI Amounts recorded in income (a)(b) Amounts recorded in OCI Foreign exchange derivatives $ (37) $ (868) $ 17 $ 866 Gains/(losses) recorded in income and other comprehensive income/(loss) 2020 2019 Nine months ended September 30, Amounts recorded in income (a)(b) Amounts recorded in OCI Amounts recorded in income (a)(b) Amounts recorded in OCI Foreign exchange derivatives $ (108) $ 308 $ 65 $ 705 (a) Certain components of hedging derivatives are permitted to be excluded from the assessment of hedge effectiveness, such as forward points on foreign exchange forward contracts. The Firm elects to record changes in fair value of these amounts directly in other income. (b) Excludes amounts reclassified from AOCI to income on the sale or liquidation of hedged entities. During the nine months ended September 30, 2020, the Firm reclassified pre-tax (losses) of $(8) million to other income related to the liquidation of certain legal entities and the amount was not material for the three months ended September 30, 2020. During the nine months ended September 30, 2019, the Firm reclassified net pre-tax gains of $5 million to other income related to the liquidation of certain legal entities. Refer to Note 20 for further information. |
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 mortgage commitments, warehouse loans, MSRs, wholesale lending exposures, and foreign currency-denominated assets and liabilities. Derivatives gains/(losses) Three months ended September 30, Nine months ended September 30, (in millions) 2020 2019 2020 2019 Contract type Interest rate (a) $ 597 $ 769 $ 2,533 $ 1,718 Credit (b) (19) (21) (58) (33) Foreign exchange (c) 18 40 96 15 Total $ 596 $ 788 $ 2,571 $ 1,700 (a) Primarily represents interest rate derivatives used to hedge the interest rate risk inherent in mortgage commitments, warehouse loans and MSRs, as well as written commitments to originate warehouse loans. Gains and losses were recorded predominantly in mortgage fees and related income. (b) Relates to credit derivatives used to mitigate credit risk associated with lending exposures in the Firm’s wholesale businesses. These derivatives do not include credit derivatives used to mitigate counterparty credit risk arising from derivative receivables, which is included in gains and losses on derivatives related to market-making activities and other derivatives. Gains and losses were recorded in principal transactions revenue. (c) Primarily relates to derivatives used to mitigate foreign exchange risk of specified foreign currency-denominated assets and liabilities. Gains and losses were recorded in principal transactions revenue. |
Credit derivatives table | Refer to Note 5 of JPMorgan Chase’s 2019 Form 10-K for a more detailed discussion of credit derivatives. The following tables present a summary of the notional amounts of credit derivatives and credit-related notes the Firm sold and purchased as of September 30, 2020 and December 31, 2019. The Firm does not use notional amounts of credit derivatives as the primary measure of risk management for such derivatives, because the notional amount does not take into account the probability of the occurrence of a credit event, the recovery value of the reference obligation, or related cash instruments and economic hedges, each of which reduces, in the Firm’s view, the risks associated with such derivatives. Total credit derivatives and credit-related notes Maximum payout/Notional amount September 30, 2020 (in millions) Protection sold Protection purchased with identical underlyings (b) Net protection (sold)/purchased (c) Other protection purchased (d) Credit derivatives Credit default swaps $ (655,517) $ 671,373 $ 15,856 $ 3,847 Other credit derivatives (a) (45,964) 63,025 17,061 10,197 Total credit derivatives (701,481) 734,398 32,917 14,044 Credit-related notes — — — 9,452 Total $ (701,481) $ 734,398 $ 32,917 $ 23,496 Maximum payout/Notional amount December 31, 2019 (in millions) Protection sold Protection purchased with identical underlyings (b) Net protection (sold)/purchased (c) Other protection purchased (d) Credit derivatives Credit default swaps $ (562,338) $ 571,892 $ 9,554 $ 3,936 Other credit derivatives (a) (50,395) (e) 46,541 (e) (3,854) 7,364 Total credit derivatives (612,733) 618,433 5,700 11,300 Credit-related notes — — — 9,606 Total $ (612,733) $ 618,433 $ 5,700 $ 20,906 (a) Other credit derivatives predominantly consist of credit swap options and total return swaps. (b) Represents the total notional amount of protection purchased where the underlying reference instrument is identical to the reference instrument on protection sold; the notional amount of protection purchased for each individual identical underlying reference instrument may be greater or lower than the notional amount of protection sold. (c) Does not take into account the fair value of the reference obligation at the time of settlement, which would generally reduce the amount the seller of protection pays to the buyer of protection in determining settlement value. (d) Represents protection purchased by the Firm on referenced instruments (single-name, portfolio or index) where the Firm has not sold any protection on the identical reference instrument. (e) Prior-period amounts have been revised to conform with the current presentation. |
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 September 30, 2020, and December 31, 2019, 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 September 30, 2020 <1 year 1–5 years >5 years Total Fair value of receivables (b) Fair value of payables (b) Net fair value Risk rating of reference entity Investment-grade $ (102,910) $ (334,763) $ (87,060) $ (524,733) $ 4,837 $ (1,757) $ 3,080 Noninvestment-grade (37,438) (112,679) (26,631) (176,748) 3,332 (4,325) (993) Total $ (140,348) $ (447,442) $ (113,691) $ (701,481) $ 8,169 $ (6,082) $ 2,087 December 31, 2019 <1 year (c) 1–5 years >5 years Total Fair value of receivables (b)(c) Fair value of payables (b)(c) Net fair value Risk rating of reference entity Investment-grade $ (119,788) $ (311,407) $ (42,129) $ (473,324) $ 6,168 $ (901) $ 5,267 Noninvestment-grade (41,799) (87,769) (9,841) (139,409) 4,287 (2,817) 1,470 Total $ (161,587) $ (399,176) $ (51,970) $ (612,733) $ 10,455 $ (3,718) $ 6,737 (a) The ratings scale is primarily based on external credit ratings defined by S&P and Moody’s. (b) Amounts are shown on a gross basis, before the benefit of legally enforceable master netting agreements including cash collateral netting. (c) Prior-period amounts have been revised to conform with the current presentation. |
Noninterest Revenue and Nonin_2
Noninterest Revenue and Noninterest Expense (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Noninterest Income (Expense) [Abstract] | |
Components of investment banking fees | The following table presents the components of investment banking fees. Three months ended September 30, Nine months ended September 30, (in millions) 2020 2019 2020 2019 Underwriting Equity $ 736 $ 517 $ 2,037 $ 1,293 Debt 1,019 955 3,342 2,720 Total underwriting 1,755 1,472 5,379 4,013 Advisory 432 495 1,524 1,645 Total investment banking fees $ 2,187 $ 1,967 $ 6,903 $ 5,658 |
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 in CIB and cash deployment activities in Treasury and CIO. Refer to 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 LOB. Three months ended September 30, Nine months ended September 30, (in millions) 2020 2019 2020 2019 Trading revenue by instrument type Interest rate (a) $ 287 $ 866 (d) $ 2,258 $ 2,128 (d) Credit (b) 950 (c) 309 (d) 2,201 (c) 1,402 (d) Foreign exchange 714 876 (d) 3,606 2,501 (d) Equity 1,410 1,007 (d) 4,816 4,282 (d) Commodity 747 372 (d) 1,775 984 (d) Total trading 4,108 3,430 14,656 11,297 Private equity gains/(losses) 34 19 44 (58) Principal transactions $ 4,142 $ 3,449 $ 14,700 $ 11,239 (a) Includes the impact of changes in funding valuation adjustments on derivatives. (b) Includes the impact of changes in credit valuation adjustments on derivatives, net of the associated hedging activities. (c) Includes marks on held-for-sale positions, including unfunded commitments, in the bridge financing portfolio. |
Components of lending and deposit-related fees | The following table presents the components of lending- and deposit-related fees. Three months ended September 30, Nine months ended September 30, (in millions) 2020 2019 2020 2019 Lending-related fees $ 337 $ 286 $ 916 $ 861 Deposit-related fees (a) 1,310 1,385 3,868 3,993 Total lending- and deposit-related fees $ 1,647 $ 1,671 $ 4,784 $ 4,854 (a) In the first quarter of 2020, the Firm reclassified certain fees from asset management, administration and commissions to lending- and deposit-related fees. Prior-period amounts have been revised to conform with the current presentation. |
Components of asset management, administration and commissions | The following table presents the components of asset management, administration and commissions. Three months ended September 30, Nine months ended September 30, (in millions) 2020 2019 2020 2019 Asset management fees Investment management fees (a) $ 2,937 $ 2,738 $ 8,439 $ 8,013 All other asset management fees (b) 85 82 253 229 Total asset management fees 3,022 2,820 8,692 8,242 Total administration fees (c) 561 567 1,661 1,646 Commissions and other fees Brokerage commissions (d) 645 634 2,224 1,861 All other commissions and fees (e) 242 285 699 858 Total commissions and fees 887 919 2,923 2,719 Total asset management, administration and commissions $ 4,470 $ 4,306 $ 13,276 $ 12,607 (a) Represents fees earned from managing assets on behalf of the Firm’s clients, including investors in Firm-sponsored funds and owners of separately managed investment accounts. (b) Represents fees for services that are ancillary to investment management services, such as commissions earned on the sales or distribution of mutual funds to clients. (c) Predominantly includes fees for custody, securities lending, funds services and securities clearance. (d) Represents commissions earned when the Firm acts as a broker, by facilitating its clients’ purchases and sales of securities and other financial instruments. (e) In the first quarter of 2020, the Firm reclassified certain fees from asset management, administration and commissions to lending- and deposit-related fees. Prior-period amounts have been revised to conform with the current presentation. |
Schedule of components of card income | The following table presents the components of card income: Three months ended September 30, Nine months ended September 30, (in millions) 2020 2019 2020 2019 Interchange and merchant processing income $ 4,757 $ 5,127 $ 13,479 $ 15,032 Rewards costs and partner payments (a) (3,497) (3,719) (9,895) (10,697) Other card income (b) (91) (175) (446) (594) Total card income $ 1,169 $ 1,233 $ 3,138 $ 3,741 (a) In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation. (b) Predominantly represents the amortization of account origination costs and annual fees. |
Components of noninterest expense | Other expense on the Firm’s Consolidated statements of income included the following: Three months ended September 30, Nine months ended September 30, (in millions) 2020 2019 2020 2019 Legal expense/(benefit) $ 524 $ 10 $ 839 $ (2) FDIC-related expense 186 114 503 378 |
Interest Income and Interest _2
Interest Income and Interest Expense (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Interest Income (Expense), Net [Abstract] | |
Details of interest income and interest expense | The following table presents the components of interest income and interest expense. Three months ended Nine months ended (in millions) 2020 2019 2020 2019 Interest income Loans (a)(b) $ 10,215 $ 12,977 $ 33,409 $ 39,269 Taxable securities 1,816 2,132 6,203 5,712 Non-taxable securities (c) 294 318 901 1,021 Total investment securities (a) 2,110 2,450 7,104 6,733 Trading assets - debt instruments (b) 1,850 2,216 5,980 7,123 Federal funds sold and securities purchased under resale agreements 401 1,542 2,097 4,865 Securities borrowed (d) (128) 434 (151) 1,298 Deposits with banks 69 898 708 3,200 All other interest-earning assets (b)(e) 183 604 826 1,625 Total interest income 14,700 21,121 49,973 64,113 Interest expense Interest-bearing deposits 245 2,409 2,169 7,010 Federal funds purchased and securities loaned or sold under repurchase agreements 105 1,241 1,023 3,577 Short-term borrowings (f) 60 261 335 1,051 Trading liabilities – debt and all other interest-bearing liabilities (d)(g) (51) 660 278 2,141 Long-term debt 1,293 2,188 4,679 6,796 Beneficial interest issued by consolidated VIEs 35 134 184 459 Total interest expense 1,687 6,893 8,668 21,034 Net interest income 13,013 14,228 41,305 43,079 Provision for credit losses 611 1,514 19,369 4,158 Net interest income after provision for credit losses $ 12,402 $ 12,714 $ 21,936 $ 38,921 (a) Includes the amortization/accretion of unearned income (e.g., purchase premiums/discounts, net deferred fees/costs, etc.). (b) In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans and other assets. Prior-period amounts have been revised to conform with the current presentation. (c) Represents securities which are tax-exempt for U.S. federal income tax purposes. (d) Negative interest income is related to the impact of current interest rates combined with the fees paid on client-driven securities borrowed balances. The negative interest expense related to prime brokerage customer payables is recognized in interest expense and reported within trading liabilities - debt and all other interest-bearing liabilities. (e) Includes interest earned on prime brokerage-related held-for-investment customer receivables, which are classified in accrued interest and accounts receivable, and all other interest-earning assets which are classified in other assets on the Consolidated balance sheets. (f) Includes commercial paper. (g) Other interest-bearing liabilities includes interest expense on prime brokerage-related customer payables. |
Pension and Other Postretirem_2
Pension and Other Postretirement Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Components of net periodic benefit costs reported in the Consolidated Statements of Income | The following table presents the components of net periodic benefit costs reported in the Consolidated statements of income for the Firm’s U.S. and non-U.S. defined benefit pension, defined contribution and OPEB plans. (in millions) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 2020 2019 2020 2019 Pension plans OPEB plans Pension plans OPEB plans Components of net periodic benefit cost Benefits earned during the period $ 9 $ 88 $ — $ — $ 25 $ 266 $ — $ — Interest cost on benefit obligations 120 148 5 6 360 447 15 18 Expected return on plan assets (192) (227) (28) (28) (575) (686) (83) (84) Amortization: Net (gain)/loss 4 42 — — 11 125 — — Prior service (credit)/cost — — — — 2 2 — — Net periodic defined benefit (credit)/cost (59) 51 (23) (22) (177) 154 (68) (66) Other defined benefit pension plans (a) 8 7 NA NA 27 20 NA NA Total defined benefit plans (51) 58 (23) (22) (150) 174 (68) (66) Total defined contribution plans 340 255 NA NA 960 718 NA NA Total pension and OPEB cost included in noninterest expense $ 289 $ 313 $ (23) $ (22) $ 810 $ 892 $ (68) $ (66) (a) Includes various defined benefit pension plans which are individually immaterial. |
Schedule of Fair Values of Plan Assets | The following table presents the fair values of plan assets for the U.S. defined benefit pension and OPEB plans and for the material non-U.S. defined benefit pension plans. (in billions) September 30, December 31, 2019 Fair value of plan assets Defined benefit pension plans $ 21.1 $ 20.4 OPEB plans 3.1 3.0 |
Employee Share-based Incentiv_2
Employee Share-based Incentives (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
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. Three months ended Nine months ended (in millions) 2020 2019 2020 2019 Cost of prior grants of RSUs, performance share units (“PSUs”) and employee stock options that are amortized over their applicable vesting periods $ 249 $ 265 $ 859 $ 882 Accrual of estimated costs of share-based awards to be granted in future periods including those to full-career eligible employees 272 294 1,108 900 Total noncash compensation expense related to employee share-based incentive plans $ 521 $ 559 $ 1,967 $ 1,782 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized costs and estimated fair values | The amortized costs and estimated fair values of the investment securities portfolio were as follows for the dates indicated. September 30, 2020 December 31, 2019 (in millions) Amortized cost (e) Gross unrealized gains Gross unrealized losses Fair value Amortized cost (e) Gross unrealized gains Gross unrealized losses Fair value Available-for-sale securities Mortgage-backed securities: U.S. GSEs and government agencies (a) $ 96,865 $ 2,807 $ 78 $ 99,594 $ 107,811 $ 2,395 $ 89 $ 110,117 Residential: U.S. 6,954 296 4 7,246 10,223 233 6 10,450 Non-U.S. 4,134 54 11 4,177 2,477 64 1 2,540 Commercial 2,923 62 49 2,936 5,137 64 13 5,188 Total mortgage-backed securities 110,876 3,219 142 113,953 125,648 2,756 109 128,295 U.S. Treasury and government agencies 213,887 2,820 128 216,579 139,162 449 175 139,436 Obligations of U.S. states and municipalities 19,518 1,370 5 20,883 27,693 2,118 1 29,810 Certificates of deposit — — — — 77 — — 77 Non-U.S. government debt securities 20,695 353 11 21,037 21,427 377 17 21,787 Corporate debt securities 270 4 3 271 823 22 — 845 Asset-backed securities: Collateralized loan obligations 10,253 19 70 10,202 25,038 9 56 24,991 Other 6,600 90 32 6,658 5,438 40 20 5,458 Total available-for-sale securities (b) 382,099 7,875 391 389,583 345,306 5,771 378 350,699 Held-to-maturity securities (c) Mortgage-backed securities: U.S. GSEs and government agencies (a) 100,364 2,992 85 103,271 36,523 1,165 62 37,626 U.S. Residential 4,791 5 2 4,794 — — — — Commercial 2,583 44 2 2,681 — — — — Total mortgage-backed securities 107,738 3,041 89 110,746 36,523 1,165 62 37,626 U.S. Treasury and government agencies 51 2 — 53 51 — 1 50 Obligations of U.S. states and municipalities 12,828 413 60 13,245 4,797 299 — 5,096 Asset-backed securities: Collateralized loan obligations 20,936 34 18 20,952 6,169 — — 6,169 Total held-to-maturity securities, net of allowance for credit losses (d) 141,553 3,490 167 144,996 47,540 1,464 63 48,941 Total investment securities, net of allowance for credit losses (d) $ 523,652 $ 11,365 $ 558 $ 534,579 $ 392,846 $ 7,235 $ 441 $ 399,640 (a) Includes AFS U.S. GSE obligations with fair values of $55.6 billion and $78.5 billion, and HTM U.S. GSE obligations with amortized cost of $82.4 billion and $31.6 billion, at September 30, 2020, and December 31, 2019, respectively. As of September 30, 2020, mortgage-backed securities issued by Fannie Mae and Freddie Mac each exceeded 10% of JPMorgan Chase’s total stockholders’ equity; the amortized cost and fair value of such securities were $92.9 billion and $96.5 billion, and $43.0 billion and $44.3 billion, respectively. (b) There was no allowance for credit losses on AFS securities at September 30, 2020. (c) The Firm purchased $514 million and $5.5 billion of HTM securities for the three and nine months ended September 30, 2020, respectively, and $10.9 billion and $11.7 billion for the three and nine months ended September 30, 2019, respectively. (d) HTM securities measured at amortized cost are reported net of allowance for credit losses of $120 million at September 30, 2020. (e) Excludes $2.0 billion and $1.9 billion of accrued interest receivables at September 30, 2020 and December 31, 2019, respectively. The Firm did not reverse through interest income any accrued interest receivables for the three and nine months ended September 30, 2020 and 2019. |
Securities impairment | The following tables present the fair value and gross unrealized losses by aging category for AFS securities at September 30, 2020 and December 31, 2019. The tables exclude U.S. Treasury and government agency securities and U.S. GSE and government agency MBS with unrealized losses of $206 million and $264 million, at September 30, 2020 and December 31, 2019, respectively; changes in the value of these securities are generally driven by changes in interest rates rather than changes in their credit profile given the explicit or implicit guarantees provided by the U.S. government. Available-for-sale securities with gross unrealized losses Less than 12 months 12 months or more September 30, 2020 (in millions) Fair value Gross Fair value Gross Total fair value Total gross unrealized losses Available-for-sale securities Mortgage-backed securities: Residential: U.S. $ 446 $ 3 $ 119 $ 1 $ 565 $ 4 Non-U.S. 2,678 9 243 2 2,921 11 Commercial 1,069 23 178 26 1,247 49 Total mortgage-backed securities 4,193 35 540 29 4,733 64 Obligations of U.S. states and municipalities 233 5 — — 233 5 Certificates of deposit — — — — — — Non-U.S. government debt securities 3,510 7 922 4 4,432 11 Corporate debt securities 94 3 — — 94 3 Asset-backed securities: Collateralized loan obligations 6,656 48 2,393 22 9,049 70 Other 549 5 734 27 1,283 32 Total available-for-sale securities with gross unrealized losses $ 15,235 $ 103 $ 4,589 $ 82 $ 19,824 $ 185 Available-for-sale securities with gross unrealized losses Less than 12 months 12 months or more December 31, 2019 (in millions) Fair value Gross Fair value Gross Total fair value Total gross unrealized losses Available-for-sale securities Mortgage-backed securities: Residential: U.S. $ 1,072 $ 3 $ 423 $ 3 $ 1,495 $ 6 Non-U.S. 13 — 420 1 433 1 Commercial 1,287 12 199 1 1,486 13 Total mortgage-backed securities 2,372 15 1,042 5 3,414 20 Obligations of U.S. states and municipalities 186 1 — — 186 1 Certificates of deposit 77 — — — 77 — Non-U.S. government debt securities 3,970 13 1,406 4 5,376 17 Corporate debt securities — — — — — — Asset-backed securities: Collateralized loan obligations 10,364 11 7,756 45 18,120 56 Other 1,639 9 753 11 2,392 20 Total available-for-sale securities with gross unrealized losses $ 18,608 $ 49 $ 10,957 $ 65 $ 29,565 $ 114 |
Securities gains and losses and provision for credit loss | Three months ended September 30, Nine months ended September 30, (in millions) 2020 2019 2020 2019 Realized gains $ 1,123 $ 78 $ 2,842 $ 454 Realized losses (648) — (2,108) (319) Intent to sell (a) (2) — (2) — Net investment securities gains $ 473 $ 78 $ 732 $ 135 Provision for credit losses $ 97 NA 110 NA (a) Represents losses recognized in earnings on investment securities the Firm intends to sell. |
Amortized cost and estimated fair value by contractual maturity | The following table presents the amortized cost and estimated fair value at September 30, 2020, of JPMorgan Chase’s investment securities portfolio by contractual maturity. By remaining maturity Due in one Due after one year through five years Due after five years through 10 years Due after 10 years (b) Total Available-for-sale securities Mortgage-backed securities Amortized cost $ — $ 433 $ 7,834 $ 102,609 $ 110,876 Fair value — 449 8,149 105,355 113,953 Average yield (a) 3.74 % 2.28 % 1.66 % 2.93 % 2.84 % U.S. Treasury and government agencies Amortized cost $ 38,577 $ 119,641 $ 44,776 $ 10,893 $ 213,887 Fair value 38,629 121,118 46,023 10,809 216,579 Average yield (a) 0.37 % 0.66 % 0.85 % 0.48 % 0.64 % Obligations of U.S. states and municipalities Amortized cost $ 61 $ 187 $ 923 $ 18,347 $ 19,518 Fair value 62 196 980 19,645 20,883 Average yield (a) 3.68 % 4.62 % 4.91 % 4.83 % 4.83 % Non-U.S. government debt securities Amortized cost $ 7,945 $ 7,691 $ 5,059 $ — $ 20,695 Fair value 7,966 7,900 5,171 — 21,037 Average yield (a) 1.22 % 1.77 % 0.79 % — % 1.32 % Corporate debt securities Amortized cost $ 21 $ 129 $ 120 $ — $ 270 Fair value 21 128 122 — 271 Average yield (a) 2.70 % 2.29 % 2.30 % — % 2.33 % Asset-backed securities Amortized cost $ 77 $ 3,088 $ 6,162 $ 7,526 $ 16,853 Fair value 77 3,115 6,141 7,527 16,860 Average yield (a) 0.52 % 2.18 % 1.40 % 1.49 % 1.58 % Total available-for-sale securities Amortized cost $ 46,681 $ 131,169 $ 64,874 $ 139,375 $ 382,099 Fair value 46,755 132,906 66,586 143,336 389,583 Average yield (a) 0.52 % 0.77 % 1.06 % 2.91 % 1.57 % Held-to-maturity securities Mortgage-backed securities Amortized cost $ — $ — $ 11,183 $ 96,611 $ 107,794 Fair value — — 11,999 98,747 110,746 Average yield (a) — % — % 2.42 % 2.98 % 2.92 % U.S. Treasury and government agencies Amortized cost $ — $ 51 $ — $ — $ 51 Fair value — 53 — — 53 Average yield (a) — % 1.47 % — % — % 1.47 % Obligations of U.S. states and municipalities Amortized cost $ — $ 54 $ 481 $ 12,357 $ 12,892 Fair value — 55 506 12,684 13,245 Average yield (a) — % 3.25 % 3.49 % 3.60 % 3.59 % Asset-backed securities Amortized cost $ — $ — $ 10,970 $ 9,966 $ 20,936 Fair value — — 10,977 9,975 20,952 Average yield (a) — % — % 1.46 % 1.37 % 1.42 % Total held-to-maturity securities Amortized cost $ — $ 105 $ 22,634 $ 118,934 $ 141,673 Fair value — 108 23,482 121,406 144,996 Average yield (a) — % 2.39 % 1.97 % 2.91 % 2.76 % (a) Average yield is computed using the effective yield of each security owned at the end of the period, weighted based on the amortized cost of each security. The effective yield considers the contractual coupon, amortization of premiums and accretion of discounts, and the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable. The effective yield excludes unscheduled principal prepayments; and accordingly, actual maturities of securities may differ from their contractual or expected maturities as certain securities may be prepaid. However, for certain callable debt securities, the average yield is calculated to the earliest call date. (b) Substantially all of the Firm’s U.S. residential MBS and collateralized mortgage obligations are due in 10 years or more, based on contractual maturity. The estimated weighted-average life, which reflects anticipated future prepayments, is approximately 4 years for agency residential MBS, 3 years for agency residential collateralized mortgage obligations and 3 years for nonagency residential collateralized mortgage obligations. |
Securities Financing Activiti_2
Securities Financing Activities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020 and December 31, 2019. When the Firm has obtained an appropriate legal opinion with respect to a master netting agreement with a counterparty and where other relevant netting criteria under U.S. GAAP are met, the Firm nets, on the Consolidated balance sheets, the balances outstanding under its securities financing agreements with the same counterparty. In addition, the Firm exchanges securities and/or cash collateral with its counterparty to reduce the economic exposure with the counterparty, but such collateral is not eligible for net Consolidated balance sheet presentation. Where the Firm has obtained an appropriate legal opinion with respect to the counterparty master netting agreement, such collateral, along with securities financing balances that do not meet all these relevant netting criteria under U.S. GAAP, is presented in the table below as “Amounts not nettable on the Consolidated balance sheets,” and reduces the “Net amounts” presented. Where a legal opinion has not been either sought or obtained, the securities financing balances are presented gross in the “Net amounts” below. September 30, 2020 (in millions) Gross amounts Amounts netted on the Consolidated balance sheets Amounts presented on the Consolidated balance sheets Amounts not nettable on the Consolidated balance sheets (b) Net amounts (c) Assets Securities purchased under resale agreements $ 653,504 $ (333,655) $ 319,849 $ (297,189) $ 22,660 Securities borrowed 169,400 (26,959) 142,441 (97,418) 45,023 Liabilities Securities sold under repurchase agreements $ 561,489 $ (333,655) $ 227,834 $ (210,378) $ 17,456 Securities loaned and other (a) 36,307 (26,959) 9,348 (8,884) 464 December 31, 2019 (in millions) Gross amounts Amounts netted on the Consolidated balance sheets Amounts presented on the Consolidated balance sheets Amounts not nettable on the Consolidated balance sheets (b) Net amounts (c) Assets Securities purchased under resale agreements $ 628,609 $ (379,463) $ 249,146 $ (233,818) $ 15,328 Securities borrowed 166,718 (26,960) 139,758 (104,990) 34,768 Liabilities Securities sold under repurchase agreements $ 555,172 $ (379,463) $ 175,709 $ (151,566) $ 24,143 Securities loaned and other (a) 36,649 (26,960) 9,689 (9,654) 35 (a) Includes securities-for-securities lending agreements of $3.3 billion and $3.7 billion at September 30, 2020 and December 31, 2019, respectively, accounted for at fair value, where the Firm is acting as lender. In the Consolidated balance sheets, the Firm recognizes the securities received at fair value within other assets and the obligation to return those securities within accounts payable and other liabilities. (b) In some cases, collateral exchanged with a counterparty exceeds the net asset or liability balance with that counterparty. In such cases, the amounts reported in this column are limited to the related net asset or liability with that counterparty. |
Schedule of types of assets pledged in secured financing transactions | The tables below present as of September 30, 2020, and December 31, 2019 the types of financial assets pledged in securities financing agreements and the remaining contractual maturity of the securities financing agreements. Gross liability balance September 30, 2020 December 31, 2019 (in millions) Securities sold under repurchase agreements Securities loaned and other Securities sold under repurchase agreements Securities loaned and other Mortgage-backed securities U.S. GSEs and government agencies $ 62,739 $ — $ 34,119 $ — Residential - nonagency 588 — 1,239 — Commercial - nonagency 846 — 1,612 — U.S. Treasury, GSEs and government agencies 299,978 155 334,398 29 Obligations of U.S. states and municipalities 1,372 2 1,181 — Non-U.S. government debt 157,840 2,104 145,548 1,528 Corporate debt securities 20,415 1,847 13,826 1,580 Asset-backed securities 1,348 — 1,794 — Equity securities 16,363 32,199 21,455 33,512 Total $ 561,489 $ 36,307 $ 555,172 $ 36,649 Remaining contractual maturity of the agreements Overnight and continuous Greater than September 30, 2020 (in millions) Up to 30 days 30 – 90 days Total Total securities sold under repurchase agreements $ 234,766 $ 215,363 $ 41,042 $ 70,318 $ 561,489 Total securities loaned and other 34,354 9 628 1,316 36,307 Remaining contractual maturity of the agreements Overnight and continuous Greater than December 31, 2019 (in millions) Up to 30 days 30 – 90 days Total Total securities sold under repurchase agreements $ 225,134 $ 195,816 (a) $ 56,020 (a) $ 78,202 (a) $ 555,172 Total securities loaned and other 32,028 1,706 937 1,978 36,649 (a) Prior-period amounts have been revised to conform with the current presentation. |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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. In conjunction with the adoption of CECL, the Firm revised its loan classes. Prior-period amounts have been revised to conform with the current presentation: • The consumer, excluding credit card portfolio segment’s residential mortgage and home equity loans and lending-related commitments have been combined into a residential real estate class. • Upon adoption of CECL, the Firm elected to discontinue the pool-level accounting for PCI loans and to account for these loans on an individual loan basis. PCI loans are considered PCD loans under CECL and are subject to the Firm’s nonaccrual and charge-off policies. PCD loans are now reported in the consumer, excluding credit card portfolio segment’s residential real estate class. • Risk-rated business banking and auto dealer loans and lending-related commitments held in CCB were reclassified from the consumer, excluding credit card portfolio segment, to the wholesale portfolio segment, to align with the methodology applied when determining the allowance. The remaining scored auto and business banking loans and lending-related commitments have been combined into an auto and other class. • The wholesale portfolio segment’s classes, previously based on the borrower’s primary business activity, have been revised to align with the loan classifications as defined by the bank regulatory agencies, based on the loan’s collateral, purpose, and type of borrower. Consumer, excluding Credit card Wholesale (c) • Residential real estate (a) • Auto and other (b) • Credit card loans • Secured by real estate • Commercial and industrial • Other (d) (a) Includes scored mortgage and home equity loans held in CCB and AWM, and scored mortgage loans held in CIB and Corporate. (b) Includes scored auto and business banking loans and overdrafts. (c) Includes loans held in CIB, CB, AWM, Corporate as well as risk-rated business banking and auto dealer loans held in CCB for which the wholesale methodology is applied when determining the allowance for loan losses. (d) Includes loans to financial institutions, states and political subdivisions, SPEs, nonprofits, personal investment companies and trusts, as well as loans to individuals and individual entities (predominantly Wealth Management clients within AWM). Refer to Note 14 of JPMorgan Chase’s 2019 Form 10-K for more information on SPEs. |
Schedule of loans by portfolio segment | The following tables summarize the Firm’s loan balances by portfolio segment. September 30, 2020 Consumer, excluding credit card Credit card Wholesale Total (b) (in millions) Retained $ 305,106 $ 139,590 $ 500,841 $ 945,537 (c) Held-for-sale 1,391 787 3,805 5,983 At fair value (a) 15,601 — 22,619 38,220 Total $ 322,098 $ 140,377 $ 527,265 $ 989,740 December 31, 2019 Consumer, excluding credit card Credit card Wholesale Total (b) (in millions) Retained $ 294,999 $ 168,924 $ 481,678 $ 945,601 (c) Held-for-sale 3,002 — 4,062 7,064 At fair value (a) 19,816 — 25,139 44,955 Total $ 317,817 $ 168,924 $ 510,879 $ 997,620 (a) In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans. Prior-period amounts have been revised to conform with the current presentation. (b) Excludes $2.8 billion and $2.9 billion of accrued interest receivables at September 30, 2020, and December 31, 2019, respectively. The Firm wrote off accrued interest receivables of $34 million and $15 million for the three months ended September 30, 2020 and 2019, respectively, and $82 million and $38 million for the nine months ended September 30, 2020 and 2019, respectively. (c) Loans (other than those for which the fair value option has been elected) are presented net of unamortized discounts and premiums and net deferred loan fees or costs. These amounts were not material as of September 30, 2020, and December 31, 2019. The following table provides information about retained consumer loans, excluding credit card, by class. (in millions) September 30, December 31, Residential real estate $ 229,751 $ 243,317 Auto and other (a) 75,355 51,682 Total retained loans $ 305,106 $ 294,999 (a) At September 30, 2020, included $20.3 billion of loans in Business Banking under the PPP. |
Schedule of retained loans purchased, sold and reclassified to held-for-sale | The following tables provide information about the carrying value of retained loans purchased, sold and reclassified to held-for-sale during the periods indicated. Loans that were reclassified to held-for-sale and sold in a subsequent period are excluded from the sales line of this table. 2020 2019 Three months ended September 30, Consumer, excluding Credit card Wholesale Total Consumer, excluding Credit card Wholesale Total Purchases $ 1,780 (b)(c) $ — $ 309 $ 2,089 $ 259 (b)(c) $ — $ 453 $ 712 Sales — — 4,578 4,578 14,965 — 5,564 20,529 Retained loans reclassified to held-for-sale (a) 995 787 403 2,185 3,889 — 359 4,248 2020 2019 Nine months ended September 30, Consumer, excluding Credit card Wholesale Total Consumer, excluding Credit card Wholesale Total Purchases $ 3,180 (b)(c) $ — $ 937 $ 4,117 $ 1,044 (b)(c) $ — $ 1,041 $ 2,085 Sales 348 — 13,579 13,927 30,474 — 16,414 46,888 Retained loans reclassified to held-for-sale (a) 1,822 787 1,154 3,763 8,950 — 1,784 10,734 (a) Reclassifications of loans to held-for-sale are non-cash transactions. (b) Predominantly includes purchases of residential real estate loans, including the Firm’s voluntary repurchases of certain delinquent loans from loan pools as permitted by Government National Mortgage Association (“Ginnie Mae”) guidelines for the three and nine months ended September 30, 2020 and 2019. The Firm typically elects to repurchase these delinquent loans as it continues to service them and/or manage the foreclosure process in accordance with applicable requirements of Ginnie Mae, FHA, RHS, and/or VA. (c) Excludes purchases of retained loans sourced through the correspondent origination channel and underwritten in accordance with the Firm’s standards. Such purchases were $3.1 billion and $4.7 billion for the three months ended September 30, 2020 and 2019, respectively, and $10.5 billion and $12.2 billion for the nine months ended September 30, 2020 and 2019, respectively. |
Schedule of financing receivable credit quality indicators | The following table provides information on delinquency, which is the primary credit quality indicator for retained residential real estate loans. (in millions, except ratios) September 30, 2020 December 31, 2019 Term loans by origination year Revolving loans Total Total 2020 2019 2018 2017 2016 Prior to 2016 Within the revolving period Converted to term loans Loan delinquency (a)(b) Current $ 40,303 $ 35,666 $ 15,973 $ 23,425 $ 31,870 $ 54,731 $ 7,942 $ 16,553 $ 226,463 $ 239,979 30–149 days past due 11 46 39 59 102 949 12 285 1,503 1,910 150 or more days past due 10 38 53 68 58 1,198 14 346 1,785 1,428 Total retained loans $ 40,324 $ 35,750 $ 16,065 $ 23,552 $ 32,030 $ 56,878 $ 7,968 $ 17,184 $ 229,751 $ 243,317 % of 30+ days past due to total retained loans (c) 0.05 % 0.23 % 0.57 % 0.54 % 0.50 % 3.67 % 0.33 % 3.67 % 1.40 % 1.35 % (a) Individual delinquency classifications include mortgage loans insured by U.S. government agencies as follows: current included $10 million and $17 million; 30–149 days past due included $29 million and $20 million; and 150 or more days past due included $31 million and $26 million at September 30, 2020, and December 31, 2019, respectively. (b) At September 30, 2020, loans under payment deferral programs offered in response to the COVID-19 pandemic which are still within their deferral period and performing according to their modified terms are generally not considered delinquent. (c) At September 30, 2020, and December 31, 2019, residential real estate loans excluded mortgage loans insured by U.S. government agencies of $60 million and $46 million, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee. The following table provides information on nonaccrual and other credit quality indicators for retained residential real estate loans. (in millions, except weighted-average data) September 30, 2020 December 31, 2019 Nonaccrual loans (a)(b)(c)(d)(e) $ 4,909 $ 2,780 90 or more days past due and government guaranteed (f) 55 38 Current estimated LTV ratios (g)(h) Greater than 125% and refreshed FICO scores: Equal to or greater than 660 $ 26 $ 31 Less than 660 26 38 101% to 125% and refreshed FICO scores: Equal to or greater than 660 123 134 Less than 660 100 132 80% to 100% and refreshed FICO scores: Equal to or greater than 660 6,180 5,953 Less than 660 659 764 Less than 80% and refreshed FICO scores: Equal to or greater than 660 208,422 219,469 Less than 660 12,266 14,681 No FICO/LTV available 1,879 2,052 U.S. government-guaranteed 70 63 Total retained loans $ 229,751 $ 243,317 Weighted average LTV ratio (g)(i) 56 % 55 % Weighted average FICO (h)(i) 763 758 Geographic region (j) California $ 75,807 $ 82,147 New York 32,014 31,996 Texas 13,901 14,474 Florida 13,827 13,668 Illinois 13,800 15,587 Colorado 8,307 8,447 Washington 8,163 8,990 New Jersey 7,395 7,752 Massachusetts 5,857 6,210 Connecticut 4,962 4,954 All other (k) 45,718 49,092 Total retained loans $ 229,751 $ 243,317 (a) Includes collateral-dependent residential real estate loans that are charged down to the fair value of the underlying collateral less costs to sell. The Firm reports, in accordance with regulatory guidance, residential real estate loans that have been discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower (“Chapter 7 loans”) as collateral-dependent nonaccrual TDRs, regardless of their delinquency status. At September 30, 2020, approximately 8% of Chapter 7 residential real estate loans were 30 days or more past due, respectively. (b) At September 30, 2020, nonaccrual loans included $1.5 billion of PCD loans. Prior to the adoption of CECL, nonaccrual loans excluded PCI loans as the Firm recognized interest income on each pool of PCI loans as each of the pools was performing. (c) Generally, all consumer nonaccrual loans have an allowance. In accordance with regulatory guidance, certain nonaccrual loans that are considered collateral-dependent have been charged down to the fair value of their underlying collateral less costs to sell. If the value of the underlying collateral has subsequently improved, the related allowance may be negative. (d) Interest income on nonaccrual loans recognized on a cash basis was $39 million and $40 million for the three months ended September 30, 2020 and 2019, respectively, and $119 million and $124 million for the nine months ended September 30, 2020 and 2019, respectively. (e) Generally excludes loans under payment deferral programs offered in response to the COVID-19 pandemic. Includes loans to customers that have exited COVID-19 payment deferral programs and are 90 or more days past due , predominantly all of which were considered collateral-dependent and charged down to the lower of amortized cost or fair value of the underlying collateral less costs to sell. (f) These balances are excluded from nonaccrual loans as the loans are guaranteed by U.S government agencies. Typically the principal balance of the loans is insured and interest is guaranteed at a specified reimbursement rate subject to meeting agreed-upon servicing guidelines. At September 30, 2020, and December 31, 2019, these balances included $55 million and $34 million, respectively, of loans that are no longer accruing interest based on the agreed-upon servicing guidelines. For the remaining balance, interest is being accrued at the guaranteed reimbursement rate. There were no loans that were not guaranteed by U.S. government agencies that are 90 or more days past due and still accruing interest at September 30, 2020, and December 31, 2019. (g) Represents the aggregate unpaid principal balance of loans divided by the estimated current property value. Current property values are estimated, at a minimum, quarterly, based on home valuation models using nationally recognized home price index valuation estimates incorporating actual data to the extent available and forecasted data where actual data is not available. Current estimated combined LTV for junior lien home equity loans considers all available lien positions, as well as unused lines, related to the property. (h) Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis. (i) Excludes loans with no FICO and/or LTV data available. (j) The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at September 30, 2020. (k) At September 30, 2020, and December 31, 2019, included mortgage loans insured by U.S. government agencies of $70 million and $63 million, respectively. These amounts have been excluded from the geographic regions presented based upon the government guarantee. The following table provides information on delinquency, which is the primary credit quality indicator for retained auto and other consumer loans. September 30, 2020 December 31, 2019 Term Loans by origination year Revolving loans 2020 2019 2018 2017 2016 Prior to 2016 Within the revolving period Converted to term loans Total Total Loan delinquency (a) Current $ 40,069 (b) $ 14,393 $ 8,516 $ 5,470 $ 2,683 $ 1,082 $ 2,573 $ 174 $ 74,960 $ 51,005 30–119 days past due 65 99 72 51 43 26 18 10 384 667 120 or more days past due — — — — — 1 5 5 11 10 Total retained loans $ 40,134 $ 14,492 $ 8,588 $ 5,521 $ 2,726 $ 1,109 $ 2,596 $ 189 $ 75,355 $ 51,682 % of 30+ days past due to total retained loans 0.16 % 0.68 % 0.84 % 0.92 % 1.58 % 2.43 % 0.89 % 7.94 % 0.52 % 1.31 % (a) At September 30, 2020, loans under payment deferral programs offered in response to the COVID-19 pandemic which are still within their deferral period and performing according to their modified terms are generally not considered delinquent. (b) At September 30, 2020, included $20.3 billion of loans in Business Banking under the PPP. PPP loans are guaranteed by the SBA. Other than in certain limited circumstances, the Firm typically does not recognize charge-offs, classify as nonaccrual nor record an allowance for loan losses on these loans. The following table provides information on nonaccrual and other credit quality indicators for retained auto and other consumer loans. (in millions, except ratios) Total Auto and other Sep 30, 2020 Dec 31, 2019 Nonaccrual loans (a)(b)(c) 138 146 Geographic region (d) California $ 12,074 $ 7,795 New York 8,932 3,706 Texas 7,990 5,457 Florida 4,500 3,025 Illinois 3,829 2,443 New Jersey 2,633 1,798 Arizona 2,442 1,347 Ohio 2,181 1,490 Colorado 1,868 1,247 Pennsylvania 1,866 1,721 All other 27,040 21,653 Total retained loans $ 75,355 $ 51,682 (a) There were no loans that were 90 or more days past due and still accruing interest at September 30, 2020, and December 31, 2019. (b) All nonaccrual auto and other consumer loans generally have an allowance. (c) Interest income on nonaccrual loans recognized on a cash basis was not material for the three and nine months ended September 30, 2020 and 2019 . (d) The geographic regions presented in this table are ordered based on the magnitude of the corresponding loan balances at September 30, 2020. The following table provides information on delinquency, which is the primary credit quality indicator for retained credit card loans. (in millions, except ratios) September 30, 2020 December 31, 2019 Within the revolving period Converted to term loans (b) Total Total Loan delinquency (a) Current and less than 30 days past due $ 136,103 $ 1,289 $ 137,392 $ 165,767 30–89 days past due and still accruing 1,139 99 1,238 1,550 90 or more days past due and still accruing 916 44 960 1,607 Total retained loans $ 138,158 $ 1,432 $ 139,590 $ 168,924 Loan delinquency ratios % of 30+ days past due to total retained loans 1.49 % 9.99 % 1.57 % 1.87 % % of 90+ days past due to total retained loans 0.66 3.07 0.69 0.95 (a) At September 30, 2020, loans under payment deferral programs offered in response to the COVID-19 pandemic which are still within their deferral period and performing according to their modified terms are generally not considered delinquent. (b) Represents TDRs. The following table provides information on other credit quality indicators for retained credit card loans. (in millions, except ratios) September 30, 2020 December 31, 2019 Geographic region (a) California $ 20,400 $ 25,783 Texas 14,116 16,728 New York 11,773 14,544 Florida 9,170 10,830 Illinois 7,862 9,579 New Jersey 5,820 7,165 Ohio 4,524 5,406 Pennsylvania 4,315 5,245 Colorado 4,018 4,763 Michigan 3,491 4,164 All other 54,101 64,717 Total retained loans $ 139,590 $ 168,924 Percentage of portfolio based on carrying value with estimated refreshed FICO scores Equal to or greater than 660 84.7 % 84.0 % Less than 660 14.6 15.4 No FICO available 0.7 0.6 (a) The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at September 30, 2020. The following tables provide information on internal risk rating, which is the primary credit quality indicator for retained wholesale loans. Secured by real estate Commercial and industrial Other (b) Total retained loans (in millions, except ratios) Sep 30, Dec 31, Sep 30, Dec 31, Sep 30, Dec 31, Sep 30, Dec 31, Loans by risk ratings Investment-grade $ 93,052 $ 96,611 $ 70,373 (a) $ 80,489 $ 200,755 $ 186,344 $ 364,180 (a) $ 363,444 Noninvestment-grade: Noncriticized 26,318 22,493 61,920 60,437 28,444 27,591 116,682 110,521 Criticized performing 2,042 1,131 13,294 4,399 898 1,126 16,234 6,656 Criticized nonaccrual 450 183 2,351 844 944 30 3,745 1,057 Total noninvestment- grade 28,810 23,807 77,565 65,680 30,286 28,747 136,661 118,234 Total retained loans $ 121,862 $ 120,418 $ 147,938 $ 146,169 $ 231,041 $ 215,091 $ 500,841 $ 481,678 % of investment-grade to total retained loans 76.36 % 80.23 % 47.57 % 55.07 % 86.89 % 86.63 % 72.71 % 75.45 % % of total criticized to total retained loans 2.04 1.09 10.58 3.59 0.80 0.54 3.99 1.60 % of criticized nonaccrual to total retained loans 0.37 0.15 1.59 0.58 0.41 0.01 0.75 0.22 Secured by real estate September 30, 2020 December 31, 2019 Term loans by origination year Revolving loans 2020 2019 2018 2017 2016 Prior to 2016 Within the revolving period Converted to term loans Total Total Loans by risk ratings Investment-grade $ 13,326 $ 20,495 $ 12,963 $ 12,336 $ 14,590 $ 18,232 $ 1,110 $ — $ 93,052 $ 96,611 Noninvestment-grade 2,192 3,956 4,429 2,835 2,777 12,076 543 2 28,810 23,807 Total retained loans $ 15,518 $ 24,451 $ 17,392 $ 15,171 $ 17,367 $ 30,308 $ 1,653 $ 2 $ 121,862 $ 120,418 Commercial and industrial September 30, 2020 December 31, 2019 Term loans by origination year Revolving loans 2020 2019 2018 2017 2016 Prior to 2016 Within the revolving period Converted to term loans Total Total Loans by risk ratings Investment-grade $ 19,444 (a) $ 8,283 $ 3,371 $ 2,673 $ 1,107 $ 1,290 $ 34,169 $ 36 $ 70,373 $ 80,489 Noninvestment-grade 12,504 10,298 6,413 2,710 725 3,090 41,729 96 77,565 65,680 Total retained loans $ 31,948 $ 18,581 $ 9,784 $ 5,383 $ 1,832 $ 4,380 $ 75,898 $ 132 $ 147,938 $ 146,169 Other (b) September 30, 2020 December 31, 2019 Term loans by origination year Revolving loans 2020 2019 2018 2017 2016 Prior to 2016 Within the revolving period Converted to term loans Total Total Loans by risk ratings Investment-grade $ 25,774 $ 11,508 $ 8,228 $ 6,696 $ 3,877 $ 13,642 $ 130,774 $ 256 $ 200,755 $ 186,344 Noninvestment-grade 5,991 2,572 1,705 468 155 848 18,379 168 30,286 28,747 Total retained loans $ 31,765 $ 14,080 $ 9,933 $ 7,164 $ 4,032 $ 14,490 $ 149,153 $ 424 $ 231,041 $ 215,091 (a) At September 30, 2020, included $8.0 billion of loans under the PPP, of which $7.4 billion is included in commercial and industrial. PPP loans are guaranteed by the SBA. Other than in certain limited circumstances, the Firm typically does not recognize charge-offs, classify as nonaccrual nor record an allowance for loan losses on these loans. (b) Includes loans to financial institutions, states and political subdivisions, SPEs, nonprofits, personal investment companies and trusts, as well as loans to individuals and individual entities (predominantly Wealth Management clients within AWM). Refer to Note 14 of JPMorgan Chase’s 2019 Form 10-K for more information on SPEs. The following table presents additional information on retained loans secured by real estate, which consists of loans secured wholly or substantially by a lien or liens on real property at origination. Multifamily Other commercial Total retained loans secured by real estate Sep 30, Dec 31, Sep 30, Dec 31, Sep 30, Dec 31, Retained loans secured by real estate $ 74,480 $ 73,840 $ 47,382 $ 46,578 $ 121,862 $ 120,418 Criticized 565 340 1,927 974 2,492 1,314 % of total criticized to total retained loans secured by real estate 0.76 % 0.46 % 4.07 % 2.09 % 2.04 % 1.09 % Criticized nonaccrual $ 51 $ 28 $ 399 $ 155 $ 450 $ 183 % of criticized nonaccrual loans to total retained loans secured by real estate 0.07 % 0.04 % 0.84 % 0.33 % 0.37 % 0.15 % Geographic distribution and delinquency The following table provides information on the geographic distribution and delinquency for retained wholesale loans. Secured by real estate Commercial Other Total (in millions, Sep 30, Dec 31, Sep 30, Dec 31, Sep 30, Dec 31, Sep 30, Dec 31, Loans by geographic distribution (a) Total U.S. $ 119,062 $ 117,836 $ 112,316 $ 111,954 $ 166,006 $ 150,512 $ 397,384 $ 380,302 Total non-U.S. 2,800 2,582 35,622 34,215 65,035 64,579 103,457 101,376 Total retained loans $ 121,862 $ 120,418 $ 147,938 $ 146,169 $ 231,041 $ 215,091 $ 500,841 $ 481,678 Loan delinquency (b) Current and less than 30 days past due and still accruing $ 121,302 $ 120,119 $ 145,165 $ 144,839 $ 229,191 $ 214,641 $ 495,658 $ 479,599 30–89 days past due and still accruing 110 115 404 449 891 415 1,405 979 90 or more days past due and still accruing (c) — 1 18 37 15 5 33 43 Criticized nonaccrual 450 183 2,351 844 944 30 3,745 1,057 Total retained loans $ 121,862 $ 120,418 $ 147,938 $ 146,169 $ 231,041 $ 215,091 $ 500,841 $ 481,678 (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. Generally excludes loans under payment deferral programs offered in response to the COVID-19 pandemic. (c) Represents loans that are considered well-collateralized and therefore still accruing interest. |
Troubled debt restructuring on financing receivables nature and extent of modifications | The following table provides information about how residential real estate loans were modified in TDRs under the Firm’s loss mitigation programs described above during the periods presented. This table excludes Chapter 7 loans where the sole concession granted is the discharge of debt and loans with short-term or other insignificant modifications that are not considered concessions. Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Number of loans approved for a trial modification 1,623 1,219 4,468 4,444 Number of loans permanently modified 1,615 1,162 5,200 3,956 Concession granted: (a) Interest rate reduction 40 % 89 % 51 % 78 % Term or payment extension 39 68 53 72 Principal and/or interest deferred 21 10 12 13 Principal forgiveness 1 5 2 5 Other (b) 65 76 65 63 (a) Represents concessions granted in permanent modifications as a percentage of the number of loans permanently modified. The sum of the percentages exceeds 100% because predominantly all of the modifications include more than one type of concession. Concessions offered on trial modifications are generally consistent with those granted on permanent modifications. |
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 under the loss mitigation programs described above and about redefaults of certain loans modified in TDRs for the periods presented. The following table presents only the financial effects of permanent modifications and do not include temporary concessions offered through trial modifications. This table also excludes Chapter 7 loans where the sole concession granted is the discharge of debt. (in millions, except weighted-average data) Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Weighted-average interest rate of loans with interest rate reductions – before TDR 4.99 % 5.57 % 5.10 % 5.77 % Weighted-average interest rate of loans with interest rate reductions – after TDR 3.34 3.58 3.40 3.90 Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR 23 20 22 20 Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR 39 39 39 39 Charge-offs recognized upon permanent modification $ 1 $ — $ 2 $ 1 Principal deferred 3 6 12 17 Principal forgiven 1 2 4 6 Balance of loans that redefaulted within one year of permanent modification (a) $ 65 $ 53 $ 173 $ 132 (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 will generally be liquidated through foreclosure or another similar type of liquidation transaction. Redefaults of loans modified within the last twelve months may not be representative of ultimate redefault levels. The following table provides information about the financial effects of the concessions granted on credit card loans modified in TDRs and redefaults for the periods presented. For all periods disclosed, new enrollments were less than 1% of total retained credit card loans. (in millions, except Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Balance of new TDRs (a) $ 220 $ 242 $ 648 $ 717 Weighted-average interest rate of loans – before TDR 17.65 % 19.18 % 18.21 % 19.23 % Weighted-average interest rate of loans – after TDR 4.80 4.65 4.55 4.80 Balance of loans that redefaulted within one year of modification (b) $ 22 $ 42 $ 83 $ 108 (a) Represents the outstanding balance prior to modification. (b) Represents loans modified in TDRs that experienced a payment default in the periods presented, and for which the payment default occurred within one year of the modification. The amounts presented represent the balance of such loans as of the end of the quarter in which they defaulted. |
Schedule of nonaccrual loans | The following table provides information on retained wholesale nonaccrual loans. Secured by real estate Commercial Other Total Sep 30, Dec 31, Sep 30, Dec 31, Sep 30, Dec 31, Sep 30, Dec 31, Nonaccrual loans (a) With an allowance $ 349 $ 169 $ 1,978 $ 688 $ 844 $ 28 $ 3,171 $ 885 Without an allowance (b) 101 14 373 156 100 2 574 172 Total nonaccrual loans (c) $ 450 $ 183 $ 2,351 $ 844 $ 944 $ 30 $ 3,745 $ 1,057 (a) Loans that were modified in response to the COVID-19 pandemic continue to be risk-rated in accordance with the Firm’s overall credit risk management framework. As of September 30, 2020, predominantly all of these loans were considered performing. (b) When the discounted cash flows, collateral value or market price equals or exceeds the amortized cost of the loan, the loan does not require an allowance. This typically occurs when the loans have been partially charged off and/or there have been interest payments received and applied to the loan balance. (c) Interest income on nonaccrual loans recognized on a cash basis were not material for the three and nine months ended September 30, 2020 and 2019. |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Credit Loss [Abstract] | |
Allowance for credit losses on financing receivables | The table below summarizes information about the allowances for loan losses and lending-related commitments, and includes a breakdown of loans and lending-related commitments by impairment methodology. Refer to Note 10 for further information on the allowance for credit losses on investment securities. The adoption of the CECL accounting guidance resulted in a change in the accounting for PCI loans, which are considered PCD loans. In conjunction with the adoption of CECL, the Firm reclassified risk-rated loans and lending-related commitments from the consumer, excluding credit card portfolio segment to the wholesale portfolio segment, to align with the methodology applied when determining the allowance. Prior-period amounts have been revised to conform with the current presentation. Refer to Note 1 for further information. 2020 (e) 2019 Nine months ended September 30, Consumer, excluding Credit card Wholesale Total Consumer, excluding credit card Credit card Wholesale Total Allowance for loan losses Beginning balance at January 1, $ 2,538 $ 5,683 $ 4,902 $ 13,123 $ 3,434 $ 5,184 $ 4,827 $ 13,445 Cumulative effect of a change in accounting principle 297 5,517 (1,642) 4,172 NA NA NA NA Gross charge-offs 620 4,104 641 5,365 665 4,050 307 5,022 Gross recoveries collected (483) (585) (88) (1,156) (409) (433) (45) (887) Net charge-offs 137 3,519 553 4,209 256 3,617 262 4,135 Write-offs of PCI loans (a) NA NA NA NA 132 — — 132 Provision for loan losses 1,803 10,119 5,802 17,724 (227) 4,017 258 4,048 Other 1 — 3 4 — (1) 10 9 Ending balance at September 30, $ 4,502 $ 17,800 $ 8,512 $ 30,814 $ 2,819 $ 5,583 $ 4,833 $ 13,235 Allowance for lending-related commitments Beginning balance at January 1, $ 12 $ — $ 1,179 $ 1,191 $ 12 $ — $ 1,043 $ 1,055 Cumulative effect of a change in accounting principle 133 — (35) 98 NA NA NA NA Provision for lending-related commitments 71 — 1,464 1,535 — — 110 110 Other — — (1) (1) — — — — Ending balance at September 30, $ 216 $ — $ 2,607 $ 2,823 $ 12 $ — $ 1,153 $ 1,165 Total allowance for credit losses $ 4,718 $ 17,800 $ 11,119 $ 33,637 $ 2,831 $ 5,583 $ 5,986 $ 14,400 Allowance for loan losses by impairment methodology Asset-specific (b) $ 228 $ 652 $ 792 $ 1,672 $ 88 $ 488 $ 399 $ 975 Portfolio-based 4,274 17,148 7,720 29,142 1,475 5,095 4,434 11,004 PCI NA NA NA NA 1,256 — — 1,256 Total allowance for loan losses $ 4,502 $ 17,800 $ 8,512 $ 30,814 $ 2,819 $ 5,583 $ 4,833 $ 13,235 Loans by impairment methodology Asset-specific (b) $ 16,888 $ 1,432 $ 3,856 $ 22,176 $ 6,117 $ 1,423 $ 1,760 $ 9,300 Portfolio-based 288,218 138,158 496,985 923,361 268,179 158,148 471,970 898,297 PCI NA NA NA NA 21,290 — — 21,290 Total retained loans $ 305,106 $ 139,590 $ 500,841 $ 945,537 $ 295,586 $ 159,571 $ 473,730 $ 928,887 Collateral-dependent loans Net charge-offs $ 109 $ — $ 22 $ 131 $ 23 $ — $ 28 $ 51 Loans measured at fair value of collateral less cost to sell 4,517 — 130 4,647 2,079 — 117 2,196 Allowance for lending-related commitments by impairment methodology Asset-specific $ — $ — $ 109 $ 109 $ — $ — $ 135 $ 135 Portfolio-based 216 — 2,498 2,714 12 — 1,018 1,030 Total allowance for lending-related commitments (c) $ 216 $ — $ 2,607 $ 2,823 $ 12 $ — $ 1,153 $ 1,165 Lending-related commitments by impairment methodology Asset-specific $ — $ — $ 607 $ 607 $ — $ — $ 446 $ 446 Portfolio-based (d) 35,587 — 417,402 452,989 32,291 — 386,203 418,494 Total lending-related commitments $ 35,587 $ — $ 418,009 $ 453,596 $ 32,291 $ — $ 386,649 $ 418,940 (a) Prior to the adoption of CECL, write-offs of PCI loans were recorded against the allowance for loan losses when actual losses for a pool exceeded estimated losses that were recorded as purchase accounting adjustments at the time of acquisition. A write-off of a PCI loan was recognized when the underlying loan was removed from a pool. (b) Includes modified PCD loans and loans that have been modified or are reasonably expected to be modified in a TDR. Also includes risk-rated loans that have been placed on nonaccrual status for the wholesale portfolio segment. The asset-specific credit card allowance for loans modified, or reasonably expected to be modified, in a TDR is calculated based on the loans’ original contractual interest rates and does not consider any incremental penalty rates. (c) The allowance for lending-related commitments is reported in accounts payable and other liabilities on the Consolidated balance sheets. (d) At September 30, 2020 and 2019, lending-related commitments excluded $10.8 billion and $9.4 billion, respectively, for the consumer, excluding credit card portfolio segment; $662.9 billion and $645.9 billion, respectively, for the credit card portfolio segment; and $23.2 billion and $24.2 billion. respectively, for the wholesale portfolio segment, which were not subject to the allowance for lending-related commitments. |
U.S. unemployment rates and cumulative change in U.S. real GDP | In the first, second and third quarters of 2020, the Firm’s central case assumptions reflected forecasted U.S. unemployment rates and cumulative changes in U.S. real GDP as follows : 2020 2021 4Q 2Q 4Q Central case assumptions U.S. unemployment rate (a) 1Q 2020 6.6 % 5.5 % 4.6 % 2Q 2020 10.9 9.0 7.7 3Q 2020 9.5 8.5 7.3 U.S. real GDP - cumulative change from December 31, 2019 1Q 2020 (5.4) (2.3) 0.3 2Q 2020 (6.2) (4.0) (3.0) 3Q 2020 (5.4) (3.7) (2.4) (a) Reflects quarterly average of forecasted reported U.S. unemployment rate. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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. Line of Business Transaction Type Activity Form 10-Q page reference CCB Credit card securitization trusts Securitization of originated credit card receivables 163 Mortgage securitization trusts Servicing and securitization of both originated and purchased residential mortgages 163-165 CIB Mortgage and other securitization trusts Securitization of both originated and purchased residential and commercial mortgages, and other consumer loans 163-165 Multi-seller conduits Assist clients in accessing the financial markets in a cost-efficient manner and structures transactions to meet investor needs 165 Municipal bond vehicles Financing of municipal bond investments 165 |
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 contracts. In certain instances, the Firm’s only continuing involvement is servicing the loans. The Firm’s maximum loss exposure from retained and purchased interests is the carrying value of these interests. Refer to Securitization activity on page 167 of this Note for further information regarding the Firm’s cash flows associated with and interests retained in nonconsolidated VIEs, and pages 167-168 of this Note for information on the Firm’s loan sales and securitization activity related to U.S. GSEs and government agencies. Principal amount outstanding JPMorgan Chase interest in securitized assets in nonconsolidated VIEs (c)(d)(e) September 30, 2020 (in millions) Total assets held by securitization VIEs Assets Assets held in nonconsolidated securitization VIEs with continuing involvement Trading assets Investment securities Other financial assets Total interests held by JPMorgan Securitization-related (a) Residential mortgage: Prime/Alt-A and option ARMs $ 54,012 $ 2,034 $ 44,680 $ 571 $ 884 $ — $ 1,455 Subprime 13,353 48 12,586 3 — — 3 Commercial and other (b) 117,103 — 94,944 887 1,591 280 2,758 Total $ 184,468 $ 2,082 $ 152,210 $ 1,461 $ 2,475 $ 280 $ 4,216 Principal amount outstanding JPMorgan Chase interest in securitized assets in nonconsolidated VIEs (c)(d)(e) December 31, 2019 (in millions) Total assets held by securitization VIEs Assets Assets held in nonconsolidated securitization VIEs with continuing involvement Trading assets Investment securities Other financial assets Total interests held by Securitization-related (a) Residential mortgage: Prime/Alt-A and option ARMs $ 60,348 $ 2,796 $ 48,734 $ 535 $ 625 $ — $ 1,160 Subprime 14,661 — 13,490 7 — — 7 Commercial and other (b) 111,903 — 80,878 785 773 241 1,799 Total $ 186,912 $ 2,796 $ 143,102 $ 1,327 $ 1,398 $ 241 $ 2,966 (a) Excludes U.S. GSEs and government agency securitizations and re-securitizations, which are not Firm-sponsored. Refer to pages 167-168 of this Note for information on the Firm’s loan sales and securitization activity related to U.S. GSEs and government agencies. (b) Consists of securities backed by commercial real estate loans and non-mortgage-related consumer receivables purchased from third parties. (c) Excludes the following: retained servicing (refer to Note 15 for a discussion of MSRs); securities retained from loan sales and securitization activity related to U.S. GSEs and government agencies; interest rate and foreign exchange derivatives primarily used to manage interest rate and foreign exchange risks of securitization entities (refer to Note 5 for further information on derivatives); senior and subordinated securities of $125 million and $24 million, respectively, at September 30, 2020, and $106 million and $94 million, respectively, at December 31, 2019, which the Firm purchased in connection with CIB’s secondary market-making activities. (d) Includes interests held in re-securitization transactions. (e) As of September 30, 2020, and December 31, 2019, 71% and 63%, 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 $1.4 billion and $1.1 billion of investment-grade retained interests, and $53 million and $72 million of noninvestment-grade retained interests at September 30, 2020, and December 31, 2019, respectively. The retained interests in commercial and other securitization trusts consisted of $1.9 billion and $1.2 billion of investment-grade retained interests, and $857 million and $575 million of noninvestment-grade retained interests at September 30, 2020, and December 31, 2019, respectively. |
Schedule of re-securitizations | The following table presents the principal amount of securities transferred to re-securitization VIEs. Three months ended September 30, Nine months ended September 30, (in millions) 2020 2019 2020 2019 Transfers of securities to VIEs U.S. GSEs and government agencies $ 12,488 $ 5,377 $ 27,710 $ 12,444 The following table presents information on nonconsolidated re-securitization VIEs. Nonconsolidated (in millions) September 30, 2020 December 31, 2019 U.S. GSEs and government agencies Interest in VIEs $ 3,456 $ 2,928 |
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 September 30, 2020, and December 31, 2019. Assets Liabilities September 30, 2020 (in millions) Trading assets Loans Other (b) Total assets (c) Beneficial interests in VIE assets (d) Other (e) Total VIE program type Firm-sponsored credit card trusts $ — $ 11,838 $ 207 $ 12,045 $ 4,942 $ 3 $ 4,945 Firm-administered multi-seller conduits 4 22,957 160 23,121 11,622 30 11,652 Municipal bond vehicles 2,461 — 5 2,466 2,402 1 2,403 Mortgage securitization entities (a) — 2,012 118 2,130 225 113 338 Other 2 167 254 423 — 89 89 Total $ 2,467 $ 36,974 $ 744 $ 40,185 $ 19,191 $ 236 $ 19,427 Assets Liabilities December 31, 2019 (in millions) Trading assets Loans Other (b) Total assets (c) Beneficial interests in VIE assets (d) Other (e) Total VIE program type Firm-sponsored credit card trusts $ — $ 14,986 $ 266 $ 15,252 $ 6,461 $ 6 $ 6,467 Firm-administered multi-seller conduits 1 25,183 355 25,539 9,223 36 9,259 Municipal bond vehicles 1,903 — 4 1,907 1,881 3 1,884 Mortgage securitization entities (a) 66 2,762 64 2,892 276 130 406 Other 663 — 192 855 — 272 272 Total $ 2,633 $ 42,931 $ 881 $ 46,445 $ 17,841 $ 447 $ 18,288 (a) Includes residential and commercial mortgage securitizations. (b) Includes assets classified as cash and other assets on the Consolidated balance sheets. (c) The assets of the consolidated VIEs included in the program types above are used to settle the liabilities of those entities. The assets and liabilities include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation. (d) The interest-bearing beneficial interest liabilities issued by consolidated VIEs are classified in the line item on the Consolidated balance sheets titled, “Beneficial interests issued by consolidated variable interest entities.” The holders of these beneficial interests generally do not have recourse to the general credit of JPMorgan Chase. Refer to Note 14 of JPMorgan Chase’s 2019 Form 10-K for conduits program-wide credit enhancements. Included in beneficial interests in VIE assets are long-term beneficial interests of $5.2 billion and $6.7 billion at September 30, 2020, and December 31, 2019, respectively. (e) 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 three and nine months ended September 30, 2020 and 2019, related to assets held in Firm-sponsored securitization entities that were not consolidated by the Firm, and where sale accounting was achieved at the time of the securitization. Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (in millions) Residential mortgage (d) Commercial and other (e) Residential mortgage (d) Commercial and other (e) Residential mortgage (d) Commercial and other (e) Residential mortgage (d) Commercial and other (e) Principal securitized $ 2,852 $ 1,330 $ 3,225 $ 1,477 $ 6,450 $ 5,379 $ 7,132 $ 4,215 All cash flows during the period: (a) Proceeds received from loan sales as financial instruments (b)(c) $ 2,955 $ 1,392 $ 3,327 $ 1,506 $ 6,645 $ 5,577 $ 7,337 $ 4,329 Servicing fees collected 54 1 70 — 165 1 220 1 Cash flows received on interests 207 78 115 34 538 138 314 183 (a) Excludes re-securitization transactions. (b) Predominantly includes Level 2 assets. (c) The carrying value of the loans accounted for at fair value approximated the proceeds received upon loan sale. (d) Includes prime mortgages only. Excludes loan securitization activity related to U.S. GSEs and government agencies. (e) Includes commercial mortgage and other consumer loans. |
Summary of loan sale activities | The following table summarizes the activities related to loans sold to the U.S. GSEs, and loans in securitization transactions pursuant to Ginnie Mae guidelines. Three months ended September 30, Nine months ended September 30, (in millions) 2020 2019 2020 2019 Carrying value of loans sold $ 18,065 $ 35,556 $ 60,447 $ 73,873 Proceeds received from loan sales as cash 5 3 27 73 Proceeds from loan sales as securities (a)(b) 17,858 35,512 59,795 73,172 Total proceeds received from loan sales (c) $ 17,863 $ 35,515 $ 59,822 $ 73,245 Gains/(losses) on loan sales (d)(e) $ — $ 342 $ 6 $ 495 (a) Includes securities from U.S. GSEs and Ginnie Mae that are generally sold shortly after receipt or retained as part of the Firm’s investment securities portfolio. (b) Included in level 2 assets. (c) Excludes the value of MSRs retained upon the sale of loans. (d) Gains/(losses) on loan sales include the value of MSRs. (e) The carrying value of the loans accounted for at fair value approximated the proceeds received upon loan sale. |
Schedule 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 September 30, 2020 and December 31, 2019. Substantially all of these loans and real estate are insured or guaranteed by U.S. government agencies. (in millions) Sep 30, Dec 31, Loans repurchased or option to repurchase (a) $ 1,491 $ 2,941 Real estate owned 10 41 Foreclosed government-guaranteed residential mortgage loans (b) 72 198 (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 and delinquencies related to nonconsolidated securitized financial assets held in Firm-sponsored private-label securitization entities, in which the Firm has continuing involvement as of September 30, 2020, and December 31, 2019. Net liquidation losses Securitized assets 90 days past due Three months ended September 30, Nine months ended September 30, (in millions) Sep 30, Dec 31, Sep 30, Dec 31, 2020 2019 2020 2019 Securitized loans Residential mortgage: Prime / Alt-A & option ARMs $ 44,680 $ 48,734 $ 5,591 $ 2,449 $ 9 $ 146 $ 184 $ 474 Subprime 12,586 13,490 2,417 1,813 24 145 159 456 Commercial and other 94,944 80,878 5,025 187 — 118 11 283 Total loans securitized $ 152,210 $ 143,102 $ 13,033 $ 4,449 $ 33 $ 409 $ 354 $ 1,213 |
Goodwill and Mortgage Servici_2
Goodwill and Mortgage Servicing Rights (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill attributed to the business segments | The following table presents goodwill attributed to the business segments. (in millions) September 30, December 31, Consumer & Community Banking (a) $ 30,082 $ 30,082 Corporate & Investment Bank (a) 7,897 7,901 Commercial Banking 2,985 2,982 Asset & Wealth Management 6,855 6,858 Total goodwill $ 47,819 $ 47,823 (a) In the first quarter of 2020, the Merchant Services business was realigned from CCB to CIB, including the associated Goodwill of $959 million. Prior-period amounts have been revised to conform with the current presentation. The following table presents changes in the carrying amount of goodwill. Three months ended September 30, Nine months ended September 30, (in millions) 2020 2019 2020 2019 Balance at beginning of period $ 47,811 $ 47,477 $ 47,823 $ 47,471 Changes during the period from: Business combinations (a) — 348 — 348 Other (b) 8 (7) (4) (1) Balance at September 30, $ 47,819 $ 47,818 $ 47,819 $ 47,818 (a) For the three and nine months ended September 30, 2019, represents goodwill associated with the July 24, 2019 acquisition of InstaMed. This goodwill was allocated to CIB, CB and CCB. (b) Primarily relates to foreign currency adjustments. |
Mortgage servicing rights activity | The following table summarizes MSR activity for the three and nine months ended September 30, 2020 and 2019. As of or for the three months As of or for the nine months (in millions, except where otherwise noted) 2020 2019 2020 2019 Fair value at beginning of period $ 3,080 $ 5,093 $ 4,699 $ 6,130 MSR activity: Originations of MSRs 204 390 639 1,146 Purchase of MSRs 17 (2) 24 104 Disposition of MSRs (a) (104) (359) (177) (687) Net additions/(dispositions) 117 29 486 563 Changes due to collection/realization of expected cash flows (215) (256) (710) (702) Changes in valuation due to inputs and assumptions: Changes due to market interest rates and other (b) (59) (433) (1,573) (1,274) Changes in valuation due to other inputs and assumptions: Projected cash flows (e.g., cost to service) (82) 17 (80) (333) (e) Discount rates 199 — 199 153 Prepayment model changes and other (c) (24) (31) (5) (118) Total changes in valuation due to other inputs and assumptions 93 (14) 114 (298) Total changes in valuation due to inputs and assumptions 34 (447) (1,459) (1,572) Fair value at September 30 $ 3,016 $ 4,419 $ 3,016 $ 4,419 Changes in unrealized gains/(losses) included in income related to MSRs held at September 30, $ 34 $ (447) $ (1,459) $ (1,572) Contractual service fees, late fees and other ancillary fees included in income 333 397 1,026 1,254 Third-party mortgage loans serviced at September 30, (in billions) 456 537 456 537 Servicer advances, net of an allowance for uncollectible amounts, at September 30, (in billions) (d) 1.7 2.0 1.7 2.0 (a) Includes excess MSRs transferred to agency-sponsored trusts in exchange for stripped mortgage backed securities (“SMBS”). In each transaction, a portion of the SMBS was acquired by third parties at the transaction date; the Firm acquired the remaining balance of those SMBS as trading securities. (b) Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments. (c) Represents changes in prepayments other than those attributable to changes in market interest rates. (d) Represents amounts the Firm pays as the servicer (e.g., scheduled principal and interest, taxes and insurance), which will generally be reimbursed within a short period of time after the advance from future cash flows from the trust or the underlying loans. The Firm’s credit risk associated with these servicer advances is minimal because reimbursement of the advances is typically senior to all cash payments to investors. In addition, the Firm maintains the right to stop payment to investors if the collateral is insufficient to cover the advance. However, certain of these servicer advances may not be recoverable if they were not made in accordance with applicable rules and agreements. (e) The decrease in projected cash flows was largely related to default servicing assumption updates. |
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 three and nine months ended September 30, 2020 and 2019. Three months ended September 30, Nine months ended September 30, (in millions) 2020 2019 2020 2019 CCB mortgage fees and related income Net production revenue $ 765 $ 738 $ 1,826 $ 1,291 Net mortgage servicing revenue: Operating revenue: Loan servicing revenue 381 351 1,063 1,172 Changes in MSR asset fair value due to collection/realization of expected cash flows (215) (256) (710) (702) Total operating revenue 166 95 353 470 Risk management: Changes in MSR asset fair value due to market interest rates and other (a) (59) (433) (1,573) (1,274) Other changes in MSR asset fair value due to other inputs and assumptions in model (b) 93 (14) 114 (298) Changes in derivative fair value and other 111 500 1,593 1,372 Total risk management 145 53 134 (200) Total net mortgage servicing revenue 311 148 487 270 Total CCB mortgage fees and related income 1,076 886 2,313 1,561 All other 11 1 11 1 Mortgage fees and related income $ 1,087 $ 887 $ 2,324 $ 1,562 (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 FV of MSRs | The table below outlines the key economic assumptions used to determine the fair value of the Firm’s MSRs at September 30, 2020, and December 31, 2019, and outlines hypothetical sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below. (in millions, except rates) Sep 30, Dec 31, Weighted-average prepayment speed assumption (constant prepayment rate) 16.94 % 11.67 % Impact on fair value of 10% adverse change $ (203) $ (200) Impact on fair value of 20% adverse change (386) (384) Weighted-average option adjusted spread (a) 7.37 % 7.93 % Impact on fair value of a 100 basis point adverse change $ (121) $ (169) Impact on fair value of a 200 basis point adverse change (233) (326) (a) Includes the impact of operational risk and regulatory capital. |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Deposits [Abstract] | |
Noninterest-bearing and interest-bearing deposits | At September 30, 2020, and December 31, 2019, noninterest-bearing and interest-bearing deposits were as follows. (in millions) September 30, December 31, 2019 U.S. offices Noninterest-bearing (included $12,699 and $22,637 at fair value) (a) $ 540,116 $ 395,667 Interest-bearing (included $2,567 and $2,534 at fair value) (a) 1,117,149 876,156 Total deposits in U.S. offices 1,657,265 1,271,823 Non-U.S. offices Noninterest-bearing (included $1,481 and $1,980 at fair value) (a) 21,406 20,087 Interest-bearing (included $2,567 and $1,438 at fair value) (a) 322,745 270,521 Total deposits in non-U.S. offices 344,151 290,608 Total deposits $ 2,001,416 $ 1,562,431 (a) Includes structured notes classified as deposits for which the fair value option has been elected. Refer to Note 3 for further information. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of information related to operating leases | The following table provides information related to the Firm’s operating leases: (in millions) September 30, 2020 December 31, 2019 Right-of-use assets $ 7,883 $ 8,190 Lease liabilities 8,335 8,505 |
Schedule of operating lease income and related depreciation expense | The following table presents the Firm’s operating lease income, included within other income, and the related depreciation expense, included within technology, communications and equipment expense, on the Consolidated statements of income: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Operating lease income $ 1,425 $ 1,384 $ 4,236 $ 4,027 Depreciation expense 1,035 1,053 3,261 3,038 |
Preferred Stock (Tables)
Preferred Stock (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 September 30, 2020 and December 31, 2019, and the quarterly dividend declarations for the three and nine months ended September 30, 2020 and 2019. Shares Carrying value (in millions) Contractual rate in effect at September 30, 2020 Earliest redemption date Floating annualized rate of three-month LIBOR/ Term SOFR plus: Dividend declared September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 Issue date Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Fixed-rate: Series P — — $ — $ — 2/5/2013 — % 3/1/2018 NA $— $136.25 $— $408.75 Series T — — — — 1/30/2014 — 3/1/2019 NA — NA — 167.50 Series W — — — — 6/23/2014 — 9/1/2019 NA — 157.50 — 472.50 Series Y — 143,000 — 1,430 2/12/2015 — 3/1/2020 NA — 153.13 153.13 459.39 Series AA 142,500 142,500 1,425 1,425 6/4/2015 6.100 9/1/2020 NA 152.50 152.50 457.50 457.50 Series BB 115,000 115,000 1,150 1,150 7/29/2015 6.150 9/1/2020 NA 153.75 153.75 461.25 461.25 Series DD 169,625 169,625 1,696 1,696 9/21/2018 5.750 12/1/2023 NA 143.75 143.75 431.25 431.25 Series EE 185,000 185,000 1,850 1,850 1/24/2019 6.000 3/1/2024 NA 150.00 150.00 450.00 361.67 Series GG 90,000 90,000 900 900 11/7/2019 4.750 12/1/2024 NA 118.75 NA 387.92 NA Fixed-to-floating-rate: Series I 293,375 293,375 $ 2,934 $ 2,934 4/23/2008 LIBOR + 3.47% 4/30/2018 LIBOR + 3.47% $95.53 $146.58 $334.90 $455.09 Series Q 150,000 150,000 1,500 1,500 4/23/2013 5.150 5/1/2023 LIBOR + 3.25 128.75 128.75 386.25 386.25 Series R 150,000 150,000 1,500 1,500 7/29/2013 6.000 8/1/2023 LIBOR + 3.30 150.00 150.00 450.00 450.00 Series S 200,000 200,000 2,000 2,000 1/22/2014 6.750 2/1/2024 LIBOR + 3.78 168.75 168.75 506.25 506.25 Series U 100,000 100,000 1,000 1,000 3/10/2014 6.125 4/30/2024 LIBOR + 3.33 153.13 153.13 459.38 459.38 Series V 250,000 250,000 2,500 2,500 6/9/2014 LIBOR + 3.32 7/1/2019 LIBOR + 3.32 92.41 144.11 343.30 394.11 (a) Series X 160,000 160,000 1,600 1,600 9/23/2014 6.100 10/1/2024 LIBOR + 3.33 152.50 152.50 457.50 457.50 Series Z 200,000 200,000 2,000 2,000 4/21/2015 LIBOR + 3.80 5/1/2020 LIBOR + 3.80 102.40 132.50 352.05 397.50 (b) Series CC 125,750 125,750 1,258 1,258 10/20/2017 4.625 11/1/2022 LIBOR + 2.58 115.63 115.63 346.88 346.88 Series FF 225,000 225,000 2,250 2,250 7/31/2019 5.000 8/1/2024 SOFR + 3.38 125.00 126.39 375.00 126.39 Series HH 300,000 — 3,000 — 1/23/2020 4.600 2/1/2025 SOFR + 3.125 115.00 NA 355.22 NA Series II 150,000 — 1,500 — 2/24/2020 4.000 4/1/2025 SOFR + 2.745 100.00 NA 241.11 NA Total preferred stock 3,006,250 2,699,250 $ 30,063 $ 26,993 (a) Prior to July 1, 2019, the dividend rate was fixed at 5%. (b) Prior to May 1, 2020, the dividend rate was fixed at 5.3%. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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 three and nine months ended September 30, 2020 and 2019. (in millions, except per share amounts) Three months ended Nine months ended 2020 2019 2020 2019 Basic earnings per share Net income $ 9,443 $ 9,080 $ 16,995 $ 27,911 Less: Preferred stock dividends 381 423 1,203 1,201 Net income applicable to common equity 9,062 8,657 15,792 26,710 Less: Dividends and undistributed earnings allocated to participating securities 47 51 80 159 Net income applicable to common stockholders $ 9,015 $ 8,606 $ 15,712 $ 26,551 Total weighted-average basic shares outstanding 3,077.8 3,198.5 3,083.3 3,248.7 Net income per share $ 2.93 $ 2.69 $ 5.10 $ 8.17 Diluted earnings per share Net income applicable to common stockholders $ 9,015 $ 8,606 $ 15,712 $ 26,551 Total weighted-average basic shares outstanding 3,077.8 3,198.5 3,083.3 3,248.7 Add: Dilutive impact of SARs and employee stock options, unvested PSUs and nondividend-earning RSUs 5.0 8.7 4.8 9.3 Total weighted-average diluted shares outstanding 3,082.8 3,207.2 3,088.1 3,258.0 Net income per share $ 2.92 $ 2.68 $ 5.09 $ 8.15 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income/(Loss) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
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), fair value changes of excluded components on fair value hedges, cash flow hedging activities, net loss and prior service costs/(credit) related to the Firm’s defined benefit pension and OPEB plans, and fair value option-elected liabilities arising from changes in the Firm’s own credit risk (DVA). As of or for the three months ended Unrealized Translation adjustments, net of hedges Fair value hedges Cash flow hedges Defined benefit DVA on fair value option elected liabilities Accumulated other comprehensive income/(loss) Balance at July 1, 2020 $ 7,920 $ (895) $ (27) $ 2,762 $ (1,318) $ 347 $ 8,789 Net change 514 127 (69) (70) (12) (339) 151 Balance at September 30, 2020 $ 8,434 (a) $ (768) $ (96) $ 2,692 $ (1,330) $ 8 $ 8,940 As of or for the three months ended Unrealized Translation adjustments, net of hedges Fair value hedges Cash flow hedges Defined benefit pension and DVA on fair value option elected liabilities Accumulated other comprehensive income/(loss) Balance at July 1, 2019 $ 3,709 $ (652) (73) $ 126 $ (2,231) $ 235 $ 1,114 Net change 479 (165) (1) 195 46 132 686 Balance at September 30, 2019 $ 4,188 $ (817) $ (74) $ 321 $ (2,185) $ 367 $ 1,800 As of or for the nine months ended Unrealized Translation adjustments, net of hedges Fair value hedges Cash flow hedges Defined benefit DVA on fair value option elected liabilities Accumulated other comprehensive income/(loss) Balance at January 1, 2020 $ 4,057 $ (707) $ (131) $ 63 $ (1,344) $ (369) $ 1,569 Net change 4,377 (61) 35 2,629 14 377 7,371 Balance at September 30, 2020 $ 8,434 (a) $ (768) $ (96) $ 2,692 $ (1,330) $ 8 $ 8,940 As of or for the nine months ended Unrealized Translation adjustments, net of hedges Fair value hedges Cash flow hedges Defined benefit pension and DVA on fair value option elected liabilities Accumulated other comprehensive income/(loss) Balance at January 1, 2019 $ 1,202 $ (727) $ (161) $ (109) $ (2,308) $ 596 $ (1,507) Net change 2,986 (90) 87 430 123 (229) 3,307 Balance at September 30, 2019 $ 4,188 $ (817) $ (74) $ 321 $ (2,185) $ 367 $ 1,800 (a) Includes after-tax net unamortized unrealized gains of $2.7 billion related to AFS securities that have been transferred to HTM. Refer to Note 10 for further information. |
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. 2020 2019 Three months ended September 30, 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 $ 1,143 $ (270) $ 873 $ 708 $ (169) $ 539 Reclassification adjustment for realized (gains)/losses included in net income (a) (473) 114 (359) (78) 18 (60) Net change 670 (156) 514 630 (151) 479 Translation adjustments (b) : Translation 871 (86) 785 (861) 40 (821) Hedges (868) 210 (658) 866 (210) 656 Net change 3 124 127 5 (170) (165) Fair value hedges, net change (c) : (91) 22 (69) (1) — (1) Cash flow hedges: Net unrealized gains/(losses) arising during the period 134 (32) 102 222 (55) 167 Reclassification adjustment for realized (gains)/losses included in net income (d) (227) 55 (172) 37 (9) 28 Net change (93) 23 (70) 259 (64) 195 Defined benefit pension and OPEB plans: Net gain/(loss) arising during the period — — — — — — Reclassification adjustments included in net income (e) : Amortization of net loss 4 (1) 3 42 (10) 32 Amortization of prior service cost/(credit) — 1 1 — — — Foreign exchange and other (22) 6 (16) 18 (4) 14 Net change (18) 6 (12) 60 (14) 46 DVA on fair value option elected liabilities, net change: (445) 106 (339) 173 (41) 132 Total other comprehensive income/(loss) $ 26 $ 125 $ 151 $ 1,126 $ (440) $ 686 2020 2019 Nine months ended September 30, 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 $ 6,494 $ (1,561) $ 4,933 $ 4,074 $ (985) $ 3,089 Reclassification adjustment for realized (gains)/losses included in net income (a) (732) 176 (556) (135) 32 (103) Net change 5,762 (1,385) 4,377 3,939 (953) 2,986 Translation adjustments (b) : Translation (316) 15 (301) (697) 76 (621) Hedges 316 (76) 240 700 (169) 531 Net change — (61) (61) 3 (93) (90) Fair value hedges, net change (c) : 45 (10) 35 114 (27) 87 Cash flow hedges: Net unrealized gains/(losses) arising during the period 3,787 (909) 2,878 464 (112) 352 Reclassification adjustment for realized (gains)/losses included in net income (d) (328) 79 (249) 102 (24) 78 Net change 3,459 (830) 2,629 566 (136) 430 Defined benefit pension and OPEB plans: Net gain/(loss) arising during the period 9 (2) 7 2 (2) — Reclassification adjustments included in net income (e) : Amortization of net loss 11 (3) 8 125 (26) 99 Amortization of prior service cost/(credit) 2 (1) 1 2 (1) 1 Foreign exchange and other 1 (3) (2) 19 4 23 Net change 23 (9) 14 148 (25) 123 DVA on fair value option elected liabilities, net change: 496 (119) 377 (296) 67 (229) Total other comprehensive income/(loss) $ 9,785 $ (2,414) $ 7,371 $ 4,474 $ (1,167) $ 3,307 (a) The pre-tax amount is reported in Investment securities gains in the Consolidated statements of income. (b) Reclassifications of pre-tax realized gains/(losses) on translation adjustments and related hedges are reported in other income/expense in the Consolidated statements of income. The amounts were not material for the three and nine months ended September 30, 2020. During the nine months ended September 30, 2019, the Firm reclassified net pre-tax gains of $6 million to other income and $1 million to other expense, respectively. These amounts, which related to the liquidation of certain legal entities, are comprised of $5 million related to net investment hedge gains and $2 million related to cumulative translation adjustments. (c) Represents changes in fair value of cross-currency swaps attributable to changes in cross-currency basis spreads, which are excluded from the assessment of hedge effectiveness and recorded in other comprehensive income. The initial cost of cross-currency basis spreads is recognized in earnings as part of the accrual of interest on the cross currency swap. (d) The pre-tax amounts are primarily recorded in noninterest revenue, net interest income and compensation expense in the Consolidated statements of income. (e) The pre-tax amount is reported in other expense in the Consolidated statements of income. |
Restricted Cash and Other Res_2
Restricted Cash and Other Restricted Assets (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Components of restricted cash | The following table presents the components of the Firm’s restricted cash: (in billions) September 30, December 31, 2019 Cash reserves – Federal Reserve Banks (a) $ — $ 26.6 Segregated for the benefit of securities and cleared derivative customers 20.0 16.0 Cash reserves at non-U.S. central banks and held for other general purposes 4.7 3.9 Total restricted cash (b) $ 24.7 $ 46.5 (a) Effective March 26, 2020, the Federal Reserve temporarily eliminated reserve requirements for depository institutions. (b) Comprises $23.1 billion and $45.3 billion in deposits with banks, and $1.6 billion and $1.2 billion in cash and due from banks on the Consolidated balance sheet as of September 30, 2020 and December 31, 2019, respectively. |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Banking Regulation [Abstract] | |
Reconciliation of the Firm's regulatory capital, assets and risk-based capital ratios | The following table presents the minimum and well-capitalized ratios to which the Firm and its IDI subsidiaries were subject as of September 30, 2020 and December 31, 2019. Minimum capital ratios Well-capitalized ratios BHC (a)(e) IDI (b)(e) BHC (c) IDI (d) Capital ratios CET1 capital 10.5 % 7.0 % N/A 6.5 % Tier 1 capital 12.0 8.5 6.0 8.0 Total capital 14.0 10.5 10.0 10.0 Tier 1 leverage 4.0 4.0 N/A 5.0 SLR 5.0 6.0 N/A 6.0 Note: The table above is as defined by the regulations issued by the Federal Reserve, OCC and FDIC and to which the Firm and its IDI subsidiaries are subject. (a) Represents the minimum capital ratios applicable to the Firm under Basel III. The CET1, Tier 1 and Total capital minimum capital ratios include a capital conservation buffer requirement of 2.5% and GSIB surcharge of 3.5% as calculated under Method 2. (b) Represents requirements for JPMorgan Chase’s IDI subsidiaries. The CET1, Tier 1 and Total capital minimum capital ratios include a capital conservation buffer requirement of 2.5% that is applicable to the IDI subsidiaries. The IDI subsidiaries are not subject to the GSIB surcharge. (c) Represents requirements for bank holding companies pursuant to regulations issued by the Federal Reserve. (d) Represents requirements for IDI subsidiaries pursuant to regulations issued under the FDIC Improvement Act. The following tables present the risk-based and leverage-based capital metrics for JPMorgan Chase and JPMorgan Chase Bank, N.A. under both the Basel III Standardized and Basel III Advanced Approaches. As of September 30, 2020, the capital metrics are presented applying the CECL capital transition provisions. As of September 30, 2020 and December 31, 2019, JPMorgan Chase and JPMorgan Chase Bank, N.A. were well-capitalized and met all capital requirements to which each was subject. September 30, 2020 Basel III Standardized Basel III Advanced JPMorgan Chase & Co. (d) JPMorgan Chase Bank, N.A. (d) JPMorgan (d) JPMorgan (d) Risk-based capital metrics: (a) CET1 capital $ 197,719 $ 225,547 $ 197,719 $ 225,547 Tier 1 capital 227,486 225,549 227,486 225,549 Total capital 262,397 242,927 249,947 230,846 Risk-weighted assets 1,514,509 1,444,069 1,429,334 1,298,354 CET1 capital ratio 13.1 % 15.6 % 13.8 % 17.4 % Tier 1 capital ratio 15.0 15.6 15.9 17.4 Total capital ratio 17.3 16.8 17.5 17.8 Leverage-based capital metrics: Adjusted average assets (b) $ 3,243,290 $ 2,852,307 $ 3,243,290 $ 2,852,307 Tier 1 leverage ratio 7.0 % 7.9 % 7.0 % 7.9 % Total leverage exposure (c) NA NA $ 3,247,392 $ 3,544,506 SLR (c) NA NA 7.0 % 6.4 % December 31, 2019 Basel III Standardized Basel III Advanced JPMorgan JPMorgan JPMorgan JPMorgan Risk-based capital metrics: (a) CET1 capital $ 187,753 $ 206,848 $ 187,753 $ 206,848 Tier 1 capital 214,432 206,851 214,432 206,851 Total capital 242,589 224,390 232,112 214,091 Risk-weighted assets 1,515,869 1,457,689 1,397,878 1,269,991 CET1 capital ratio 12.4 % 14.2 % 13.4 % 16.3 % Tier 1 capital ratio 14.1 14.2 15.3 16.3 Total capital ratio 16.0 15.4 16.6 16.9 Leverage-based capital metrics: Adjusted average assets (b) $ 2,730,239 $ 2,353,432 $ 2,730,239 $ 2,353,432 Tier 1 leverage ratio 7.9 % 8.8 % 7.9 % 8.8 % Total leverage exposure NA NA $ 3,423,431 $ 3,044,509 SLR NA NA 6.3 % 6.8 % (a) The capital adequacy of the Firm and JPMorgan Chase Bank, N.A. is evaluated against the lower of the two ratios as calculated under Basel III approaches (Standardized or Advanced). (b) Adjusted average assets, for purposes of calculating the leverage ratio, includes total quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill and other intangible assets. (c) As of September 30, 2020, JPMorgan Chase’s total leverage exposure for purposes of calculating the SLR, excludes on-balance sheet amounts of U.S. Treasury securities and deposits at Federal Reserve Banks, as provided by the interim final rule issued by the Federal Reserve on April 1, 2020. On June 1, 2020, the Federal Reserve, OCC and FDIC issued an interim final rule that provides IDI subsidiaries with an option to apply this temporary exclusion subject to certain restrictions. As of September 30, 2020, JPMorgan Chase Bank, N.A. has not elected to apply this exclusion. |
Off-balance Sheet Lending-rel_2
Off-balance Sheet Lending-related Financial Instruments, Guarantees, and Other Commitments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Off-Balance Sheet Lending-Related Financial Instruments, Guarantees and Other Commitments [Abstract] | |
Off-balance sheet lending related financial instruments, guarantees and other commitments | The following table summarizes the contractual amounts and carrying values of off-balance sheet lending-related financial instruments, guarantees and other commitments at September 30, 2020, and December 31, 2019. The amounts in the table below for credit card, home equity and certain scored business banking lending-related commitments represent the total available credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit for these products will be utilized at the same time. The Firm can reduce or cancel credit card and certain scored business banking lines of credit by providing the borrower notice or, in some cases as permitted by law, without notice. In addition, the Firm typically closes credit card lines when the borrower is 60 days or more past due. The Firm may reduce or close HELOCs when there are significant decreases in the value of the underlying property, or when there has been a demonstrable decline in the creditworthiness of the borrower. In conjunction with the adoption of CECL, the Firm reclassified risk-rated loans and lending-related commitments from the consumer, excluding credit card portfolio segment to the wholesale portfolio segment, to align with the methodology applied when determining the allowance. Prior-period amounts have been revised to conform with the current presentation. Refer to Note 1 for further information. Off–balance sheet lending-related financial instruments, guarantees and other commitments Contractual amount Carrying value (j) September 30, 2020 Dec 31, Sep 30, Dec 31, By remaining maturity Expires in 1 year or less Expires after Expires after Expires after 5 years Total Total Lending-related Consumer, excluding credit card: Residential real estate (a) $ 15,739 $ 1,447 $ 3,570 $ 14,816 $ 35,572 $ 30,217 $ 216 $ 12 Auto and other 10,044 1 16 792 10,853 9,952 — — Total consumer, excluding credit card 25,783 1,448 3,586 15,608 46,425 40,169 216 12 Credit card (b) 662,860 — — — 662,860 650,720 — — Total consumer (b)(c) 688,643 1,448 3,586 15,608 709,285 690,889 216 12 Wholesale: Other unfunded commitments to extend credit (d)(e) 96,207 160,733 134,223 15,571 406,734 380,307 2,492 952 Standby letters of credit and other financial guarantees (d) 17,847 8,170 3,915 1,520 31,452 34,242 473 618 Other letters of credit (d) 2,954 76 19 — 3,049 2,961 20 4 Total wholesale (c) 117,008 168,979 138,157 17,091 441,235 417,510 2,985 1,574 Total lending-related $ 805,651 $ 170,427 $ 141,743 $ 32,699 $ 1,150,520 $ 1,108,399 $ 3,201 $ 1,586 Other guarantees and commitments Securities lending indemnification agreements and guarantees (f) $ 220,361 $ — $ — $ — $ 220,361 $ 204,827 $ — $ — Derivatives qualifying as guarantees 2,668 290 12,045 40,377 55,380 53,089 451 159 Unsettled resale and securities borrowed agreements 142,799 3,555 — — 146,354 117,951 1 — Unsettled repurchase and securities loaned agreements 120,904 586 — — 121,490 73,351 (1) — Loan sale and securitization-related indemnifications: Mortgage repurchase liability NA NA NA NA NA NA 84 59 Loans sold with recourse NA NA NA NA 853 944 24 27 Exchange & clearing house guarantees and commitments (g) 89,121 — — — 89,121 206,432 — — Other guarantees and commitments (e)(h) 1,236 499 711 4,052 6,498 6,334 (i) (64) (66) (a) Includes certain commitments to purchase loans from correspondents. (b) Also includes commercial card lending-related commitments primarily in CB and CIB. (c) Predominantly all consumer and wholesale lending-related commitments are in the U.S. (d) At September 30, 2020, and December 31, 2019, reflected the contractual amount net of risk participations totaling $50 million and $76 million, respectively, for other unfunded commitments to extend credit; $8.8 billion and $9.8 billion, respectively, for standby letters of credit and other financial guarantees; and $462 million and $546 million, respectively, for other letters of credit. In regulatory filings with the Federal Reserve these commitments are shown gross of risk participations. (e) In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans, which resulted in a corresponding reclassification of commitments from Other guarantees and commitments to Wholesale other unfunded commitments to extend credit. Prior-period amounts have been revised to conform with the current presentation. (f) At September 30, 2020, and December 31, 2019, collateral held by the Firm in support of securities lending indemnification agreements was $233.0 billion and $216.2 billion, respectively. Securities lending collateral primarily consists of cash, G7 government securities, and securities issued by U.S. GSEs and government agencies. (g) At September 30, 2020, and December 31, 2019, includes guarantees to the Fixed Income Clearing Corporation under the sponsored member repo program and commitments and guarantees associated with the Firm’s membership in certain clearing houses. (h) At September 30, 2020, and December 31, 2019, primarily includes letters of credit hedged by derivative transactions and managed on a market risk basis, and unfunded commitments related to institutional lending. Additionally, includes unfunded commitments predominantly related to certain tax-oriented equity investments. (i) Prior-period amounts have been revised to conform with the current presentation. (j) For lending-related products, the carrying value represents the allowance for lending-related commitments and the guarantee liability; for derivative-related products, and lending-related commitments for which the fair value option was elected, the carrying value represents the fair value. At September 30, 2020, includes net markdowns on held-for-sale positions related to unfunded commitments in the bridge financing portfolio. |
Standby letters of credit, other financial guarantees and other letters of credit | The following table summarizes the contractual amount and carrying value of standby letters of credit and other financial guarantees and other letters of credit arrangements as of September 30, 2020, and December 31, 2019. Standby letters of credit, other financial guarantees and other letters of credit September 30, 2020 December 31, 2019 (in millions) Standby letters of Other letters Standby letters of Other letters Investment-grade (a) $ 23,461 $ 2,338 $ 26,880 $ 2,137 Noninvestment-grade (a) 7,991 711 7,362 824 Total contractual amount $ 31,452 $ 3,049 $ 34,242 $ 2,961 Allowance for lending-related commitments $ 98 $ 20 $ 216 $ 4 Guarantee liability 375 — 402 — Total carrying value $ 473 $ 20 $ 618 $ 4 Commitments with collateral $ 17,249 $ 417 $ 17,853 $ 728 (a) The ratings scale is based on the Firm’s internal risk ratings. Refer to Note 12 for further information on internal risk ratings. |
Derivatives qualifying as guarantees | The following table summarizes the derivatives qualifying as guarantees as of September 30, 2020, and December 31, 2019. (in millions) September 30, 2020 December 31, 2019 Notional amounts Derivative guarantees $ 55,380 $ 53,089 Stable value contracts with contractually limited exposure 28,955 28,877 Maximum exposure of stable value contracts with contractually limited exposure 2,974 2,967 Fair value Derivative payables 451 159 |
Pledged Assets and Collateral (
Pledged Assets and Collateral (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of pledged assets | The following table presents the Firm’s pledged assets. (in billions) September 30, 2020 December 31, 2019 Assets that may be sold or repledged or otherwise used by secured parties $ 189.9 $ 125.2 Assets that may not be sold or repledged or otherwise used by secured parties 98.8 80.2 Assets pledged at Federal Reserve banks and FHLBs 441.6 478.9 Total pledged assets $ 730.3 $ 684.3 |
Schedule of collateral received | The following table presents the fair value of collateral accepted. (in billions) September 30, 2020 December 31, 2019 Collateral permitted to be sold or repledged, delivered, or otherwise used $ 1,361.5 $ 1,282.5 Collateral sold, repledged, delivered or otherwise used 999.8 1,000.5 (a) (a) Includes collateral repledged to the Federal Reserve under the Federal Reserve’s open market operations. |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment results and reconciliation | The following tables provide a summary of the Firm’s segment results as of or for the three and nine months ended September 30, 2020 and 2019, on a managed basis. The Firm’s definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm (and each of the reportable business segments) on an FTE basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. Refer to Note 32 of JPMorgan Chase’s 2019 Form 10-K for additional information on the Firm’s managed basis. Business segment capital allocation The amount of capital assigned to each business is referred to as equity. Periodically, the assumptions and methodologies used to allocate capital are assessed and as a result, the capital allocated to the LOBs may change. Refer to Line of business equity on page 90 of JPMorgan Chase’s 2019 Form 10-K for additional information on business segment capital allocation. Business segment changes In the first quarter of 2020, the Firm began reporting a Wholesale Payments business unit within CIB following a realignment of the Firm’s wholesale payments businesses. The Wholesale Payments business comprises: • Merchant Services, which was realigned from CCB to CIB • Treasury Services and Trade Finance in CIB. Trade Finance was previously reported in Lending in CIB. In connection with the alignment of Wholesale Payments, the assets, liabilities and headcount associated with the Merchant Services business were realigned to CIB from CCB, and the revenue and expenses of the Merchant Services business are reported across CCB, CIB and CB based primarily on client relationships. Prior period amounts have been revised to reflect this realignment and revised allocation methodology. Segment results and reconciliation (a) As of or for the three months ended September 30, Consumer & (b) Corporate & Commercial Banking Asset & Wealth Management 2020 2019 2020 2019 2020 2019 2020 2019 Noninterest revenue $ 4,758 $ 4,806 $ 8,075 $ 7,354 $ 761 $ 666 $ 2,887 $ 2,713 Net interest income 7,997 9,152 3,428 2,168 1,524 1,608 850 855 Total net revenue 12,755 13,958 11,503 9,522 2,285 2,274 3,737 3,568 Provision for credit losses 794 1,311 (81) 92 (147) 67 (51) 44 Noninterest expense 6,770 7,025 5,797 5,504 966 940 2,623 2,622 Income/(loss) before income tax expense/(benefit) 5,191 5,622 5,787 3,926 1,466 1,267 1,165 902 Income tax expense/(benefit) 1,318 1,377 1,483 1,095 378 324 288 234 Net income/(loss) $ 3,873 $ 4,245 $ 4,304 $ 2,831 $ 1,088 $ 943 $ 877 $ 668 Average equity $ 52,000 $ 52,000 $ 80,000 $ 80,000 $ 22,000 $ 22,000 $ 10,500 $ 10,500 Total assets 480,325 525,223 1,089,293 1,030,396 228,587 222,483 194,596 174,226 ROE 29 % 31 % 21 % 13 % 19 % 16 % 32 % 24 % Overhead ratio 53 50 50 58 42 41 70 73 As of or for the three months ended September 30, Corporate Reconciling Items (a) Total (b) 2020 2019 2020 2019 2020 2019 Noninterest revenue $ 343 $ 120 $ (690) $ (596) $ 16,134 $ 15,063 Net interest income (682) 572 (104) (127) 13,013 14,228 Total net revenue (339) 692 (794) (723) 29,147 29,291 Provision for credit losses 96 — — — 611 1,514 Noninterest expense 719 281 — — 16,875 16,372 Income/(loss) before income tax expense/(benefit) (1,154) 411 (794) (723) 11,661 11,405 Income tax expense/(benefit) (455) 18 (794) (723) 2,218 2,325 Net income/(loss) $ (699) $ 393 $ — $ — $ 9,443 $ 9,080 Average equity $ 72,297 $ 71,113 $ — $ — $ 236,797 $ 235,613 Total assets 1,253,275 812,333 NA NA 3,246,076 2,764,661 ROE NM NM NM NM 15 % 15 % Overhead ratio NM NM NM NM 58 56 (a) Segment managed results reflect revenue on an FTE basis with the corresponding income tax impact recorded within income tax expense/(benefit). These adjustments are eliminated in reconciling items to arrive at the Firm’s reported U.S. GAAP results. (b) In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation. Segment results and reconciliation (a) As of or for the nine months ended September 30, Consumer & (b) Corporate & Commercial Banking Asset & Wealth Management 2020 2019 2020 2019 2020 2019 2020 2019 Noninterest revenue $ 12,833 $ 12,948 $ 27,189 $ 22,850 $ 2,197 $ 2,022 $ 8,316 $ 7,989 Net interest income 25,251 27,937 10,614 6,537 4,658 4,950 2,637 2,627 Total net revenue 38,084 40,885 37,803 29,387 6,855 6,972 10,953 10,616 Provision for credit losses 12,394 3,745 3,307 179 3,294 186 266 48 Noninterest expense 20,498 20,784 18,457 16,794 2,853 2,809 7,788 7,865 Income/(loss) before income tax expense/(benefit) 5,192 16,356 16,039 12,414 708 3,977 2,899 2,703 Income tax expense/(benefit) 1,304 4,007 4,283 3,377 164 972 700 655 Net income/(loss) $ 3,888 $ 12,349 $ 11,756 $ 9,037 $ 544 $ 3,005 $ 2,199 $ 2,048 Average equity $ 52,000 $ 52,000 $ 80,000 $ 80,000 $ 22,000 $ 22,000 $ 10,500 $ 10,500 Total assets 480,325 525,223 1,089,293 1,030,396 228,587 222,483 194,596 174,226 Return on equity 9% 31 % 19 % 14 % 2 % 17 % 27 % 25 % Overhead ratio 54 51 49 57 42 40 71 74 As of or for the nine months ended September 30, Corporate Reconciling Items (a) Total (b) 2020 2019 2020 2019 2020 2019 Noninterest revenue $ 607 $ 3 $ (2,128) $ (1,777) $ 49,014 $ 44,035 Net interest income (1,534) 1,436 (321) (408) 41,305 43,079 Total net revenue (927) 1,439 (2,449) (2,185) 90,319 87,114 Provision for credit losses 108 — — — 19,369 4,158 Noninterest expense 1,012 724 — — 50,608 48,976 Income/(loss) before income tax expense/(benefit) (2,047) 715 (2,449) (2,185) 20,342 33,980 Income tax expense/(benefit) (655) (757) (2,449) (2,185) 3,347 6,069 Net income/(loss) $ (1,392) $ 1,472 $ — $ — $ 16,995 $ 27,911 Average equity $ 70,751 $ 68,417 $ — $ — $ 235,251 $ 232,917 Total assets 1,253,275 812,333 NA NA 3,246,076 2,764,661 Return on equity NM NM NM NM 9 % 15 % Overhead ratio NM NM NM NM 56 56 (a) Segment managed results reflect revenue on an FTE basis with the corresponding income tax impact recorded within income tax expense/(benefit). These adjustments are eliminated in reconciling items to arrive at the Firm’s reported U.S. GAAP results. (b) In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation. |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||
Allowance for credit losses | $ 33,637 | $ 14,300 | $ 14,400 | ||
Allowance for credit losses reclassified | 30,814 | 13,123 | 13,235 | $ 13,445 | |
CECL adoption impact | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | $ 4,300 | ||||
Balance sheet reclassification | (800) | ||||
Total pre-tax impact | 3,500 | ||||
Tax effect | (800) | ||||
Decrease to retained earnings | 2,700 | ||||
Allowance for credit losses reclassified | 4,172 | ||||
Adjusted balance | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 18,600 | ||||
Consumer, excluding credit card | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 4,718 | 2,600 | 2,831 | ||
Allowance for credit losses reclassified | 4,502 | 2,538 | 2,819 | 3,434 | |
Consumer, excluding credit card | Reclassification Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses reclassified | 600 | ||||
Consumer, excluding credit card | CECL adoption impact | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 400 | ||||
Allowance for credit losses reclassified | 297 | ||||
Consumer, excluding credit card | CECL adoption impact | Reclassification Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses reclassified | (200) | ||||
Consumer, excluding credit card | Adjusted balance | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 3,000 | ||||
Credit card | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 5,700 | ||||
Credit card | CECL adoption impact | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 5,500 | ||||
Credit card | Adjusted balance | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 11,200 | ||||
Wholesale | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | 11,119 | 6,000 | 5,986 | ||
Allowance for credit losses reclassified | $ 8,512 | 4,902 | $ 4,833 | $ 4,827 | |
Wholesale | CECL adoption impact | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | (1,600) | ||||
Allowance for credit losses reclassified | $ (1,642) | ||||
Wholesale | Adjusted balance | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | $ 4,400 |
Fair Value Measurement - Recurr
Fair Value Measurement - Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Assets and liabilities measured at fair value on a recurring basis | |||||||
Gross derivative receivables | $ 664,902 | $ 529,626 | |||||
Derivative netting adjustments | (588,276) | (479,860) | |||||
Net derivative receivables | 76,626 | 49,766 | |||||
Trading assets | [1] | 505,822 | 369,687 | ||||
Available-for-sale securities | 389,583 | 350,699 | |||||
Loans | 38,220 | 44,955 | |||||
Mortgage servicing rights | 3,016 | $ 3,080 | 4,699 | $ 4,419 | $ 5,093 | $ 6,130 | |
Gross derivative payables | 637,772 | 512,128 | |||||
Derivative netting adjustments | (580,114) | (468,420) | |||||
Net derivative payables | 57,658 | 43,708 | |||||
Interest rate | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Gross derivative receivables | 398,479 | 313,294 | |||||
Derivative netting adjustments | (361,421) | (285,873) | |||||
Net derivative receivables | 37,058 | 27,421 | |||||
Gross derivative payables | 359,357 | 279,273 | |||||
Derivative netting adjustments | (346,886) | (270,670) | |||||
Net derivative payables | 12,471 | 8,603 | |||||
Credit | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Gross derivative receivables | 15,144 | 14,876 | |||||
Derivative netting adjustments | (13,751) | (14,175) | |||||
Net derivative receivables | 1,393 | 701 | |||||
Gross derivative payables | 16,417 | 15,121 | |||||
Derivative netting adjustments | (14,175) | (13,469) | |||||
Net derivative payables | 2,242 | 1,652 | |||||
Foreign exchange | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Gross derivative receivables | 155,488 | 138,487 | |||||
Derivative netting adjustments | (144,060) | (129,482) | |||||
Net derivative receivables | 11,428 | 9,005 | |||||
Gross derivative payables | 165,218 | 145,108 | |||||
Derivative netting adjustments | (149,705) | (131,950) | |||||
Net derivative payables | 15,513 | 13,158 | |||||
Equity | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Gross derivative receivables | 73,535 | 45,727 | |||||
Derivative netting adjustments | (54,599) | (39,250) | |||||
Net derivative receivables | 18,936 | 6,477 | |||||
Gross derivative payables | 73,932 | 52,741 | |||||
Derivative netting adjustments | (54,576) | (40,204) | |||||
Net derivative payables | 19,356 | 12,537 | |||||
Commodity | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Gross derivative receivables | 22,256 | 17,242 | |||||
Derivative netting adjustments | (14,445) | (11,080) | |||||
Net derivative receivables | 7,811 | 6,162 | |||||
Gross derivative payables | 22,848 | 19,885 | |||||
Derivative netting adjustments | (14,772) | (12,127) | |||||
Net derivative payables | 8,076 | 7,758 | |||||
Total mortgage-backed securities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Available-for-sale securities | 113,953 | 128,295 | |||||
Mortgage-backed securities, Commercial - nonagency | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Available-for-sale securities | 2,936 | 5,188 | |||||
U.S. Treasury, GSEs and government agencies | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Available-for-sale securities | 216,579 | 139,436 | |||||
Obligations of U.S. states and municipalities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 7,500 | 6,500 | |||||
Available-for-sale securities | 20,883 | 29,810 | |||||
Certificates of deposit | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Available-for-sale securities | 0 | 77 | |||||
Non-U.S. government debt securities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Available-for-sale securities | 21,037 | 21,787 | |||||
Corporate debt securities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Available-for-sale securities | 271 | 845 | |||||
Asset-backed securities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Available-for-sale securities | 16,860 | ||||||
Asset-backed securities, Collateralized loan obligations | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Available-for-sale securities | 10,202 | 24,991 | |||||
U.S. GSE obligations | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Available-for-sale securities | 55,600 | 78,500 | |||||
Fair Value Measured at Net Asset Value Per Share | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets | 52 | 54 | |||||
Fair value assets and liabilities measured on recurring basis - supplemental data | |||||||
Alternative investments, net asset value, fair value | 661 | 684 | |||||
Other assets | 609 | 630 | |||||
Recurring | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Federal funds sold and securities purchased under resale agreements | 284,763 | 14,561 | |||||
Securities borrowed | 44,493 | 6,237 | |||||
Trading assets, debt and equity instruments | 429,144 | 319,867 | |||||
Derivative netting adjustments | (588,276) | (479,860) | |||||
Net derivative receivables | 76,626 | 49,766 | |||||
Trading assets | 505,770 | 369,633 | |||||
Available-for-sale securities | 389,583 | 350,699 | |||||
Loans | 38,220 | 44,955 | |||||
Mortgage servicing rights | 3,016 | 4,699 | |||||
Total assets measured at fair value on a recurring basis | 1,279,324 | 802,830 | |||||
Deposits | 19,314 | 28,589 | |||||
Federal funds purchased and securities loaned or sold under repurchase agreements | 180,904 | 549 | |||||
Short-term borrowings | 19,029 | 5,920 | |||||
Trading liabilities, Debt and equity instruments | 104,835 | 75,569 | |||||
Derivative netting adjustments | (580,114) | (468,420) | |||||
Net derivative payables | 57,658 | 43,708 | |||||
Trading liabilities | 162,493 | 119,277 | |||||
Accounts payable and other liabilities | 3,297 | 3,728 | |||||
Beneficial interests issued by consolidated VIEs | 39 | 36 | |||||
Long-term debt | 72,986 | 75,745 | |||||
Total liabilities measured at fair value on a recurring basis | 458,062 | 233,844 | |||||
Recurring | Interest rate | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Derivative netting adjustments | (361,421) | (285,873) | |||||
Net derivative receivables | 37,058 | 27,421 | |||||
Derivative netting adjustments | (346,886) | (270,670) | |||||
Net derivative payables | 12,471 | 8,603 | |||||
Recurring | Credit | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Derivative netting adjustments | (13,751) | (14,175) | |||||
Net derivative receivables | 1,393 | 701 | |||||
Derivative netting adjustments | (14,175) | (13,469) | |||||
Net derivative payables | 2,242 | 1,652 | |||||
Recurring | Foreign exchange | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Derivative netting adjustments | (144,060) | (129,482) | |||||
Net derivative receivables | 11,428 | 9,005 | |||||
Derivative netting adjustments | (149,705) | (131,950) | |||||
Net derivative payables | 15,513 | 13,158 | |||||
Recurring | Equity | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Derivative netting adjustments | (54,599) | (39,250) | |||||
Net derivative receivables | 18,936 | 6,477 | |||||
Derivative netting adjustments | (54,576) | (40,204) | |||||
Net derivative payables | 19,356 | 12,537 | |||||
Recurring | Commodity | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Derivative netting adjustments | (14,445) | (11,080) | |||||
Net derivative receivables | 7,811 | 6,162 | |||||
Derivative netting adjustments | (14,772) | (12,127) | |||||
Net derivative payables | 8,076 | 7,758 | |||||
Recurring | Other assets | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Other assets | 13,479 | 12,046 | |||||
Fair value assets and liabilities measured on recurring basis - supplemental data | |||||||
Other assets | 14,088 | 12,676 | |||||
Recurring | Total debt instruments | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 297,710 | 226,192 | |||||
Recurring | Total mortgage-backed securities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 77,379 | 48,797 | |||||
Available-for-sale securities | 113,953 | 128,295 | |||||
Recurring | Mortgage-backed securities, U.S. GSEs and government agencies | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 73,623 | 45,307 | |||||
Available-for-sale securities | 99,594 | 110,117 | |||||
Recurring | Mortgage-backed securities, Residential - nonagency | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 2,484 | 2,000 | |||||
Available-for-sale securities | 11,423 | 12,990 | |||||
Recurring | Mortgage-backed securities, Commercial - nonagency | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 1,272 | 1,490 | |||||
Available-for-sale securities | 2,936 | 5,188 | |||||
Recurring | U.S. Treasury, GSEs and government agencies | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 106,585 | 88,584 | |||||
Available-for-sale securities | 216,579 | 139,436 | |||||
Recurring | Obligations of U.S. states and municipalities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 7,493 | 6,478 | |||||
Available-for-sale securities | 20,883 | 29,810 | |||||
Recurring | Certificates of deposit, bankers’ acceptances and commercial paper | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 2,020 | 252 | |||||
Recurring | Certificates of deposit | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Available-for-sale securities | 0 | 77 | |||||
Recurring | Non-U.S. government debt securities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 73,312 | 53,924 | |||||
Available-for-sale securities | 21,037 | 21,787 | |||||
Recurring | Corporate debt securities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 22,194 | 18,514 | |||||
Available-for-sale securities | 271 | 845 | |||||
Recurring | Loans | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 6,278 | 7,013 | |||||
Recurring | Asset-backed securities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 2,449 | 2,630 | |||||
Recurring | Asset-backed securities, Collateralized loan obligations | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Available-for-sale securities | 10,202 | 24,991 | |||||
Recurring | Asset-backed securities, Other | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Available-for-sale securities | 6,658 | 5,458 | |||||
Recurring | Equity securities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 107,284 | 72,330 | |||||
Recurring | Physical commodities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 9,818 | 7,217 | |||||
Recurring | Other | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 14,332 | 14,128 | |||||
Recurring | U.S. GSE obligations | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 109,500 | 104,500 | |||||
Recurring | Residential mortgage | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 15,600 | 19,800 | |||||
Recurring | Commercial mortgage | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 5,200 | 8,200 | |||||
Recurring | Residential conforming mortgage intended for sale to U.S. GSEs and government agencies | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 8,600 | 13,600 | |||||
Recurring | Level 1 | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Federal funds sold and securities purchased under resale agreements | 0 | 0 | |||||
Securities borrowed | 0 | 0 | |||||
Trading assets, debt and equity instruments | 239,153 | 180,417 | |||||
Gross derivative receivables | 1,749 | 838 | |||||
Trading assets | 240,902 | 181,255 | |||||
Available-for-sale securities | 228,489 | 152,402 | |||||
Loans | 0 | 0 | |||||
Mortgage servicing rights | 0 | 0 | |||||
Total assets measured at fair value on a recurring basis | 477,067 | 340,962 | |||||
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 | 85,147 | 59,047 | |||||
Gross derivative payables | 1,532 | 904 | |||||
Trading liabilities | 86,679 | 59,951 | |||||
Accounts payable and other liabilities | 2,945 | 3,231 | |||||
Beneficial interests issued by consolidated VIEs | 0 | 0 | |||||
Long-term debt | 0 | 0 | |||||
Total liabilities measured at fair value on a recurring basis | 89,624 | 63,182 | |||||
Recurring | Level 1 | Interest rate | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Gross derivative receivables | 1,569 | 721 | |||||
Gross derivative payables | 1,352 | 795 | |||||
Recurring | Level 1 | Credit | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Gross derivative receivables | 0 | 0 | |||||
Gross derivative payables | 0 | 0 | |||||
Recurring | Level 1 | Foreign exchange | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Gross derivative receivables | 180 | 117 | |||||
Gross derivative payables | 180 | 109 | |||||
Recurring | Level 1 | Equity | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Gross derivative receivables | 0 | 0 | |||||
Gross derivative payables | 0 | 0 | |||||
Recurring | Level 1 | Commodity | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Gross derivative receivables | 0 | 0 | |||||
Gross derivative payables | 0 | 0 | |||||
Recurring | Level 1 | Other assets | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Other assets | 7,676 | 7,305 | |||||
Recurring | Level 1 | Total debt instruments | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 126,786 | 104,889 | |||||
Recurring | Level 1 | Total mortgage-backed securities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 0 | 0 | |||||
Available-for-sale securities | 5 | 0 | |||||
Recurring | Level 1 | Mortgage-backed securities, U.S. GSEs and government agencies | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 0 | 0 | |||||
Available-for-sale securities | 5 | 0 | |||||
Recurring | Level 1 | Mortgage-backed securities, Residential - nonagency | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 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 | |||||||
Trading assets, debt and equity instruments | 0 | 0 | |||||
Available-for-sale securities | 0 | 0 | |||||
Recurring | Level 1 | U.S. Treasury, GSEs and government agencies | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 94,565 | 78,289 | |||||
Available-for-sale securities | 216,579 | 139,436 | |||||
Recurring | Level 1 | Obligations of U.S. states and municipalities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 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 | |||||||
Trading assets, debt and equity instruments | 0 | 0 | |||||
Recurring | Level 1 | Certificates of deposit | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
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 | |||||||
Trading assets, debt and equity instruments | 32,221 | 26,600 | |||||
Available-for-sale securities | 11,905 | 12,966 | |||||
Recurring | Level 1 | Corporate debt securities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 0 | 0 | |||||
Available-for-sale securities | 0 | 0 | |||||
Recurring | Level 1 | Loans | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 0 | 0 | |||||
Recurring | Level 1 | Asset-backed securities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 0 | 0 | |||||
Recurring | Level 1 | Asset-backed securities, Collateralized loan obligations | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Available-for-sale securities | 0 | 0 | |||||
Recurring | Level 1 | Asset-backed securities, Other | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Available-for-sale securities | 0 | 0 | |||||
Recurring | Level 1 | Equity securities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 106,856 | 71,890 | |||||
Recurring | Level 1 | Physical commodities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 5,511 | 3,638 | |||||
Recurring | Level 1 | Other | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 0 | 0 | |||||
Recurring | Level 2 | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Federal funds sold and securities purchased under resale agreements | 284,763 | 14,561 | |||||
Securities borrowed | 44,493 | 6,237 | |||||
Trading assets, debt and equity instruments | 187,033 | 136,765 | |||||
Gross derivative receivables | 655,150 | 524,063 | |||||
Trading assets | 842,183 | 660,828 | |||||
Available-for-sale securities | 161,094 | 198,296 | |||||
Loans | 36,414 | 44,439 | |||||
Mortgage servicing rights | 0 | 0 | |||||
Total assets measured at fair value on a recurring basis | 1,374,092 | 928,185 | |||||
Deposits | 16,258 | 25,229 | |||||
Federal funds purchased and securities loaned or sold under repurchase agreements | 180,904 | 549 | |||||
Short-term borrowings | 16,421 | 4,246 | |||||
Trading liabilities, Debt and equity instruments | 19,631 | 16,481 | |||||
Gross derivative payables | 623,816 | 502,010 | |||||
Trading liabilities | 643,447 | 518,491 | |||||
Accounts payable and other liabilities | 308 | 452 | |||||
Beneficial interests issued by consolidated VIEs | 39 | 36 | |||||
Long-term debt | 50,770 | 52,406 | |||||
Total liabilities measured at fair value on a recurring basis | 908,147 | 601,409 | |||||
Recurring | Level 2 | Interest rate | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Gross derivative receivables | 394,734 | 311,173 | |||||
Gross derivative payables | 355,857 | 276,746 | |||||
Recurring | Level 2 | Credit | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Gross derivative receivables | 14,381 | 14,252 | |||||
Gross derivative payables | 15,605 | 14,358 | |||||
Recurring | Level 2 | Foreign exchange | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Gross derivative receivables | 154,535 | 137,938 | |||||
Gross derivative payables | 163,589 | 143,960 | |||||
Recurring | Level 2 | Equity | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Gross derivative receivables | 69,452 | 43,642 | |||||
Gross derivative payables | 66,746 | 47,261 | |||||
Recurring | Level 2 | Commodity | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Gross derivative receivables | 22,048 | 17,058 | |||||
Gross derivative payables | 22,019 | 19,685 | |||||
Recurring | Level 2 | Other assets | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Other assets | 5,145 | 3,824 | |||||
Recurring | Level 2 | Total debt instruments | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 168,805 | 119,046 | |||||
Recurring | Level 2 | Total mortgage-backed securities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 76,845 | 47,973 | |||||
Available-for-sale securities | 113,948 | 128,294 | |||||
Recurring | Level 2 | Mortgage-backed securities, U.S. GSEs and government agencies | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 73,116 | 44,510 | |||||
Available-for-sale securities | 99,589 | 110,117 | |||||
Recurring | Level 2 | Mortgage-backed securities, Residential - nonagency | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 2,459 | 1,977 | |||||
Available-for-sale securities | 11,423 | 12,989 | |||||
Recurring | Level 2 | Mortgage-backed securities, Commercial - nonagency | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 1,270 | 1,486 | |||||
Available-for-sale securities | 2,936 | 5,188 | |||||
Recurring | Level 2 | U.S. Treasury, GSEs and government agencies | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 12,020 | 10,295 | |||||
Available-for-sale securities | 0 | 0 | |||||
Recurring | Level 2 | Obligations of U.S. states and municipalities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 7,485 | 6,468 | |||||
Available-for-sale securities | 20,883 | 29,810 | |||||
Recurring | Level 2 | Certificates of deposit, bankers’ acceptances and commercial paper | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 2,020 | 252 | |||||
Recurring | Level 2 | Certificates of deposit | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Available-for-sale securities | 0 | 77 | |||||
Recurring | Level 2 | Non-U.S. government debt securities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 40,926 | 27,169 | |||||
Available-for-sale securities | 9,132 | 8,821 | |||||
Recurring | Level 2 | Corporate debt securities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 21,545 | 17,956 | |||||
Available-for-sale securities | 271 | 845 | |||||
Recurring | Level 2 | Loans | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 5,548 | 6,340 | |||||
Recurring | Level 2 | Asset-backed securities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 2,416 | 2,593 | |||||
Recurring | Level 2 | Asset-backed securities, Collateralized loan obligations | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Available-for-sale securities | 10,202 | 24,991 | |||||
Recurring | Level 2 | Asset-backed securities, Other | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Available-for-sale securities | 6,658 | 5,458 | |||||
Recurring | Level 2 | Equity securities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 242 | 244 | |||||
Recurring | Level 2 | Physical commodities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 4,307 | 3,579 | |||||
Recurring | Level 2 | Other | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 13,679 | 13,896 | |||||
Recurring | Level 3 | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Federal funds sold and securities purchased under resale agreements | 0 | 0 | |||||
Securities borrowed | 0 | 0 | |||||
Trading assets, debt and equity instruments | 2,958 | 2,685 | |||||
Gross derivative receivables | 8,003 | 4,725 | |||||
Trading assets | 10,961 | 7,410 | |||||
Available-for-sale securities | 0 | 1 | |||||
Loans | 1,806 | 516 | |||||
Mortgage servicing rights | 3,016 | 4,699 | |||||
Total assets measured at fair value on a recurring basis | 16,441 | 13,543 | |||||
Deposits | 3,056 | 3,360 | |||||
Federal funds purchased and securities loaned or sold under repurchase agreements | 0 | 0 | |||||
Short-term borrowings | 2,608 | 1,674 | |||||
Trading liabilities, Debt and equity instruments | 57 | 41 | |||||
Gross derivative payables | 12,424 | 9,214 | |||||
Trading liabilities | 12,481 | 9,255 | |||||
Accounts payable and other liabilities | 44 | 45 | |||||
Beneficial interests issued by consolidated VIEs | 0 | 0 | |||||
Long-term debt | 22,216 | 23,339 | |||||
Total liabilities measured at fair value on a recurring basis | 40,405 | 37,673 | |||||
Recurring | Level 3 | Interest rate | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Gross derivative receivables | 2,176 | 1,400 | |||||
Gross derivative payables | 2,148 | 1,732 | |||||
Recurring | Level 3 | Credit | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Gross derivative receivables | 763 | 624 | |||||
Gross derivative payables | 812 | 763 | |||||
Recurring | Level 3 | Foreign exchange | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Gross derivative receivables | 773 | 432 | |||||
Gross derivative payables | 1,449 | 1,039 | |||||
Recurring | Level 3 | Equity | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Gross derivative receivables | 4,083 | 2,085 | |||||
Gross derivative payables | 7,186 | 5,480 | |||||
Recurring | Level 3 | Commodity | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Gross derivative receivables | 208 | 184 | |||||
Gross derivative payables | 829 | 200 | |||||
Recurring | Level 3 | Other assets | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Other assets | 658 | 917 | |||||
Recurring | Level 3 | Total debt instruments | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 2,119 | 2,257 | |||||
Recurring | Level 3 | Total mortgage-backed securities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 534 | 824 | |||||
Available-for-sale securities | 0 | 1 | |||||
Recurring | Level 3 | Mortgage-backed securities, U.S. GSEs and government agencies | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 507 | 797 | |||||
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 | |||||||
Trading assets, debt and equity instruments | 25 | 23 | |||||
Available-for-sale securities | 0 | 1 | |||||
Recurring | Level 3 | Mortgage-backed securities, Commercial - nonagency | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 2 | 4 | |||||
Available-for-sale securities | 0 | 0 | |||||
Recurring | Level 3 | U.S. Treasury, GSEs and government agencies | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 0 | 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 | |||||||
Trading assets, debt and equity instruments | 8 | 10 | |||||
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 | |||||||
Trading assets, debt and equity instruments | 0 | 0 | |||||
Recurring | Level 3 | Certificates of deposit | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
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 | |||||||
Trading assets, debt and equity instruments | 165 | 155 | |||||
Available-for-sale securities | 0 | 0 | |||||
Recurring | Level 3 | Corporate debt securities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 649 | 558 | |||||
Available-for-sale securities | 0 | 0 | |||||
Recurring | Level 3 | Loans | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 730 | 673 | |||||
Recurring | Level 3 | Asset-backed securities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 33 | 37 | |||||
Recurring | Level 3 | Asset-backed securities, Collateralized loan obligations | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Available-for-sale securities | 0 | 0 | |||||
Recurring | Level 3 | Asset-backed securities, Other | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Available-for-sale securities | 0 | 0 | |||||
Recurring | Level 3 | Equity securities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 186 | 196 | |||||
Recurring | Level 3 | Physical commodities | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | 0 | 0 | |||||
Recurring | Level 3 | Other | |||||||
Assets and liabilities measured at fair value on a recurring basis | |||||||
Trading assets, debt and equity instruments | $ 653 | $ 232 | |||||
[1] | In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans and other assets. Prior-period amounts have been revised to conform with the current presentation. |
Fair Value Measurement - Level
Fair Value Measurement - Level 3 Inputs (Details) $ in Millions | Sep. 30, 2020USD ($)$ / shares$ / MWh$ / MT | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Loans | $ 38,220 | $ 44,955 | ||||
MSRs | $ 3,016 | $ 3,080 | 4,699 | $ 4,419 | $ 5,093 | $ 6,130 |
Assumed par value for price input (in dollars per share) | $ / shares | $ 100 | |||||
Level 3 | Yield | Discounted cash flows | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Other assets, measurement inputs | 0.04 | |||||
Level 3 | Yield | Discounted cash flows | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Other assets, measurement inputs | 0.30 | |||||
Level 3 | Yield | Discounted cash flows | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Other assets, measurement inputs | 0.07 | |||||
Level 3 | Price | Market comparables | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Other assets, measurement inputs | $ / shares | 29 | |||||
Level 3 | Price | Market comparables | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Other assets, measurement inputs | $ / shares | 122 | |||||
Level 3 | Price | Market comparables | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Other assets, measurement inputs | $ / shares | 39 | |||||
Level 3 | Interest rate volatility | Option pricing | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Long-term debt, short-term borrowings, and deposits, measurement inputs | 0.0008 | |||||
Level 3 | Interest rate volatility | Option pricing | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Long-term debt, short-term borrowings, and deposits, measurement inputs | 0.0517 | |||||
Level 3 | Interest rate volatility | Option pricing | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Long-term debt, short-term borrowings, and deposits, measurement inputs | 0.0115 | |||||
Level 3 | Interest rate correlation | Option pricing | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Long-term debt, short-term borrowings, and deposits, measurement inputs | (0.65) | |||||
Level 3 | Interest rate correlation | Option pricing | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Long-term debt, short-term borrowings, and deposits, measurement inputs | 0.95 | |||||
Level 3 | Interest rate correlation | Option pricing | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Long-term debt, short-term borrowings, and deposits, measurement inputs | 0.43 | |||||
Level 3 | IR-FX correlation | Option pricing | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Long-term debt, short-term borrowings, and deposits, measurement inputs | (0.35) | |||||
Level 3 | IR-FX correlation | Option pricing | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Long-term debt, short-term borrowings, and deposits, measurement inputs | 0.50 | |||||
Level 3 | IR-FX correlation | Option pricing | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Long-term debt, short-term borrowings, and deposits, measurement inputs | 0 | |||||
Level 3 | Credit spread | Discounted cash flows | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Other assets, measurement inputs | 0.0045 | |||||
Level 3 | Credit spread | Discounted cash flows | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Other assets, measurement inputs | 0.0045 | |||||
Level 3 | Credit spread | Discounted cash flows | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Other assets, measurement inputs | 0.0045 | |||||
Level 3 | Equity correlation | Option pricing | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Long-term debt, short-term borrowings, and deposits, measurement inputs | 0.45 | |||||
Level 3 | Equity correlation | Option pricing | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Long-term debt, short-term borrowings, and deposits, measurement inputs | 1 | |||||
Level 3 | Equity correlation | Option pricing | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Long-term debt, short-term borrowings, and deposits, measurement inputs | 0.83 | |||||
Level 3 | Equity-FX correlation | Option pricing | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Long-term debt, short-term borrowings, and deposits, measurement inputs | (0.77) | |||||
Level 3 | Equity-FX correlation | Option pricing | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Long-term debt, short-term borrowings, and deposits, measurement inputs | 0.55 | |||||
Level 3 | Equity-FX correlation | Option pricing | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Long-term debt, short-term borrowings, and deposits, measurement inputs | (0.23) | |||||
Level 3 | Equity-IR correlation | Option pricing | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Long-term debt, short-term borrowings, and deposits, measurement inputs | 0.20 | |||||
Level 3 | Equity-IR correlation | Option pricing | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Long-term debt, short-term borrowings, and deposits, measurement inputs | 0.35 | |||||
Level 3 | Equity-IR correlation | Option pricing | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Long-term debt, short-term borrowings, and deposits, measurement inputs | 0.26 | |||||
Level 3 | Residential mortgage-backed securities and loans | Yield | Discounted cash flows | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities and loans, measurement input | (0.02) | |||||
Level 3 | Residential mortgage-backed securities and loans | Yield | Discounted cash flows | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities and loans, measurement input | 0.18 | |||||
Level 3 | Residential mortgage-backed securities and loans | Yield | Discounted cash flows | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities and loans, measurement input | 0.05 | |||||
Level 3 | Residential mortgage-backed securities and loans | Prepayment speed | Discounted cash flows | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities and loans, measurement input | 0 | |||||
Level 3 | Residential mortgage-backed securities and loans | Prepayment speed | Discounted cash flows | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities and loans, measurement input | 0.45 | |||||
Level 3 | Residential mortgage-backed securities and loans | Prepayment speed | Discounted cash flows | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities and loans, measurement input | 0.10 | |||||
Level 3 | Residential mortgage-backed securities and loans | Conditional default rate | Discounted cash flows | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities and loans, measurement input | 0 | |||||
Level 3 | Residential mortgage-backed securities and loans | Conditional default rate | Discounted cash flows | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities and loans, measurement input | 0.30 | |||||
Level 3 | Residential mortgage-backed securities and loans | Conditional default rate | Discounted cash flows | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities and loans, measurement input | 0.13 | |||||
Level 3 | Residential mortgage-backed securities and loans | Loss severity | Discounted cash flows | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities and loans, measurement input | 0 | |||||
Level 3 | Residential mortgage-backed securities and loans | Loss severity | Discounted cash flows | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities and loans, measurement input | 1.07 | |||||
Level 3 | Residential mortgage-backed securities and loans | Loss severity | Discounted cash flows | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities and loans, measurement input | 0.09 | |||||
Level 3 | Commercial mortgage-backed securities and loans | Price | Market comparables | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities and loans, measurement input | $ / shares | 0 | |||||
Level 3 | Commercial mortgage-backed securities and loans | Price | Market comparables | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities and loans, measurement input | $ / shares | 100 | |||||
Level 3 | Commercial mortgage-backed securities and loans | Price | Market comparables | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities and loans, measurement input | $ / shares | 83 | |||||
Level 3 | Obligations of U.S. states and municipalities | Price | Market comparables | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities, trading, measurement input | $ / shares | 81 | |||||
Level 3 | Obligations of U.S. states and municipalities | Price | Market comparables | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities, trading, measurement input | $ / shares | 100 | |||||
Level 3 | Obligations of U.S. states and municipalities | Price | Market comparables | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities, trading, measurement input | $ / shares | 97 | |||||
Level 3 | Corporate debt securities | Price | Market comparables | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities, trading, measurement input | $ / shares | 3 | |||||
Level 3 | Corporate debt securities | Price | Market comparables | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities, trading, measurement input | $ / shares | 130 | |||||
Level 3 | Corporate debt securities | Price | Market comparables | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities, trading, measurement input | $ / shares | 73 | |||||
Level 3 | Loans | Price | Market comparables | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Loans, measurement input | $ / shares | 2 | |||||
Level 3 | Loans | Price | Market comparables | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Loans, measurement input | $ / shares | 108 | |||||
Level 3 | Loans | Price | Market comparables | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Loans, measurement input | $ / shares | 76 | |||||
Level 3 | Asset-backed securities | Price | Market comparables | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities, trading, measurement input | $ / shares | 1 | |||||
Level 3 | Asset-backed securities | Price | Market comparables | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities, trading, measurement input | $ / shares | 95 | |||||
Level 3 | Asset-backed securities | Price | Market comparables | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities, trading, measurement input | $ / shares | 61 | |||||
Level 3 | Net interest rate derivatives | Prepayment speed | Discounted cash flows | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.03 | |||||
Level 3 | Net interest rate derivatives | Prepayment speed | Discounted cash flows | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.30 | |||||
Level 3 | Net interest rate derivatives | Prepayment speed | Discounted cash flows | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.10 | |||||
Level 3 | Net interest rate derivatives | Interest rate volatility | Option pricing | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.0008 | |||||
Level 3 | Net interest rate derivatives | Interest rate volatility | Option pricing | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.0517 | |||||
Level 3 | Net interest rate derivatives | Interest rate volatility | Option pricing | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.0115 | |||||
Level 3 | Net interest rate derivatives | Interest rate spread volatility | Option pricing | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.0011 | |||||
Level 3 | Net interest rate derivatives | Interest rate spread volatility | Option pricing | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.0023 | |||||
Level 3 | Net interest rate derivatives | Interest rate spread volatility | Option pricing | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.0015 | |||||
Level 3 | Net interest rate derivatives | Interest rate correlation | Option pricing | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | (0.65) | |||||
Level 3 | Net interest rate derivatives | Interest rate correlation | Option pricing | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.95 | |||||
Level 3 | Net interest rate derivatives | Interest rate correlation | Option pricing | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.43 | |||||
Level 3 | Net interest rate derivatives | IR-FX correlation | Option pricing | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | (0.35) | |||||
Level 3 | Net interest rate derivatives | IR-FX correlation | Option pricing | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.50 | |||||
Level 3 | Net interest rate derivatives | IR-FX correlation | Option pricing | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0 | |||||
Level 3 | Net credit derivatives | Conditional default rate | Discounted cash flows | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.02 | |||||
Level 3 | Net credit derivatives | Conditional default rate | Discounted cash flows | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.92 | |||||
Level 3 | Net credit derivatives | Conditional default rate | Discounted cash flows | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.32 | |||||
Level 3 | Net credit derivatives | Loss severity | Discounted cash flows | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 1 | |||||
Level 3 | Net credit derivatives | Loss severity | Discounted cash flows | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 1 | |||||
Level 3 | Net credit derivatives | Loss severity | Discounted cash flows | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 1 | |||||
Level 3 | Net credit derivatives | Price | Market comparables | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0 | |||||
Level 3 | Net credit derivatives | Price | Market comparables | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 115 | |||||
Level 3 | Net credit derivatives | Price | Market comparables | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 71 | |||||
Level 3 | Net credit derivatives | Credit correlation | Discounted cash flows | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.32 | |||||
Level 3 | Net credit derivatives | Credit correlation | Discounted cash flows | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.64 | |||||
Level 3 | Net credit derivatives | Credit correlation | Discounted cash flows | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.47 | |||||
Level 3 | Net credit derivatives | Credit spread | Discounted cash flows | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.0006 | |||||
Level 3 | Net credit derivatives | Credit spread | Discounted cash flows | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.1360 | |||||
Level 3 | Net credit derivatives | Credit spread | Discounted cash flows | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.0459 | |||||
Level 3 | Net credit derivatives | Recovery rate | Discounted cash flows | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0 | |||||
Level 3 | Net credit derivatives | Recovery rate | Discounted cash flows | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.70 | |||||
Level 3 | Net credit derivatives | Recovery rate | Discounted cash flows | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.46 | |||||
Level 3 | Net foreign exchange derivatives | Prepayment speed | Discounted cash flows | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.09 | |||||
Level 3 | Net foreign exchange derivatives | Prepayment speed | Discounted cash flows | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.09 | |||||
Level 3 | Net foreign exchange derivatives | Prepayment speed | Discounted cash flows | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.09 | |||||
Level 3 | Net foreign exchange derivatives | IR-FX correlation | Option pricing | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | (0.50) | |||||
Level 3 | Net foreign exchange derivatives | IR-FX correlation | Option pricing | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.65 | |||||
Level 3 | Net foreign exchange derivatives | IR-FX correlation | Option pricing | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.19 | |||||
Level 3 | Net equity derivatives | Forward equity price | Option pricing | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.67 | |||||
Level 3 | Net equity derivatives | Forward equity price | Option pricing | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 1.05 | |||||
Level 3 | Net equity derivatives | Forward equity price | Option pricing | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.99 | |||||
Level 3 | Net equity derivatives | Equity volatility | Option pricing | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.03 | |||||
Level 3 | Net equity derivatives | Equity volatility | Option pricing | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 1.19 | |||||
Level 3 | Net equity derivatives | Equity volatility | Option pricing | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.35 | |||||
Level 3 | Net equity derivatives | Equity correlation | Option pricing | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.45 | |||||
Level 3 | Net equity derivatives | Equity correlation | Option pricing | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 1 | |||||
Level 3 | Net equity derivatives | Equity correlation | Option pricing | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.83 | |||||
Level 3 | Net equity derivatives | Equity-FX correlation | Option pricing | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | (0.77) | |||||
Level 3 | Net equity derivatives | Equity-FX correlation | Option pricing | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.55 | |||||
Level 3 | Net equity derivatives | Equity-FX correlation | Option pricing | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | (0.23) | |||||
Level 3 | Net equity derivatives | Equity-IR correlation | Option pricing | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.20 | |||||
Level 3 | Net equity derivatives | Equity-IR correlation | Option pricing | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.35 | |||||
Level 3 | Net equity derivatives | Equity-IR correlation | Option pricing | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.26 | |||||
Level 3 | Net commodity derivatives | Forward industrial metal price | Option pricing | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | $ / MT | 1,551 | |||||
Level 3 | Net commodity derivatives | Forward industrial metal price | Option pricing | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | $ / MT | 2,049 | |||||
Level 3 | Net commodity derivatives | Forward industrial metal price | Option pricing | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | $ / MT | 1,920 | |||||
Level 3 | Net commodity derivatives | Forward power price | Option pricing | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | $ / MWh | 14 | |||||
Level 3 | Net commodity derivatives | Forward power price | Option pricing | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | $ / MWh | 65 | |||||
Level 3 | Net commodity derivatives | Forward power price | Option pricing | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | $ / MWh | 23 | |||||
Level 3 | Net commodity derivatives | Commodity volatility | Option pricing | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.05 | |||||
Level 3 | Net commodity derivatives | Commodity volatility | Option pricing | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.94 | |||||
Level 3 | Net commodity derivatives | Commodity volatility | Option pricing | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.10 | |||||
Level 3 | Net commodity derivatives | Commodity correlation | Option pricing | Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | (0.45) | |||||
Level 3 | Net commodity derivatives | Commodity correlation | Option pricing | Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.95 | |||||
Level 3 | Net commodity derivatives | Commodity correlation | Option pricing | Average | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability), measurement inputs | 0.34 | |||||
Recurring | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Loans | $ 38,220 | 44,955 | ||||
MSRs | 3,016 | 4,699 | ||||
Long-term debt, short-term borrowings, and deposits | 458,062 | 233,844 | ||||
Recurring | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Loans | 1,806 | 516 | ||||
MSRs | 3,016 | 4,699 | ||||
Long-term debt, short-term borrowings, and deposits | 40,405 | $ 37,673 | ||||
Other level 3 asset and liabilities, net | 250 | |||||
Recurring | Level 3 | Discounted cash flows | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
MSRs | 3,016 | |||||
Other assets | 623 | |||||
Recurring | Level 3 | Market comparables | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Other assets | 688 | |||||
Recurring | Level 3 | Option pricing | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Long-term debt, short-term borrowings, and deposits | 27,880 | |||||
Recurring | Level 3 | Residential mortgage-backed securities and loans | Discounted cash flows | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities and loans | 1,249 | |||||
Recurring | Level 3 | Commercial mortgage-backed securities and loans | Market comparables | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities and loans | 451 | |||||
Recurring | Level 3 | Obligations of U.S. states and municipalities | Market comparables | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities, trading | 8 | |||||
Recurring | Level 3 | Corporate debt securities | Market comparables | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities, trading | 649 | |||||
Recurring | Level 3 | Loans | Market comparables | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Loans | 1,370 | |||||
Recurring | Level 3 | Trading loans | Market comparables | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Loans | 686 | |||||
Recurring | Level 3 | Trading loans | Market comparables | Commercial | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities and loans | 44 | |||||
Recurring | Level 3 | Nontrading loans | Discounted cash flows | Residential mortgage-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities and loans | 717 | |||||
Recurring | Level 3 | Nontrading loans | Market comparables | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Loans | 684 | |||||
Recurring | Level 3 | Nontrading loans | Market comparables | Commercial | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities and loans | 405 | |||||
Recurring | Level 3 | Asset-backed securities | Market comparables | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities, trading | 33 | |||||
Recurring | Level 3 | Net interest rate derivatives | Discounted cash flows | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability) | 34 | |||||
Recurring | Level 3 | Net interest rate derivatives | Option pricing | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability) | (6) | |||||
Recurring | Level 3 | Net credit derivatives | Discounted cash flows | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability) | (87) | |||||
Recurring | Level 3 | Net credit derivatives | Market comparables | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability) | 38 | |||||
Recurring | Level 3 | Net foreign exchange derivatives | Discounted cash flows | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability) | (149) | |||||
Recurring | Level 3 | Net foreign exchange derivatives | Option pricing | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability) | (527) | |||||
Recurring | Level 3 | Net equity derivatives | Option pricing | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability) | (3,103) | |||||
Recurring | Level 3 | Net commodity derivatives | Option pricing | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Net derivative asset (liability) | (621) | |||||
Recurring | Level 3 | Mortgage-backed securities, U.S. GSEs and government agencies | Discounted cash flows | Residential mortgage-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities and loans | 507 | |||||
Recurring | Level 3 | Residential mortgage-backed securities | Discounted cash flows | Residential mortgage-backed securities | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities and loans | 25 | |||||
Recurring | Level 3 | Commercial | Market comparables | Commercial | ||||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||||
Debt securities and loans | $ 2 |
Fair Value Measurement - Change
Fair Value Measurement - Changes in Level 3 Recurring Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Net derivative receivables: | |||||
Fair value, beginning balance | $ (3,169) | $ (4,437) | $ (4,489) | $ (3,796) | |
Total realized/unrealized gains/(losses) | (884) | (1,004) | 2,154 | (926) | |
Purchases | 378 | 240 | 1,152 | 482 | |
Sales | (516) | (206) | (1,843) | (938) | |
Settlements | (462) | (342) | (686) | (556) | |
Transfers into level 3 | (239) | (166) | (1,073) | (406) | |
Transfers (out of) level 3 | 471 | 923 | 364 | 1,148 | |
Fair value, ending balance | (4,421) | (4,992) | (4,421) | (4,992) | |
Change in unrealized gains/(losses) related to financial instruments held | $ (800) | (1,062) | $ 1,838 | (2,237) | |
Level 3 Rollforward Supplemental Data [Abstract] | |||||
Level 3 assets as a percentage of total firm assets at fair value | 1.00% | 1.00% | 2.00% | ||
Level 3 liabilities as a percentage of total firm liabilities at fair value | 9.00% | 9.00% | 16.00% | ||
Deposits | |||||
Liabilities: | |||||
Fair value, beginning balance | $ 3,217 | 4,066 | $ 3,360 | 4,169 | |
Total realized/unrealized (gains)/losses | 43 | 0 | 88 | 241 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 170 | 153 | 636 | 580 | |
Settlements | (110) | (188) | (538) | (504) | |
Transfers into level 3 | 0 | 12 | 265 | 12 | |
Transfers (out of) level 3 | (264) | (407) | (755) | (862) | |
Fair value, ending balance | 3,056 | 3,636 | 3,056 | 3,636 | |
Change in unrealized (gains)/losses related to financials instruments held | 87 | 16 | 137 | 250 | |
Short-term borrowings | |||||
Liabilities: | |||||
Fair value, beginning balance | 2,305 | 2,052 | 1,674 | 1,523 | |
Total realized/unrealized (gains)/losses | (47) | 24 | (294) | 142 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 1,421 | 949 | 3,961 | 2,637 | |
Settlements | (1,093) | (1,040) | (2,769) | (2,265) | |
Transfers into level 3 | 25 | 17 | 77 | 85 | |
Transfers (out of) level 3 | (3) | (1) | (41) | (121) | |
Fair value, ending balance | 2,608 | 2,001 | 2,608 | 2,001 | |
Change in unrealized (gains)/losses related to financials instruments held | (47) | 28 | (27) | 74 | |
Total debt and equity instruments | |||||
Liabilities: | |||||
Fair value, beginning balance | 59 | 45 | 41 | 50 | |
Total realized/unrealized (gains)/losses | (2) | 0 | 1 | 0 | |
Purchases | (5) | (5) | (81) | (12) | |
Sales | 5 | 25 | 12 | 41 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 1 | 1 | (4) | 1 | |
Transfers into level 3 | 3 | 2 | 96 | 9 | |
Transfers (out of) level 3 | (4) | 0 | (8) | (21) | |
Fair value, ending balance | 57 | 68 | 57 | 68 | |
Change in unrealized (gains)/losses related to financials instruments held | (3) | 0 | 0 | (1) | |
Accounts payable and other liabilities | |||||
Liabilities: | |||||
Fair value, beginning balance | 91 | 92 | 45 | 10 | |
Total realized/unrealized (gains)/losses | 3 | (6) | (1) | (7) | |
Purchases | (62) | (71) | (85) | (79) | |
Sales | 4 | 4 | 37 | 94 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfers into level 3 | 8 | 0 | 48 | 1 | |
Transfers (out of) level 3 | 0 | 0 | 0 | 0 | |
Fair value, ending balance | 44 | 19 | 44 | 19 | |
Change in unrealized (gains)/losses related to financials instruments held | 3 | (2) | 1 | 4 | |
Beneficial interests issued by consolidated VIEs | |||||
Liabilities: | |||||
Fair value, beginning balance | 0 | 0 | 0 | 1 | |
Total realized/unrealized (gains)/losses | 0 | 0 | 0 | (1) | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | 0 | |
Transfers into level 3 | 0 | 0 | 0 | 0 | |
Transfers (out of) level 3 | 0 | 0 | 0 | 0 | |
Fair value, ending balance | 0 | 0 | 0 | 0 | |
Change in unrealized (gains)/losses related to financials instruments held | 0 | 0 | 0 | 0 | |
Long-term debt | |||||
Liabilities: | |||||
Fair value, beginning balance | 22,728 | 21,863 | 23,339 | 19,418 | |
Total realized/unrealized (gains)/losses | 766 | 187 | (639) | 1,915 | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | 0 | 0 | 0 | 0 | |
Issuances | 1,225 | 2,230 | 7,432 | 6,929 | |
Settlements | (2,493) | (1,758) | (7,851) | (5,675) | |
Transfers into level 3 | 78 | 49 | 1,056 | 522 | |
Transfers (out of) level 3 | (88) | (222) | (1,121) | (760) | |
Fair value, ending balance | 22,216 | 22,349 | 22,216 | 22,349 | |
Change in unrealized (gains)/losses related to financials instruments held | 646 | 89 | (507) | 2,010 | |
Debit valuation adjustment for fair value option financial liabilities | |||||
Level 3 Rollforward Supplemental Data [Abstract] | |||||
Unrealized (gains)/losses on liabilities recorded in OCI | 120 | (62) | (78) | 108 | |
Interest rate | |||||
Net derivative receivables: | |||||
Fair value, beginning balance | (104) | (544) | (332) | (38) | |
Total realized/unrealized gains/(losses) | 657 | 88 | 2,052 | (575) | |
Purchases | 15 | 39 | 102 | 86 | |
Sales | (30) | (15) | (97) | (102) | |
Settlements | (647) | 53 | (1,510) | 174 | |
Transfers into level 3 | 35 | 10 | (317) | 22 | |
Transfers (out of) level 3 | 102 | 50 | 130 | 114 | |
Fair value, ending balance | 28 | (319) | 28 | (319) | |
Change in unrealized gains/(losses) related to financial instruments held | 323 | (15) | 290 | (694) | |
Credit | |||||
Net derivative receivables: | |||||
Fair value, beginning balance | (137) | (232) | (139) | (107) | |
Total realized/unrealized gains/(losses) | (62) | (65) | 0 | (209) | |
Purchases | 22 | 3 | 70 | 16 | |
Sales | (16) | (3) | (150) | (5) | |
Settlements | 154 | (23) | 137 | (13) | |
Transfers into level 3 | (12) | 3 | 59 | 7 | |
Transfers (out of) level 3 | 2 | 0 | (26) | (6) | |
Fair value, ending balance | (49) | (317) | (49) | (317) | |
Change in unrealized gains/(losses) related to financial instruments held | (21) | (68) | 24 | (169) | |
Foreign exchange | |||||
Net derivative receivables: | |||||
Fair value, beginning balance | (595) | (193) | (607) | (297) | |
Total realized/unrealized gains/(losses) | (57) | (653) | (214) | (840) | |
Purchases | 7 | 2 | 46 | 13 | |
Sales | (7) | (1) | (16) | (18) | |
Settlements | (34) | (1) | 75 | 294 | |
Transfers into level 3 | 7 | 6 | 15 | (19) | |
Transfers (out of) level 3 | 3 | (1) | 25 | 26 | |
Fair value, ending balance | (676) | (841) | (676) | (841) | |
Change in unrealized gains/(losses) related to financial instruments held | (90) | (657) | (181) | (815) | |
Equity | |||||
Net derivative receivables: | |||||
Fair value, beginning balance | (2,036) | (2,560) | (3,395) | (2,225) | |
Total realized/unrealized gains/(losses) | (1,437) | (382) | 564 | 328 | |
Purchases | 323 | 174 | 912 | 335 | |
Sales | (384) | (118) | (1,473) | (573) | |
Settlements | 29 | (377) | 558 | (1,062) | |
Transfers into level 3 | 33 | (203) | (524) | (418) | |
Transfers (out of) level 3 | 369 | (2) | 255 | 147 | |
Fair value, ending balance | (3,103) | (3,468) | (3,103) | (3,468) | |
Change in unrealized gains/(losses) related to financial instruments held | (1,051) | (362) | 1,342 | (1,193) | |
Commodity | |||||
Net derivative receivables: | |||||
Fair value, beginning balance | (297) | (908) | (16) | (1,129) | |
Total realized/unrealized gains/(losses) | 15 | 8 | (248) | 370 | |
Purchases | 11 | 22 | 22 | 32 | |
Sales | (79) | (69) | (107) | (240) | |
Settlements | 36 | 6 | 54 | 51 | |
Transfers into level 3 | (302) | 18 | (306) | 2 | |
Transfers (out of) level 3 | (5) | 876 | (20) | 867 | |
Fair value, ending balance | (621) | (47) | (621) | (47) | |
Change in unrealized gains/(losses) related to financial instruments held | 39 | 40 | 363 | 634 | |
Total mortgage-backed securities | |||||
Assets: | |||||
Fair value, beginning balance | 494 | 668 | 824 | 624 | |
Total realized/unrealized gains/(losses) | (4) | (71) | (154) | (84) | |
Purchases | 118 | 429 | 147 | 849 | |
Sales | (30) | (112) | (153) | (382) | |
Settlements | (41) | (45) | (125) | (117) | |
Transfers into level 3 | 0 | 0 | 1 | 31 | |
Transfers (out of) level 3 | (3) | (29) | (6) | (81) | |
Fair value, ending balance | 534 | 840 | 534 | 840 | |
Change in unrealized gains/(losses) related to financial instruments held | (2) | (71) | (134) | (116) | |
Mortgage-backed securities, U.S. GSEs and government agencies | |||||
Assets: | |||||
Fair value, beginning balance | 469 | 617 | 797 | 549 | |
Total realized/unrealized gains/(losses) | (4) | (71) | (153) | (111) | |
Purchases | 110 | 424 | 134 | 747 | |
Sales | (28) | (104) | (149) | (272) | |
Settlements | (40) | (45) | (122) | (83) | |
Transfers into level 3 | 0 | 0 | 0 | 1 | |
Transfers (out of) level 3 | 0 | (10) | 0 | (20) | |
Fair value, ending balance | 507 | 811 | 507 | 811 | |
Change in unrealized gains/(losses) related to financial instruments held | (2) | (70) | (140) | (116) | |
Mortgage-backed securities, Residential - nonagency | |||||
Assets: | |||||
Fair value, beginning balance | 23 | 42 | 23 | 64 | |
Total realized/unrealized gains/(losses) | 0 | 0 | (1) | 25 | |
Purchases | 8 | 2 | 12 | 83 | |
Sales | (2) | (3) | (4) | (86) | |
Settlements | (1) | 0 | (2) | (20) | |
Transfers into level 3 | 0 | 0 | 0 | 15 | |
Transfers (out of) level 3 | (3) | (17) | (3) | (57) | |
Fair value, ending balance | 25 | 24 | 25 | 24 | |
Change in unrealized gains/(losses) related to financial instruments held | 0 | (1) | 2 | (1) | |
Mortgage-backed securities, Commercial - nonagency | |||||
Assets: | |||||
Fair value, beginning balance | 2 | 9 | 4 | 11 | |
Total realized/unrealized gains/(losses) | 0 | 0 | 0 | 2 | |
Purchases | 0 | 3 | 1 | 19 | |
Sales | 0 | (5) | 0 | (24) | |
Settlements | 0 | 0 | (1) | (14) | |
Transfers into level 3 | 0 | 0 | 1 | 15 | |
Transfers (out of) level 3 | 0 | (2) | (3) | (4) | |
Fair value, ending balance | 2 | 5 | 2 | 5 | |
Change in unrealized gains/(losses) related to financial instruments held | 0 | 0 | 4 | 1 | |
Total debt and equity instruments | |||||
Assets: | |||||
Fair value, beginning balance | 3,129 | 3,388 | 2,685 | 3,200 | |
Total realized/unrealized gains/(losses) | 171 | (73) | (70) | 42 | |
Purchases | 718 | 723 | 1,907 | 1,977 | |
Sales | (388) | (531) | (987) | (1,569) | |
Settlements | (293) | (87) | (525) | (359) | |
Transfers into level 3 | 188 | 187 | 1,245 | 665 | |
Transfers (out of) level 3 | (567) | (180) | (1,297) | (529) | |
Fair value, ending balance | 2,958 | 3,427 | 2,958 | 3,427 | |
Change in unrealized gains/(losses) related to financial instruments held | 163 | (121) | 73 | (38) | |
Total debt instruments | |||||
Assets: | |||||
Fair value, beginning balance | 2,559 | 2,930 | 2,257 | 2,667 | |
Total realized/unrealized gains/(losses) | 72 | (77) | (230) | 28 | |
Purchases | 502 | 678 | 1,657 | 1,894 | |
Sales | (280) | (506) | (869) | (1,461) | |
Settlements | (291) | (72) | (502) | (296) | |
Transfers into level 3 | 82 | 141 | 982 | 522 | |
Transfers (out of) level 3 | (525) | (169) | (1,176) | (429) | |
Fair value, ending balance | 2,119 | 2,925 | 2,119 | 2,925 | |
Change in unrealized gains/(losses) related to financial instruments held | 57 | (128) | (150) | (72) | |
Obligations of U.S. states and municipalities | |||||
Assets: | |||||
Fair value, beginning balance | 8 | 680 | 10 | 689 | |
Total realized/unrealized gains/(losses) | 0 | (2) | 0 | 12 | |
Purchases | 0 | 27 | 0 | 85 | |
Sales | 0 | (77) | (1) | (152) | |
Settlements | 0 | (1) | (1) | (7) | |
Transfers into level 3 | 0 | 0 | 0 | 0 | |
Transfers (out of) level 3 | 0 | 0 | 0 | 0 | |
Fair value, ending balance | 8 | 627 | 8 | 627 | |
Change in unrealized gains/(losses) related to financial instruments held | 0 | (2) | 0 | 13 | |
Non-U.S. government debt securities | |||||
Assets: | |||||
Fair value, beginning balance | 167 | 190 | 155 | 155 | |
Total realized/unrealized gains/(losses) | 6 | (1) | 10 | (2) | |
Purchases | 25 | 40 | 164 | 228 | |
Sales | (23) | (74) | (148) | (231) | |
Settlements | (2) | 0 | (7) | 0 | |
Transfers into level 3 | 0 | 3 | 0 | 14 | |
Transfers (out of) level 3 | (8) | (12) | (9) | (18) | |
Fair value, ending balance | 165 | 146 | 165 | 146 | |
Change in unrealized gains/(losses) related to financial instruments held | 6 | (1) | 7 | 3 | |
Corporate debt securities | |||||
Assets: | |||||
Fair value, beginning balance | 946 | 562 | 558 | 334 | |
Total realized/unrealized gains/(losses) | 45 | 45 | (10) | 74 | |
Purchases | 114 | 56 | 475 | 340 | |
Sales | (33) | (167) | (131) | (236) | |
Settlements | (225) | 0 | (234) | (53) | |
Transfers into level 3 | 4 | 17 | 296 | 96 | |
Transfers (out of) level 3 | (202) | (29) | (305) | (71) | |
Fair value, ending balance | 649 | 484 | 649 | 484 | |
Change in unrealized gains/(losses) related to financial instruments held | 45 | 3 | 13 | 15 | |
Loans | |||||
Assets: | |||||
Fair value, beginning balance | 905 | 797 | 673 | 738 | |
Total realized/unrealized gains/(losses) | 22 | (48) | (72) | 28 | |
Purchases | 240 | 115 | 829 | 362 | |
Sales | (173) | (74) | (400) | (379) | |
Settlements | (21) | (24) | (130) | (80) | |
Transfers into level 3 | 69 | 118 | 676 | 358 | |
Transfers (out of) level 3 | (312) | (94) | (846) | (237) | |
Fair value, ending balance | 730 | 790 | 730 | 790 | |
Change in unrealized gains/(losses) related to financial instruments held | 8 | (55) | (35) | 16 | |
Asset-backed securities | |||||
Assets: | |||||
Fair value, beginning balance | 39 | 33 | 37 | 127 | |
Total realized/unrealized gains/(losses) | 3 | 0 | (4) | 0 | |
Purchases | 5 | 11 | 42 | 30 | |
Sales | (21) | (2) | (36) | (81) | |
Settlements | (2) | (2) | (5) | (39) | |
Transfers into level 3 | 9 | 3 | 9 | 23 | |
Transfers (out of) level 3 | 0 | (5) | (10) | (22) | |
Fair value, ending balance | 33 | 38 | 33 | 38 | |
Change in unrealized gains/(losses) related to financial instruments held | 0 | (2) | (1) | (3) | |
Equity securities | |||||
Assets: | |||||
Fair value, beginning balance | 191 | 147 | 196 | 232 | |
Total realized/unrealized gains/(losses) | 24 | (14) | (79) | (28) | |
Purchases | 13 | 10 | 37 | 33 | |
Sales | (104) | (10) | (109) | (92) | |
Settlements | 0 | 0 | 0 | (22) | |
Transfers into level 3 | 104 | 46 | 259 | 142 | |
Transfers (out of) level 3 | (42) | (9) | (118) | (95) | |
Fair value, ending balance | 186 | 170 | 186 | 170 | |
Change in unrealized gains/(losses) related to financial instruments held | 29 | (16) | (40) | (21) | |
Other | |||||
Assets: | |||||
Fair value, beginning balance | 379 | 311 | 232 | 301 | |
Total realized/unrealized gains/(losses) | 75 | 18 | 239 | 42 | |
Purchases | 203 | 35 | 213 | 50 | |
Sales | (4) | (15) | (9) | (16) | |
Settlements | (2) | (15) | (23) | (41) | |
Transfers into level 3 | 2 | 0 | 4 | 1 | |
Transfers (out of) level 3 | 0 | (2) | (3) | (5) | |
Fair value, ending balance | 653 | 332 | 653 | 332 | |
Change in unrealized gains/(losses) related to financial instruments held | 77 | 23 | 263 | 55 | |
Total available-for-sale securities | |||||
Assets: | |||||
Fair value, beginning balance | 0 | 0 | 1 | 1 | |
Total realized/unrealized gains/(losses) | 0 | 0 | 0 | 0 | |
Purchases | 0 | 1 | 0 | 1 | |
Sales | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | (1) | (1) | |
Transfers into level 3 | 0 | 0 | 0 | 0 | |
Transfers (out of) level 3 | 0 | 0 | 0 | 0 | |
Fair value, ending balance | 0 | 1 | 0 | 1 | |
Change in unrealized gains/(losses) related to financial instruments held | 0 | 0 | 0 | 0 | |
Mortgage-backed securities | |||||
Assets: | |||||
Fair value, beginning balance | 0 | 0 | 1 | 1 | |
Total realized/unrealized gains/(losses) | 0 | 0 | 0 | 0 | |
Purchases | 0 | 1 | 0 | 1 | |
Sales | 0 | 0 | 0 | 0 | |
Settlements | 0 | 0 | (1) | (1) | |
Transfers into level 3 | 0 | 0 | 0 | 0 | |
Transfers (out of) level 3 | 0 | 0 | 0 | 0 | |
Fair value, ending balance | 0 | 1 | 0 | 1 | |
Change in unrealized gains/(losses) related to financial instruments held | 0 | 0 | 0 | 0 | |
Loans | |||||
Assets: | |||||
Fair value, beginning balance | 1,874 | 775 | 516 | 856 | |
Total realized/unrealized gains/(losses) | (44) | 1 | (195) | 41 | |
Purchases | 197 | 26 | 450 | 224 | |
Sales | (44) | (8) | (77) | (36) | |
Settlements | (324) | (84) | (678) | (364) | |
Transfers into level 3 | 316 | 93 | 2,312 | 151 | |
Transfers (out of) level 3 | (169) | (43) | (522) | (112) | |
Fair value, ending balance | 1,806 | 760 | 1,806 | 760 | |
Change in unrealized gains/(losses) related to financial instruments held | (44) | 6 | (147) | 25 | |
Mortgage servicing rights | |||||
Assets: | |||||
Fair value, beginning balance | 3,080 | 5,093 | 4,699 | 6,130 | |
Total realized/unrealized gains/(losses) | 34 | (447) | (1,459) | (1,572) | |
Purchases | 221 | 388 | 663 | 1,250 | |
Sales | (104) | (359) | (177) | (687) | |
Settlements | (215) | (256) | (710) | (702) | |
Transfers into level 3 | 0 | 0 | 0 | 0 | |
Transfers (out of) level 3 | 0 | 0 | 0 | 0 | |
Fair value, ending balance | 3,016 | 4,419 | 3,016 | 4,419 | |
Change in unrealized gains/(losses) related to financial instruments held | 34 | (447) | (1,459) | (1,572) | |
Other assets | |||||
Assets: | |||||
Fair value, beginning balance | 701 | 1,072 | 917 | 1,161 | |
Total realized/unrealized gains/(losses) | (21) | (53) | (56) | (122) | |
Purchases | 5 | 30 | 66 | 193 | |
Sales | 0 | (72) | (28) | (161) | |
Settlements | (27) | (34) | (281) | (122) | |
Transfers into level 3 | 0 | 0 | 40 | 1 | |
Transfers (out of) level 3 | 0 | 0 | 0 | (7) | |
Fair value, ending balance | 658 | 943 | 658 | 943 | |
Change in unrealized gains/(losses) related to financial instruments held | $ 32 | $ (53) | $ 4 | $ (142) |
Fair Value Measurement - Leve_2
Fair Value Measurement - Level 3 Analysis (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Level 3 Analysis - Supplemental Data [Abstract] | |||||
Percentage of level 3 assets in total Firm assets | 0.60% | 0.60% | |||
Long-term debt | |||||
Level 3 Analysis - Supplemental Data [Abstract] | |||||
Increase in level 3 liabilities | $ 78 | $ 49 | $ 1,056 | $ 522 | |
Decrease in level 3 liabilities | 88 | 222 | 1,121 | 760 | |
Nontrading loans | |||||
Level 3 Analysis - Supplemental Data [Abstract] | |||||
Increase in level 3 assets | 316 | 93 | 2,312 | 151 | |
Decrease in level 3 assets | 169 | 43 | 522 | 112 | |
Recurring | |||||
Level 3 Analysis - Supplemental Data [Abstract] | |||||
Assets fair value | 1,279,324 | 1,279,324 | $ 802,830 | ||
Recurring | Long-term debt | |||||
Level 3 Analysis - Supplemental Data [Abstract] | |||||
Increase in level 3 liabilities | 1,100 | ||||
Decrease in level 3 liabilities | 1,100 | ||||
Recurring | Equity | Derivative payables | |||||
Level 3 Analysis - Supplemental Data [Abstract] | |||||
Increase in level 3 liabilities | 2,700 | ||||
Decrease in level 3 liabilities | 965 | 1,900 | |||
Recurring | Commodity | Derivative payables | |||||
Level 3 Analysis - Supplemental Data [Abstract] | |||||
Decrease in level 3 liabilities | 906 | 927 | |||
Recurring | Nontrading loans | |||||
Level 3 Analysis - Supplemental Data [Abstract] | |||||
Increase in level 3 assets | 2,300 | ||||
Recurring | Derivative receivables | Equity | |||||
Level 3 Analysis - Supplemental Data [Abstract] | |||||
Increase in level 3 assets | 2,200 | ||||
Decrease in level 3 assets | 1,700 | ||||
Recurring | Level 3 | |||||
Level 3 Analysis - Supplemental Data [Abstract] | |||||
Assets fair value | 16,441 | 16,441 | $ 13,543 | ||
Increase (decrease) in level 3 assets | (980) | 2,900 | |||
Realized/unrealized gains (losses), assets | (744) | (1,600) | 374 | (2,500) | |
Realized/unrealized gains (losses), liabilities | $ (763) | $ (205) | 845 | $ (2,300) | |
Recurring | Level 3 | Nontrading loans | |||||
Level 3 Analysis - Supplemental Data [Abstract] | |||||
Increase (decrease) in level 3 assets | 1,300 | ||||
Recurring | Level 3 | Derivative receivables | Equity | |||||
Level 3 Analysis - Supplemental Data [Abstract] | |||||
Increase (decrease) in level 3 assets | 2,000 | ||||
Recurring | Level 3 | MSRs | |||||
Level 3 Analysis - Supplemental Data [Abstract] | |||||
Increase (decrease) in level 3 assets | $ (1,700) |
Fair Value Measurement - Impact
Fair Value Measurement - Impact of Credit Adjustments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Credit and funding adjustments: | ||||
Derivatives CVA | $ 144 | $ 55 | $ (574) | $ 71 |
Derivatives FVA | $ 109 | $ (83) | $ (236) | $ (20) |
Fair Value Measurement - Nonrec
Fair Value Measurement - Nonrecurring Basis (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity securities adjusted based on the measurement alternative | $ 2,329,000,000 | $ 2,771,000,000 | $ 2,329,000,000 | $ 2,771,000,000 | $ 2,400,000,000 |
Net gains as a result of measurement alternative | 36,000,000 | 48,000,000 | 49,000,000 | 183,000,000 | |
Net losses as a result of measurement alternative | (34,000,000) | 0 | $ (204,000,000) | (37,000,000) | |
Residential mortgage | Broker price opinions | Minimum | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value inputs, liquidation value discount | 14.00% | ||||
Residential mortgage | Broker price opinions | Maximum | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value inputs, liquidation value discount | 46.00% | ||||
Residential mortgage | Broker price opinions | Weighted average | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value inputs, liquidation value discount | 30.00% | ||||
Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total assets measured at fair value on a nonrecurring basis | 3,458,000,000 | 6,391,000,000 | $ 3,458,000,000 | 6,391,000,000 | |
Total liabilities measured at fair value on a nonrecurring basis | 3,000,000 | 0 | 3,000,000 | 0 | |
Total nonrecurring fair value gains/(losses) | (306,000,000) | (105,000,000) | (860,000,000) | (95,000,000) | |
Nonrecurring | Accounts payable and other liabilities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total liabilities measured at fair value on a nonrecurring basis | 3,000,000 | 3,000,000 | |||
Held-for-sale positions, including unfunded commitments in bridge financing portfolio | 556,000,000 | 556,000,000 | |||
Total nonrecurring fair value gains/(losses) | 92,000,000 | 0 | (3,000,000) | 0 | |
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 | 2,502,000,000 | 5,584,000,000 | 2,502,000,000 | 5,584,000,000 | |
Total nonrecurring fair value gains/(losses) | (35,000,000) | (142,000,000) | (318,000,000) | (232,000,000) | |
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 | 956,000,000 | 807,000,000 | 956,000,000 | 807,000,000 | |
Total nonrecurring fair value gains/(losses) | (363,000,000) | 37,000,000 | (539,000,000) | 137,000,000 | |
Net gains as a result of measurement alternative | 2,000,000 | 48,000,000 | 146,000,000 | ||
Net losses as a result of measurement alternative | (155,000,000) | ||||
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 | 0 | 0 | |
Total liabilities measured at fair value on a nonrecurring basis | 0 | 0 | |||
Nonrecurring | Level 1 | Accounts payable and other liabilities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total liabilities 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 | 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 | 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 | 1,725,000,000 | 5,356,000,000 | 1,725,000,000 | 5,356,000,000 | |
Total liabilities measured at fair value on a nonrecurring basis | 0 | 0 | |||
Nonrecurring | Level 2 | Accounts payable and other liabilities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total liabilities measured at fair value on a nonrecurring basis | 0 | 0 | |||
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 | 1,714,000,000 | 5,338,000,000 | 1,714,000,000 | 5,338,000,000 | |
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 | 11,000,000 | 18,000,000 | 11,000,000 | 18,000,000 | |
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 | 1,733,000,000 | 1,035,000,000 | 1,733,000,000 | 1,035,000,000 | |
Total liabilities measured at fair value on a nonrecurring basis | 3,000,000 | 3,000,000 | |||
Nonrecurring | Level 3 | Accounts payable and other liabilities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total liabilities measured at fair value on a nonrecurring basis | 3,000,000 | 3,000,000 | |||
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 | 788,000,000 | 246,000,000 | 788,000,000 | 246,000,000 | |
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 | 471,000,000 | 471,000,000 | |||
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 | 945,000,000 | $ 789,000,000 | 945,000,000 | $ 789,000,000 | |
Equity securities adjusted based on the measurement alternative | $ 377,000,000 | $ 377,000,000 |
Fair Value Measurement - Equity
Fair Value Measurement - Equity Securities Without Readily Determinable Fair Value (Details) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)shares | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)shares | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Fair Value Disclosures [Abstract] | |||||
Carrying value | $ 2,329 | $ 2,771 | $ 2,329 | $ 2,771 | $ 2,400 |
Upward carrying value changes | 36 | 48 | 49 | 183 | |
Downward carrying value changes/impairment | (34) | $ 0 | (204) | $ (37) | |
Cumulative upward carrying value changes | 590 | 590 | |||
Cumulative downward carrying value changes/impairment | $ (334) | $ (334) | |||
Common stock | Class B | VISA | |||||
Investment Holdings [Line Items] | |||||
Interest owned, included in other assets (in shares) | shares | 40 | 40 | |||
Conversion rate | 1.6228 | 1.6228 |
Fair Value Measurement - Carryi
Fair Value Measurement - Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Financial assets | ||
Cash and due from banks | $ 20,816 | $ 21,704 |
Deposits with banks | 466,706 | 241,927 |
Federal funds sold and securities purchased under resale agreements | 319,849 | 249,157 |
Investment securities, held-to-maturity | 144,996 | 48,941 |
Loans, net of allowance for loan losses | 38,220 | 44,955 |
Financial liabilities | ||
Beneficial interests issued by consolidated VIEs | 19,191 | 17,841 |
Carrying value | ||
Financial assets | ||
Cash and due from banks | 20,800 | 21,700 |
Deposits with banks | 466,700 | 241,900 |
Accrued interest and accounts receivable | 76,000 | 71,300 |
Federal funds sold and securities purchased under resale agreements | 35,100 | 234,600 |
Securities borrowed | 97,900 | 133,500 |
Investment securities, held-to-maturity | 141,600 | 47,500 |
Loans, net of allowance for loan losses | 920,700 | 939,500 |
Other | 77,000 | 61,300 |
Financial liabilities | ||
Deposits | 1,982,100 | 1,533,800 |
Federal funds purchased and securities loaned or sold under repurchase agreements | 55,500 | 183,100 |
Short-term borrowings | 23,000 | 35,000 |
Accounts payable and other liabilities | 189,500 | 164,000 |
Beneficial interests issued by consolidated VIEs | 19,200 | 17,800 |
Long-term debt | 206,200 | 215,500 |
Wholesale lending-related commitments | 2,600 | 1,200 |
Total estimated fair value | ||
Financial assets | ||
Cash and due from banks | 20,800 | 21,700 |
Deposits with banks | 466,700 | 241,900 |
Accrued interest and accounts receivable | 76,000 | 71,300 |
Federal funds sold and securities purchased under resale agreements | 35,100 | 234,600 |
Securities borrowed | 97,900 | 133,500 |
Investment securities, held-to-maturity | 145,000 | 48,900 |
Loans, net of allowance for loan losses | 948,700 | 949,000 |
Other | 77,200 | 61,400 |
Financial liabilities | ||
Deposits | 1,982,200 | 1,534,100 |
Federal funds purchased and securities loaned or sold under repurchase agreements | 55,500 | 183,100 |
Short-term borrowings | 23,000 | 35,000 |
Accounts payable and other liabilities | 189,200 | 163,600 |
Beneficial interests issued by consolidated VIEs | 19,200 | 17,900 |
Long-term debt | 208,700 | 221,800 |
Wholesale lending-related commitments | 2,400 | 1,900 |
Total estimated fair value | Level 1 | ||
Financial assets | ||
Cash and due from banks | 20,800 | 21,700 |
Deposits with banks | 466,700 | 241,900 |
Accrued interest and accounts receivable | 0 | 0 |
Federal funds sold and securities purchased under resale agreements | 0 | 0 |
Securities borrowed | 0 | 0 |
Investment securities, held-to-maturity | 100 | 100 |
Loans, net of allowance for loan losses | 0 | 0 |
Other | 0 | 0 |
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 | 100 |
Beneficial interests issued by consolidated VIEs | 0 | 0 |
Long-term debt | 0 | 0 |
Wholesale lending-related commitments | 0 | 0 |
Total estimated fair value | Level 2 | ||
Financial assets | ||
Cash and due from banks | 0 | 0 |
Deposits with banks | 0 | 0 |
Accrued interest and accounts receivable | 75,900 | 71,200 |
Federal funds sold and securities purchased under resale agreements | 35,100 | 234,600 |
Securities borrowed | 97,900 | 133,500 |
Investment securities, held-to-maturity | 144,900 | 48,800 |
Loans, net of allowance for loan losses | 211,700 | 214,100 |
Other | 75,800 | 60,600 |
Financial liabilities | ||
Deposits | 1,982,200 | 1,534,100 |
Federal funds purchased and securities loaned or sold under repurchase agreements | 55,500 | 183,100 |
Short-term borrowings | 23,000 | 35,000 |
Accounts payable and other liabilities | 185,400 | 160,000 |
Beneficial interests issued by consolidated VIEs | 19,200 | 17,900 |
Long-term debt | 205,500 | 218,300 |
Wholesale lending-related commitments | 0 | 0 |
Total estimated fair value | Level 3 | ||
Financial assets | ||
Cash and due from banks | 0 | 0 |
Deposits with banks | 0 | 0 |
Accrued interest and accounts receivable | 100 | 100 |
Federal funds sold and securities purchased under resale agreements | 0 | 0 |
Securities borrowed | 0 | 0 |
Investment securities, held-to-maturity | 0 | 0 |
Loans, net of allowance for loan losses | 737,000 | 734,900 |
Other | 1,400 | 800 |
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 | 3,800 | 3,500 |
Beneficial interests issued by consolidated VIEs | 0 | 0 |
Long-term debt | 3,200 | 3,500 |
Wholesale lending-related commitments | $ 2,400 | $ 1,900 |
Fair Value Option - Changes in
Fair Value Option - Changes in Fair Value Under the Fair Value Option (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Federal funds sold and securities purchased under resale agreements | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | $ (148) | $ (23) | $ 96 | $ 10 |
Federal funds sold and securities purchased under resale agreements | Principal transactions | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | (148) | (23) | 96 | 10 |
Federal funds sold and securities purchased under resale agreements | All other income | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 0 | 0 | 0 | 0 |
Securities borrowed | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 5 | 99 | 173 | 179 |
Securities borrowed | Principal transactions | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 5 | 99 | 173 | 179 |
Securities borrowed | All other income | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 0 | 0 | 0 | 0 |
Debt and equity instruments, excluding loans | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 879 | 546 | (351) | 2,104 |
Debt and equity instruments, excluding loans | Principal transactions | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 879 | 546 | (350) | 2,104 |
Debt and equity instruments, excluding loans | All other income | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 0 | 0 | (1) | 0 |
Loans reported as trading assets: Changes in instrument-specific credit risk | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 216 | (40) | (39) | 150 |
Loans reported as trading assets: Changes in instrument-specific credit risk | Principal transactions | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 216 | (40) | (39) | 150 |
Loans reported as trading assets: Changes in instrument-specific credit risk | All other income | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 0 | 0 | 0 | 0 |
Loans reported as trading assets: Other changes in fair value | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 0 | 0 | 1 | (1) |
Loans reported as trading assets: Other changes in fair value | Principal transactions | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 0 | 0 | 1 | (1) |
Loans reported as trading assets: Other changes in fair value | All other income | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 0 | 0 | 0 | 0 |
Loans: Changes in instrument-specific credit risk | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 99 | 140 | 145 | 387 |
Loans: Changes in instrument-specific credit risk | Principal transactions | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 112 | 144 | 143 | 386 |
Loans: Changes in instrument-specific credit risk | All other income | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | (13) | (4) | 2 | 1 |
Loans: Other changes in fair value | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 1,021 | 396 | 2,780 | 1,170 |
Loans: Other changes in fair value | Principal transactions | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 93 | 76 | 357 | 285 |
Loans: Other changes in fair value | All other income | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 928 | 320 | 2,423 | 885 |
Other assets | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | (35) | (5) | 75 | 1 |
Other assets | Principal transactions | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | (28) | (5) | 74 | (2) |
Other assets | All other income | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | (7) | 0 | 1 | 3 |
Deposits | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | (147) | (397) | (612) | (1,589) |
Deposits | Principal transactions | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | (147) | (397) | (612) | (1,589) |
Realized gains/(losses) due to instrument-specific credit risk recorded in principal transactions revenue | 1 | 0 | 20 | 0 |
Deposits | All other income | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 0 | 0 | 0 | 0 |
Federal funds purchased and securities loaned or sold under repurchase agreements | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 58 | 2 | (20) | (18) |
Federal funds purchased and securities loaned or sold under repurchase agreements | Principal transactions | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 58 | 2 | (20) | (18) |
Federal funds purchased and securities loaned or sold under repurchase agreements | All other income | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 0 | 0 | 0 | 0 |
Short-term borrowings | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | (54) | 173 | 1,035 | (601) |
Short-term borrowings | Principal transactions | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | (54) | 173 | 1,035 | (601) |
Short-term borrowings | All other income | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 0 | 0 | 0 | 0 |
Trading liabilities | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 1 | 0 | 1 | 5 |
Trading liabilities | Principal transactions | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 1 | 0 | 1 | 5 |
Trading liabilities | All other income | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 0 | 0 | 0 | 0 |
Other liabilities | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | (8) | 1 | (54) | (7) |
Other liabilities | Principal transactions | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | (8) | 1 | (54) | (7) |
Other liabilities | All other income | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | 0 | 0 | 0 | 0 |
Long-term debt | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | (534) | (614) | 69 | (5,220) |
Long-term debt | Principal transactions | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | (530) | (614) | 70 | (5,220) |
Long-term debt | All other income | ||||
Changes in fair value under the fair value option election | ||||
Total nonrecurring fair value gains/(losses) | $ (4) | $ 0 | $ (1) | $ 0 |
Fair Value Option - Aggregate D
Fair Value Option - Aggregate Differences (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
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 | 13,200,000,000 | 8,600,000,000 |
Contractual lending-related commitments, fair value | (115,000,000) | (120,000,000) |
Contractual principal outstanding | ||
Loans | ||
Nonaccrual loans | 5,206,000,000 | 3,527,000,000 |
90 or more days past due and government guaranteed | 310,000,000 | 138,000,000 |
All other performing loans | 43,147,000,000 | 52,243,000,000 |
Total loans | 48,663,000,000 | 55,908,000,000 |
Contractual principal outstanding | Principal-protected debt | ||
Long-term debt | ||
Total long-term debt | 40,141,000,000 | 40,124,000,000 |
Contractual principal outstanding | Loans reported as trading assets | ||
Loans | ||
Nonaccrual loans | 2,917,000,000 | 2,563,000,000 |
90 or more days past due and government guaranteed | 0 | 0 |
All other performing loans | 7,654,000,000 | 8,288,000,000 |
Contractual principal outstanding | Loans | ||
Loans | ||
Nonaccrual loans | 2,289,000,000 | 964,000,000 |
90 or more days past due and government guaranteed | 310,000,000 | 138,000,000 |
All other performing loans | 35,493,000,000 | 43,955,000,000 |
Fair value | ||
Loans | ||
Nonaccrual loans | 2,442,000,000 | 930,000,000 |
90 or more days past due and government guaranteed | 297,000,000 | 129,000,000 |
All other performing loans | 41,759,000,000 | 50,909,000,000 |
Total loans | 44,498,000,000 | 51,968,000,000 |
Long-term debt | ||
Total long-term debt | 72,986,000,000 | 75,745,000,000 |
Long-term beneficial interests | ||
Total long-term beneficial interests | 39,000,000 | 36,000,000 |
Fair value | Principal-protected debt | ||
Long-term debt | ||
Total long-term debt | 39,536,000,000 | 39,246,000,000 |
Fair value | Nonprincipal-protected debt | ||
Long-term debt | ||
Total long-term debt | 33,450,000,000 | 36,499,000,000 |
Long-term beneficial interests | ||
Total long-term beneficial interests | 39,000,000 | 36,000,000 |
Fair value | Loans reported as trading assets | ||
Loans | ||
Nonaccrual loans | 434,000,000 | 234,000,000 |
90 or more days past due and government guaranteed | 0 | 0 |
All other performing loans | 5,844,000,000 | 6,779,000,000 |
Fair value | Loans | ||
Loans | ||
Nonaccrual loans | 2,008,000,000 | 696,000,000 |
90 or more days past due and government guaranteed | 297,000,000 | 129,000,000 |
All other performing loans | 35,915,000,000 | 44,130,000,000 |
Fair value over/(under) contractual principal outstanding | ||
Loans | ||
Nonaccrual loans, Fair value over/(under) contractual principal outstanding | (2,764,000,000) | (2,597,000,000) |
90 or more days past due and government guaranteed, Fair value over/(under) contractual principal outstanding | (13,000,000) | (9,000,000) |
All other performing loans | (1,388,000,000) | (1,334,000,000) |
Total loans | (4,165,000,000) | (3,940,000,000) |
Fair value over/(under) contractual principal outstanding | Principal-protected debt | ||
Long-term debt | ||
Long-term debt, Fair value over/(under) contractual principal outstanding | (605,000,000) | (878,000,000) |
Fair value over/(under) contractual principal outstanding | Loans reported as trading assets | ||
Loans | ||
Nonaccrual loans, Fair value over/(under) contractual principal outstanding | (2,483,000,000) | (2,329,000,000) |
90 or more days past due and government guaranteed, Fair value over/(under) contractual principal outstanding | 0 | 0 |
All other performing loans | (1,810,000,000) | (1,509,000,000) |
Fair value over/(under) contractual principal outstanding | Loans | ||
Loans | ||
Nonaccrual loans, Fair value over/(under) contractual principal outstanding | (281,000,000) | (268,000,000) |
90 or more days past due and government guaranteed, Fair value over/(under) contractual principal outstanding | (13,000,000) | (9,000,000) |
All other performing loans | $ 422,000,000 | $ 175,000,000 |
Fair Value Option - Structured
Fair Value Option - Structured Note Products by Balance Sheet Classification and Risk Component (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | $ 96,509 | $ 106,982 |
Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 44,303 | 52,196 |
Credit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 6,354 | 6,590 |
Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 3,779 | 3,915 |
Equity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 39,410 | 42,323 |
Commodity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 2,663 | 1,958 |
Long-term debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 72,322 | 74,813 |
Long-term debt | Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 36,598 | 35,470 |
Long-term debt | Credit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 5,302 | 5,715 |
Long-term debt | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 3,645 | 3,862 |
Long-term debt | Equity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 26,414 | 29,294 |
Long-term debt | Commodity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 363 | 472 |
Short-term borrowings | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 7,173 | 5,841 |
Short-term borrowings | Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 59 | 34 |
Short-term borrowings | Credit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 1,052 | 875 |
Short-term borrowings | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 134 | 48 |
Short-term borrowings | Equity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 5,902 | 4,852 |
Short-term borrowings | Commodity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 26 | 32 |
Deposits | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 17,014 | 26,328 |
Deposits | Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 7,646 | 16,692 |
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 | 0 | 5 |
Deposits | Equity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 7,094 | 8,177 |
Deposits | Commodity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | $ 2,274 | $ 1,454 |
Credit Risk Concentrations (Det
Credit Risk Concentrations (Details) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020USD ($)loan_segment | Dec. 31, 2019USD ($)loan_segment | ||
Risks and Uncertainties [Abstract] | |||
Number of portfolio segments | loan_segment | 3 | 3 | |
Concentration Risk [Line Items] | |||
Credit exposure | $ 2,247,733 | $ 2,189,491 | |
On-balance sheet, Loans | [1] | 989,740 | 997,620 |
On-balance sheet, Derivatives | 76,626 | 49,766 | |
Off-balance sheet | 1,150,520 | 1,108,399 | |
Available-for-sale securities | 389,583 | 350,699 | |
HTM securities | 141,553 | 47,540 | |
Cash placed with banks | 478,400 | 254,000 | |
Obligations of U.S. states and municipalities | |||
Concentration Risk [Line Items] | |||
Trading assets | 7,500 | 6,500 | |
Available-for-sale securities | 20,883 | 29,810 | |
HTM securities | 12,828 | 4,797 | |
Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 76,626 | 49,766 | |
Consumer | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 1,171,760 | 1,177,630 | |
On-balance sheet, Loans | 462,475 | 486,741 | |
Off-balance sheet | 709,285 | 690,889 | |
Consumer, excluding credit card | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Loans | 322,098 | 317,817 | |
Consumer, excluding credit card | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 368,523 | 357,986 | |
On-balance sheet, Loans | 322,098 | 317,817 | |
Off-balance sheet | 46,425 | 40,169 | |
Consumer, excluding credit card | Credit Concentration Risk | Paycheck Protection Program (PPP) | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Loans | 20,300 | ||
Credit card | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Loans | 140,377 | 168,924 | |
Credit card | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 803,237 | 819,644 | |
On-balance sheet, Loans | 140,377 | 168,924 | |
Off-balance sheet | 662,860 | 650,720 | |
Wholesale | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Loans | 527,265 | 510,879 | |
Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 1,075,973 | 1,011,861 | |
On-balance sheet, Loans | 527,265 | 510,879 | |
Off-balance sheet | 441,235 | 417,510 | |
Wholesale-related | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 76,626 | 49,766 | |
Wholesale-related | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 1,018,702 | 948,954 | |
On-balance sheet, Loans | 500,841 | 481,678 | |
Off-balance sheet | 441,235 | 417,510 | |
Real Estate | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 1,491 | 619 | |
Real Estate | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 147,483 | 150,919 | |
On-balance sheet, Loans | 120,241 | 117,709 | |
Off-balance sheet | 25,751 | 32,591 | |
Individuals and Individual Entities | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 1,744 | 694 | |
Individuals and Individual Entities | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 115,469 | 105,027 | |
On-balance sheet, Loans | 102,315 | 94,616 | |
Off-balance sheet | 11,410 | 9,717 | |
Consumer & Retail | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 2,802 | 1,424 | |
Consumer & Retail | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 107,037 | 106,986 | |
On-balance sheet, Loans | 41,461 | 36,985 | |
Off-balance sheet | 62,774 | 68,577 | |
Industrials | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 1,570 | 878 | |
Industrials | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 68,950 | 62,483 | |
On-balance sheet, Loans | 23,247 | 22,063 | |
Off-balance sheet | 44,133 | 39,542 | |
Technology, Media & Telecommunications | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 3,294 | 2,766 | |
Technology, Media & Telecommunications | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 64,800 | 60,033 | |
On-balance sheet, Loans | 15,054 | 15,322 | |
Off-balance sheet | 46,452 | 41,945 | |
Asset Managers | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 8,758 | 7,160 | |
Asset Managers | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 61,569 | 54,304 | |
On-balance sheet, Loans | 26,167 | 24,008 | |
Off-balance sheet | 26,644 | 23,136 | |
Healthcare | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 3,430 | 2,078 | |
Healthcare | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 59,864 | 50,824 | |
On-balance sheet, Loans | 20,617 | 17,607 | |
Off-balance sheet | 35,817 | 31,139 | |
Banks & Finance Cos | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 7,206 | 5,165 | |
Banks & Finance Cos | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 53,385 | 50,786 | |
On-balance sheet, Loans | 28,953 | 31,191 | |
Off-balance sheet | 17,226 | 14,430 | |
Automotive | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 3,453 | 368 | |
Automotive | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 40,930 | 35,118 | |
On-balance sheet, Loans | 16,819 | 18,844 | |
Off-balance sheet | 20,658 | 15,906 | |
Oil & Gas | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 1,340 | 852 | |
Oil & Gas | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 40,431 | 41,641 | |
On-balance sheet, Loans | 12,920 | 13,101 | |
Off-balance sheet | 26,171 | 27,688 | |
State & Municipal Govt | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 2,435 | 2,000 | |
State & Municipal Govt | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 37,472 | 30,095 | |
On-balance sheet, Loans | 17,245 | 13,271 | |
Off-balance sheet | 17,792 | 14,824 | |
Utilities | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 3,104 | 2,573 | |
Utilities | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 30,135 | 34,843 | |
On-balance sheet, Loans | 5,213 | 5,157 | |
Off-balance sheet | 21,818 | 27,113 | |
Transportation | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 1,713 | 715 | |
Transportation | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 17,154 | 14,497 | |
On-balance sheet, Loans | 7,689 | 5,253 | |
Off-balance sheet | 7,752 | 8,529 | |
Chemicals & Plastics | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 755 | 459 | |
Chemicals & Plastics | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 16,780 | 17,499 | |
On-balance sheet, Loans | 4,577 | 4,864 | |
Off-balance sheet | 11,448 | 12,176 | |
Central Govt | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 11,693 | 10,477 | |
Central Govt | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 16,265 | 14,865 | |
On-balance sheet, Loans | 3,016 | 2,840 | |
Off-balance sheet | 1,556 | 1,548 | |
Metals & Mining | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 739 | 402 | |
Metals & Mining | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 15,900 | 15,586 | |
On-balance sheet, Loans | 4,959 | 5,364 | |
Off-balance sheet | 10,202 | 9,820 | |
Insurance | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 2,741 | 2,282 | |
Insurance | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 13,509 | 12,348 | |
On-balance sheet, Loans | 1,215 | 1,356 | |
Off-balance sheet | 9,553 | 8,710 | |
Financial Markets Infrastructure | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 6,376 | 2,482 | |
Financial Markets Infrastructure | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 10,311 | 4,121 | |
On-balance sheet, Loans | 177 | 13 | |
Off-balance sheet | 3,758 | 1,626 | |
Securities Firms | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 4,865 | 4,507 | |
Securities Firms | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 8,092 | 7,381 | |
On-balance sheet, Loans | 599 | 757 | |
Off-balance sheet | 2,628 | 2,117 | |
All other | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 7,117 | 1,865 | |
All other | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 93,166 | 79,598 | |
On-balance sheet, Loans | 48,357 | 51,357 | |
Off-balance sheet | $ 37,692 | $ 26,376 | |
All other | Wholesale | Credit Concentration Risk | SPEs and Private education | |||
Concentration Risk [Line Items] | |||
Percentage of exposure secured | 91.00% | 90.00% | |
All other | Wholesale | Credit Concentration Risk | Civic organizations | |||
Concentration Risk [Line Items] | |||
Percentage of exposure secured | 9.00% | 10.00% | |
Loans held-for-sale and loans at fair value | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | $ 26,424 | $ 29,201 | |
On-balance sheet, Loans | 26,424 | 29,201 | |
Receivables from customers and other | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | $ 30,847 | $ 33,706 | |
[1] | In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans and other assets. Prior-period amounts have been revised to conform with the current presentation. |
Derivative Instruments - Notion
Derivative Instruments - Notional Amount of Derivative Contracts (Details) - USD ($) $ in Billions | Sep. 30, 2020 | Dec. 31, 2019 |
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | $ 51,078 | $ 46,942 |
Interest rate contracts | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 34,219 | 32,679 |
Swaps | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 22,746 | 21,228 |
Futures and forwards | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 4,086 | 3,152 |
Options | Written options | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 3,512 | 3,938 |
Options | Purchased options | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 3,875 | 4,361 |
Credit derivatives | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 1,450 | 1,242 |
Foreign exchange contracts | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 12,781 | 10,599 |
Cross-currency swaps | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 3,852 | 3,604 |
Spot, futures and forwards | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 7,304 | 5,577 |
Options | Written options | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 810 | 700 |
Options | Purchased options | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 815 | 718 |
Equity contracts | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 2,012 | 1,805 |
Swaps | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 416 | 406 |
Futures and forwards | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 130 | 142 |
Options | Written options | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 752 | 646 |
Options | Purchased options | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 714 | 611 |
Commodity contracts | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 616 | 617 |
Swaps | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 134 | 147 |
Spot, futures and forwards | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 219 | 211 |
Options | Written options | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 138 | 135 |
Options | Purchased options | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | $ 125 | $ 124 |
Derivative Instruments - Impact
Derivative Instruments - Impact on Balance Sheet (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | $ 664,902 | $ 529,626 |
Net derivative receivables | 76,626 | 49,766 |
Gross derivative payables | 637,772 | 512,128 |
Net derivative payables | 57,658 | 43,708 |
Interest rate | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 398,479 | 313,294 |
Net derivative receivables | 37,058 | 27,421 |
Gross derivative payables | 359,357 | 279,273 |
Net derivative payables | 12,471 | 8,603 |
Credit | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 15,144 | 14,876 |
Net derivative receivables | 1,393 | 701 |
Gross derivative payables | 16,417 | 15,121 |
Net derivative payables | 2,242 | 1,652 |
Foreign exchange | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 155,488 | 138,487 |
Net derivative receivables | 11,428 | 9,005 |
Gross derivative payables | 165,218 | 145,108 |
Net derivative payables | 15,513 | 13,158 |
Equity | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 73,535 | 45,727 |
Net derivative receivables | 18,936 | 6,477 |
Gross derivative payables | 73,932 | 52,741 |
Net derivative payables | 19,356 | 12,537 |
Commodity | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 22,256 | 17,242 |
Net derivative receivables | 7,811 | 6,162 |
Gross derivative payables | 22,848 | 19,885 |
Net derivative payables | 8,076 | 7,758 |
Not designated as hedges | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 663,005 | 528,147 |
Gross derivative payables | 635,971 | 510,995 |
Not designated as hedges | Interest rate | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 397,677 | 312,451 |
Gross derivative payables | 359,357 | 279,272 |
Not designated as hedges | Credit | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 15,144 | 14,876 |
Gross derivative payables | 16,417 | 15,121 |
Not designated as hedges | Foreign exchange | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 155,016 | 138,179 |
Gross derivative payables | 164,434 | 144,125 |
Not designated as hedges | Equity | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 73,535 | 45,727 |
Gross derivative payables | 73,932 | 52,741 |
Not designated as hedges | Commodity | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 21,633 | 16,914 |
Gross derivative payables | 21,831 | 19,736 |
Designated as hedges | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 1,897 | 1,479 |
Gross derivative payables | 1,801 | 1,133 |
Designated as hedges | Interest rate | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 802 | 843 |
Gross derivative payables | 0 | 1 |
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 | 472 | 308 |
Gross derivative payables | 784 | 983 |
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 | 623 | 328 |
Gross derivative payables | $ 1,017 | $ 149 |
Derivative Instruments - Deriva
Derivative Instruments - Derivatives Netting (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | $ 642,634 | $ 516,083 |
Amounts netted on the Consolidated balance sheets | (588,276) | (479,860) |
Net derivative receivables | 54,358 | 36,223 |
Derivative receivables where an appropriate legal opinion has not been either sought or obtained | 22,268 | 13,543 |
Total derivative receivables recognized on the Consolidated balance sheets, Gross derivative receivables | 664,902 | 529,626 |
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 76,626 | 49,766 |
Collateral not nettable on the Consolidated balance sheets | (17,742) | (14,226) |
Net amounts | 58,884 | 35,540 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 616,761 | 497,977 |
Amounts netted on the Consolidated balance sheets | (580,114) | (468,420) |
Net derivative payables | 36,647 | 29,557 |
Derivative payables where an appropriate legal opinion has not been either sought or obtained | 21,011 | 14,151 |
Total derivative payables recognized on the Consolidated balance sheets, Gross derivative payables | 637,772 | 512,128 |
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 57,658 | 43,708 |
Collateral not nettable on the Consolidated balance sheets | (11,359) | (7,896) |
Net amounts | 46,299 | 35,812 |
Net cash collateral receivables | 80,100 | 65,900 |
Net cash collateral payables | 71,900 | 54,400 |
Interest rate contracts | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 392,409 | 308,994 |
Amounts netted on the Consolidated balance sheets | (361,421) | (285,873) |
Net derivative receivables | 30,988 | 23,121 |
Total derivative receivables recognized on the Consolidated balance sheets, Gross derivative receivables | 398,479 | 313,294 |
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 37,058 | 27,421 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 357,755 | 277,893 |
Amounts netted on the Consolidated balance sheets | (346,886) | (270,670) |
Net derivative payables | 10,869 | 7,223 |
Total derivative payables recognized on the Consolidated balance sheets, Gross derivative payables | 359,357 | 279,273 |
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 12,471 | 8,603 |
Interest rate contracts | Over-the-counter (“OTC”) | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 376,615 | 299,205 |
Amounts netted on the Consolidated balance sheets | (345,771) | (276,255) |
Net derivative receivables | 30,844 | 22,950 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 340,775 | 267,311 |
Amounts netted on the Consolidated balance sheets | (330,136) | (260,229) |
Net derivative payables | 10,639 | 7,082 |
Interest rate contracts | OTC–cleared | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 15,121 | 9,442 |
Amounts netted on the Consolidated balance sheets | (14,984) | (9,360) |
Net derivative receivables | 137 | 82 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 16,396 | 10,217 |
Amounts netted on the Consolidated balance sheets | (16,172) | (10,138) |
Net derivative payables | 224 | 79 |
Interest rate contracts | Exchange-traded | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 673 | 347 |
Amounts netted on the Consolidated balance sheets | (666) | (258) |
Net derivative receivables | 7 | 89 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 584 | 365 |
Amounts netted on the Consolidated balance sheets | (578) | (303) |
Net derivative payables | 6 | 62 |
Net credit derivatives | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 14,566 | 14,607 |
Amounts netted on the Consolidated balance sheets | (13,751) | (14,175) |
Net derivative receivables | 815 | 432 |
Total derivative receivables recognized on the Consolidated balance sheets, Gross derivative receivables | 15,144 | 14,876 |
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 1,393 | 701 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 15,670 | 14,960 |
Amounts netted on the Consolidated balance sheets | (14,175) | (13,469) |
Net derivative payables | 1,495 | 1,491 |
Total derivative payables recognized on the Consolidated balance sheets, Gross derivative payables | 16,417 | 15,121 |
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 2,242 | 1,652 |
Net credit derivatives | Over-the-counter (“OTC”) | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 10,710 | 10,743 |
Amounts netted on the Consolidated balance sheets | (9,913) | (10,317) |
Net derivative receivables | 797 | 426 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 11,855 | 11,570 |
Amounts netted on the Consolidated balance sheets | (10,369) | (10,080) |
Net derivative payables | 1,486 | 1,490 |
Net credit derivatives | OTC–cleared | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 3,856 | 3,864 |
Amounts netted on the Consolidated balance sheets | (3,838) | (3,858) |
Net derivative receivables | 18 | 6 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 3,815 | 3,390 |
Amounts netted on the Consolidated balance sheets | (3,806) | (3,389) |
Net derivative payables | 9 | 1 |
Foreign exchange contracts | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 152,304 | 136,447 |
Amounts netted on the Consolidated balance sheets | (144,060) | (129,482) |
Net derivative receivables | 8,244 | 6,965 |
Total derivative receivables recognized on the Consolidated balance sheets, Gross derivative receivables | 155,488 | 138,487 |
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 11,428 | 9,005 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 161,665 | 142,558 |
Amounts netted on the Consolidated balance sheets | (149,705) | (131,950) |
Net derivative payables | 11,960 | 10,608 |
Total derivative payables recognized on the Consolidated balance sheets, Gross derivative payables | 165,218 | 145,108 |
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 15,513 | 13,158 |
Foreign exchange contracts | Over-the-counter (“OTC”) | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 151,749 | 136,252 |
Amounts netted on the Consolidated balance sheets | (143,538) | (129,324) |
Net derivative receivables | 8,211 | 6,928 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 161,052 | 142,360 |
Amounts netted on the Consolidated balance sheets | (149,114) | (131,792) |
Net derivative payables | 11,938 | 10,568 |
Foreign exchange contracts | OTC–cleared | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 538 | 185 |
Amounts netted on the Consolidated balance sheets | (521) | (152) |
Net derivative receivables | 17 | 33 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 596 | 186 |
Amounts netted on the Consolidated balance sheets | (587) | (152) |
Net derivative payables | 9 | 34 |
Foreign exchange contracts | Exchange-traded | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 17 | 10 |
Amounts netted on the Consolidated balance sheets | (1) | (6) |
Net derivative receivables | 16 | 4 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 17 | 12 |
Amounts netted on the Consolidated balance sheets | (4) | (6) |
Net derivative payables | 13 | 6 |
Equity contracts | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 65,204 | 42,760 |
Amounts netted on the Consolidated balance sheets | (54,599) | (39,250) |
Net derivative receivables | 10,605 | 3,510 |
Total derivative receivables recognized on the Consolidated balance sheets, Gross derivative receivables | 73,535 | 45,727 |
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 18,936 | 6,477 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 63,563 | 47,810 |
Amounts netted on the Consolidated balance sheets | (54,576) | (40,204) |
Net derivative payables | 8,987 | 7,606 |
Total derivative payables recognized on the Consolidated balance sheets, Gross derivative payables | 73,932 | 52,741 |
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 19,356 | 12,537 |
Equity contracts | Over-the-counter (“OTC”) | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 31,974 | 23,106 |
Amounts netted on the Consolidated balance sheets | (25,914) | (20,820) |
Net derivative receivables | 6,060 | 2,286 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 31,055 | 27,594 |
Amounts netted on the Consolidated balance sheets | (25,921) | (21,778) |
Net derivative payables | 5,134 | 5,816 |
Equity contracts | Exchange-traded | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 33,230 | 19,654 |
Amounts netted on the Consolidated balance sheets | (28,685) | (18,430) |
Net derivative receivables | 4,545 | 1,224 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 32,508 | 20,216 |
Amounts netted on the Consolidated balance sheets | (28,655) | (18,426) |
Net derivative payables | 3,853 | 1,790 |
Commodity contracts | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 18,151 | 13,275 |
Amounts netted on the Consolidated balance sheets | (14,445) | (11,080) |
Net derivative receivables | 3,706 | 2,195 |
Total derivative receivables recognized on the Consolidated balance sheets, Gross derivative receivables | 22,256 | 17,242 |
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 7,811 | 6,162 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 18,108 | 14,756 |
Amounts netted on the Consolidated balance sheets | (14,772) | (12,127) |
Net derivative payables | 3,336 | 2,629 |
Total derivative payables recognized on the Consolidated balance sheets, Gross derivative payables | 22,848 | 19,885 |
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 8,076 | 7,758 |
Commodity contracts | Over-the-counter (“OTC”) | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 11,812 | 7,093 |
Amounts netted on the Consolidated balance sheets | (8,395) | (5,149) |
Net derivative receivables | 3,417 | 1,944 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 11,868 | 8,714 |
Amounts netted on the Consolidated balance sheets | (8,590) | (6,235) |
Net derivative payables | 3,278 | 2,479 |
Commodity contracts | OTC–cleared | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 22 | 28 |
Amounts netted on the Consolidated balance sheets | (22) | (28) |
Net derivative receivables | 0 | 0 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 39 | 30 |
Amounts netted on the Consolidated balance sheets | (39) | (30) |
Net derivative payables | 0 | 0 |
Commodity contracts | Exchange-traded | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 6,317 | 6,154 |
Amounts netted on the Consolidated balance sheets | (6,028) | (5,903) |
Net derivative receivables | 289 | 251 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 6,201 | 6,012 |
Amounts netted on the Consolidated balance sheets | (6,143) | (5,862) |
Net derivative payables | $ 58 | $ 150 |
Derivative Instruments - Liquid
Derivative Instruments - Liquidity Risk and Credit-Related Contingent Features (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Aggregate fair value of net derivative payables | $ 25,629 | $ 14,819 |
Collateral posted | 24,299 | 13,329 |
Single-notch downgrade | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of additional collateral to be posted upon downgrade | 163 | 189 |
Amount required to settle contracts with termination triggers upon downgrade | 158 | 104 |
Two-notch downgrade | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of additional collateral to be posted upon downgrade | 1,273 | 1,467 |
Amount required to settle contracts with termination triggers upon downgrade | $ 1,977 | $ 1,398 |
Derivative Instruments - Impa_2
Derivative Instruments - Impact on Statements of Income, Fair Value Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Gains/(losses) recorded in income | ||||
Derivatives | $ (726) | $ 1,881 | $ 3,895 | $ 4,801 |
Hedged items | 1,056 | (1,489) | (2,881) | (3,761) |
Income statement impact | 330 | 392 | 1,014 | 1,040 |
Income statement impact of excluded components: | ||||
Amortization approach | (79) | (224) | (379) | (675) |
Changes in fair value | 350 | 403 | 984 | 1,033 |
OCI impact | ||||
Derivatives - Gains/(losses) recorded in OCI | (91) | (1) | 45 | 114 |
Interest rate | ||||
Gains/(losses) recorded in income | ||||
Derivatives | (464) | 1,770 | 4,087 | 4,996 |
Hedged items | 743 | (1,550) | (3,333) | (4,399) |
Income statement impact | 279 | 220 | 754 | 597 |
Income statement impact of excluded components: | ||||
Amortization approach | 0 | 0 | 0 | 0 |
Changes in fair value | 309 | 228 | 728 | 596 |
OCI impact | ||||
Derivatives - Gains/(losses) recorded in OCI | 0 | 0 | 0 | 0 |
Foreign exchange | ||||
Gains/(losses) recorded in income | ||||
Derivatives | 307 | (167) | 579 | (31) |
Hedged items | (280) | 293 | (430) | 401 |
Income statement impact | 27 | 126 | 149 | 370 |
Income statement impact of excluded components: | ||||
Amortization approach | (79) | (224) | (379) | (675) |
Changes in fair value | 27 | 126 | 149 | 370 |
OCI impact | ||||
Derivatives - Gains/(losses) recorded in OCI | (91) | (1) | 45 | 114 |
Commodity | ||||
Gains/(losses) recorded in income | ||||
Derivatives | (569) | 278 | (771) | (164) |
Hedged items | 593 | (232) | 882 | 237 |
Income statement impact | 24 | 46 | 111 | 73 |
Income statement impact of excluded components: | ||||
Amortization approach | 0 | 0 | 0 | 0 |
Changes in fair value | 14 | 49 | 107 | 67 |
OCI impact | ||||
Derivatives - Gains/(losses) recorded in OCI | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Instruments - Cumula
Derivative Instruments - Cumulative Fair Value Hedging Adjustments (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Commodity contracts | ||
Assets | ||
Carrying amount of the hedged items | $ 9,500 | $ 6,500 |
Long-term debt | ||
Liabilities | ||
Carrying amount of the hedged items | 173,402 | 157,545 |
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items: | ||
Active hedging relationships | 5,324 | 6,719 |
Discontinued hedging relationships | 11,790 | 161 |
Total | 17,114 | 6,880 |
Long-term debt | Not designated as hedges | ||
Liabilities | ||
Carrying amount of the hedged items | 6,400 | 2,800 |
Beneficial interests issued by consolidated VIEs | ||
Liabilities | ||
Carrying amount of the hedged items | 746 | 2,365 |
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items: | ||
Active hedging relationships | 0 | 0 |
Discontinued hedging relationships | (3) | (8) |
Total | (3) | (8) |
Investment securities - AFS | ||
Assets | ||
Carrying amount of the hedged items | 136,335 | 125,860 |
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items: | ||
Active hedging relationships | 5,171 | 2,110 |
Discontinued hedging relationships | 800 | 278 |
Total | 5,971 | 2,388 |
Investment securities - AFS | Not designated as hedges | ||
Assets | ||
Carrying amount of the hedged items | $ 14,400 | $ 14,900 |
Derivative Instruments - Impa_3
Derivative Instruments - Impact on Statements of Income, Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivatives gains/(losses) recorded in income and other comprehensive income/(loss) | ||||
Recognition of (after-tax) net gains related to cash flow hedges in Income | $ 709 | |||
Maximum length of time hedged in forecasted transactions, terminated cash flow hedges | 9 years | |||
Maximum length of time hedged in forecasted transactions, open cash flow hedges | 7 years | |||
Cash Flow Hedging | ||||
Derivatives gains/(losses) recorded in income and other comprehensive income/(loss) | ||||
Amounts reclassified from AOCI to income | $ 227 | $ (37) | $ 328 | $ (102) |
Amounts recorded in OCI | 134 | 222 | 3,787 | 464 |
Total change in OCI for period | (93) | 259 | 3,459 | 566 |
Cash Flow Hedging | Interest rate | ||||
Derivatives gains/(losses) recorded in income and other comprehensive income/(loss) | ||||
Amounts reclassified from AOCI to income | 214 | (16) | 332 | (12) |
Amounts recorded in OCI | 8 | 290 | 3,881 | 501 |
Total change in OCI for period | (206) | 306 | 3,549 | 513 |
Cash Flow Hedging | Foreign exchange | ||||
Derivatives gains/(losses) recorded in income and other comprehensive income/(loss) | ||||
Amounts reclassified from AOCI to income | 13 | (21) | (4) | (90) |
Amounts recorded in OCI | 126 | (68) | (94) | (37) |
Total change in OCI for period | $ 113 | $ (47) | $ (90) | $ 53 |
Derivative Instruments - Impa_4
Derivative Instruments - Impact on Statements of Income, Net Investment Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Unrealized gains/(losses) on investment securities | ||||
Gains/(losses) recorded in income and other comprehensive income/(loss) | ||||
Pre-tax gain (loss) reclassified related to liquidation of legal entity | $ 0 | $ 0 | $ 5 | |
Unrealized gains/(losses) on investment securities | Other Income | ||||
Gains/(losses) recorded in income and other comprehensive income/(loss) | ||||
Pre-tax gain (loss) reclassified related to liquidation of legal entity | 0 | (8) | 5 | |
Net Investment Hedging | Foreign exchange | ||||
Gains/(losses) recorded in income and other comprehensive income/(loss) | ||||
Amounts recorded in income | (37) | $ 17 | (108) | 65 |
Amounts recorded in OCI | $ (868) | $ 866 | $ 308 | $ 705 |
Derivative Instruments - Impa_5
Derivative Instruments - Impact on Statements of Income, Risk Management Derivatives (Details) - Risk Management Activities - Not designated as hedges - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Gain (Loss) on Derivative Instruments, Net, Pretax [Abstract] | ||||
Derivatives gains/(losses) recorded in income | $ 596 | $ 788 | $ 2,571 | $ 1,700 |
Interest rate | ||||
Gain (Loss) on Derivative Instruments, Net, Pretax [Abstract] | ||||
Derivatives gains/(losses) recorded in income | 597 | 769 | 2,533 | 1,718 |
Credit | ||||
Gain (Loss) on Derivative Instruments, Net, Pretax [Abstract] | ||||
Derivatives gains/(losses) recorded in income | (19) | (21) | (58) | (33) |
Foreign exchange | ||||
Gain (Loss) on Derivative Instruments, Net, Pretax [Abstract] | ||||
Derivatives gains/(losses) recorded in income | $ 18 | $ 40 | $ 96 | $ 15 |
Derivative Instruments - Credit
Derivative Instruments - Credit Derivatives (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Total credit derivatives and credit-related notes | ||
Protection sold | $ (701,481) | $ (612,733) |
Protection purchased with identical underlyings | 734,398 | 618,433 |
Net protection (sold)/purchased | 32,917 | 5,700 |
Other protection purchased | 23,496 | 20,906 |
Total credit derivatives | ||
Total credit derivatives and credit-related notes | ||
Protection sold | (701,481) | (612,733) |
Protection purchased with identical underlyings | 734,398 | 618,433 |
Net protection (sold)/purchased | 32,917 | 5,700 |
Other protection purchased | 14,044 | 11,300 |
Credit default swaps | ||
Total credit derivatives and credit-related notes | ||
Protection sold | (655,517) | (562,338) |
Protection purchased with identical underlyings | 671,373 | 571,892 |
Net protection (sold)/purchased | 15,856 | 9,554 |
Other protection purchased | 3,847 | 3,936 |
Other credit derivatives | ||
Total credit derivatives and credit-related notes | ||
Protection sold | (45,964) | (50,395) |
Protection purchased with identical underlyings | 63,025 | 46,541 |
Net protection (sold)/purchased | 17,061 | (3,854) |
Other protection purchased | 10,197 | 7,364 |
Credit-related notes | ||
Total credit derivatives and credit-related notes | ||
Protection sold | 0 | 0 |
Protection purchased with identical underlyings | 0 | 0 |
Net protection (sold)/purchased | 0 | 0 |
Other protection purchased | $ 9,452 | $ 9,606 |
Derivative Instruments - Cred_2
Derivative Instruments - Credit Derivatives, Protection Sold, Notional and Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Protection sold credit derivatives and credit related notes ratings/maturity profile | ||
Protection sold credit derivatives and credit related notes ratings/maturity profile - less than 1 year | $ (140,348) | $ (161,587) |
Protection sold credit derivatives and credit-related notes ratings/maturity profile - from 1-5 years | (447,442) | (399,176) |
Protection sold credit derivatives and credit-related notes ratings/maturity profile - more than 5 years | (113,691) | (51,970) |
Total notional amount | (701,481) | (612,733) |
Fair value of receivables | 8,169 | 10,455 |
Fair value of payables | (6,082) | (3,718) |
Net fair value | 2,087 | 6,737 |
Investment-grade | ||
Protection sold credit derivatives and credit related notes ratings/maturity profile | ||
Protection sold credit derivatives and credit related notes ratings/maturity profile - less than 1 year | (102,910) | (119,788) |
Protection sold credit derivatives and credit-related notes ratings/maturity profile - from 1-5 years | (334,763) | (311,407) |
Protection sold credit derivatives and credit-related notes ratings/maturity profile - more than 5 years | (87,060) | (42,129) |
Total notional amount | (524,733) | (473,324) |
Fair value of receivables | 4,837 | 6,168 |
Fair value of payables | (1,757) | (901) |
Net fair value | 3,080 | 5,267 |
Noninvestment-grade | ||
Protection sold credit derivatives and credit related notes ratings/maturity profile | ||
Protection sold credit derivatives and credit related notes ratings/maturity profile - less than 1 year | (37,438) | (41,799) |
Protection sold credit derivatives and credit-related notes ratings/maturity profile - from 1-5 years | (112,679) | (87,769) |
Protection sold credit derivatives and credit-related notes ratings/maturity profile - more than 5 years | (26,631) | (9,841) |
Total notional amount | (176,748) | (139,409) |
Fair value of receivables | 3,332 | 4,287 |
Fair value of payables | (4,325) | (2,817) |
Net fair value | $ (993) | $ 1,470 |
Noninterest Revenue and Nonin_3
Noninterest Revenue and Noninterest Expense - Investment Banking Fees (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of Noninterest revenue [Line Items] | ||||
Underwriting | $ 1,755 | $ 1,472 | $ 5,379 | $ 4,013 |
Advisory | 432 | 495 | 1,524 | 1,645 |
Total investment banking fees | 2,187 | 1,967 | 6,903 | 5,658 |
Equity | ||||
Schedule of Noninterest revenue [Line Items] | ||||
Underwriting | 736 | 517 | 2,037 | 1,293 |
Debt | ||||
Schedule of Noninterest revenue [Line Items] | ||||
Underwriting | $ 1,019 | $ 955 | $ 3,342 | $ 2,720 |
Noninterest Revenue and Nonin_4
Noninterest Revenue and Noninterest Expense - Principal Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Principal transactions revenue | ||||
Total trading revenue | $ 4,108 | $ 3,430 | $ 14,656 | $ 11,297 |
Private equity gains/(losses) | 34 | 19 | 44 | (58) |
Principal transactions | 4,142 | 3,449 | 14,700 | 11,239 |
Interest rate | ||||
Principal transactions revenue | ||||
Total trading revenue | 287 | 866 | 2,258 | 2,128 |
Credit | ||||
Principal transactions revenue | ||||
Total trading revenue | 950 | 309 | 2,201 | 1,402 |
Foreign exchange | ||||
Principal transactions revenue | ||||
Total trading revenue | 714 | 876 | 3,606 | 2,501 |
Equity | ||||
Principal transactions revenue | ||||
Total trading revenue | 1,410 | 1,007 | 4,816 | 4,282 |
Commodity | ||||
Principal transactions revenue | ||||
Total trading revenue | $ 747 | $ 372 | $ 1,775 | $ 984 |
Noninterest Revenue and Nonin_5
Noninterest Revenue and Noninterest Expense - Lending and Deposit-Related Fees (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Noninterest Income (Expense) [Abstract] | |||||
Lending-related fees | $ 337 | $ 286 | $ 916 | $ 861 | |
Deposit-related fees | 1,310 | 1,385 | 3,868 | 3,993 | |
Total lending- and deposit-related fees | [1] | $ 1,647 | $ 1,671 | $ 4,784 | $ 4,854 |
[1] | In the first quarter of 2020, the Firm reclassified certain fees from asset management, administration and commissions to lending- and deposit-related fees. Prior-period amounts have been revised to conform with the current presentation. |
Noninterest Revenue and Nonin_6
Noninterest Revenue and Noninterest Expense - Asset Management, Administration and Commissions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Asset management fees | |||||
Investment management fees | $ 2,937 | $ 2,738 | $ 8,439 | $ 8,013 | |
All other asset management fees | 85 | 82 | 253 | 229 | |
Total asset management fees | 3,022 | 2,820 | 8,692 | 8,242 | |
Total administration fees | 561 | 567 | 1,661 | 1,646 | |
Commissions and other fees | |||||
Brokerage commissions | 645 | 634 | 2,224 | 1,861 | |
All other commissions and fees | 242 | 285 | 699 | 858 | |
Total commissions and fees | 887 | 919 | 2,923 | 2,719 | |
Total asset management, administration and commissions | [1] | $ 4,470 | $ 4,306 | $ 13,276 | $ 12,607 |
[1] | In the first quarter of 2020, the Firm reclassified certain fees from asset management, administration and commissions to lending- and deposit-related fees. Prior-period amounts have been revised to conform with the current presentation. |
Noninterest Revenue and Nonin_7
Noninterest Revenue and Noninterest Expense - Card Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Disaggregation of Revenue [Line Items] | |||||
Total card income | [1] | $ 1,169 | $ 1,233 | $ 3,138 | $ 3,741 |
Interchange and merchant processing income | |||||
Disaggregation of Revenue [Line Items] | |||||
Total card income | 4,757 | 5,127 | 13,479 | 15,032 | |
Rewards costs and partner payments | |||||
Disaggregation of Revenue [Line Items] | |||||
Total card income | (3,497) | (3,719) | (9,895) | (10,697) | |
Other card income | |||||
Disaggregation of Revenue [Line Items] | |||||
Total card income | $ (91) | $ (175) | $ (446) | $ (594) | |
[1] | In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation. |
Noninterest Revenue and Nonin_8
Noninterest Revenue and Noninterest Expense - Components of Noninterest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Noninterest Income (Expense) [Abstract] | ||||
Legal expense/(benefit) | $ 524 | $ 10 | $ 839 | $ (2) |
FDIC-related expense | $ 186 | $ 114 | $ 503 | $ 378 |
Interest Income and Interest _3
Interest Income and Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest income | ||||
Loans | $ 10,215 | $ 12,977 | $ 33,409 | $ 39,269 |
Taxable securities | 1,816 | 2,132 | 6,203 | 5,712 |
Non-taxable securities | 294 | 318 | 901 | 1,021 |
Total investment securities | 2,110 | 2,450 | 7,104 | 6,733 |
Trading assets - debt instruments | 1,850 | 2,216 | 5,980 | 7,123 |
Federal funds sold and securities purchased under resale agreements | 401 | 1,542 | 2,097 | 4,865 |
Securities borrowed | (128) | 434 | (151) | 1,298 |
Deposits with banks | 69 | 898 | 708 | 3,200 |
All other interest-earning assets | 183 | 604 | 826 | 1,625 |
Total interest income | 14,700 | 21,121 | 49,973 | 64,113 |
Interest expense | ||||
Interest-bearing deposits | 245 | 2,409 | 2,169 | 7,010 |
Federal funds purchased and securities loaned or sold under repurchase agreements | 105 | 1,241 | 1,023 | 3,577 |
Short-term borrowings | 60 | 261 | 335 | 1,051 |
Trading liabilities – debt and all other interest-bearing liabilities | (51) | 660 | 278 | 2,141 |
Long-term debt | 1,293 | 2,188 | 4,679 | 6,796 |
Beneficial interest issued by consolidated VIEs | 35 | 134 | 184 | 459 |
Total interest expense | 1,687 | 6,893 | 8,668 | 21,034 |
Net interest income | 13,013 | 14,228 | 41,305 | 43,079 |
Provision for credit losses | 611 | 1,514 | 19,369 | 4,158 |
Net interest income after provision for credit losses | $ 12,402 | $ 12,714 | $ 21,936 | $ 38,921 |
Pension and Other Postretirem_3
Pension and Other Postretirement Employee Benefit Plans - Net Periodic Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Pension plans | ||||
Components of net periodic benefit cost | ||||
Benefits earned during the period | $ 9 | $ 88 | $ 25 | $ 266 |
Interest cost on benefit obligations | 120 | 148 | 360 | 447 |
Expected return on plan assets | (192) | (227) | (575) | (686) |
Amortization: | ||||
Net (gain)/loss | 4 | 42 | 11 | 125 |
Prior service (credit)/cost | 0 | 0 | 2 | 2 |
Net periodic defined benefit (credit)/cost | (59) | 51 | (177) | 154 |
Other defined benefit pension plans | 8 | 7 | 27 | 20 |
Total defined benefit plans | (51) | 58 | (150) | 174 |
Total defined contribution plans | 340 | 255 | 960 | 718 |
Total pension and OPEB cost included in noninterest expense | 289 | 313 | 810 | 892 |
OPEB plans | ||||
Components of net periodic benefit cost | ||||
Benefits earned during the period | 0 | 0 | 0 | 0 |
Interest cost on benefit obligations | 5 | 6 | 15 | 18 |
Expected return on plan assets | (28) | (28) | (83) | (84) |
Amortization: | ||||
Net (gain)/loss | 0 | 0 | 0 | 0 |
Prior service (credit)/cost | 0 | 0 | 0 | 0 |
Net periodic defined benefit (credit)/cost | (23) | (22) | (68) | (66) |
Total defined benefit plans | (23) | (22) | (68) | (66) |
Total pension and OPEB cost included in noninterest expense | $ (23) | $ (22) | $ (68) | $ (66) |
Pension and Other Postretirem_4
Pension and Other Postretirement Employee Benefit Plans - Schedule of Fair Values of Plan Assets (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Expected contributions for 2020 | $ 0 | |
Defined benefit pension plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 21,100,000,000 | $ 20,400,000,000 |
OPEB plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 3,100,000,000 | $ 3,000,000,000 |
Employee Share-based Incentiv_3
Employee Share-based Incentives - Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | ||||
Cost of prior grants of RSUs, performance share units (“PSUs”) and employee stock options that are amortized over their applicable vesting periods | $ 249 | $ 265 | $ 859 | $ 882 |
Accrual of estimated costs of share-based awards to be granted in future periods including those to full-career eligible employees | 272 | 294 | 1,108 | 900 |
Total noncash compensation expense related to employee share-based incentive plans | $ 521 | $ 559 | $ 1,967 | $ 1,782 |
Employee Share-based Incentiv_4
Employee Share-based Incentives - Narrative (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grants in period (in shares) | shares | 15,000 |
Grants in period, weighted average grant date fair value (in dollars per share) | $ / shares | $ 135.64 |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grants in period (in shares) | shares | 496 |
Grants in period, weighted average grant date fair value (in dollars per share) | $ / shares | $ 135.30 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2020 | Jan. 01, 2020 | |
Schedule of Held-to-maturity Securities [Line Items] | ||||
Amount of investment securities transferred from AFS to HTM for capital management purposes | $ 74,400 | $ 26,100 | $ 100,500 | |
HTM securities, allowance for credit losses | $ 120 | $ 120 | ||
Approximate percentage rated AAA | 93.00% | 93.00% | ||
Provision for credit losses | $ 97 | $ 110 | ||
Cumulative effect of a change in accounting principle | ||||
Schedule of Held-to-maturity Securities [Line Items] | ||||
HTM securities, allowance for credit losses | $ 10 | |||
Unrealized gains/(losses) on investment securities | ||||
Schedule of Held-to-maturity Securities [Line Items] | ||||
Pretax unrealized gains included in AOCI on the securities at the date of transfer | $ 2,900 | |||
Unrealized gains/(losses) on investment securities | U.S. GSEs and government agencies | ||||
Schedule of Held-to-maturity Securities [Line Items] | ||||
Pretax unrealized gains included in AOCI on the securities at the date of transfer | $ 1,000 |
Investment Securities - Amortiz
Investment Securities - Amortized Costs and Estimated Fair Values (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Available-for-sale securities | |||||
Amortized cost | $ 382,099,000,000 | $ 382,099,000,000 | $ 345,306,000,000 | ||
Gross unrealized gains | 7,875,000,000 | 7,875,000,000 | 5,771,000,000 | ||
Gross unrealized losses | 391,000,000 | 391,000,000 | 378,000,000 | ||
Fair value | 389,583,000,000 | 389,583,000,000 | 350,699,000,000 | ||
Held-to-maturity securities | |||||
Amortized cost | 141,553,000,000 | 141,553,000,000 | 47,540,000,000 | ||
Gross unrealized gains | 3,490,000,000 | 3,490,000,000 | 1,464,000,000 | ||
Gross unrealized losses | 167,000,000 | 167,000,000 | 63,000,000 | ||
Fair value | 144,996,000,000 | 144,996,000,000 | 48,941,000,000 | ||
Total investment securities, net of allowance for credit losses | |||||
Amortized cost | 523,652,000,000 | 523,652,000,000 | 392,846,000,000 | ||
Gross unrealized gains | 11,365,000,000 | 11,365,000,000 | 7,235,000,000 | ||
Gross unrealized losses | 558,000,000 | 558,000,000 | 441,000,000 | ||
Fair value | 534,579,000,000 | 534,579,000,000 | 399,640,000,000 | ||
Allowance for credit losses on AFS securities | 0 | 0 | |||
HTM securities purchased | 514,000,000 | $ 10,900,000,000 | 5,500,000,000 | $ 11,700,000,000 | |
HTM securities, allowance for credit losses | 120,000,000 | 120,000,000 | |||
Accrued interest receivables on HTM securities | 2,000,000,000 | 2,000,000,000 | 1,900,000,000 | ||
Accrued interest receivables reversed through interest income | 0 | $ 0 | 0 | $ 0 | |
Total mortgage-backed securities | |||||
Available-for-sale securities | |||||
Amortized cost | 110,876,000,000 | 110,876,000,000 | 125,648,000,000 | ||
Gross unrealized gains | 3,219,000,000 | 3,219,000,000 | 2,756,000,000 | ||
Gross unrealized losses | 142,000,000 | 142,000,000 | 109,000,000 | ||
Fair value | 113,953,000,000 | 113,953,000,000 | 128,295,000,000 | ||
Held-to-maturity securities | |||||
Amortized cost | 107,738,000,000 | 107,738,000,000 | 36,523,000,000 | ||
Gross unrealized gains | 3,041,000,000 | 3,041,000,000 | 1,165,000,000 | ||
Gross unrealized losses | 89,000,000 | 89,000,000 | 62,000,000 | ||
Fair value | 110,746,000,000 | 110,746,000,000 | 37,626,000,000 | ||
Total mortgage-backed securities | Fannie Mae | |||||
Total investment securities, net of allowance for credit losses | |||||
Securities exceeding 10% of total stockholders' equity, Amortized cost | 92,900,000,000 | 92,900,000,000 | |||
Securities exceeding 10% of total stockholders' equity, Fair value | 96,500,000,000 | 96,500,000,000 | |||
Total mortgage-backed securities | Freddie Mac | |||||
Total investment securities, net of allowance for credit losses | |||||
Securities exceeding 10% of total stockholders' equity, Amortized cost | 43,000,000,000 | 43,000,000,000 | |||
Securities exceeding 10% of total stockholders' equity, Fair value | 44,300,000,000 | 44,300,000,000 | |||
U.S. GSEs and government agencies | |||||
Available-for-sale securities | |||||
Amortized cost | 96,865,000,000 | 96,865,000,000 | 107,811,000,000 | ||
Gross unrealized gains | 2,807,000,000 | 2,807,000,000 | 2,395,000,000 | ||
Gross unrealized losses | 78,000,000 | 78,000,000 | 89,000,000 | ||
Fair value | 99,594,000,000 | 99,594,000,000 | 110,117,000,000 | ||
Held-to-maturity securities | |||||
Amortized cost | 100,364,000,000 | 100,364,000,000 | 36,523,000,000 | ||
Gross unrealized gains | 2,992,000,000 | 2,992,000,000 | 1,165,000,000 | ||
Gross unrealized losses | 85,000,000 | 85,000,000 | 62,000,000 | ||
Fair value | 103,271,000,000 | 103,271,000,000 | 37,626,000,000 | ||
Residential: U.S. | |||||
Available-for-sale securities | |||||
Amortized cost | 6,954,000,000 | 6,954,000,000 | 10,223,000,000 | ||
Gross unrealized gains | 296,000,000 | 296,000,000 | 233,000,000 | ||
Gross unrealized losses | 4,000,000 | 4,000,000 | 6,000,000 | ||
Fair value | 7,246,000,000 | 7,246,000,000 | 10,450,000,000 | ||
Held-to-maturity securities | |||||
Amortized cost | 4,791,000,000 | 4,791,000,000 | 0 | ||
Gross unrealized gains | 5,000,000 | 5,000,000 | 0 | ||
Gross unrealized losses | 2,000,000 | 2,000,000 | 0 | ||
Fair value | 4,794,000,000 | 4,794,000,000 | 0 | ||
Residential: Non-U.S. | |||||
Available-for-sale securities | |||||
Amortized cost | 4,134,000,000 | 4,134,000,000 | 2,477,000,000 | ||
Gross unrealized gains | 54,000,000 | 54,000,000 | 64,000,000 | ||
Gross unrealized losses | 11,000,000 | 11,000,000 | 1,000,000 | ||
Fair value | 4,177,000,000 | 4,177,000,000 | 2,540,000,000 | ||
Commercial | |||||
Available-for-sale securities | |||||
Amortized cost | 2,923,000,000 | 2,923,000,000 | 5,137,000,000 | ||
Gross unrealized gains | 62,000,000 | 62,000,000 | 64,000,000 | ||
Gross unrealized losses | 49,000,000 | 49,000,000 | 13,000,000 | ||
Fair value | 2,936,000,000 | 2,936,000,000 | 5,188,000,000 | ||
Held-to-maturity securities | |||||
Amortized cost | 2,583,000,000 | 2,583,000,000 | 0 | ||
Gross unrealized gains | 44,000,000 | 44,000,000 | 0 | ||
Gross unrealized losses | 2,000,000 | 2,000,000 | 0 | ||
Fair value | 2,681,000,000 | 2,681,000,000 | 0 | ||
U.S. Treasury and government agencies | |||||
Available-for-sale securities | |||||
Amortized cost | 213,887,000,000 | 213,887,000,000 | 139,162,000,000 | ||
Gross unrealized gains | 2,820,000,000 | 2,820,000,000 | 449,000,000 | ||
Gross unrealized losses | 128,000,000 | 128,000,000 | 175,000,000 | ||
Fair value | 216,579,000,000 | 216,579,000,000 | 139,436,000,000 | ||
Held-to-maturity securities | |||||
Amortized cost | 51,000,000 | 51,000,000 | 51,000,000 | ||
Gross unrealized gains | 2,000,000 | 2,000,000 | 0 | ||
Gross unrealized losses | 0 | 0 | 1,000,000 | ||
Fair value | 53,000,000 | 53,000,000 | 50,000,000 | ||
Obligations of U.S. states and municipalities | |||||
Available-for-sale securities | |||||
Amortized cost | 19,518,000,000 | 19,518,000,000 | 27,693,000,000 | ||
Gross unrealized gains | 1,370,000,000 | 1,370,000,000 | 2,118,000,000 | ||
Gross unrealized losses | 5,000,000 | 5,000,000 | 1,000,000 | ||
Fair value | 20,883,000,000 | 20,883,000,000 | 29,810,000,000 | ||
Held-to-maturity securities | |||||
Amortized cost | 12,828,000,000 | 12,828,000,000 | 4,797,000,000 | ||
Gross unrealized gains | 413,000,000 | 413,000,000 | 299,000,000 | ||
Gross unrealized losses | 60,000,000 | 60,000,000 | 0 | ||
Fair value | 13,245,000,000 | 13,245,000,000 | 5,096,000,000 | ||
Certificates of deposit | |||||
Available-for-sale securities | |||||
Amortized cost | 0 | 0 | 77,000,000 | ||
Gross unrealized gains | 0 | 0 | 0 | ||
Gross unrealized losses | 0 | 0 | 0 | ||
Fair value | 0 | 0 | 77,000,000 | ||
Non-U.S. government debt securities | |||||
Available-for-sale securities | |||||
Amortized cost | 20,695,000,000 | 20,695,000,000 | 21,427,000,000 | ||
Gross unrealized gains | 353,000,000 | 353,000,000 | 377,000,000 | ||
Gross unrealized losses | 11,000,000 | 11,000,000 | 17,000,000 | ||
Fair value | 21,037,000,000 | 21,037,000,000 | 21,787,000,000 | ||
Corporate debt securities | |||||
Available-for-sale securities | |||||
Amortized cost | 270,000,000 | 270,000,000 | 823,000,000 | ||
Gross unrealized gains | 4,000,000 | 4,000,000 | 22,000,000 | ||
Gross unrealized losses | 3,000,000 | 3,000,000 | 0 | ||
Fair value | 271,000,000 | 271,000,000 | 845,000,000 | ||
Asset-backed securities: Collateralized loan obligations | |||||
Available-for-sale securities | |||||
Amortized cost | 10,253,000,000 | 10,253,000,000 | 25,038,000,000 | ||
Gross unrealized gains | 19,000,000 | 19,000,000 | 9,000,000 | ||
Gross unrealized losses | 70,000,000 | 70,000,000 | 56,000,000 | ||
Fair value | 10,202,000,000 | 10,202,000,000 | 24,991,000,000 | ||
Held-to-maturity securities | |||||
Amortized cost | 20,936,000,000 | 20,936,000,000 | 6,169,000,000 | ||
Gross unrealized gains | 34,000,000 | 34,000,000 | 0 | ||
Gross unrealized losses | 18,000,000 | 18,000,000 | 0 | ||
Fair value | 20,952,000,000 | 20,952,000,000 | 6,169,000,000 | ||
Asset-backed securities: Other | |||||
Available-for-sale securities | |||||
Amortized cost | 6,600,000,000 | 6,600,000,000 | 5,438,000,000 | ||
Gross unrealized gains | 90,000,000 | 90,000,000 | 40,000,000 | ||
Gross unrealized losses | 32,000,000 | 32,000,000 | 20,000,000 | ||
Fair value | 6,658,000,000 | 6,658,000,000 | 5,458,000,000 | ||
U.S. GSE obligations | |||||
Available-for-sale securities | |||||
Fair value | 55,600,000,000 | 55,600,000,000 | 78,500,000,000 | ||
Held-to-maturity securities | |||||
Amortized cost | $ 82,400,000,000 | $ 82,400,000,000 | $ 31,600,000,000 |
Investment Securities - Fair Va
Investment Securities - Fair Value and Gross Unrealized Losses by Aging Category (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Available-for-sale securities | ||
Less than 12 months, Fair value | $ 15,235 | $ 18,608 |
Less than 12 months, Gross unrealized losses | 103 | 49 |
12 months or more, Fair Value | 4,589 | 10,957 |
12 months or more, Gross unrealized losses | 82 | 65 |
Total fair value | 19,824 | 29,565 |
Total gross unrealized losses | 185 | 114 |
Total mortgage-backed securities | ||
Available-for-sale securities | ||
Less than 12 months, Fair value | 4,193 | 2,372 |
Less than 12 months, Gross unrealized losses | 35 | 15 |
12 months or more, Fair Value | 540 | 1,042 |
12 months or more, Gross unrealized losses | 29 | 5 |
Total fair value | 4,733 | 3,414 |
Total gross unrealized losses | 64 | 20 |
U.S. GSEs and government agencies | ||
Available-for-sale securities | ||
Total fair value | 206 | 264 |
Residential: U.S. | ||
Available-for-sale securities | ||
Less than 12 months, Fair value | 446 | 1,072 |
Less than 12 months, Gross unrealized losses | 3 | 3 |
12 months or more, Fair Value | 119 | 423 |
12 months or more, Gross unrealized losses | 1 | 3 |
Total fair value | 565 | 1,495 |
Total gross unrealized losses | 4 | 6 |
Residential: Non-U.S. | ||
Available-for-sale securities | ||
Less than 12 months, Fair value | 2,678 | 13 |
Less than 12 months, Gross unrealized losses | 9 | 0 |
12 months or more, Fair Value | 243 | 420 |
12 months or more, Gross unrealized losses | 2 | 1 |
Total fair value | 2,921 | 433 |
Total gross unrealized losses | 11 | 1 |
Commercial | ||
Available-for-sale securities | ||
Less than 12 months, Fair value | 1,069 | 1,287 |
Less than 12 months, Gross unrealized losses | 23 | 12 |
12 months or more, Fair Value | 178 | 199 |
12 months or more, Gross unrealized losses | 26 | 1 |
Total fair value | 1,247 | 1,486 |
Total gross unrealized losses | 49 | 13 |
Obligations of U.S. states and municipalities | ||
Available-for-sale securities | ||
Less than 12 months, Fair value | 233 | 186 |
Less than 12 months, Gross unrealized losses | 5 | 1 |
12 months or more, Fair Value | 0 | 0 |
12 months or more, Gross unrealized losses | 0 | 0 |
Total fair value | 233 | 186 |
Total gross unrealized losses | 5 | 1 |
Certificates of deposit | ||
Available-for-sale securities | ||
Less than 12 months, Fair value | 0 | 77 |
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 | 77 |
Total gross unrealized losses | 0 | 0 |
Non-U.S. government debt securities | ||
Available-for-sale securities | ||
Less than 12 months, Fair value | 3,510 | 3,970 |
Less than 12 months, Gross unrealized losses | 7 | 13 |
12 months or more, Fair Value | 922 | 1,406 |
12 months or more, Gross unrealized losses | 4 | 4 |
Total fair value | 4,432 | 5,376 |
Total gross unrealized losses | 11 | 17 |
Corporate debt securities | ||
Available-for-sale securities | ||
Less than 12 months, Fair value | 94 | 0 |
Less than 12 months, Gross unrealized losses | 3 | 0 |
12 months or more, Fair Value | 0 | 0 |
12 months or more, Gross unrealized losses | 0 | 0 |
Total fair value | 94 | 0 |
Total gross unrealized losses | 3 | 0 |
Asset-backed securities: Collateralized loan obligations | ||
Available-for-sale securities | ||
Less than 12 months, Fair value | 6,656 | 10,364 |
Less than 12 months, Gross unrealized losses | 48 | 11 |
12 months or more, Fair Value | 2,393 | 7,756 |
12 months or more, Gross unrealized losses | 22 | 45 |
Total fair value | 9,049 | 18,120 |
Total gross unrealized losses | 70 | 56 |
Asset-backed securities: Other | ||
Available-for-sale securities | ||
Less than 12 months, Fair value | 549 | 1,639 |
Less than 12 months, Gross unrealized losses | 5 | 9 |
12 months or more, Fair Value | 734 | 753 |
12 months or more, Gross unrealized losses | 27 | 11 |
Total fair value | 1,283 | 2,392 |
Total gross unrealized losses | $ 32 | $ 20 |
Investment Securities - Realize
Investment Securities - Realized Gains and Losses and Provision for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Securities gains and losses | ||||
Realized gains | $ 1,123 | $ 78 | $ 2,842 | $ 454 |
Realized losses | (648) | 0 | (2,108) | (319) |
Intent to sell | (2) | 0 | (2) | 0 |
Net investment securities gains | 473 | $ 78 | 732 | $ 135 |
Provision for credit losses | $ 97 | $ 110 |
Investment Securities - Amort_2
Investment Securities - Amortized Cost and Estimated Fair Value by Contractual Maturity (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Available-for-sale securities, Amortized cost | ||
Due in one year or less | $ 46,681 | |
Due after one year through five years | 131,169 | |
Due after five years through 10 years | 64,874 | |
Due after 10 years | 139,375 | |
Amortized cost | 382,099 | $ 345,306 |
Available-for-sale securities, Fair value | ||
Due in one year or less | 46,755 | |
Due after one year through five years | 132,906 | |
Due after five years through 10 years | 66,586 | |
Due after 10 years | 143,336 | |
Fair value | $ 389,583 | 350,699 |
Available-for-sale securities, Average yield | ||
Due in one year or less | 0.52% | |
Due after one year through five years | 0.77% | |
Due after five years through 10 years | 1.06% | |
Due after 10 years | 2.91% | |
Average yield | 1.57% | |
Total held-to-maturity securities, Amortized cost | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 105 | |
Due after five years through 10 years | 22,634 | |
Due after 10 years | 118,934 | |
Amortized cost | 141,673 | |
Total held-to-maturity securities, Fair value | ||
Due in one year or less | 0 | |
Due after one year through five years | 108 | |
Due after five years through 10 years | 23,482 | |
Due after 10 years | 121,406 | |
Fair value | $ 144,996 | 48,941 |
Total held-to-maturity securities, Average yield | ||
Due in one year or less | 0.00% | |
Due after one year through five years | 2.39% | |
Due after five years through 10 years | 1.97% | |
Due after 10 years | 2.91% | |
Average yield | 2.76% | |
Supplemental information | ||
US government agencies and US government sponsored enterprises residential MBS estimated duration | 4 years | |
US government agencies and US government sponsored enterprises residential collateralized mortgage obligations estimated duration | 3 years | |
U.S. nonagency 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 securities, Amortized cost | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 433 | |
Due after five years through 10 years | 7,834 | |
Due after 10 years | 102,609 | |
Amortized cost | 110,876 | 125,648 |
Available-for-sale securities, Fair value | ||
Due in one year or less | 0 | |
Due after one year through five years | 449 | |
Due after five years through 10 years | 8,149 | |
Due after 10 years | 105,355 | |
Fair value | $ 113,953 | 128,295 |
Available-for-sale securities, Average yield | ||
Due in one year or less | 3.74% | |
Due after one year through five years | 2.28% | |
Due after five years through 10 years | 1.66% | |
Due after 10 years | 2.93% | |
Average yield | 2.84% | |
Total 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 | 11,183 | |
Due after 10 years | 96,611 | |
Amortized cost | 107,794 | |
Total 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 | 11,999 | |
Due after 10 years | 98,747 | |
Fair value | $ 110,746 | 37,626 |
Total 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 | 2.42% | |
Due after 10 years | 2.98% | |
Average yield | 2.92% | |
U.S. Treasury and government agencies | ||
Available-for-sale securities, Amortized cost | ||
Due in one year or less | $ 38,577 | |
Due after one year through five years | 119,641 | |
Due after five years through 10 years | 44,776 | |
Due after 10 years | 10,893 | |
Amortized cost | 213,887 | 139,162 |
Available-for-sale securities, Fair value | ||
Due in one year or less | 38,629 | |
Due after one year through five years | 121,118 | |
Due after five years through 10 years | 46,023 | |
Due after 10 years | 10,809 | |
Fair value | $ 216,579 | 139,436 |
Available-for-sale securities, Average yield | ||
Due in one year or less | 0.37% | |
Due after one year through five years | 0.66% | |
Due after five years through 10 years | 0.85% | |
Due after 10 years | 0.48% | |
Average yield | 0.64% | |
Total held-to-maturity securities, Amortized cost | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 51 | |
Due after five years through 10 years | 0 | |
Due after 10 years | 0 | |
Amortized cost | 51 | |
Total held-to-maturity securities, Fair value | ||
Due in one year or less | 0 | |
Due after one year through five years | 53 | |
Due after five years through 10 years | 0 | |
Due after 10 years | 0 | |
Fair value | $ 53 | 50 |
Total held-to-maturity securities, Average yield | ||
Due in one year or less | 0.00% | |
Due after one year through five years | 1.47% | |
Due after five years through 10 years | 0.00% | |
Due after 10 years | 0.00% | |
Average yield | 1.47% | |
Obligations of U.S. states and municipalities | ||
Available-for-sale securities, Amortized cost | ||
Due in one year or less | $ 61 | |
Due after one year through five years | 187 | |
Due after five years through 10 years | 923 | |
Due after 10 years | 18,347 | |
Amortized cost | 19,518 | 27,693 |
Available-for-sale securities, Fair value | ||
Due in one year or less | 62 | |
Due after one year through five years | 196 | |
Due after five years through 10 years | 980 | |
Due after 10 years | 19,645 | |
Fair value | $ 20,883 | 29,810 |
Available-for-sale securities, Average yield | ||
Due in one year or less | 3.68% | |
Due after one year through five years | 4.62% | |
Due after five years through 10 years | 4.91% | |
Due after 10 years | 4.83% | |
Average yield | 4.83% | |
Total held-to-maturity securities, Amortized cost | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 54 | |
Due after five years through 10 years | 481 | |
Due after 10 years | 12,357 | |
Amortized cost | 12,892 | |
Total held-to-maturity securities, Fair value | ||
Due in one year or less | 0 | |
Due after one year through five years | 55 | |
Due after five years through 10 years | 506 | |
Due after 10 years | 12,684 | |
Fair value | $ 13,245 | 5,096 |
Total held-to-maturity securities, Average yield | ||
Due in one year or less | 0.00% | |
Due after one year through five years | 3.25% | |
Due after five years through 10 years | 3.49% | |
Due after 10 years | 3.60% | |
Average yield | 3.59% | |
Non-U.S. government debt securities | ||
Available-for-sale securities, Amortized cost | ||
Due in one year or less | $ 7,945 | |
Due after one year through five years | 7,691 | |
Due after five years through 10 years | 5,059 | |
Due after 10 years | 0 | |
Amortized cost | 20,695 | 21,427 |
Available-for-sale securities, Fair value | ||
Due in one year or less | 7,966 | |
Due after one year through five years | 7,900 | |
Due after five years through 10 years | 5,171 | |
Due after 10 years | 0 | |
Fair value | $ 21,037 | 21,787 |
Available-for-sale securities, Average yield | ||
Due in one year or less | 1.22% | |
Due after one year through five years | 1.77% | |
Due after five years through 10 years | 0.79% | |
Due after 10 years | 0.00% | |
Average yield | 1.32% | |
Corporate debt securities | ||
Available-for-sale securities, Amortized cost | ||
Due in one year or less | $ 21 | |
Due after one year through five years | 129 | |
Due after five years through 10 years | 120 | |
Due after 10 years | 0 | |
Amortized cost | 270 | 823 |
Available-for-sale securities, Fair value | ||
Due in one year or less | 21 | |
Due after one year through five years | 128 | |
Due after five years through 10 years | 122 | |
Due after 10 years | 0 | |
Fair value | $ 271 | $ 845 |
Available-for-sale securities, Average yield | ||
Due in one year or less | 2.70% | |
Due after one year through five years | 2.29% | |
Due after five years through 10 years | 2.30% | |
Due after 10 years | 0.00% | |
Average yield | 2.33% | |
Asset-backed securities | ||
Available-for-sale securities, Amortized cost | ||
Due in one year or less | $ 77 | |
Due after one year through five years | 3,088 | |
Due after five years through 10 years | 6,162 | |
Due after 10 years | 7,526 | |
Amortized cost | 16,853 | |
Available-for-sale securities, Fair value | ||
Due in one year or less | 77 | |
Due after one year through five years | 3,115 | |
Due after five years through 10 years | 6,141 | |
Due after 10 years | 7,527 | |
Fair value | $ 16,860 | |
Available-for-sale securities, Average yield | ||
Due in one year or less | 0.52% | |
Due after one year through five years | 2.18% | |
Due after five years through 10 years | 1.40% | |
Due after 10 years | 1.49% | |
Average yield | 1.58% | |
Total 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 | 10,970 | |
Due after 10 years | 9,966 | |
Amortized cost | 20,936 | |
Total 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 | 10,977 | |
Due after 10 years | 9,975 | |
Fair value | $ 20,952 | |
Total 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 | 1.46% | |
Due after 10 years | 1.37% | |
Average yield | 1.42% |
Securities Financing Activiti_3
Securities Financing Activities - Gross and Net Amounts of Securities Financing Agreements (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Securities purchased under resale agreements, Gross amounts | $ 653,504 | $ 628,609 |
Securities purchased under resale agreements, Amounts netted on the Consolidated balance sheets | (333,655) | (379,463) |
Securities purchased under resale agreements, Amounts presented on the Consolidated balance sheets | 319,849 | 249,146 |
Securities purchased under resale agreements, Amounts not nettable on the Consolidated balance sheets | (297,189) | (233,818) |
Securities purchased under resale agreements, Net amounts | 22,660 | 15,328 |
Securities borrowed, Gross amounts | 169,400 | 166,718 |
Securities borrowed, Amounts netted on the Consolidated balance sheets | (26,959) | (26,960) |
Securities borrowed, Amounts presented on the Consolidated balance sheets | 142,441 | 139,758 |
Securities borrowed, Amounts not nettable on the Consolidated balance sheets | (97,418) | (104,990) |
Securities borrowed, Net amounts | 45,023 | 34,768 |
Liabilities | ||
Securities sold under repurchase agreements, Gross amounts | 561,489 | 555,172 |
Securities sold under repurchase agreements, Amounts netted on the Consolidated balance sheets | (333,655) | (379,463) |
Securities sold under repurchase agreements, Amounts presented on the Consolidated balance sheets | 227,834 | 175,709 |
Securities sold under repurchase agreements, Amounts not nettable on the Consolidated balance sheets | (210,378) | (151,566) |
Securities sold under repurchase agreements, Net amounts | 17,456 | 24,143 |
Securities loaned and other, Gross amounts | 36,307 | 36,649 |
Securities loaned and other, Amounts netted on the Consolidated balance sheets | (26,959) | (26,960) |
Securities loaned and other, Amounts presented on the Consolidated balance sheets | 9,348 | 9,689 |
Securities loaned and other, Amounts not nettable on the Consolidated balance sheets | (8,884) | (9,654) |
Securities loaned and other, Net amounts | 464 | 35 |
Securities purchased under resale agreements where an appropriate legal opinion has not been either sought or obtained, Gross asset balance | 15,400 | 11,000 |
Securities borrowed where an appropriate legal opinion has not been either sought or obtained | 41,800 | 31,900 |
Securities sold under agreements to repurchase | 16,300 | 22,700 |
Securities loaned and other | 36 | 7 |
Securities-for-securities | ||
Liabilities | ||
Securities loaned and other, Amounts presented on the Consolidated balance sheets | $ 3,300 | $ 3,700 |
Securities Financing Activiti_4
Securities Financing Activities - Types of Financial Assets Pledged and Remaining Maturity (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | $ 561,489 | $ 555,172 |
Securities loaned and other | 36,307 | 36,649 |
Overnight and continuous | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 234,766 | 225,134 |
Securities loaned and other | 34,354 | 32,028 |
Up to 30 days | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 215,363 | 195,816 |
Securities loaned and other | 9 | 1,706 |
30 – 90 days | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 41,042 | 56,020 |
Securities loaned and other | 628 | 937 |
Greater than 90 days | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 70,318 | 78,202 |
Securities loaned and other | 1,316 | 1,978 |
Mortgage-backed securities, U.S. GSEs and government agencies | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 62,739 | 34,119 |
Securities loaned and other | 0 | 0 |
Mortgage-backed securities, Residential - nonagency | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 588 | 1,239 |
Securities loaned and other | 0 | 0 |
Mortgage-backed securities, Commercial - nonagency | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 846 | 1,612 |
Securities loaned and other | 0 | 0 |
U.S. Treasury, GSEs and government agencies | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 299,978 | 334,398 |
Securities loaned and other | 155 | 29 |
Obligations of U.S. states and municipalities | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 1,372 | 1,181 |
Securities loaned and other | 2 | 0 |
Non-U.S. government debt | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 157,840 | 145,548 |
Securities loaned and other | 2,104 | 1,528 |
Corporate debt securities | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 20,415 | 13,826 |
Securities loaned and other | 1,847 | 1,580 |
Asset-backed securities | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 1,348 | 1,794 |
Securities loaned and other | 0 | 0 |
Equity securities | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 16,363 | 21,455 |
Securities loaned and other | $ 32,199 | $ 33,512 |
Securities Financing Activiti_5
Securities Financing Activities - Transfers Not Qualifying for Sale Accounting (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Securities Financing Transactions Disclosures [Abstract] | ||
Transfers not qualifying for sale accounting | $ 526 | $ 743 |
Loans - Narrative (Details)
Loans - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)loan_segmentloan_payment | Sep. 30, 2019USD ($) | Dec. 31, 2019loan_segment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of portfolio segments | loan_segment | 3 | 3 | |||
Net gains (losses) on sales of loans and lending-related commitments | $ 113 | $ (75) | |||
Net gains (losses) on sales of loans | $ 24 | $ 254 | $ (76) | $ 433 | |
Residential real estate | Maximum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of months before updating exterior opinion on home valuation | 12 months | ||||
Commercial real estate | Minimum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of months before updating collateral values on commercial real estate loans | 6 months | ||||
Commercial real estate | Maximum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of months before updating collateral values on commercial real estate loans | 12 months | ||||
180 or more days past due | Residential real estate loans, non-modified credit card loans, and business banking loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, charge-off criteria, period past due | 180 days | 180 days | |||
120 or more days past due | Auto and modified credit card loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, charge-off criteria, period past due | 120 days | 120 days | |||
Less than 60 days until charge-off | Residential real estate and auto loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Period past due, credit analysis factors, charge off/down criteria | 60 days | ||||
Consumer, excluding credit card | Minimum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of months the borrower has performed under modified terms | 6 months | ||||
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 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Period past due, credit analysis factors, charge off/down criteria | 90 days | ||||
Consumer, excluding credit card | 30 or more days past due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Period past due, credit analysis factors, charge off/down criteria | 30 days |
Loans - By Portfolio Segment (D
Loans - By Portfolio Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | ||
Loan balances by portfolio segment: | ||||||
Retained loans | $ 945,537 | $ 928,887 | $ 945,537 | $ 928,887 | $ 945,601 | |
Held-for-sale | 5,983 | 5,983 | 7,064 | |||
At fair value | 38,220 | 38,220 | 44,955 | |||
Total | [1] | 989,740 | 989,740 | 997,620 | ||
Accrued interest receivables | 2,800 | 2,800 | 2,900 | |||
Accrued interest receivables written off | 34 | 15 | 82 | 38 | ||
Consumer, excluding credit card | ||||||
Loan balances by portfolio segment: | ||||||
Retained loans | 305,106 | 295,586 | 305,106 | 295,586 | 294,999 | |
Held-for-sale | 1,391 | 1,391 | 3,002 | |||
At fair value | 15,601 | 15,601 | 19,816 | |||
Total | 322,098 | 322,098 | 317,817 | |||
Credit card | ||||||
Loan balances by portfolio segment: | ||||||
Retained loans | 139,590 | 139,590 | 168,924 | |||
Held-for-sale | 787 | 787 | 0 | |||
At fair value | 0 | 0 | 0 | |||
Total | 140,377 | 140,377 | 168,924 | |||
Wholesale | ||||||
Loan balances by portfolio segment: | ||||||
Retained loans | 500,841 | $ 473,730 | 500,841 | $ 473,730 | 481,678 | |
Held-for-sale | 3,805 | 3,805 | 4,062 | |||
At fair value | 22,619 | 22,619 | 25,139 | |||
Total | $ 527,265 | $ 527,265 | $ 510,879 | |||
[1] | In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans and other assets. Prior-period amounts have been revised to conform with the current presentation. |
Loans - Purchased, Sold and Rec
Loans - Purchased, Sold and Reclassified to Held-for-Sale (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Purchases | $ 2,089 | $ 712 | $ 4,117 | $ 2,085 |
Sales | 4,578 | 20,529 | 13,927 | 46,888 |
Retained loans reclassified to held-for-sale | 2,185 | 4,248 | 3,763 | 10,734 |
Consumer, excluding credit card | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Purchases | 1,780 | 259 | 3,180 | 1,044 |
Sales | 0 | 14,965 | 348 | 30,474 |
Retained loans reclassified to held-for-sale | 995 | 3,889 | 1,822 | 8,950 |
Excluded retained loans purchased from correspondents that were originated in accordance with the Firm's underwriting standards | 3,100 | 4,700 | 10,500 | 12,200 |
Credit card | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Retained loans reclassified to held-for-sale | 787 | 0 | 787 | 0 |
Wholesale | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Purchases | 309 | 453 | 937 | 1,041 |
Sales | 4,578 | 5,564 | 13,579 | 16,414 |
Retained loans reclassified to held-for-sale | $ 403 | $ 359 | $ 1,154 | $ 1,784 |
Loans - Consumer, Excluding Cre
Loans - Consumer, Excluding Credit Card Loan Portfolio (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | $ 945,537 | $ 945,601 | $ 928,887 |
Consumer, excluding credit card | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | 305,106 | 294,999 | $ 295,586 |
Consumer, excluding credit card | Residential real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | 229,751 | 243,317 | |
Consumer, excluding credit card | Auto and other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | 75,355 | $ 51,682 | |
Consumer, excluding credit card | Auto and other | Paycheck Protection Program (PPP) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | $ 20,300 |
Loans - Consumer, Excluding C_2
Loans - Consumer, Excluding Credit Card Loan Portfolio, Residential Real Estate (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | $ 945,537 | $ 945,601 | $ 928,887 |
Consumer, excluding credit card | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 305,106 | 294,999 | $ 295,586 |
Consumer, excluding credit card | 30 or more days past due | U.S. government-guaranteed | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 60 | 46 | |
Consumer, excluding credit card | Residential real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Term loans originated in 2020 | 40,324 | ||
Term loans originated in 2019 | 35,750 | ||
Term loans originated in 2018 | 16,065 | ||
Term loans originated in 2017 | 23,552 | ||
Term loans originated in 2016 | 32,030 | ||
Term loans originated prior to 2016 | 56,878 | ||
Revolving loans within the revolving period | 7,968 | ||
Revolving loans converted to term loans | 17,184 | ||
Total retained loans | $ 229,751 | $ 243,317 | |
% of 30 plus days past due to total retained loans, Term loans originated in 2020 | 0.05% | ||
% of 30 plus days past due to total retained loans, Term loans originated in 2019 | 0.23% | ||
% of 30 plus days past due to total retained loans, Term loans originated in 2018 | 0.57% | ||
% of 30 plus days past due to total retained loans, Term loans originated in 2017 | 0.54% | ||
% of 30 plus days past due to total retained loans, Term loans originated in 2016 | 0.50% | ||
% of 30 plus days past due to total retained loans, Term loans originated prior to 2016 | 3.67% | ||
% of 30 plus days past due to total retained loans, Revolving loans within the revolving period | 0.33% | ||
% of 30 plus days past due to total retained loans, Revolving loans converted to term loans | 3.67% | ||
% of 30 plus days past due to total retained loans | 1.40% | 1.35% | |
Consumer, excluding credit card | Residential real estate | Senior lien | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of total revolving loans that are senior lien loans | 34.00% | ||
Consumer, excluding credit card | Residential real estate | U.S. government-guaranteed | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | $ 70 | $ 63 | |
Consumer, excluding credit card | Residential real estate | Current | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Term loans originated in 2020 | 40,303 | ||
Term loans originated in 2019 | 35,666 | ||
Term loans originated in 2018 | 15,973 | ||
Term loans originated in 2017 | 23,425 | ||
Term loans originated in 2016 | 31,870 | ||
Term loans originated prior to 2016 | 54,731 | ||
Revolving loans within the revolving period | 7,942 | ||
Revolving loans converted to term loans | 16,553 | ||
Total retained loans | 226,463 | 239,979 | |
Consumer, excluding credit card | Residential real estate | Current | U.S. government-guaranteed | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 10 | 17 | |
Consumer, excluding credit card | Residential real estate | 30–149 days past due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Term loans originated in 2020 | 11 | ||
Term loans originated in 2019 | 46 | ||
Term loans originated in 2018 | 39 | ||
Term loans originated in 2017 | 59 | ||
Term loans originated in 2016 | 102 | ||
Term loans originated prior to 2016 | 949 | ||
Revolving loans within the revolving period | 12 | ||
Revolving loans converted to term loans | 285 | ||
Total retained loans | 1,503 | 1,910 | |
Consumer, excluding credit card | Residential real estate | 30–149 days past due | U.S. government-guaranteed | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 29 | 20 | |
Consumer, excluding credit card | Residential real estate | 150 or more days past due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Term loans originated in 2020 | 10 | ||
Term loans originated in 2019 | 38 | ||
Term loans originated in 2018 | 53 | ||
Term loans originated in 2017 | 68 | ||
Term loans originated in 2016 | 58 | ||
Term loans originated prior to 2016 | 1,198 | ||
Revolving loans within the revolving period | 14 | ||
Revolving loans converted to term loans | 346 | ||
Total retained loans | 1,785 | 1,428 | |
Consumer, excluding credit card | Residential real estate | 150 or more days past due | U.S. government-guaranteed | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | $ 31 | $ 26 |
Loans - Consumer, Excluding C_3
Loans - Consumer, Excluding Credit Card Loan Portfolio, Residential Real Estate, Nonaccrual Loans and Other Credit Quality Indicators (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Retained loans | $ 945,537,000,000 | $ 928,887,000,000 | $ 945,537,000,000 | $ 928,887,000,000 | $ 945,601,000,000 |
Consumer, excluding credit card | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Retained loans | 305,106,000,000 | 295,586,000,000 | 305,106,000,000 | 295,586,000,000 | 294,999,000,000 |
Consumer, excluding credit card | Residential real estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Nonaccrual loans | 4,909,000,000 | 4,909,000,000 | 2,780,000,000 | ||
Retained loans | $ 229,751,000,000 | $ 229,751,000,000 | $ 243,317,000,000 | ||
Weighted average LTV ratio | 56.00% | 56.00% | 55.00% | ||
Weighted average FICO | $ 763 | $ 763 | $ 758 | ||
Approximate percentage of Chapter 7 loans 30 days or more past due | 8.00% | ||||
Interest income on nonaccrual loans recognized on a cash basis | 39,000,000 | $ 40,000,000 | $ 119,000,000 | $ 124,000,000 | |
Consumer, excluding credit card | Residential real estate | Residential real estate – PCD | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Nonaccrual loans | 1,500,000,000 | 1,500,000,000 | |||
Consumer, excluding credit card | Residential real estate | U.S. government-guaranteed | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
90 or more days past due | 55,000,000 | 55,000,000 | 38,000,000 | ||
Retained loans | 70,000,000 | 70,000,000 | 63,000,000 | ||
Consumer, excluding credit card | Residential real estate | California | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Retained loans | 75,807,000,000 | 75,807,000,000 | 82,147,000,000 | ||
Consumer, excluding credit card | Residential real estate | New York | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Retained loans | 32,014,000,000 | 32,014,000,000 | 31,996,000,000 | ||
Consumer, excluding credit card | Residential real estate | Texas | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Retained loans | 13,901,000,000 | 13,901,000,000 | 14,474,000,000 | ||
Consumer, excluding credit card | Residential real estate | Florida | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Retained loans | 13,827,000,000 | 13,827,000,000 | 13,668,000,000 | ||
Consumer, excluding credit card | Residential real estate | Illinois | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Retained loans | 13,800,000,000 | 13,800,000,000 | 15,587,000,000 | ||
Consumer, excluding credit card | Residential real estate | Colorado | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Retained loans | 8,307,000,000 | 8,307,000,000 | 8,447,000,000 | ||
Consumer, excluding credit card | Residential real estate | Washington | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Retained loans | 8,163,000,000 | 8,163,000,000 | 8,990,000,000 | ||
Consumer, excluding credit card | Residential real estate | New Jersey | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Retained loans | 7,395,000,000 | 7,395,000,000 | 7,752,000,000 | ||
Consumer, excluding credit card | Residential real estate | Massachusetts | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Retained loans | 5,857,000,000 | 5,857,000,000 | 6,210,000,000 | ||
Consumer, excluding credit card | Residential real estate | Connecticut | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Retained loans | 4,962,000,000 | 4,962,000,000 | 4,954,000,000 | ||
Consumer, excluding credit card | Residential real estate | All other | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Retained loans | 45,718,000,000 | 45,718,000,000 | 49,092,000,000 | ||
Consumer, excluding credit card | Residential real estate | All other | U.S. government-guaranteed | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Retained loans | 70,000,000 | 70,000,000 | 63,000,000 | ||
Consumer, excluding credit card | Residential real estate | 90 or more days past due and still accruing interest | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Retained loans | 0 | 0 | 0 | ||
Consumer, excluding credit card | Residential real estate | 90 or more days past due and still accruing interest | U.S. government-guaranteed | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Nonaccrual loans | 55,000,000 | 55,000,000 | 34,000,000 | ||
Consumer, excluding credit card | Residential real estate | No FICO/LTV available | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Retained loans | 1,879,000,000 | 1,879,000,000 | 2,052,000,000 | ||
Consumer, excluding credit card | Residential real estate | Greater than 125% and refreshed FICO scores | Equal to or greater than 660 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Retained loans | 26,000,000 | 26,000,000 | 31,000,000 | ||
Consumer, excluding credit card | Residential real estate | Greater than 125% and refreshed FICO scores | Less than 660 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Retained loans | 26,000,000 | 26,000,000 | 38,000,000 | ||
Consumer, excluding credit card | Residential real estate | 101% to 125% and refreshed FICO scores | Equal to or greater than 660 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Retained loans | 123,000,000 | 123,000,000 | 134,000,000 | ||
Consumer, excluding credit card | Residential real estate | 101% to 125% and refreshed FICO scores | Less than 660 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Retained loans | 100,000,000 | 100,000,000 | 132,000,000 | ||
Consumer, excluding credit card | Residential real estate | 80% to 100% and refreshed FICO scores | Equal to or greater than 660 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Retained loans | 6,180,000,000 | 6,180,000,000 | 5,953,000,000 | ||
Consumer, excluding credit card | Residential real estate | 80% to 100% and refreshed FICO scores | Less than 660 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Retained loans | 659,000,000 | 659,000,000 | 764,000,000 | ||
Consumer, excluding credit card | Residential real estate | Lower than 80% and refreshed FICO scores | Equal to or greater than 660 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Retained loans | 208,422,000,000 | 208,422,000,000 | 219,469,000,000 | ||
Consumer, excluding credit card | Residential real estate | Lower than 80% and refreshed FICO scores | Less than 660 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Retained loans | $ 12,266,000,000 | $ 12,266,000,000 | $ 14,681,000,000 |
Loans - Consumer, Excluding C_4
Loans - Consumer, Excluding Credit Card Loan Portfolio, Loan Modifications, Nature and Extent of Modifications (Details) - Consumer, excluding credit card - Residential real estate $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($)loan | Sep. 30, 2019USD ($)loan | Sep. 30, 2020USD ($)loan | Sep. 30, 2019USD ($)loan | |
Financing Receivable, Impaired [Line Items] | ||||
New TDRs | $ | $ 199 | $ 112 | $ 537 | $ 386 |
Percentage, sum of items by type, may exceed | 100.00% | |||
Trial Modification | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loans modified | 1,623 | 1,219 | 4,468 | 4,444 |
Permanent Modification | ||||
Financing Receivable, Impaired [Line Items] | ||||
Number of loans modified | 1,615 | 1,162 | 5,200 | 3,956 |
Interest rate reduction | ||||
Financing Receivable, Impaired [Line Items] | ||||
Concession granted | 40.00% | 89.00% | 51.00% | 78.00% |
Term or payment extension | ||||
Financing Receivable, Impaired [Line Items] | ||||
Concession granted | 39.00% | 68.00% | 53.00% | 72.00% |
Principal and/or interest deferred | ||||
Financing Receivable, Impaired [Line Items] | ||||
Concession granted | 21.00% | 10.00% | 12.00% | 13.00% |
Principal forgiveness | ||||
Financing Receivable, Impaired [Line Items] | ||||
Concession granted | 1.00% | 5.00% | 2.00% | 5.00% |
Other | ||||
Financing Receivable, Impaired [Line Items] | ||||
Concession granted | 65.00% | 76.00% | 65.00% | 63.00% |
Loans - Consumer, Excluding C_5
Loans - Consumer, Excluding Credit Card Loan Portfolio, Financial Effects of Modifications and Redefaults (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)loan_payment | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Financing Receivable, Impaired [Line Items] | |||||
Carrying value | $ 945,537 | $ 928,887 | $ 945,537 | $ 928,887 | $ 945,601 |
Consumer, excluding credit card | |||||
Financing Receivable, Impaired [Line Items] | |||||
Carrying value | 305,106 | $ 295,586 | $ 305,106 | $ 295,586 | 294,999 |
Consumer, excluding credit card | Residential real estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
Number of payments past due for deemed payment | loan_payment | 2 | ||||
Carrying value | 229,751 | $ 229,751 | 243,317 | ||
Consumer, excluding credit card | Residential real estate | In Process of Active or Suspended Foreclosure | |||||
Financing Receivable, Impaired [Line Items] | |||||
Carrying value | $ 904 | $ 904 | $ 1,200 | ||
Consumer, excluding credit card | Residential real estate | Maximum | |||||
Financing Receivable, Impaired [Line Items] | |||||
Number of years before payment default under a modified loan | 1 year | ||||
Number of months before a payment redefault under modified loans | 12 months | ||||
Consumer, excluding credit card | Residential real estate | Permanent Modification | |||||
Financing Receivable, Impaired [Line Items] | |||||
Weighted-average interest rate of loans with interest rate reductions – before TDR | 4.99% | 5.57% | 5.10% | 5.77% | |
Weighted-average interest rate of loans with interest rate reductions – after TDR | 3.34% | 3.58% | 3.40% | 3.90% | |
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR | 23 years | 20 years | 22 years | 20 years | |
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR | 39 years | 39 years | 39 years | 39 years | |
Charge-offs recognized upon permanent modification | $ 1 | $ 0 | $ 2 | $ 1 | |
Principal deferred | 3 | 6 | 12 | 17 | |
Principal forgiven | 1 | 2 | 4 | 6 | |
Balance of loans that redefaulted within one year of permanent modification | $ 65 | $ 53 | $ 173 | $ 132 | |
Modifications, weighted-average remaining life | 6 years |
Loans - Consumer, Excluding C_6
Loans - Consumer, Excluding Credit Card Loan Portfolio, Auto and Other (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | $ 945,537 | $ 945,601 | $ 928,887 |
Consumer, excluding credit card | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 305,106 | 294,999 | $ 295,586 |
Consumer, excluding credit card | Auto and other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Term loans originated in 2020 | 40,134 | ||
Term loans originated in 2019 | 14,492 | ||
Term loans originated in 2018 | 8,588 | ||
Term loans originated in 2017 | 5,521 | ||
Term loans originated in 2016 | 2,726 | ||
Term loans originated prior to 2016 | 1,109 | ||
Revolving loans within the revolving period | 2,596 | ||
Revolving loans converted to term loans | 189 | ||
Total retained loans | $ 75,355 | $ 51,682 | |
% of 30 plus days past due to total retained loans, Term loans originated in 2020 | 0.16% | ||
% of 30 plus days past due to total retained loans, Term loans originated in 2019 | 0.68% | ||
% of 30 plus days past due to total retained loans, Term loans originated in 2018 | 0.84% | ||
% of 30 plus days past due to total retained loans, Term loans originated in 2017 | 0.92% | ||
% of 30 plus days past due to total retained loans, Term loans originated in 2016 | 1.58% | ||
% of 30 plus days past due to total retained loans, Term loans originated prior to 2016 | 2.43% | ||
% of 30 plus days past due to total retained loans, Revolving loans within the revolving period | 0.89% | ||
% of 30 plus days past due to total retained loans, Revolving loans converted to term loans | 7.94% | ||
% of 30 plus days past due to total retained loans | 0.52% | 1.31% | |
Consumer, excluding credit card | Auto and other | Paycheck Protection Program (PPP) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | $ 20,300 | ||
Current | Consumer, excluding credit card | Auto and other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Term loans originated in 2020 | 40,069 | ||
Term loans originated in 2019 | 14,393 | ||
Term loans originated in 2018 | 8,516 | ||
Term loans originated in 2017 | 5,470 | ||
Term loans originated in 2016 | 2,683 | ||
Term loans originated prior to 2016 | 1,082 | ||
Revolving loans within the revolving period | 2,573 | ||
Revolving loans converted to term loans | 174 | ||
Total retained loans | 74,960 | $ 51,005 | |
Current | Consumer, excluding credit card | Auto and other | Paycheck Protection Program (PPP) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Term loans originated in 2020 | 20,300 | ||
30–119 days past due | Consumer, excluding credit card | Auto and other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Term loans originated in 2020 | 65 | ||
Term loans originated in 2019 | 99 | ||
Term loans originated in 2018 | 72 | ||
Term loans originated in 2017 | 51 | ||
Term loans originated in 2016 | 43 | ||
Term loans originated prior to 2016 | 26 | ||
Revolving loans within the revolving period | 18 | ||
Revolving loans converted to term loans | 10 | ||
Total retained loans | 384 | 667 | |
120 or more days past due | Consumer, excluding credit card | Auto and other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Term loans originated in 2020 | 0 | ||
Term loans originated in 2019 | 0 | ||
Term loans originated in 2018 | 0 | ||
Term loans originated in 2017 | 0 | ||
Term loans originated in 2016 | 0 | ||
Term loans originated prior to 2016 | 1 | ||
Revolving loans within the revolving period | 5 | ||
Revolving loans converted to term loans | 5 | ||
Total retained loans | $ 11 | $ 10 |
Loans - Consumer, Excluding C_7
Loans - Consumer, Excluding Credit Card Loan Portfolio, Auto and Other, Nonaccrual Loans and Other Credit Quality Indicators (Details) (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Retained loans | $ 945,537,000,000 | $ 945,601,000,000 | $ 928,887,000,000 |
Consumer, excluding credit card | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Retained loans | 305,106,000,000 | 294,999,000,000 | $ 295,586,000,000 |
Consumer, excluding credit card | Auto and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Nonaccrual loans | 138,000,000 | 146,000,000 | |
Retained loans | 75,355,000,000 | 51,682,000,000 | |
90 or more days past due | 0 | 0 | |
California | Consumer, excluding credit card | Auto and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Retained loans | 12,074,000,000 | 7,795,000,000 | |
New York | Consumer, excluding credit card | Auto and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Retained loans | 8,932,000,000 | 3,706,000,000 | |
Texas | Consumer, excluding credit card | Auto and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Retained loans | 7,990,000,000 | 5,457,000,000 | |
Florida | Consumer, excluding credit card | Auto and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Retained loans | 4,500,000,000 | 3,025,000,000 | |
Illinois | Consumer, excluding credit card | Auto and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Retained loans | 3,829,000,000 | 2,443,000,000 | |
New Jersey | Consumer, excluding credit card | Auto and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Retained loans | 2,633,000,000 | 1,798,000,000 | |
Arizona | Consumer, excluding credit card | Auto and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Retained loans | 2,442,000,000 | 1,347,000,000 | |
Ohio | Consumer, excluding credit card | Auto and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Retained loans | 2,181,000,000 | 1,490,000,000 | |
Colorado | Consumer, excluding credit card | Auto and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Retained loans | 1,868,000,000 | 1,247,000,000 | |
Pennsylvania | Consumer, excluding credit card | Auto and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Retained loans | 1,866,000,000 | 1,721,000,000 | |
All other | Consumer, excluding credit card | Auto and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Retained loans | $ 27,040,000,000 | $ 21,653,000,000 |
Loans - Credit Card Loan Portfo
Loans - Credit Card Loan Portfolio, Delinquency Information (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | $ 945,537 | $ 945,601 | $ 928,887 |
Credit card | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revolving loans within the revolving period | 138,158 | ||
Revolving loans converted to term loans | 1,432 | ||
Total retained loans | $ 139,590 | $ 168,924 | |
% of 30 plus days past due to total retained loans, Revolving loans within the revolving period | 1.49% | ||
% of 30 plus days past due to total retained loans, Revolving loans converted to term loans | 9.99% | ||
% of 30 plus days past due to total retained loans | 1.57% | 1.87% | |
% of 90 plus days past due to total retained loans, Revolving loans within the revolving period | 0.66% | ||
% of 90 plus days past due to total retained loans, Revolving loans converted to term loans | 3.07% | ||
% of 90 plus days past due to total retained loans | 0.69% | 0.95% | |
Current and less than 30 days past due and still accruing | Credit card | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revolving loans within the revolving period | $ 136,103 | ||
Revolving loans converted to term loans | 1,289 | ||
Total retained loans | 137,392 | $ 165,767 | |
30–89 days past due and still accruing | Credit card | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revolving loans within the revolving period | 1,139 | ||
Revolving loans converted to term loans | 99 | ||
Total retained loans | 1,238 | 1,550 | |
90 or more days past due and still accruing | Credit card | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Revolving loans within the revolving period | 916 | ||
Revolving loans converted to term loans | 44 | ||
Total retained loans | $ 960 | $ 1,607 |
Loans - Credit Card Loan Port_2
Loans - Credit Card Loan Portfolio, Other Credit Quality Indicators (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | $ 945,537 | $ 945,601 | $ 928,887 |
Credit card | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | $ 139,590 | $ 168,924 | |
Percentage of portfolio based on carrying value with estimated refreshed FICO scores, Equal to or greater than 660 | 84.70% | 84.00% | |
Percentage of portfolio based on carrying value with estimated refreshed FICO scores, Less than 660 | 14.60% | 15.40% | |
Percentage of portfolio based on carrying value with estimated refreshed FICO scores, No FICO available | 0.70% | 0.60% | |
Credit card | California | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | $ 20,400 | $ 25,783 | |
Credit card | Texas | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | 14,116 | 16,728 | |
Credit card | New York | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | 11,773 | 14,544 | |
Credit card | Florida | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | 9,170 | 10,830 | |
Credit card | Illinois | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | 7,862 | 9,579 | |
Credit card | New Jersey | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | 5,820 | 7,165 | |
Credit card | Ohio | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | 4,524 | 5,406 | |
Credit card | Pennsylvania | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | 4,315 | 5,245 | |
Credit card | Colorado | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | 4,018 | 4,763 | |
Credit card | Michigan | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | 3,491 | 4,164 | |
Credit card | All other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | $ 54,101 | $ 64,717 |
Loans - Credit Card Portfolio,
Loans - Credit Card Portfolio, Loan Modifications (Details) - Credit card $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)loan_payment | Sep. 30, 2019USD ($) | |
Financing Receivable, Impaired [Line Items] | ||||
Fixed payment plan period | 60 months | |||
New enrollments, percent of total retained credit card loans (less than) | 1.00% | |||
Balance of new TDRs | $ 220 | $ 242 | $ 648 | $ 717 |
Weighted-average interest rate of loans – before TDR | 17.65% | 19.18% | 18.21% | 19.23% |
Weighted-average interest rate of loans – after TDR | 4.80% | 4.65% | 4.55% | 4.80% |
Balance of loans that redefaulted within one year of modification | $ 22 | $ 42 | $ 83 | $ 108 |
Number of years before payment default under a modified loan | 1 year | |||
Modified loans, payment default, number of payments past due | loan_payment | 2 |
Loans - Wholesale Loan Portfoli
Loans - Wholesale Loan Portfolio, Internal Risk Ratings (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | $ 945,537 | $ 945,601 | $ 928,887 |
Wholesale | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | $ 500,841 | $ 481,678 | $ 473,730 |
% of investment-grade to total retained loans | 72.71% | 75.45% | |
% of total criticized to total retained loans | 3.99% | 1.60% | |
% of criticized nonaccrual to total retained loans | 0.75% | 0.22% | |
Wholesale | Current and less than 30 days past due and still accruing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | $ 495,658 | $ 479,599 | |
Wholesale | 30–89 days past due and still accruing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 1,405 | 979 | |
Wholesale | 90 or more days past due and still accruing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 33 | 43 | |
Wholesale | Investment-grade | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 364,180 | 363,444 | |
Wholesale | Investment-grade | Paycheck Protection Program (PPP) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Term loans originated in 2020 | 8,000 | ||
Wholesale | Total noninvestment- grade | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 136,661 | 118,234 | |
Wholesale | Noncriticized | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 116,682 | 110,521 | |
Wholesale | Criticized performing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 16,234 | 6,656 | |
Wholesale | Criticized nonaccrual | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 3,745 | 1,057 | |
Wholesale | Total U.S. | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 397,384 | 380,302 | |
Wholesale | Total non-U.S. | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 103,457 | 101,376 | |
Wholesale | Secured by real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | $ 121,862 | $ 120,418 | |
% of investment-grade to total retained loans | 76.36% | 80.23% | |
% of total criticized to total retained loans | 2.04% | 1.09% | |
% of criticized nonaccrual to total retained loans | 0.37% | 0.15% | |
Term loans originated in 2020 | $ 15,518 | ||
Term loans originated in 2019 | 24,451 | ||
Term loans originated in 2018 | 17,392 | ||
Term loans originated in 2017 | 15,171 | ||
Term loans originated in 2016 | 17,367 | ||
Term loans originated prior to 2016 | 30,308 | ||
Revolving loans within the revolving period | 1,653 | ||
Revolving loans converted to term loans | 2 | ||
Wholesale | Secured by real estate | Current and less than 30 days past due and still accruing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 121,302 | $ 120,119 | |
Wholesale | Secured by real estate | 30–89 days past due and still accruing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 110 | 115 | |
Wholesale | Secured by real estate | 90 or more days past due and still accruing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 0 | 1 | |
Wholesale | Secured by real estate | Investment-grade | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 93,052 | 96,611 | |
Term loans originated in 2020 | 13,326 | ||
Term loans originated in 2019 | 20,495 | ||
Term loans originated in 2018 | 12,963 | ||
Term loans originated in 2017 | 12,336 | ||
Term loans originated in 2016 | 14,590 | ||
Term loans originated prior to 2016 | 18,232 | ||
Revolving loans within the revolving period | 1,110 | ||
Revolving loans converted to term loans | 0 | ||
Wholesale | Secured by real estate | Total noninvestment- grade | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 28,810 | 23,807 | |
Term loans originated in 2020 | 2,192 | ||
Term loans originated in 2019 | 3,956 | ||
Term loans originated in 2018 | 4,429 | ||
Term loans originated in 2017 | 2,835 | ||
Term loans originated in 2016 | 2,777 | ||
Term loans originated prior to 2016 | 12,076 | ||
Revolving loans within the revolving period | 543 | ||
Revolving loans converted to term loans | 2 | ||
Wholesale | Secured by real estate | Noncriticized | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 26,318 | 22,493 | |
Wholesale | Secured by real estate | Criticized performing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 2,042 | 1,131 | |
Wholesale | Secured by real estate | Criticized nonaccrual | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | $ 450 | $ 183 | |
% of criticized nonaccrual to total retained loans | 0.37% | 0.15% | |
Wholesale | Secured by real estate | Total U.S. | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | $ 119,062 | $ 117,836 | |
Wholesale | Secured by real estate | Total non-U.S. | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 2,800 | 2,582 | |
Wholesale | Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | $ 147,938 | $ 146,169 | |
% of investment-grade to total retained loans | 47.57% | 55.07% | |
% of total criticized to total retained loans | 10.58% | 3.59% | |
% of criticized nonaccrual to total retained loans | 1.59% | 0.58% | |
Term loans originated in 2020 | $ 31,948 | ||
Term loans originated in 2019 | 18,581 | ||
Term loans originated in 2018 | 9,784 | ||
Term loans originated in 2017 | 5,383 | ||
Term loans originated in 2016 | 1,832 | ||
Term loans originated prior to 2016 | 4,380 | ||
Revolving loans within the revolving period | 75,898 | ||
Revolving loans converted to term loans | 132 | ||
Wholesale | Commercial and industrial | Current and less than 30 days past due and still accruing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 145,165 | $ 144,839 | |
Wholesale | Commercial and industrial | 30–89 days past due and still accruing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 404 | 449 | |
Wholesale | Commercial and industrial | 90 or more days past due and still accruing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 18 | 37 | |
Wholesale | Commercial and industrial | Investment-grade | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 70,373 | 80,489 | |
Term loans originated in 2020 | 19,444 | ||
Term loans originated in 2019 | 8,283 | ||
Term loans originated in 2018 | 3,371 | ||
Term loans originated in 2017 | 2,673 | ||
Term loans originated in 2016 | 1,107 | ||
Term loans originated prior to 2016 | 1,290 | ||
Revolving loans within the revolving period | 34,169 | ||
Revolving loans converted to term loans | 36 | ||
Wholesale | Commercial and industrial | Investment-grade | Paycheck Protection Program (PPP) | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Term loans originated in 2020 | 7,400 | ||
Wholesale | Commercial and industrial | Total noninvestment- grade | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 77,565 | 65,680 | |
Term loans originated in 2020 | 12,504 | ||
Term loans originated in 2019 | 10,298 | ||
Term loans originated in 2018 | 6,413 | ||
Term loans originated in 2017 | 2,710 | ||
Term loans originated in 2016 | 725 | ||
Term loans originated prior to 2016 | 3,090 | ||
Revolving loans within the revolving period | 41,729 | ||
Revolving loans converted to term loans | 96 | ||
Wholesale | Commercial and industrial | Noncriticized | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 61,920 | 60,437 | |
Wholesale | Commercial and industrial | Criticized performing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 13,294 | 4,399 | |
Wholesale | Commercial and industrial | Criticized nonaccrual | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 2,351 | 844 | |
Wholesale | Commercial and industrial | Total U.S. | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 112,316 | 111,954 | |
Wholesale | Commercial and industrial | Total non-U.S. | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 35,622 | 34,215 | |
Wholesale | Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | $ 231,041 | $ 215,091 | |
% of investment-grade to total retained loans | 86.89% | 86.63% | |
% of total criticized to total retained loans | 0.80% | 0.54% | |
% of criticized nonaccrual to total retained loans | 0.41% | 0.01% | |
Term loans originated in 2020 | $ 31,765 | ||
Term loans originated in 2019 | 14,080 | ||
Term loans originated in 2018 | 9,933 | ||
Term loans originated in 2017 | 7,164 | ||
Term loans originated in 2016 | 4,032 | ||
Term loans originated prior to 2016 | 14,490 | ||
Revolving loans within the revolving period | 149,153 | ||
Revolving loans converted to term loans | 424 | ||
Wholesale | Other | Current and less than 30 days past due and still accruing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 229,191 | $ 214,641 | |
Wholesale | Other | 30–89 days past due and still accruing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 891 | 415 | |
Wholesale | Other | 90 or more days past due and still accruing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 15 | 5 | |
Wholesale | Other | Investment-grade | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 200,755 | 186,344 | |
Term loans originated in 2020 | 25,774 | ||
Term loans originated in 2019 | 11,508 | ||
Term loans originated in 2018 | 8,228 | ||
Term loans originated in 2017 | 6,696 | ||
Term loans originated in 2016 | 3,877 | ||
Term loans originated prior to 2016 | 13,642 | ||
Revolving loans within the revolving period | 130,774 | ||
Revolving loans converted to term loans | 256 | ||
Wholesale | Other | Total noninvestment- grade | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 30,286 | 28,747 | |
Term loans originated in 2020 | 5,991 | ||
Term loans originated in 2019 | 2,572 | ||
Term loans originated in 2018 | 1,705 | ||
Term loans originated in 2017 | 468 | ||
Term loans originated in 2016 | 155 | ||
Term loans originated prior to 2016 | 848 | ||
Revolving loans within the revolving period | 18,379 | ||
Revolving loans converted to term loans | 168 | ||
Wholesale | Other | Noncriticized | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 28,444 | 27,591 | |
Wholesale | Other | Criticized performing | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 898 | 1,126 | |
Wholesale | Other | Criticized nonaccrual | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 944 | 30 | |
Wholesale | Other | Total U.S. | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | 166,006 | 150,512 | |
Wholesale | Other | Total non-U.S. | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total retained loans | $ 65,035 | $ 64,579 |
Loans - Wholesale Loan Portfo_2
Loans - Wholesale Loan Portfolio, Real Estate Class of Loans (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | $ 945,537 | $ 945,601 | $ 928,887 |
Wholesale | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | $ 500,841 | $ 481,678 | $ 473,730 |
% of total criticized to total retained loans secured by real estate | 3.99% | 1.60% | |
% of criticized nonaccrual loans to total retained loans secured by real estate | 0.75% | 0.22% | |
Wholesale | Criticized nonaccrual | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | $ 3,745 | $ 1,057 | |
Wholesale | Secured by real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | $ 121,862 | $ 120,418 | |
% of total criticized to total retained loans secured by real estate | 2.04% | 1.09% | |
% of criticized nonaccrual loans to total retained loans secured by real estate | 0.37% | 0.15% | |
Wholesale | Secured by real estate | Multifamily | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | $ 74,480 | $ 73,840 | |
Wholesale | Secured by real estate | Other commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | 47,382 | 46,578 | |
Wholesale | Secured by real estate | Criticized | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | $ 2,492 | $ 1,314 | |
% of total criticized to total retained loans secured by real estate | 2.04% | 1.09% | |
Wholesale | Secured by real estate | Criticized | Multifamily | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | $ 565 | $ 340 | |
% of total criticized to total retained loans secured by real estate | 0.76% | 0.46% | |
Wholesale | Secured by real estate | Criticized | Other commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | $ 1,927 | $ 974 | |
% of total criticized to total retained loans secured by real estate | 4.07% | 2.09% | |
Wholesale | Secured by real estate | Criticized nonaccrual | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | $ 450 | $ 183 | |
% of criticized nonaccrual loans to total retained loans secured by real estate | 0.37% | 0.15% | |
Wholesale | Secured by real estate | Criticized nonaccrual | Multifamily | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | $ 51 | $ 28 | |
% of criticized nonaccrual loans to total retained loans secured by real estate | 0.07% | 0.04% | |
Wholesale | Secured by real estate | Criticized nonaccrual | Other commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Retained loans | $ 399 | $ 155 | |
% of criticized nonaccrual loans to total retained loans secured by real estate | 0.84% | 0.33% |
Loans - Wholesale Loan Portfo_3
Loans - Wholesale Loan Portfolio, Nonaccrual (Details) - Wholesale - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Nonaccrual [Line Items] | ||
With an allowance | $ 3,171 | $ 885 |
Without an allowance | 574 | 172 |
Total nonaccrual loans | 3,745 | 1,057 |
Secured by real estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
With an allowance | 349 | 169 |
Without an allowance | 101 | 14 |
Total nonaccrual loans | 450 | 183 |
Commercial and industrial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
With an allowance | 1,978 | 688 |
Without an allowance | 373 | 156 |
Total nonaccrual loans | 2,351 | 844 |
Other | ||
Financing Receivable, Nonaccrual [Line Items] | ||
With an allowance | 844 | 28 |
Without an allowance | 100 | 2 |
Total nonaccrual loans | $ 944 | $ 30 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | |
Allowance for loan losses | |||||||
Beginning balance | $ 13,123 | $ 13,445 | |||||
Gross charge-offs/Write-offs of PCI loans | 5,365 | 5,022 | |||||
Gross recoveries collected | (1,156) | (887) | |||||
Net charge-offs | 4,209 | 4,135 | |||||
Provision for loan losses | 17,724 | 4,048 | |||||
Other | 4 | 9 | |||||
Ending balance | $ 30,814 | 30,814 | 13,235 | ||||
Allowance for lending-related commitments | |||||||
Beginning balance | 1,191 | 1,055 | |||||
Provision for lending-related commitments | 1,535 | 110 | |||||
Other | (1) | 0 | |||||
Ending balance | 2,823 | 2,823 | 1,165 | ||||
Total allowance for credit losses | $ 33,637 | $ 14,300 | $ 14,400 | ||||
Allowance for loan losses by impairment methodology | |||||||
Asset-specific | 1,672 | 975 | |||||
Portfolio-based | 29,142 | 11,004 | |||||
PCI | 1,256 | ||||||
Total allowance for loan losses | 30,814 | 30,814 | 13,235 | 30,814 | 13,123 | 13,235 | |
Loans by impairment methodology | |||||||
Asset-specific | 22,176 | 9,300 | |||||
Portfolio-based | 923,361 | 898,297 | |||||
PCI | 21,290 | ||||||
Total retained loans | 945,537 | 945,601 | 928,887 | ||||
Allowance for lending-related commitments by impairment methodology | |||||||
Asset-specific | 109 | 135 | |||||
Portfolio-based | 2,714 | 1,030 | |||||
Total allowance for lending-related commitments | 2,823 | 2,823 | 1,165 | 2,823 | 1,191 | 1,165 | |
Lending-related commitments by impairment methodology | |||||||
Asset-specific | 607 | 446 | |||||
Portfolio-based | 452,989 | 418,494 | |||||
Total lending-related commitments | 453,596 | 418,940 | |||||
HTM securities, allowance for credit losses | 120 | ||||||
HTM securities, provision for credit losses | 97 | 110 | |||||
Collateral-dependent loans | |||||||
Allowance for loan losses | |||||||
Net charge-offs | 131 | 51 | |||||
Collateral-dependent loans | |||||||
Loans measured at fair value of collateral less cost to sell | 4,647 | 2,196 | |||||
PCI loans | |||||||
Allowance for loan losses | |||||||
Gross charge-offs/Write-offs of PCI loans | 132 | ||||||
Cumulative effect of a change in accounting principle | |||||||
Allowance for loan losses | |||||||
Beginning balance | 4,172 | ||||||
Allowance for lending-related commitments | |||||||
Beginning balance | 98 | ||||||
Total allowance for credit losses | $ 4,300 | ||||||
Allowance for loan losses by impairment methodology | |||||||
Total allowance for loan losses | 4,172 | 4,172 | |||||
Allowance for lending-related commitments by impairment methodology | |||||||
Total allowance for lending-related commitments | 98 | 98 | |||||
Lending-related commitments by impairment methodology | |||||||
HTM securities, allowance for credit losses | 10 | ||||||
Consumer, excluding credit card | |||||||
Allowance for loan losses | |||||||
Beginning balance | 2,538 | 3,434 | |||||
Gross charge-offs/Write-offs of PCI loans | 620 | 665 | |||||
Gross recoveries collected | (483) | (409) | |||||
Net charge-offs | 137 | 256 | |||||
Provision for loan losses | 1,803 | (227) | |||||
Other | 1 | 0 | |||||
Ending balance | 4,502 | 4,502 | 2,819 | ||||
Allowance for lending-related commitments | |||||||
Beginning balance | 12 | 12 | |||||
Provision for lending-related commitments | 71 | 0 | |||||
Other | 0 | 0 | |||||
Ending balance | 216 | 216 | 12 | ||||
Total allowance for credit losses | 4,718 | 2,600 | 2,831 | ||||
Allowance for loan losses by impairment methodology | |||||||
Asset-specific | 228 | 88 | |||||
Portfolio-based | 4,274 | 1,475 | |||||
PCI | 1,256 | ||||||
Total allowance for loan losses | 4,502 | 4,502 | 2,819 | 4,502 | 2,538 | 2,819 | |
Loans by impairment methodology | |||||||
Asset-specific | 16,888 | 6,117 | |||||
Portfolio-based | 288,218 | 268,179 | |||||
PCI | 21,290 | ||||||
Total retained loans | 305,106 | 294,999 | 295,586 | ||||
Allowance for lending-related commitments by impairment methodology | |||||||
Asset-specific | 0 | 0 | |||||
Portfolio-based | 216 | 12 | |||||
Total allowance for lending-related commitments | 216 | 216 | 12 | 216 | 12 | 12 | |
Lending-related commitments by impairment methodology | |||||||
Asset-specific | 0 | 0 | |||||
Portfolio-based | 35,587 | 32,291 | |||||
Total lending-related commitments | 35,587 | 32,291 | |||||
Credit card lending-related commitments not permitted to have an allowance for credit losses | 10,800 | 9,400 | |||||
Consumer, excluding credit card | Collateral-dependent loans | |||||||
Allowance for loan losses | |||||||
Net charge-offs | 109 | 23 | |||||
Collateral-dependent loans | |||||||
Loans measured at fair value of collateral less cost to sell | 4,517 | 2,079 | |||||
Consumer, excluding credit card | PCI loans | |||||||
Allowance for loan losses | |||||||
Gross charge-offs/Write-offs of PCI loans | 132 | ||||||
Consumer, excluding credit card | Cumulative effect of a change in accounting principle | |||||||
Allowance for loan losses | |||||||
Beginning balance | 297 | ||||||
Allowance for lending-related commitments | |||||||
Beginning balance | 133 | ||||||
Total allowance for credit losses | 400 | ||||||
Allowance for loan losses by impairment methodology | |||||||
Total allowance for loan losses | 297 | 297 | |||||
Allowance for lending-related commitments by impairment methodology | |||||||
Total allowance for lending-related commitments | 133 | 133 | |||||
Credit card | |||||||
Allowance for loan losses | |||||||
Beginning balance | 5,683 | 5,184 | |||||
Gross charge-offs/Write-offs of PCI loans | 4,104 | 4,050 | |||||
Gross recoveries collected | (585) | (433) | |||||
Net charge-offs | 3,519 | 3,617 | |||||
Provision for loan losses | 10,119 | 4,017 | |||||
Other | 0 | (1) | |||||
Ending balance | 17,800 | 17,800 | 5,583 | ||||
Allowance for lending-related commitments | |||||||
Beginning balance | 0 | 0 | |||||
Provision for lending-related commitments | 0 | 0 | |||||
Other | 0 | 0 | |||||
Ending balance | 0 | 0 | 0 | ||||
Total allowance for credit losses | 17,800 | 5,583 | |||||
Allowance for loan losses by impairment methodology | |||||||
Asset-specific | 652 | 488 | |||||
Portfolio-based | 17,148 | 5,095 | |||||
PCI | 0 | ||||||
Total allowance for loan losses | 17,800 | 17,800 | 5,583 | 17,800 | 5,683 | 5,583 | |
Loans by impairment methodology | |||||||
Asset-specific | 1,432 | 1,423 | |||||
Portfolio-based | 138,158 | 158,148 | |||||
PCI | 0 | ||||||
Total retained loans | 139,590 | 159,571 | |||||
Allowance for lending-related commitments by impairment methodology | |||||||
Asset-specific | 0 | 0 | |||||
Portfolio-based | 0 | 0 | |||||
Total allowance for lending-related commitments | 0 | 0 | 0 | 0 | 0 | 0 | |
Lending-related commitments by impairment methodology | |||||||
Asset-specific | 0 | 0 | |||||
Portfolio-based | 0 | 0 | |||||
Total lending-related commitments | 0 | 0 | |||||
Credit card lending-related commitments not permitted to have an allowance for credit losses | 662,900 | 645,900 | |||||
Credit card | Collateral-dependent loans | |||||||
Allowance for loan losses | |||||||
Net charge-offs | 0 | 0 | |||||
Collateral-dependent loans | |||||||
Loans measured at fair value of collateral less cost to sell | 0 | 0 | |||||
Credit card | PCI loans | |||||||
Allowance for loan losses | |||||||
Gross charge-offs/Write-offs of PCI loans | 0 | ||||||
Credit card | Cumulative effect of a change in accounting principle | |||||||
Allowance for loan losses | |||||||
Beginning balance | 5,517 | ||||||
Allowance for lending-related commitments | |||||||
Beginning balance | 0 | ||||||
Allowance for loan losses by impairment methodology | |||||||
Total allowance for loan losses | 5,517 | 5,517 | |||||
Allowance for lending-related commitments by impairment methodology | |||||||
Total allowance for lending-related commitments | 0 | 0 | |||||
Wholesale | |||||||
Allowance for loan losses | |||||||
Beginning balance | 4,902 | 4,827 | |||||
Gross charge-offs/Write-offs of PCI loans | 641 | 307 | |||||
Gross recoveries collected | (88) | (45) | |||||
Net charge-offs | 553 | 262 | |||||
Provision for loan losses | 5,802 | 258 | |||||
Other | 3 | 10 | |||||
Ending balance | 8,512 | 8,512 | 4,833 | ||||
Allowance for lending-related commitments | |||||||
Beginning balance | 1,179 | 1,043 | |||||
Provision for lending-related commitments | 1,464 | 110 | |||||
Other | (1) | 0 | |||||
Ending balance | 2,607 | 2,607 | 1,153 | ||||
Total allowance for credit losses | 11,119 | 6,000 | 5,986 | ||||
Allowance for loan losses by impairment methodology | |||||||
Asset-specific | 792 | 399 | |||||
Portfolio-based | 7,720 | 4,434 | |||||
PCI | 0 | ||||||
Total allowance for loan losses | 8,512 | 8,512 | 4,833 | 8,512 | 4,902 | 4,833 | |
Loans by impairment methodology | |||||||
Asset-specific | 3,856 | 1,760 | |||||
Portfolio-based | 496,985 | 471,970 | |||||
PCI | 0 | ||||||
Total retained loans | 500,841 | 481,678 | 473,730 | ||||
Allowance for lending-related commitments by impairment methodology | |||||||
Asset-specific | 109 | 135 | |||||
Portfolio-based | 2,498 | 1,018 | |||||
Total allowance for lending-related commitments | $ 2,607 | 2,607 | 1,153 | 2,607 | 1,179 | 1,153 | |
Lending-related commitments by impairment methodology | |||||||
Asset-specific | 607 | 446 | |||||
Portfolio-based | 417,402 | 386,203 | |||||
Total lending-related commitments | 418,009 | 386,649 | |||||
Credit card lending-related commitments not permitted to have an allowance for credit losses | 23,200 | 24,200 | |||||
Wholesale | Collateral-dependent loans | |||||||
Allowance for loan losses | |||||||
Net charge-offs | 22 | 28 | |||||
Collateral-dependent loans | |||||||
Loans measured at fair value of collateral less cost to sell | $ 130 | $ 117 | |||||
Wholesale | PCI loans | |||||||
Allowance for loan losses | |||||||
Gross charge-offs/Write-offs of PCI loans | $ 0 | ||||||
Wholesale | Cumulative effect of a change in accounting principle | |||||||
Allowance for loan losses | |||||||
Beginning balance | (1,642) | ||||||
Allowance for lending-related commitments | |||||||
Beginning balance | (35) | ||||||
Total allowance for credit losses | $ (1,600) | ||||||
Allowance for loan losses by impairment methodology | |||||||
Total allowance for loan losses | (1,642) | (1,642) | |||||
Allowance for lending-related commitments by impairment methodology | |||||||
Total allowance for lending-related commitments | $ (35) | $ (35) |
Variable Interest Entities - Fi
Variable Interest Entities - Firm Sponsored VIEs (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Firm-sponsored mortgage and other consumer securitization trusts | ||
Total assets held by securitization VIEs | $ 184,468 | $ 186,912 |
Retained securitization interests, risk-rated 'A' or better, at fair value | 71.00% | 63.00% |
Corporate & Investment Bank | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Senior securities purchased in connection with CIB's secondary market-making activities | $ 125 | $ 106 |
Subordinated securities purchased in connection with CIB's secondary market-making activities | 24 | 94 |
Residential mortgage | Investment-grade | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Fair value of retained interests | 1,400 | 1,100 |
Residential mortgage | Noninvestment-grade | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Fair value of retained interests | 53 | 72 |
Residential mortgage | Prime / Alt-A & option ARMs | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Total assets held by securitization VIEs | 54,012 | 60,348 |
Residential mortgage | Subprime | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Total assets held by securitization VIEs | 13,353 | 14,661 |
Commercial and other | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Total assets held by securitization VIEs | 117,103 | 111,903 |
Commercial and other | Investment-grade | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Fair value of retained interests | 1,900 | 1,200 |
Commercial and other | Noninvestment-grade | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Fair value of retained interests | 857 | 575 |
VIEs consolidated by the Firm | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Assets held in consolidated securitization VIEs | 2,082 | 2,796 |
VIEs consolidated by the Firm | Residential mortgage | Prime / Alt-A & option ARMs | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Assets held in consolidated securitization VIEs | 2,034 | 2,796 |
VIEs consolidated by the Firm | Residential mortgage | Subprime | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Assets held in consolidated securitization VIEs | 48 | 0 |
VIEs consolidated by the Firm | Commercial and other | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Assets held in consolidated securitization VIEs | 0 | 0 |
Nonconsolidated re-securitization VIEs | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Assets held in nonconsolidated securitization VIEs with continuing involvement | 152,210 | 143,102 |
Interest in securitized assets in nonconsolidated VIEs | 4,216 | 2,966 |
Nonconsolidated re-securitization VIEs | Trading assets | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 1,461 | 1,327 |
Nonconsolidated re-securitization VIEs | Investment securities | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 2,475 | 1,398 |
Nonconsolidated re-securitization VIEs | Other financial assets | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 280 | 241 |
Nonconsolidated re-securitization VIEs | Residential mortgage | Prime / Alt-A & option ARMs | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Assets held in nonconsolidated securitization VIEs with continuing involvement | 44,680 | 48,734 |
Interest in securitized assets in nonconsolidated VIEs | 1,455 | 1,160 |
Nonconsolidated re-securitization VIEs | Residential mortgage | Subprime | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Assets held in nonconsolidated securitization VIEs with continuing involvement | 12,586 | 13,490 |
Interest in securitized assets in nonconsolidated VIEs | 3 | 7 |
Nonconsolidated re-securitization VIEs | Residential mortgage | Trading assets | Prime / Alt-A & option ARMs | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 571 | 535 |
Nonconsolidated re-securitization VIEs | Residential mortgage | Trading assets | Subprime | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 3 | 7 |
Nonconsolidated re-securitization VIEs | Residential mortgage | Investment securities | Prime / Alt-A & option ARMs | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 884 | 625 |
Nonconsolidated re-securitization VIEs | Residential mortgage | Investment securities | Subprime | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 0 | 0 |
Nonconsolidated re-securitization VIEs | Residential mortgage | Other financial assets | Prime / Alt-A & option ARMs | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 0 | 0 |
Nonconsolidated re-securitization VIEs | Residential mortgage | Other financial assets | Subprime | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 0 | 0 |
Nonconsolidated re-securitization VIEs | Commercial and other | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Assets held in nonconsolidated securitization VIEs with continuing involvement | 94,944 | 80,878 |
Interest in securitized assets in nonconsolidated VIEs | 2,758 | 1,799 |
Nonconsolidated re-securitization VIEs | Commercial and other | Trading assets | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 887 | 785 |
Nonconsolidated re-securitization VIEs | Commercial and other | Investment securities | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 1,591 | 773 |
Nonconsolidated re-securitization VIEs | Commercial and other | Other financial assets | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | $ 280 | $ 241 |
Variable Interest Entities - Re
Variable Interest Entities - Re-securitizations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Transfers of securities to VIEs | |||||
U.S. GSEs and government agencies | $ 12,488 | $ 5,377 | $ 27,710 | $ 12,444 | |
U.S. GSEs and government agencies | Nonconsolidated re-securitization VIEs | |||||
Variable Interest Entity [Line Items] | |||||
Interest in VIEs | $ 3,456 | $ 3,456 | $ 2,928 |
Variable Interest Entities - Mu
Variable Interest Entities - Multi-seller conduits (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Unfunded lending-related commitments | $ 1,150,520 | $ 1,108,399 |
Multi-seller conduits | ||
Variable Interest Entity [Line Items] | ||
Commercial paper eliminated in consolidation | 11,400 | 16,300 |
Multi-seller conduits | Commercial and other | ||
Variable Interest Entity [Line Items] | ||
Unfunded lending-related commitments | $ 10,700 | $ 8,900 |
Variable Interest Entities - Co
Variable Interest Entities - Consolidated VIE Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | |||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Trading assets | [1] | $ 505,822 | $ 369,687 | |||
Loans | 945,537 | 945,601 | $ 928,887 | |||
Other | [1] | 145,169 | 130,395 | |||
Total assets | 3,246,076 | [2] | 2,687,379 | [2] | $ 2,764,661 | |
Beneficial interests in VIE assets | 19,191 | 17,841 | ||||
Total liabilities | [2] | 2,974,963 | 2,426,049 | |||
VIEs consolidated by the Firm | ||||||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Trading assets | 2,467 | 2,633 | ||||
Loans | 36,974 | 42,931 | ||||
Other | 744 | 881 | ||||
Total assets | 40,185 | 46,445 | ||||
Beneficial interests in VIE assets | 19,191 | 17,841 | ||||
Other | 236 | 447 | ||||
Total liabilities | 19,427 | 18,288 | ||||
Beneficial interests in VIE assets, long term | 5,200 | 6,700 | ||||
VIEs consolidated by the Firm | Firm-sponsored credit card trusts | ||||||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Trading assets | 0 | 0 | ||||
Loans | 11,838 | 14,986 | ||||
Other | 207 | 266 | ||||
Total assets | 12,045 | 15,252 | ||||
Beneficial interests in VIE assets | 4,942 | 6,461 | ||||
Other | 3 | 6 | ||||
Total liabilities | 4,945 | 6,467 | ||||
VIEs consolidated by the Firm | Firm-administered multi-seller conduits | ||||||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Trading assets | 4 | 1 | ||||
Loans | 22,957 | 25,183 | ||||
Other | 160 | 355 | ||||
Total assets | 23,121 | 25,539 | ||||
Beneficial interests in VIE assets | 11,622 | 9,223 | ||||
Other | 30 | 36 | ||||
Total liabilities | 11,652 | 9,259 | ||||
VIEs consolidated by the Firm | Municipal bond vehicles | ||||||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Trading assets | 2,461 | 1,903 | ||||
Loans | 0 | 0 | ||||
Other | 5 | 4 | ||||
Total assets | 2,466 | 1,907 | ||||
Beneficial interests in VIE assets | 2,402 | 1,881 | ||||
Other | 1 | 3 | ||||
Total liabilities | 2,403 | 1,884 | ||||
VIEs consolidated by the Firm | Mortgage securitization entities | ||||||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Trading assets | 0 | 66 | ||||
Loans | 2,012 | 2,762 | ||||
Other | 118 | 64 | ||||
Total assets | 2,130 | 2,892 | ||||
Beneficial interests in VIE assets | 225 | 276 | ||||
Other | 113 | 130 | ||||
Total liabilities | 338 | 406 | ||||
VIEs consolidated by the Firm | Other | ||||||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Trading assets | 2 | 663 | ||||
Loans | 167 | 0 | ||||
Other | 254 | 192 | ||||
Total assets | 423 | 855 | ||||
Beneficial interests in VIE assets | 0 | 0 | ||||
Other | 89 | 272 | ||||
Total liabilities | $ 89 | $ 272 | ||||
[1] | In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans and other assets. Prior-period amounts have been revised to conform with the current presentation. | |||||
[2] | The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at September 30, 2020, and December 31, 2019. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests generally do not have recourse to the general credit of JPMorgan Chase. The assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation. Refer to Note 14 for a further discussion. (in millions) September 30, 2020 December 31, 2019 Assets Trading assets $ 2,467 $ 2,633 Loans 36,974 42,931 All other assets 744 881 Total assets $ 40,185 $ 46,445 Liabilities Beneficial interests issued by consolidated VIEs $ 19,191 $ 17,841 All other liabilities 236 447 Total liabilities $ 19,427 $ 18,288 |
Variable Interest Entities - VI
Variable Interest Entities - VIEs Sponsored by Third Parties (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | ||
Variable Interest Entity [Line Items] | |||||
Fair value of assets held by VIE | $ 3,246,076 | [1] | $ 2,687,379 | [1] | $ 2,764,661 |
Nonconsolidated entities | Tax credit vehicles | |||||
Variable Interest Entity [Line Items] | |||||
Maximum exposure | 21,500 | 19,100 | |||
Unfunded commitments | 7,800 | 5,500 | |||
Nonconsolidated entities | Municipal bond vehicles | |||||
Variable Interest Entity [Line Items] | |||||
Maximum exposure | 6,400 | 5,500 | |||
Fair value of assets held by VIE | $ 9,900 | $ 8,600 | |||
[1] | The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at September 30, 2020, and December 31, 2019. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests generally do not have recourse to the general credit of JPMorgan Chase. The assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation. Refer to Note 14 for a further discussion. (in millions) September 30, 2020 December 31, 2019 Assets Trading assets $ 2,467 $ 2,633 Loans 36,974 42,931 All other assets 744 881 Total assets $ 40,185 $ 46,445 Liabilities Beneficial interests issued by consolidated VIEs $ 19,191 $ 17,841 All other liabilities 236 447 Total liabilities $ 19,427 $ 18,288 |
Variable Interest Entities - Se
Variable Interest Entities - Securitization Activity (Details) - Securitization entities not consolidated - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Residential mortgage | ||||
Securitization activity [Abstract] | ||||
Principal securitized | $ 2,852 | $ 3,225 | $ 6,450 | $ 7,132 |
All cash flows during the period: | ||||
Proceeds received from loan sales as financial instruments | 2,955 | 3,327 | 6,645 | 7,337 |
Servicing fees collected | 54 | 70 | 165 | 220 |
Cash flows received on interests | 207 | 115 | 538 | 314 |
Commercial and other | ||||
Securitization activity [Abstract] | ||||
Principal securitized | 1,330 | 1,477 | 5,379 | 4,215 |
All cash flows during the period: | ||||
Proceeds received from loan sales as financial instruments | 1,392 | 1,506 | 5,577 | 4,329 |
Servicing fees collected | 1 | 0 | 1 | 1 |
Cash flows received on interests | $ 78 | $ 34 | $ 138 | $ 183 |
Variable Interest Entities - Lo
Variable Interest Entities - Loans Sold to Third-Party Sponsored Securitization Entities (Details) - Nonconsolidated entities - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Summary of loan sale activities [Abstract] | ||||
Carrying value of loans sold | $ 18,065 | $ 35,556 | $ 60,447 | $ 73,873 |
Proceeds received from loan sales as cash | 5 | 3 | 27 | 73 |
Proceeds from loans sales as securities | 17,858 | 35,512 | 59,795 | 73,172 |
Total proceeds received from loan sales | 17,863 | 35,515 | 59,822 | 73,245 |
Gains/(losses) on loan sales | $ 0 | $ 342 | $ 6 | $ 495 |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of Options to Repurchase Delinquent Loans (Details) - Nonconsolidated entities - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Loans repurchased or option to repurchase | $ 1,491 | $ 2,941 |
Real estate acquired through foreclosure | 10 | 41 |
Residential mortgage | ||
Variable Interest Entity [Line Items] | ||
Real estate acquired through foreclosure | $ 72 | $ 198 |
Variable Interest Entities - _2
Variable Interest Entities - Loan Delinquencies and Net Charge-offs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Securitized loans | |||||
Information about delinquencies, net charge-offs, and components of off-balance sheet securitized financial assets [Abstract] | |||||
90 days past due | $ 13,033 | $ 13,033 | $ 4,449 | ||
Net liquidation losses | 33 | $ 409 | 354 | $ 1,213 | |
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 | 5,025 | 5,025 | 187 | ||
Net liquidation losses | 0 | 118 | 11 | 283 | |
Nonconsolidated entities | |||||
Information about delinquencies, net charge-offs, and components of off-balance sheet securitized financial assets [Abstract] | |||||
Securitized assets | 152,210 | 152,210 | 143,102 | ||
Nonconsolidated entities | Commercial and other | |||||
Information about delinquencies, net charge-offs, and components of off-balance sheet securitized financial assets [Abstract] | |||||
Securitized assets | 94,944 | 94,944 | 80,878 | ||
Prime / Alt-A & 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 | 5,591 | 5,591 | 2,449 | ||
Net liquidation losses | 9 | 146 | 184 | 474 | |
Prime / Alt-A & option ARMs | Nonconsolidated entities | Residential mortgage | |||||
Information about delinquencies, net charge-offs, and components of off-balance sheet securitized financial assets [Abstract] | |||||
Securitized assets | 44,680 | 44,680 | 48,734 | ||
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 | 2,417 | 2,417 | 1,813 | ||
Net liquidation losses | 24 | $ 145 | 159 | $ 456 | |
Subprime | Nonconsolidated entities | Residential mortgage | |||||
Information about delinquencies, net charge-offs, and components of off-balance sheet securitized financial assets [Abstract] | |||||
Securitized assets | $ 12,586 | $ 12,586 | $ 13,490 |
Goodwill and Mortgage Servici_3
Goodwill and Mortgage Servicing Rights - by Business Segment (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Goodwill [Line Items] | |||||||
Total goodwill | $ 47,819 | $ 47,811 | $ 47,823 | $ 47,818 | $ 47,477 | $ 47,471 | |
Consumer & Community Banking | |||||||
Goodwill [Line Items] | |||||||
Total goodwill | 30,082 | 30,082 | |||||
Consumer & Community Banking | Realignment of Merchant Services Business | |||||||
Goodwill [Line Items] | |||||||
Total goodwill | $ (959) | ||||||
Corporate & Investment Bank | |||||||
Goodwill [Line Items] | |||||||
Total goodwill | 7,897 | 7,901 | |||||
Corporate & Investment Bank | Realignment of Merchant Services Business | |||||||
Goodwill [Line Items] | |||||||
Total goodwill | $ 959 | ||||||
Commercial Banking | |||||||
Goodwill [Line Items] | |||||||
Total goodwill | 2,985 | 2,982 | |||||
Asset & Wealth Management | |||||||
Goodwill [Line Items] | |||||||
Total goodwill | $ 6,855 | $ 6,858 |
Goodwill and Mortgage Servici_4
Goodwill and Mortgage Servicing Rights - Changes During Period (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | |||||
Balance at beginning of period | $ 47,811,000,000 | $ 47,477,000,000 | $ 47,823,000,000 | $ 47,471,000,000 | $ 47,471,000,000 |
Changes during the period from: | |||||
Business combinations | 0 | 348,000,000 | 0 | 348,000,000 | |
Other | 8,000,000 | (7,000,000) | (4,000,000) | (1,000,000) | |
Balance at end of period | $ 47,819,000,000 | $ 47,818,000,000 | 47,819,000,000 | $ 47,818,000,000 | 47,823,000,000 |
Goodwill impairment | $ 0 | $ 0 |
Goodwill and Mortgage Servici_5
Goodwill and Mortgage Servicing Rights - Mortgage Servicing Rights (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Mortgage servicing rights activity [Abstract] | ||||
Fair value at beginning of period | $ 3,080 | $ 5,093 | $ 4,699 | $ 6,130 |
MSR activity: | ||||
Originations of MSRs | 204 | 390 | 639 | 1,146 |
Purchase of MSRs | 17 | (2) | 24 | 104 |
Disposition of MSRs | (104) | (359) | (177) | (687) |
Net additions/(dispositions) | 117 | 29 | 486 | 563 |
Changes due to collection/realization of expected cash flows | (215) | (256) | (710) | (702) |
Changes in valuation due to inputs and assumptions: | ||||
Changes due to market interest rates and other | (59) | (433) | (1,573) | (1,274) |
Changes in valuation due to other inputs and assumptions: | ||||
Projected cash flows (e.g., cost to service) | (82) | 17 | (80) | (333) |
Discount rates | 199 | 0 | 199 | 153 |
Prepayment model changes and other | (24) | (31) | (5) | (118) |
Total changes in valuation due to other inputs and assumptions | 93 | (14) | 114 | (298) |
Total changes in valuation due to inputs and assumptions | 34 | (447) | (1,459) | (1,572) |
Fair value at end of period | 3,016 | 4,419 | 3,016 | 4,419 |
Changes in unrealized gains/(losses) included in income related to MSRs | 34 | (447) | (1,459) | (1,572) |
Contractual service fees, late fees and other ancillary fees included in income | 333 | 397 | 1,026 | 1,254 |
Third-party mortgage loans serviced | 456,000 | 537,000 | 456,000 | 537,000 |
Servicer advances, net of an allowance for uncollectible amounts | $ 1,700 | $ 2,000 | $ 1,700 | $ 2,000 |
Goodwill and Mortgage Servici_6
Goodwill and Mortgage Servicing Rights - Mortgage Fees and Related Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Risk management: | ||||
All other | $ 11 | $ 1 | $ 11 | $ 1 |
Mortgage fees and related income | 1,087 | 887 | 2,324 | 1,562 |
Consumer & Community Banking | ||||
CCB mortgage fees and related income | ||||
Net production revenue | 765 | 738 | 1,826 | 1,291 |
Operating revenue: | ||||
Loan servicing revenue | 381 | 351 | 1,063 | 1,172 |
Changes in MSR asset fair value due to collection/realization of expected cash flows | (215) | (256) | (710) | (702) |
Total operating revenue | 166 | 95 | 353 | 470 |
Risk management: | ||||
Changes in MSR asset fair value due to market interest rates and other | (59) | (433) | (1,573) | (1,274) |
Other changes in MSR asset fair value due to other inputs and assumptions in model | 93 | (14) | 114 | (298) |
Changes in derivative fair value and other | 111 | 500 | 1,593 | 1,372 |
Total risk management | 145 | 53 | 134 | (200) |
Total net mortgage servicing revenue | 311 | 148 | 487 | 270 |
Mortgage fees and related income | $ 1,076 | $ 886 | $ 2,313 | $ 1,561 |
Goodwill and Mortgage Servici_7
Goodwill and Mortgage Servicing Rights - Key Economic Assumptions (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Weighted-average prepayment speed assumption (constant prepayment rate) | 16.94% | 11.67% |
Impact on fair value of 10% adverse change | $ (203) | $ (200) |
Impact on fair value of 20% adverse change | $ (386) | $ (384) |
Weighted-average option adjusted spread | 7.37% | 7.93% |
Impact on fair value of a 100 basis point adverse change | $ (121) | $ (169) |
Impact on fair value of a 200 basis point adverse change | $ (233) | $ (326) |
Deposits - Noninterest and Inte
Deposits - Noninterest and Interest-bearing (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
U.S. offices | ||
Noninterest-bearing (included $12,699 and $22,637 at fair value) | $ 540,116 | $ 395,667 |
Interest-bearing (included $2,567 and $2,534 at fair value) | 1,117,149 | 876,156 |
Total deposits in U.S. offices | 1,657,265 | 1,271,823 |
Non-U.S. offices | ||
Noninterest-bearing (included $1,481 and $1,980 at fair value) | 21,406 | 20,087 |
Interest-bearing (included $2,567 and $1,438 at fair value) | 322,745 | 270,521 |
Total deposits in non-U.S. offices | 344,151 | 290,608 |
Total deposits | 2,001,416 | 1,562,431 |
Fair value | ||
U.S. offices | ||
Noninterest-bearing (included $12,699 and $22,637 at fair value) | 12,699 | 22,637 |
Interest-bearing, fair value | 2,567 | 2,534 |
Non-U.S. offices | ||
Noninterest-bearing (included $1,481 and $1,980 at fair value) | 1,481 | 1,980 |
Interest-bearing, fair value | $ 2,567 | $ 1,438 |
Leases - Information Related to
Leases - Information Related to Operating Leases (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Right-of-use assets | $ 7,883 | $ 8,190 |
Lease liabilities | $ 8,335 | $ 8,505 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | |||||
Net rental expense | $ 474 | $ 468 | $ 1,400 | $ 1,400 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets | us-gaap:OtherAssets |
Leases - Operating Lease Income
Leases - Operating Lease Income and Related Depreciation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Operating Lease, Income, Comprehensive Income [Extensible List] | us-gaap:NoninterestIncomeOther | us-gaap:NoninterestIncomeOther | us-gaap:NoninterestIncomeOther | us-gaap:NoninterestIncomeOther |
Operating lease income | $ 1,425 | $ 1,384 | $ 4,236 | $ 4,027 |
Assets subject to operating leases | ||||
Lessee, Lease, Description [Line Items] | ||||
Depreciation expense | $ 1,035 | $ 1,053 | $ 3,261 | $ 3,038 |
Preferred Stock (Details)
Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 30, 2020 | Mar. 01, 2020 | Dec. 01, 2019 | Oct. 30, 2019 | Sep. 01, 2019 | Jun. 30, 2019 | Mar. 01, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Shares (in shares) | 3,006,250 | 3,006,250 | 2,699,250 | |||||||||
Carrying value | $ 30,063 | $ 30,063 | $ 26,993 | |||||||||
Liquidation value and redemption price per share (in dollars per share) | $ 10,000 | $ 10,000 | ||||||||||
Aggregate liquidation value | $ 30,400 | $ 30,400 | ||||||||||
Series P | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Shares (in shares) | 0 | 0 | 0 | |||||||||
Carrying value | $ 0 | $ 0 | $ 0 | |||||||||
Issue date | Feb. 5, 2013 | |||||||||||
Contractual rate in effect | 5.45% | 0.00% | ||||||||||
Dividend declared per share (in dollars per share) | $ 0 | $ 136.25 | $ 0 | $ 408.75 | ||||||||
Preferred stock, redeemed | $ 900 | |||||||||||
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) | 0 | 0 | 0 | |||||||||
Carrying value | $ 0 | $ 0 | $ 0 | |||||||||
Issue date | Jan. 30, 2014 | |||||||||||
Contractual rate in effect | 6.70% | 0.00% | ||||||||||
Dividend declared per share (in dollars per share) | $ 0 | $ 0 | 167.50 | |||||||||
Preferred stock, redeemed | $ 925 | |||||||||||
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) | 0 | 0 | 0 | |||||||||
Carrying value | $ 0 | $ 0 | $ 0 | |||||||||
Issue date | Jun. 23, 2014 | |||||||||||
Contractual rate in effect | 6.30% | 0.00% | ||||||||||
Dividend declared per share (in dollars per share) | $ 0 | 157.50 | $ 0 | 472.50 | ||||||||
Preferred stock, redeemed | $ 880 | |||||||||||
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) | 0 | 0 | 143,000 | |||||||||
Carrying value | $ 0 | $ 0 | $ 1,430 | |||||||||
Issue date | Feb. 12, 2015 | |||||||||||
Contractual rate in effect | 6.125% | 0.00% | ||||||||||
Dividend declared per share (in dollars per share) | $ 0 | 153.13 | $ 153.13 | 459.39 | ||||||||
Preferred stock, redeemed | $ 1,430 | |||||||||||
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 | 142,500 | |||||||||
Carrying value | $ 1,425 | $ 1,425 | $ 1,425 | |||||||||
Issue date | Jun. 4, 2015 | |||||||||||
Contractual rate in effect | 6.10% | |||||||||||
Dividend declared per share (in dollars per share) | $ 152.50 | 152.50 | $ 457.50 | 457.50 | ||||||||
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 | 115,000 | |||||||||
Carrying value | $ 1,150 | $ 1,150 | $ 1,150 | |||||||||
Issue date | Jul. 29, 2015 | |||||||||||
Contractual rate in effect | 6.15% | |||||||||||
Dividend declared per share (in dollars per share) | $ 153.75 | 153.75 | $ 461.25 | 461.25 | ||||||||
Series BB | Minimum | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Earliest redemption date | Sep. 1, 2020 | |||||||||||
Series DD | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Shares (in shares) | 169,625 | 169,625 | 169,625 | |||||||||
Carrying value | $ 1,696 | $ 1,696 | $ 1,696 | |||||||||
Issue date | Sep. 21, 2018 | |||||||||||
Contractual rate in effect | 5.75% | |||||||||||
Dividend declared per share (in dollars per share) | $ 143.75 | 143.75 | $ 431.25 | 431.25 | ||||||||
Series DD | Minimum | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Earliest redemption date | Dec. 1, 2023 | |||||||||||
Series EE | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Shares (in shares) | 185,000 | 185,000 | 185,000 | |||||||||
Carrying value | $ 1,850 | $ 1,850 | $ 1,850 | |||||||||
Issue date | Jan. 24, 2019 | |||||||||||
Contractual rate in effect | 6.00% | |||||||||||
Dividend declared per share (in dollars per share) | $ 150 | 150 | $ 450 | 361.67 | ||||||||
Series EE | Minimum | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Earliest redemption date | Mar. 1, 2024 | |||||||||||
Series GG | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Shares (in shares) | 90,000 | 90,000 | 90,000 | |||||||||
Carrying value | $ 900 | $ 900 | $ 900 | |||||||||
Issue date | Nov. 7, 2019 | |||||||||||
Contractual rate in effect | 4.75% | |||||||||||
Dividend declared per share (in dollars per share) | $ 118.75 | $ 387.92 | ||||||||||
Series GG | Minimum | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Earliest redemption date | Dec. 1, 2024 | |||||||||||
Series I | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Shares (in shares) | 293,375 | 293,375 | 293,375 | |||||||||
Carrying value | $ 2,934 | $ 2,934 | $ 2,934 | |||||||||
Issue date | Apr. 23, 2008 | |||||||||||
Dividend declared per share (in dollars per share) | $ 95.53 | 146.58 | $ 334.90 | 455.09 | ||||||||
Preferred stock, redeemed | $ 1,370 | |||||||||||
Series I | Three-month LIBOR | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Preferred stock dividend rate, variable, description of basis | three-month LIBOR | |||||||||||
Preferred stock dividend rate, variable, basis spread | 0.00035% | |||||||||||
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 | 150,000 | |||||||||
Carrying value | $ 1,500 | $ 1,500 | $ 1,500 | |||||||||
Issue date | Apr. 23, 2013 | |||||||||||
Contractual rate in effect | 5.15% | |||||||||||
Dividend declared per share (in dollars per share) | $ 128.75 | 128.75 | $ 386.25 | 386.25 | ||||||||
Series Q | Three-month LIBOR | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Preferred stock dividend rate, variable, description of basis | three-month LIBOR | |||||||||||
Preferred stock dividend rate, variable, basis spread | 0.0325% | |||||||||||
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 | 150,000 | |||||||||
Carrying value | $ 1,500 | $ 1,500 | $ 1,500 | |||||||||
Issue date | Jul. 29, 2013 | |||||||||||
Contractual rate in effect | 6.00% | |||||||||||
Dividend declared per share (in dollars per share) | $ 150 | 150 | $ 450 | 450 | ||||||||
Series R | Three-month LIBOR | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Preferred stock dividend rate, variable, description of basis | three-month LIBOR | |||||||||||
Preferred stock dividend rate, variable, basis spread | 0.00033% | |||||||||||
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 | 200,000 | |||||||||
Carrying value | $ 2,000 | $ 2,000 | $ 2,000 | |||||||||
Issue date | Jan. 22, 2014 | |||||||||||
Contractual rate in effect | 6.75% | |||||||||||
Dividend declared per share (in dollars per share) | $ 168.75 | 168.75 | $ 506.25 | 506.25 | ||||||||
Series S | Three-month LIBOR | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Preferred stock dividend rate, variable, description of basis | three-month LIBOR | |||||||||||
Preferred stock dividend rate, variable, basis spread | 0.0378% | |||||||||||
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 | 100,000 | |||||||||
Carrying value | $ 1,000 | $ 1,000 | $ 1,000 | |||||||||
Issue date | Mar. 10, 2014 | |||||||||||
Contractual rate in effect | 6.125% | |||||||||||
Dividend declared per share (in dollars per share) | $ 153.13 | 153.13 | $ 459.38 | 459.38 | ||||||||
Series U | Three-month LIBOR | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Preferred stock dividend rate, variable, description of basis | three-month LIBOR | |||||||||||
Preferred stock dividend rate, variable, basis spread | 0.0333% | |||||||||||
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 | 250,000 | |||||||||
Carrying value | $ 2,500 | $ 2,500 | $ 2,500 | |||||||||
Issue date | Jun. 9, 2014 | |||||||||||
Contractual rate in effect | 5.00% | |||||||||||
Dividend declared per share (in dollars per share) | $ 92.41 | 144.11 | $ 343.30 | 394.11 | ||||||||
Series V | Three-month LIBOR | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Preferred stock dividend rate, variable, description of basis | three-month LIBOR | |||||||||||
Preferred stock dividend rate, variable, basis spread | 0.0332% | |||||||||||
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 | 160,000 | |||||||||
Carrying value | $ 1,600 | $ 1,600 | $ 1,600 | |||||||||
Issue date | Sep. 23, 2014 | |||||||||||
Contractual rate in effect | 6.10% | |||||||||||
Dividend declared per share (in dollars per share) | $ 152.50 | 152.50 | $ 457.50 | 457.50 | ||||||||
Series X | Three-month LIBOR | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Preferred stock dividend rate, variable, description of basis | three-month LIBOR | |||||||||||
Preferred stock dividend rate, variable, basis spread | 0.0333% | |||||||||||
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 | 200,000 | |||||||||
Carrying value | $ 2,000 | $ 2,000 | $ 2,000 | |||||||||
Issue date | Apr. 21, 2015 | |||||||||||
Contractual rate in effect | 5.30% | |||||||||||
Dividend declared per share (in dollars per share) | $ 102.40 | 132.50 | $ 352.05 | 397.50 | ||||||||
Series Z | Three-month LIBOR | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Preferred stock dividend rate, variable, description of basis | three-month LIBOR | |||||||||||
Preferred stock dividend rate, variable, basis spread | 0.00038% | |||||||||||
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 | 125,750 | 125,750 | |||||||||
Carrying value | $ 1,258 | $ 1,258 | $ 1,258 | |||||||||
Issue date | Oct. 20, 2017 | |||||||||||
Contractual rate in effect | 4.625% | |||||||||||
Dividend declared per share (in dollars per share) | $ 115.63 | 115.63 | $ 346.88 | 346.88 | ||||||||
Series CC | Three-month LIBOR | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Preferred stock dividend rate, variable, description of basis | three-month LIBOR | |||||||||||
Preferred stock dividend rate, variable, basis spread | 0.0258% | |||||||||||
Series CC | Minimum | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Earliest redemption date | Nov. 1, 2022 | |||||||||||
Series FF | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Shares (in shares) | 225,000 | 225,000 | 225,000 | |||||||||
Carrying value | $ 2,250 | $ 2,250 | $ 2,250 | |||||||||
Issue date | Jul. 31, 2019 | |||||||||||
Contractual rate in effect | 5.00% | |||||||||||
Dividend declared per share (in dollars per share) | $ 125 | $ 126.39 | $ 375 | $ 126.39 | ||||||||
Series FF | Term SOFR | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Preferred stock dividend rate, variable, description of basis | Term SOFR | |||||||||||
Preferred stock dividend rate, variable, basis spread | 0.0338% | |||||||||||
Series FF | Minimum | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Earliest redemption date | Aug. 1, 2024 | |||||||||||
Series HH | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Shares (in shares) | 300,000 | 300,000 | 0 | |||||||||
Carrying value | $ 3,000 | $ 3,000 | $ 0 | |||||||||
Issue date | Jan. 23, 2020 | |||||||||||
Contractual rate in effect | 4.60% | |||||||||||
Dividend declared per share (in dollars per share) | $ 115 | $ 355.22 | ||||||||||
Series HH | Term SOFR | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Preferred stock dividend rate, variable, description of basis | Term SOFR | |||||||||||
Preferred stock dividend rate, variable, basis spread | 0.03125% | |||||||||||
Series HH | Minimum | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Earliest redemption date | Feb. 1, 2025 | |||||||||||
Series II | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Shares (in shares) | 150,000 | 150,000 | 0 | |||||||||
Carrying value | $ 1,500 | $ 1,500 | $ 0 | |||||||||
Issue date | Feb. 24, 2020 | |||||||||||
Contractual rate in effect | 4.00% | |||||||||||
Dividend declared per share (in dollars per share) | $ 100 | $ 241.11 | ||||||||||
Series II | Term SOFR | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Preferred stock dividend rate, variable, description of basis | Term SOFR | |||||||||||
Preferred stock dividend rate, variable, basis spread | 0.02745% | |||||||||||
Series II | Minimum | ||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||||||||||||
Earliest redemption date | Apr. 1, 2025 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Basic earnings per share | ||||
Net income | $ 9,443 | $ 9,080 | $ 16,995 | $ 27,911 |
Less: Preferred stock dividends | 381 | 423 | 1,203 | 1,201 |
Net income applicable to common equity | 9,062 | 8,657 | 15,792 | 26,710 |
Less: Dividends and undistributed earnings allocated to participating securities | 47 | 51 | 80 | 159 |
Net income applicable to common stockholders | $ 9,015 | $ 8,606 | $ 15,712 | $ 26,551 |
Total weighted-average basic shares outstanding (in shares) | 3,077.8 | 3,198.5 | 3,083.3 | 3,248.7 |
Net income per share (in dollars per share) | $ 2.93 | $ 2.69 | $ 5.10 | $ 8.17 |
Diluted earnings per share | ||||
Net income applicable to common stockholders | $ 9,015 | $ 8,606 | $ 15,712 | $ 26,551 |
Total weighted-average basic shares outstanding (in shares) | 3,077.8 | 3,198.5 | 3,083.3 | 3,248.7 |
Add: Dilutive impact of SARs and employee stock options, unvested PSUs and nondividend-earning RSUs (in shares) | 5 | 8.7 | 4.8 | 9.3 |
Total weighted-average diluted shares outstanding (in shares) | 3,082.8 | 3,207.2 | 3,088.1 | 3,258 |
Net income per share (in dollars per share) | $ 2.92 | $ 2.68 | $ 5.09 | $ 8.15 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income/(Loss) - Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | $ 261,330 | |||
Net change | $ 151 | $ 686 | 7,371 | $ 3,307 |
Ending balance | 271,113 | 264,348 | 271,113 | 264,348 |
Accumulated other comprehensive income/(loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | 8,789 | 1,114 | 1,569 | (1,507) |
Net change | 151 | 686 | 7,371 | 3,307 |
Ending balance | 8,940 | 1,800 | 8,940 | 1,800 |
Unrealized gains/(losses) on investment securities | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | 7,920 | 3,709 | 4,057 | 1,202 |
Net change | 514 | 479 | 4,377 | 2,986 |
Ending balance | 8,434 | 4,188 | 8,434 | 4,188 |
After-tax unamortized unrealized gains related to transfer of AFS securities to HTM | 2,700 | 2,700 | ||
Translation adjustments, net of hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (895) | (652) | (707) | (727) |
Net change | 127 | (165) | (61) | (90) |
Ending balance | (768) | (817) | (768) | (817) |
Fair value hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (27) | (73) | (131) | (161) |
Net change | (69) | (1) | 35 | 87 |
Ending balance | (96) | (74) | (96) | (74) |
Cash flow hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | 2,762 | 126 | 63 | (109) |
Net change | (70) | 195 | 2,629 | 430 |
Ending balance | 2,692 | 321 | 2,692 | 321 |
Defined benefit pension and OPEB plans | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (1,318) | (2,231) | (1,344) | (2,308) |
Net change | (12) | 46 | 14 | 123 |
Ending balance | (1,330) | (2,185) | (1,330) | (2,185) |
DVA on fair value option elected liabilities | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | 347 | 235 | (369) | 596 |
Net change | (339) | 132 | 377 | (229) |
Ending balance | $ 8 | $ 367 | $ 8 | $ 367 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Unrealized gains/(losses) on investment securities: | ||||
Net change, Pre-tax | $ 26 | $ 1,126 | $ 9,785 | $ 4,474 |
Net change, Tax effect | 125 | (440) | (2,414) | (1,167) |
Total other comprehensive income/(loss), after–tax | 151 | 686 | 7,371 | 3,307 |
Accumulated other comprehensive income/(loss) | ||||
Unrealized gains/(losses) on investment securities: | ||||
Total other comprehensive income/(loss), after–tax | 151 | 686 | 7,371 | 3,307 |
Pre-tax gains reclassified related to liquidation of legal entity | 0 | 0 | ||
Accumulated other comprehensive income/(loss) | Other Income | ||||
Unrealized gains/(losses) on investment securities: | ||||
Pre-tax gains reclassified related to liquidation of legal entity | 6 | |||
Accumulated other comprehensive income/(loss) | Other Expense | ||||
Unrealized gains/(losses) on investment securities: | ||||
Pre-tax gains reclassified related to liquidation of legal entity | 1 | |||
Unrealized gains/(losses) on investment securities | ||||
Unrealized gains/(losses) on investment securities: | ||||
Net unrealized gains/(losses) arising during the period/Translation, Pre-tax | 1,143 | 708 | 6,494 | 4,074 |
Net unrealized gains/(losses) arising during the period/Translation, Tax effect | (270) | (169) | (1,561) | (985) |
Net unrealized gains/(losses) arising during the period/Translation, After-tax | 873 | 539 | 4,933 | 3,089 |
Reclassification, Pre-tax | (473) | (78) | (732) | (135) |
Reclassification, Tax effect | 114 | 18 | 176 | 32 |
Reclassifications, After-tax | (359) | (60) | (556) | (103) |
Net change, Pre-tax | 670 | 630 | 5,762 | 3,939 |
Net change, Tax effect | (156) | (151) | (1,385) | (953) |
Total other comprehensive income/(loss), after–tax | 514 | 479 | 4,377 | 2,986 |
Pre-tax gains reclassified related to liquidation of legal entity | 0 | 0 | 5 | |
Unrealized gains/(losses) on investment securities | Other Income | ||||
Unrealized gains/(losses) on investment securities: | ||||
Pre-tax gains reclassified related to liquidation of legal entity | 0 | (8) | 5 | |
Translation adjustments | ||||
Unrealized gains/(losses) on investment securities: | ||||
Net unrealized gains/(losses) arising during the period/Translation, Pre-tax | 871 | (861) | (316) | (697) |
Net unrealized gains/(losses) arising during the period/Translation, Tax effect | (86) | 40 | 15 | 76 |
Net unrealized gains/(losses) arising during the period/Translation, After-tax | 785 | (821) | (301) | (621) |
Reclassification, Pre-tax | (868) | 866 | 316 | 700 |
Reclassification, Tax effect | 210 | (210) | (76) | (169) |
Reclassifications, After-tax | (658) | 656 | 240 | 531 |
Net change, Pre-tax | 3 | 5 | 0 | 3 |
Net change, Tax effect | 124 | (170) | (61) | (93) |
Total other comprehensive income/(loss), after–tax | 127 | (165) | (61) | (90) |
Pre-tax gains reclassified related to liquidation of legal entity | 0 | 0 | 2 | |
Fair value hedges, net change | ||||
Unrealized gains/(losses) on investment securities: | ||||
Net change, Pre-tax | (91) | (1) | 45 | 114 |
Net change, Tax effect | 22 | 0 | (10) | (27) |
Total other comprehensive income/(loss), after–tax | (69) | (1) | 35 | 87 |
Cash flow hedges | ||||
Unrealized gains/(losses) on investment securities: | ||||
Net unrealized gains/(losses) arising during the period/Translation, Pre-tax | 134 | 222 | 3,787 | 464 |
Net unrealized gains/(losses) arising during the period/Translation, Tax effect | (32) | (55) | (909) | (112) |
Net unrealized gains/(losses) arising during the period/Translation, After-tax | 102 | 167 | 2,878 | 352 |
Reclassification, Pre-tax | (227) | 37 | (328) | 102 |
Reclassification, Tax effect | 55 | (9) | 79 | (24) |
Reclassifications, After-tax | (172) | 28 | (249) | 78 |
Net change, Pre-tax | (93) | 259 | 3,459 | 566 |
Net change, Tax effect | 23 | (64) | (830) | (136) |
Total other comprehensive income/(loss), after–tax | (70) | 195 | 2,629 | 430 |
Defined benefit pension and OPEB plans | ||||
Unrealized gains/(losses) on investment securities: | ||||
Net change, Pre-tax | (18) | 60 | 23 | 148 |
Net change, Tax effect | 6 | (14) | (9) | (25) |
Total other comprehensive income/(loss), after–tax | (12) | 46 | 14 | 123 |
Net gain/(loss) arising during the period / Amortization of net loss | ||||
Unrealized gains/(losses) on investment securities: | ||||
Net unrealized gains/(losses) arising during the period/Translation, Pre-tax | 0 | 0 | 9 | 2 |
Net unrealized gains/(losses) arising during the period/Translation, Tax effect | 0 | 0 | (2) | (2) |
Net unrealized gains/(losses) arising during the period/Translation, After-tax | 0 | 0 | 7 | 0 |
Reclassification, Pre-tax | 4 | 42 | 11 | 125 |
Reclassification, Tax effect | (1) | (10) | (3) | (26) |
Reclassifications, After-tax | 3 | 32 | 8 | 99 |
Amortization of prior service cost/(credit) | ||||
Unrealized gains/(losses) on investment securities: | ||||
Reclassification, Pre-tax | 0 | 0 | 2 | 2 |
Reclassification, Tax effect | 1 | 0 | (1) | (1) |
Reclassifications, After-tax | 1 | 0 | 1 | 1 |
Foreign exchange and other | ||||
Unrealized gains/(losses) on investment securities: | ||||
Reclassification, Pre-tax | (22) | 18 | 1 | 19 |
Reclassification, Tax effect | 6 | (4) | (3) | 4 |
Reclassifications, After-tax | (16) | 14 | (2) | 23 |
DVA on fair value option elected liabilities, net change | ||||
Unrealized gains/(losses) on investment securities: | ||||
Net change, Pre-tax | (445) | 173 | 496 | (296) |
Net change, Tax effect | 106 | (41) | (119) | 67 |
Total other comprehensive income/(loss), after–tax | $ (339) | $ 132 | $ 377 | $ (229) |
Restricted Cash and Other Res_3
Restricted Cash and Other Restricted Assets (Details) - USD ($) $ in Billions | Sep. 30, 2020 | Dec. 31, 2019 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash | $ 24.7 | $ 46.5 |
Cash and securities pledged with clearing organizations for the benefit of customers | 35.1 | 24.7 |
Fair value of securities restricted in relation to customer activity | 5.6 | 8.8 |
Deposits with banks | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash | 23.1 | 45.3 |
Cash and due from banks | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash | 1.6 | 1.2 |
Cash reserves – Federal Reserve Banks | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash | 0 | 26.6 |
Segregated for the benefit of securities and cleared derivative customers | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash | 20 | 16 |
Cash reserves at non-U.S. central banks and held for other general purposes | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Total restricted cash | $ 4.7 | $ 3.9 |
Regulatory Capital (Details)
Regulatory Capital (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
CECL adoption impact | |||
Adjustments to Capital for Deferred Tax Liabilities [Abstract] | |||
Decrease to retained earnings | $ 2,700 | ||
Amount excluded from capital measures of the Firm | $ 6,400 | ||
CECL adoption impact | Excluding PCD Loans | |||
Adjustments to Capital for Deferred Tax Liabilities [Abstract] | |||
Increase in allowance for credit losses, excluding allowances on PCD loans | 15,200 | ||
Basel III Standardized | JPMorgan Chase & Co. | |||
Risk-based capital metrics: | |||
CET1 capital | 197,719 | $ 187,753 | |
Tier 1 capital | 227,486 | 214,432 | |
Total capital | 262,397 | 242,589 | |
Risk-weighted assets | $ 1,514,509 | $ 1,515,869 | |
CET1 capital ratio | 13.10% | 12.40% | |
Tier 1 capital ratio | 0.150 | 0.141 | |
Total capital ratio | 0.173 | 0.160 | |
Leverage-based capital metrics: | |||
Adjusted average assets | $ 3,243,290 | $ 2,730,239 | |
Tier 1 leverage ratio | 0.070 | 0.079 | |
Basel III Advanced | JPMorgan Chase & Co. | |||
Risk-based capital metrics: | |||
CET1 capital | $ 197,719 | $ 187,753 | |
Tier 1 capital | 227,486 | 214,432 | |
Total capital | 249,947 | 232,112 | |
Risk-weighted assets | $ 1,429,334 | $ 1,397,878 | |
CET1 capital ratio | 13.80% | 13.40% | |
Tier 1 capital ratio | 0.159 | 0.153 | |
Total capital ratio | 0.175 | 0.166 | |
Leverage-based capital metrics: | |||
Adjusted average assets | $ 3,243,290 | $ 2,730,239 | |
Tier 1 leverage ratio | 0.070 | 0.079 | |
Total leverage exposure | $ 3,247,392 | $ 3,423,431 | |
SLR | 0.070 | 0.063 | |
Bank Holding Companies | Basel III | |||
Minimum capital ratios | |||
CET1 capital | 10.50% | 10.50% | |
Tier 1 capital | 0.120 | 0.120 | |
Total capital | 0.140 | 0.140 | |
Tier 1 leverage | 0.040 | 0.040 | |
SLR | 5.00% | 5.00% | |
Well-capitalized ratios | |||
Tier 1 capital | 0.060 | 0.060 | |
Total capital | 0.100 | 0.100 | |
Adjustments to Capital for Deferred Tax Liabilities [Abstract] | |||
Capital conservation buffer requirement | 2.50% | ||
GSIB surcharge | 3.50% | ||
SLR, minimum requirement | 3.00% | ||
SLR, supplementary leverage buffer requirements | 2.00% | ||
Insured Depository Institutions | Basel III | |||
Minimum capital ratios | |||
CET1 capital | 7.00% | 7.00% | |
Tier 1 capital | 0.085 | 0.085 | |
Total capital | 0.105 | 0.105 | |
Tier 1 leverage | 0.040 | 0.040 | |
SLR | 6.00% | 6.00% | |
Well-capitalized ratios | |||
CET1 capital | 6.50% | 6.50% | |
Tier 1 capital | 0.080 | 0.080 | |
Total capital | 0.100 | 0.100 | |
Tier 1 leverage | 0.050 | 0.050 | |
SLR | 6.00% | 6.00% | |
Adjustments to Capital for Deferred Tax Liabilities [Abstract] | |||
Capital conservation buffer requirement | 2.50% | ||
SLR, minimum requirement | 3.00% | ||
SLR, supplementary leverage buffer requirements | 3.00% | ||
JPMorgan Chase Bank, N.A. | Basel III Standardized | |||
Risk-based capital metrics: | |||
CET1 capital | $ 225,547 | $ 206,848 | |
Tier 1 capital | 225,549 | 206,851 | |
Total capital | 242,927 | 224,390 | |
Risk-weighted assets | $ 1,444,069 | $ 1,457,689 | |
CET1 capital ratio | 15.60% | 14.20% | |
Tier 1 capital ratio | 0.156 | 0.142 | |
Total capital ratio | 0.168 | 0.154 | |
Leverage-based capital metrics: | |||
Adjusted average assets | $ 2,852,307 | $ 2,353,432 | |
Tier 1 leverage ratio | 0.079 | 0.088 | |
JPMorgan Chase Bank, N.A. | Basel III Advanced | |||
Risk-based capital metrics: | |||
CET1 capital | $ 225,547 | $ 206,848 | |
Tier 1 capital | 225,549 | 206,851 | |
Total capital | 230,846 | 214,091 | |
Risk-weighted assets | $ 1,298,354 | $ 1,269,991 | |
CET1 capital ratio | 17.40% | 16.30% | |
Tier 1 capital ratio | 0.174 | 0.163 | |
Total capital ratio | 0.178 | 0.169 | |
Leverage-based capital metrics: | |||
Adjusted average assets | $ 2,852,307 | $ 2,353,432 | |
Tier 1 leverage ratio | 0.079 | 0.088 | |
Total leverage exposure | $ 3,544,506 | $ 3,044,509 | |
SLR | 0.064 | 0.068 |
Off-balance Sheet Lending-rel_3
Off-balance Sheet Lending-related Financial Instruments, Guarantees, and Other Commitments (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total lending-related commitments | $ 1,150,520 | $ 1,108,399 |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 805,651 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 170,427 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 141,743 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 32,699 | |
Off-balance sheet lending-related financial commitments, Carrying value | 3,201 | 1,586 |
Warranty Reserves | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loan sale and securitization-related indemnifications, Mortgage repurchase liability, Carrying value | 84 | 59 |
Total Consumer | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total lending-related commitments | 709,285 | 690,889 |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 688,643 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 1,448 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 3,586 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 15,608 | |
Off-balance sheet lending-related financial commitments, Carrying value | 216 | 12 |
Total consumer, excluding credit card | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total lending-related commitments | 46,425 | 40,169 |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 25,783 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 1,448 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 3,586 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 15,608 | |
Off-balance sheet lending-related financial commitments, Carrying value | 216 | 12 |
Residential real estate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total lending-related commitments | 35,572 | 30,217 |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 15,739 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 1,447 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 3,570 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 14,816 | |
Off-balance sheet lending-related financial commitments, Carrying value | 216 | 12 |
Auto and other | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total lending-related commitments | 10,853 | 9,952 |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 10,044 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 1 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 16 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 792 | |
Off-balance sheet lending-related financial commitments, Carrying value | 0 | 0 |
Credit card | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total lending-related commitments | 662,860 | 650,720 |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 662,860 | |
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 | 441,235 | 417,510 |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 117,008 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 168,979 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 138,157 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 17,091 | |
Off-balance sheet lending-related financial commitments, Carrying value | 2,985 | 1,574 |
Other unfunded commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total lending-related commitments | 406,734 | 380,307 |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 96,207 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 160,733 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 134,223 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 15,571 | |
Off-balance sheet lending-related financial commitments, Carrying value | 2,492 | 952 |
Off balance sheet lending related financial instruments guarantees and other commitments - supplemental information [Abstract] | ||
Risk participations for other unfunded commitments to extend credit | 50 | 76 |
Standby letters of credit and other financial guarantees | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total lending-related commitments | 31,452 | 34,242 |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 17,847 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 8,170 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 3,915 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 1,520 | |
Off-balance sheet lending-related financial commitments, Carrying value | 473 | 618 |
Other guarantees and commitments, Carrying value | 375 | 402 |
Loan sale and securitization-related indemnifications, Mortgage repurchase liability, Carrying value | 98 | 216 |
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 | 8,800 | 9,800 |
Other letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total lending-related commitments | 3,049 | 2,961 |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 2,954 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 76 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 19 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 0 | |
Off-balance sheet lending-related financial commitments, Carrying value | 20 | 4 |
Other guarantees and commitments, Carrying value | 0 | 0 |
Loan sale and securitization-related indemnifications, Mortgage repurchase liability, Carrying value | 20 | 4 |
Off balance sheet lending related financial instruments guarantees and other commitments - supplemental information [Abstract] | ||
Risk participations for other letters of credit | 462 | 546 |
Securities lending indemnification agreements and guarantees | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other guarantees and commitments, Contractual amount | 220,361 | 204,827 |
Other guarantees and commitments, Contractual amount, Expiring in 1 year or less | 220,361 | |
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 | 233,000 | 216,200 |
Derivatives qualifying as guarantees | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other guarantees and commitments, Contractual amount | 55,380 | 53,089 |
Other guarantees and commitments, Contractual amount, Expiring in 1 year or less | 2,668 | |
Other guarantees and commitments, Contractual amount, Expiring after 1 year through 3 years | 290 | |
Other guarantees and commitments, Contractual amount, Expiring after 3 years through 5 years | 12,045 | |
Other guarantees and commitments, Contractual amount, Expiring after 5 years | 40,377 | |
Other guarantees and commitments, Carrying value | 451 | 159 |
Unsettled resale and securities borrowed agreements | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other guarantees and commitments, Contractual amount | 146,354 | 117,951 |
Other guarantees and commitments, Contractual amount, Expiring in 1 year or less | 142,799 | |
Other guarantees and commitments, Contractual amount, Expiring after 1 year through 3 years | 3,555 | |
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 | 1 | 0 |
Unsettled repurchase and securities loaned agreements | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other guarantees and commitments, Contractual amount | 121,490 | 73,351 |
Other guarantees and commitments, Contractual amount, Expiring in 1 year or less | 120,904 | |
Other guarantees and commitments, Contractual amount, Expiring after 1 year through 3 years | 586 | |
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 | (1) | 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 | 853 | 944 |
Loan sale and securitization-related indemnifications, Loans sold with recourse, Carrying value | 24 | 27 |
Exchange & clearing house guarantees and commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other guarantees and commitments, Contractual amount | 89,121 | 206,432 |
Other guarantees and commitments, Contractual amount, Expiring in 1 year or less | 89,121 | |
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 |
Other guarantees and commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other guarantees and commitments, Contractual amount | 6,498 | 6,334 |
Other guarantees and commitments, Contractual amount, Expiring in 1 year or less | 1,236 | |
Other guarantees and commitments, Contractual amount, Expiring after 1 year through 3 years | 499 | |
Other guarantees and commitments, Contractual amount, Expiring after 3 years through 5 years | 711 | |
Other guarantees and commitments, Contractual amount, Expiring after 5 years | 4,052 | |
Other guarantees and commitments, Carrying Value | $ (64) | $ (66) |
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-rel_4
Off-balance Sheet Lending-related Financial Instruments, Guarantees, and Other Commitments - Standby Letters of Credit and Other Financial Guarantees (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Standby letters of credit and other financial guarantees and other letters of credit [Abstract] | ||
Total lending-related commitments | $ 1,150,520 | $ 1,108,399 |
Total carrying value | 3,201 | 1,586 |
Standby letters of credit and other financial guarantees | ||
Standby letters of credit and other financial guarantees and other letters of credit [Abstract] | ||
Investment-grade | 23,461 | 26,880 |
Noninvestment-grade | 7,991 | 7,362 |
Total lending-related commitments | 31,452 | 34,242 |
Allowance for lending-related commitments | 98 | 216 |
Guarantee liability | 375 | 402 |
Total carrying value | 473 | 618 |
Commitments with collateral | 17,249 | 17,853 |
Other letters of credit | ||
Standby letters of credit and other financial guarantees and other letters of credit [Abstract] | ||
Investment-grade | 2,338 | 2,137 |
Noninvestment-grade | 711 | 824 |
Total lending-related commitments | 3,049 | 2,961 |
Allowance for lending-related commitments | 20 | 4 |
Guarantee liability | 0 | 0 |
Total carrying value | 20 | 4 |
Commitments with collateral | $ 417 | $ 728 |
Off-balance Sheet Lending-rel_5
Off-balance Sheet Lending-related Financial Instruments, Guarantees, and Other Commitments - Schedule of Derivatives Qualifying as Guarantees (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Notional amounts | ||
Stable value contracts with contractually limited exposure | $ 51,078,000 | $ 46,942,000 |
JPMorgan Chase Financial Company LLC | ||
Fair value | ||
Direct-owned finance subsidiary ownership | 100.00% | |
Merchant Services | ||
Fair value | ||
Carrying value of valuation allowance that covers payment or performance risk related to charge-backs | $ 14 | 11 |
Derivatives qualifying as guarantees | ||
Notional amounts | ||
Derivative guarantees | 55,380 | 53,089 |
Stable value contracts with contractually limited exposure | 28,955 | 28,877 |
Maximum exposure of stable value contracts with contractually limited exposure | 2,974 | 2,967 |
Fair value | ||
Derivative payables | $ 451 | $ 159 |
Pledged Assets and Collateral -
Pledged Assets and Collateral - Schedule of Pledged Assets (Details) - USD ($) $ in Billions | Sep. 30, 2020 | Dec. 31, 2019 |
Pledged assets and Collateral | ||
Assets that may be sold or repledged or otherwise used by secured parties | $ 189.9 | $ 125.2 |
Assets that may not be sold or repledged or otherwise used by secured parties | 98.8 | 80.2 |
Total pledged assets | 730.3 | 684.3 |
Assets pledged at Federal Reserve banks and FHLBs | ||
Pledged assets and Collateral | ||
Total pledged assets | $ 441.6 | $ 478.9 |
Pledged Assets and Collateral_2
Pledged Assets and Collateral - Schedule of Collateral Received (Details) - USD ($) $ in Billions | Sep. 30, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Collateral permitted to be sold or repledged, delivered, or otherwise used | $ 1,361.5 | $ 1,282.5 |
Collateral sold, repledged, delivered or otherwise used | $ 999.8 | $ 1,000.5 |
Litigation (Details)
Litigation (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 36 Months Ended | |||||||
May 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2018USD ($) | Nov. 30, 2017USD ($) | Jan. 31, 2017 | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)defendantcountclaim | Sep. 30, 2019USD ($) | Dec. 31, 2012USD ($)action | Dec. 31, 2013USD ($) | Dec. 31, 2012fund | |
Loss Contingencies [Line Items] | ||||||||||||
Legal expense/(benefit) | $ 524,000,000 | $ 10,000,000 | $ 839,000,000 | $ (2,000,000) | ||||||||
Threatened or Pending Litigation | Minimum | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency range of possible loss | 0 | 0 | ||||||||||
Threatened or Pending Litigation | Maximum | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency range of possible loss | $ 1,700,000,000 | $ 1,700,000,000 | ||||||||||
Amrapali Litigation | JPMorgan India Private Limited | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of offshore funds formerly managed by JPMorgan Chase entities | fund | 2 | |||||||||||
Amount of claim | $ 25,000,000 | |||||||||||
Federal Republic of Nigeria Litigation | Federal Government of Nigeria and Two Major International Oil Companies | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Amount paid out of monies in account following settlement of dispute | $ 1,100,000,000 | |||||||||||
Federal Republic of Nigeria Litigation | Federal Republic of Nigeria | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Amount of claim | $ 875,000,000 | |||||||||||
Foreign Exchange Investigations and Litigation | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency, exemption of disqualification period | 5 years | |||||||||||
Loss contingency disqualification period | 10 years | |||||||||||
Number of other defendants that agreed in principle to settle class action | defendant | 11 | |||||||||||
Settlement amount | $ 10,000,000 | |||||||||||
Interchange Litigation | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of claims settled | action | 2 | |||||||||||
Interchange Litigation | The Defendants | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Settlement amount | $ 900,000,000 | $ 5,300,000,000 | ||||||||||
Payments for legal settlement | $ 700,000,000 | |||||||||||
Metals and U.S. Treasuries Investigations and Litigation and Related Inquiries | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Settlement amount | $ 920,000,000 | |||||||||||
Number of claims settled | claim | 3 | |||||||||||
Number of counts of wire fraud charged | count | 2 | |||||||||||
Period after which criminal information will be dismissed with full compliance with all obligations | 3 years |
Business Segments (Details)
Business Segments (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)segment | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | [1] | |||
Segment Reporting Information [Line Items] | ||||||||
Number of reportable segments | segment | 4 | |||||||
Noninterest revenue | $ 16,134 | $ 15,063 | $ 49,014 | $ 44,035 | ||||
Net interest income | 13,013 | 14,228 | 41,305 | 43,079 | ||||
Total net revenue | 29,147 | 29,291 | 90,319 | 87,114 | ||||
Provision for credit losses | 611 | 1,514 | 19,369 | 4,158 | ||||
Noninterest expense | 16,875 | 16,372 | 50,608 | 48,976 | ||||
Income before income tax expense | 11,661 | 11,405 | 20,342 | 33,980 | ||||
Income tax expense/(benefit) | 2,218 | 2,325 | 3,347 | 6,069 | ||||
Net income | 9,443 | 9,080 | 16,995 | 27,911 | ||||
Average equity | 236,797 | 235,613 | 235,251 | 232,917 | ||||
Total assets | $ 3,246,076 | [1] | $ 2,764,661 | $ 3,246,076 | [1] | $ 2,764,661 | $ 2,687,379 | |
ROE | 15.00% | 15.00% | 9.00% | 15.00% | ||||
Overhead ratio | 58.00% | 56.00% | 56.00% | 56.00% | ||||
Operating Segments | Consumer & Community Banking | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Noninterest revenue | $ 4,758 | $ 4,806 | $ 12,833 | $ 12,948 | ||||
Net interest income | 7,997 | 9,152 | 25,251 | 27,937 | ||||
Total net revenue | 12,755 | 13,958 | 38,084 | 40,885 | ||||
Provision for credit losses | 794 | 1,311 | 12,394 | 3,745 | ||||
Noninterest expense | 6,770 | 7,025 | 20,498 | 20,784 | ||||
Income before income tax expense | 5,191 | 5,622 | 5,192 | 16,356 | ||||
Income tax expense/(benefit) | 1,318 | 1,377 | 1,304 | 4,007 | ||||
Net income | 3,873 | 4,245 | 3,888 | 12,349 | ||||
Average equity | 52,000 | 52,000 | 52,000 | 52,000 | ||||
Total assets | $ 480,325 | $ 525,223 | $ 480,325 | $ 525,223 | ||||
ROE | 29.00% | 31.00% | 9.00% | 31.00% | ||||
Overhead ratio | 53.00% | 50.00% | 54.00% | 51.00% | ||||
Operating Segments | Corporate & Investment Bank | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Noninterest revenue | $ 8,075 | $ 7,354 | $ 27,189 | $ 22,850 | ||||
Net interest income | 3,428 | 2,168 | 10,614 | 6,537 | ||||
Total net revenue | 11,503 | 9,522 | 37,803 | 29,387 | ||||
Provision for credit losses | (81) | 92 | 3,307 | 179 | ||||
Noninterest expense | 5,797 | 5,504 | 18,457 | 16,794 | ||||
Income before income tax expense | 5,787 | 3,926 | 16,039 | 12,414 | ||||
Income tax expense/(benefit) | 1,483 | 1,095 | 4,283 | 3,377 | ||||
Net income | 4,304 | 2,831 | 11,756 | 9,037 | ||||
Average equity | 80,000 | 80,000 | 80,000 | 80,000 | ||||
Total assets | $ 1,089,293 | $ 1,030,396 | $ 1,089,293 | $ 1,030,396 | ||||
ROE | 21.00% | 13.00% | 19.00% | 14.00% | ||||
Overhead ratio | 50.00% | 58.00% | 49.00% | 57.00% | ||||
Operating Segments | Commercial Banking | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Noninterest revenue | $ 761 | $ 666 | $ 2,197 | $ 2,022 | ||||
Net interest income | 1,524 | 1,608 | 4,658 | 4,950 | ||||
Total net revenue | 2,285 | 2,274 | 6,855 | 6,972 | ||||
Provision for credit losses | (147) | 67 | 3,294 | 186 | ||||
Noninterest expense | 966 | 940 | 2,853 | 2,809 | ||||
Income before income tax expense | 1,466 | 1,267 | 708 | 3,977 | ||||
Income tax expense/(benefit) | 378 | 324 | 164 | 972 | ||||
Net income | 1,088 | 943 | 544 | 3,005 | ||||
Average equity | 22,000 | 22,000 | 22,000 | 22,000 | ||||
Total assets | $ 228,587 | $ 222,483 | $ 228,587 | $ 222,483 | ||||
ROE | 19.00% | 16.00% | 2.00% | 17.00% | ||||
Overhead ratio | 42.00% | 41.00% | 42.00% | 40.00% | ||||
Operating Segments | Asset & Wealth Management | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Noninterest revenue | $ 2,887 | $ 2,713 | $ 8,316 | $ 7,989 | ||||
Net interest income | 850 | 855 | 2,637 | 2,627 | ||||
Total net revenue | 3,737 | 3,568 | 10,953 | 10,616 | ||||
Provision for credit losses | (51) | 44 | 266 | 48 | ||||
Noninterest expense | 2,623 | 2,622 | 7,788 | 7,865 | ||||
Income before income tax expense | 1,165 | 902 | 2,899 | 2,703 | ||||
Income tax expense/(benefit) | 288 | 234 | 700 | 655 | ||||
Net income | 877 | 668 | 2,199 | 2,048 | ||||
Average equity | 10,500 | 10,500 | 10,500 | 10,500 | ||||
Total assets | $ 194,596 | $ 174,226 | $ 194,596 | $ 174,226 | ||||
ROE | 32.00% | 24.00% | 27.00% | 25.00% | ||||
Overhead ratio | 70.00% | 73.00% | 71.00% | 74.00% | ||||
Operating Segments | Corporate | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Noninterest revenue | $ 343 | $ 120 | $ 607 | $ 3 | ||||
Net interest income | (682) | 572 | (1,534) | 1,436 | ||||
Total net revenue | (339) | 692 | (927) | 1,439 | ||||
Provision for credit losses | 96 | 0 | 108 | 0 | ||||
Noninterest expense | 719 | 281 | 1,012 | 724 | ||||
Income before income tax expense | (1,154) | 411 | (2,047) | 715 | ||||
Income tax expense/(benefit) | (455) | 18 | (655) | (757) | ||||
Net income | (699) | 393 | (1,392) | 1,472 | ||||
Average equity | 72,297 | 71,113 | 70,751 | 68,417 | ||||
Total assets | 1,253,275 | 812,333 | 1,253,275 | 812,333 | ||||
Reconciling Items | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Noninterest revenue | (690) | (596) | (2,128) | (1,777) | ||||
Net interest income | (104) | (127) | (321) | (408) | ||||
Total net revenue | (794) | (723) | (2,449) | (2,185) | ||||
Provision for credit losses | 0 | 0 | 0 | 0 | ||||
Noninterest expense | 0 | 0 | 0 | 0 | ||||
Income before income tax expense | (794) | (723) | (2,449) | (2,185) | ||||
Income tax expense/(benefit) | (794) | (723) | (2,449) | (2,185) | ||||
Net income | 0 | 0 | 0 | 0 | ||||
Average equity | $ 0 | $ 0 | $ 0 | $ 0 | ||||
[1] | The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at September 30, 2020, and December 31, 2019. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests generally do not have recourse to the general credit of JPMorgan Chase. The assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation. Refer to Note 14 for a further discussion. (in millions) September 30, 2020 December 31, 2019 Assets Trading assets $ 2,467 $ 2,633 Loans 36,974 42,931 All other assets 744 881 Total assets $ 40,185 $ 46,445 Liabilities Beneficial interests issued by consolidated VIEs $ 19,191 $ 17,841 All other liabilities 236 447 Total liabilities $ 19,427 $ 18,288 |