Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 31, 2021 | Jun. 30, 2020 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 383,953,778,298 | ||
Entity Common Stock, Shares Outstanding | 3,051,506,436 | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement for the annual meeting of stockholders to be held on May 18, 2021, are incorporated by reference in this Form 10-K in response to Items 10, 11, 12, 13 and 14 of Part III. | ||
Entity Central Index Key | 0000019617 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
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 - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Revenue | ||||
Investment banking fees | $ 9,486 | $ 7,501 | $ 7,550 | |
Principal transactions | 18,021 | 14,018 | 12,059 | |
Lending- and deposit-related fees | [1] | 6,511 | 6,626 | 6,377 |
Asset management, administration and commissions | [1] | 18,177 | 16,908 | 16,793 |
Investment securities gains/(losses) | 802 | 258 | (395) | |
Mortgage fees and related income | 3,091 | 2,036 | 1,254 | |
Card income | [2] | 4,435 | 5,076 | 4,743 |
Other income | 4,457 | 5,731 | 5,343 | |
Noninterest revenue | 64,980 | 58,154 | 53,724 | |
Interest income | 64,523 | 84,040 | 76,100 | |
Interest expense | 9,960 | 26,795 | 21,041 | |
Net interest income | 54,563 | 57,245 | 55,059 | |
Total net revenue | 119,543 | 115,399 | 108,783 | |
Provision for credit losses | 17,480 | 5,585 | 4,871 | |
Noninterest expense | ||||
Compensation expense | 34,988 | 34,155 | 33,117 | |
Occupancy expense | 4,449 | 4,322 | 3,952 | |
Technology, communications and equipment expense | 10,338 | 9,821 | 8,802 | |
Professional and outside services | 8,464 | 8,533 | 8,502 | |
Marketing | [2] | 2,476 | 3,351 | 3,044 |
Other expense | 5,941 | 5,087 | 5,731 | |
Total noninterest expense | 66,656 | 65,269 | 63,148 | |
Income before income tax expense | 35,407 | 44,545 | 40,764 | |
Income tax expense | 6,276 | 8,114 | 8,290 | |
Net income | 29,131 | 36,431 | 32,474 | |
Net income applicable to common stockholders | $ 27,410 | $ 34,642 | $ 30,709 | |
Net income per common share data | ||||
Basic earnings per share (in dollars per share) | $ 8.89 | $ 10.75 | $ 9.04 | |
Diluted earnings per share (in dollars per share) | $ 8.88 | $ 10.72 | $ 9 | |
Weighted-average basic shares (in shares) | 3,082.4 | 3,221.5 | 3,396.4 | |
Weighted-average diluted shares (in shares) | 3,087.4 | 3,230.4 | 3,414 | |
[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 - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 29,131 | $ 36,431 | $ 32,474 |
Other comprehensive income/(loss), after–tax | |||
Unrealized gains/(losses) on investment securities | 4,123 | 2,855 | (1,858) |
Translation adjustments, net of hedges | 234 | 20 | 20 |
Fair value hedges | 19 | 30 | (107) |
Cash flow hedges | 2,320 | 172 | (201) |
Defined benefit pension and OPEB plans | 212 | 964 | (373) |
DVA on fair value option elected liabilities | (491) | (965) | 1,043 |
Total other comprehensive income/(loss), after–tax | 6,417 | 3,076 | (1,476) |
Comprehensive income | $ 35,548 | $ 39,507 | $ 30,998 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets | |||
Cash and due from banks | $ 24,874 | $ 21,704 | |
Deposits with banks | 502,735 | 241,927 | |
Federal funds sold and securities purchased under resale agreements (included $238,015 and $14,561 at fair value) | 296,284 | 249,157 | |
Securities borrowed (included $52,983 and $6,237 at fair value) | 160,635 | 139,758 | |
Trading assets (included assets pledged of $130,645 and $111,522) | [1] | 503,126 | 369,687 |
Available-for-sale securities (amortized cost of $381,729 and $345,306; included assets pledged of $32,227 and $10,325) | 388,178 | 350,699 | |
Held-to-maturity securities (net of allowance for credit losses of $78) | 201,821 | 47,540 | |
Investment securities, net of allowance for credit losses | 589,999 | 398,239 | |
Loans (included $44,474 and $44,955 at fair value) | [1] | 1,012,853 | 997,620 |
Allowance for loan losses | (28,328) | (13,123) | |
Loans, net of allowance for loan losses | 984,525 | 984,497 | |
Accrued interest and accounts receivable | 90,503 | 72,861 | |
Premises and equipment | 27,109 | 25,813 | |
Goodwill, MSRs and other intangible assets | 53,428 | 53,341 | |
Other assets (included $13,827 and $12,676 at fair value and assets pledged of $3,739 and $3,349) | [1] | 152,853 | 130,395 |
Total assets | [2] | 3,386,071 | 2,687,379 |
Liabilities | |||
Deposits (included $14,484 and $28,589 at fair value) | 2,144,257 | 1,562,431 | |
Federal funds purchased and securities loaned or sold under repurchase agreements (included $155,735 and $549 at fair value) | 215,209 | 183,675 | |
Short-term borrowings (included $16,893 and $5,920 at fair value) | 45,208 | 40,920 | |
Trading liabilities | 170,181 | 119,277 | |
Accounts payable and other liabilities (included $3,476 and $3,728 at fair value) | 232,599 | 210,407 | |
Beneficial interests issued by consolidated VIEs (included $41 and $36 at fair value) | 17,578 | 17,841 | |
Long-term debt (included $76,817 and $75,745 at fair value) | 281,685 | 291,498 | |
Total liabilities | [2] | 3,106,717 | 2,426,049 |
Commitments and contingencies (refer to Notes 28, 29 and 30) | |||
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 | 88,394 | 88,522 | |
Retained earnings | 236,990 | 223,211 | |
Accumulated other comprehensive income | 7,986 | 1,569 | |
Shares held in restricted stock units (“RSU”) trust, at cost (zero and 472,953 shares) | 0 | (21) | |
Treasury stock, at cost (1,055,499,435 and 1,020,912,567 shares) | (88,184) | (83,049) | |
Total stockholders’ equity | 279,354 | 261,330 | |
Total liabilities and stockholders’ equity | 3,386,071 | 2,687,379 | |
VIEs consolidated by the Firm | |||
Assets | |||
Trading assets (included assets pledged of $130,645 and $111,522) | 1,934 | 2,633 | |
Loans, net of allowance for loan losses | 37,619 | 42,931 | |
Other assets (included $13,827 and $12,676 at fair value and assets pledged of $3,739 and $3,349) | 681 | 881 | |
Total assets | 40,234 | 46,445 | |
Liabilities | |||
Beneficial interests issued by consolidated VIEs (included $41 and $36 at fair value) | 17,578 | 17,841 | |
All other liabilities | 233 | 447 | |
Total liabilities | $ 17,811 | $ 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 December 31, 2020 and 2019. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests do not have recourse to the general credit of JPMorgan Chase. 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. December 31, (in millions) 2020 2019 Assets Trading assets $ 1,934 $ 2,633 Loans 37,619 42,931 All other assets 681 881 Total assets $ 40,234 $ 46,445 Liabilities Beneficial interests issued by consolidated VIEs $ 17,578 $ 17,841 All other liabilities 233 447 Total liabilities $ 17,811 $ 18,288 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Assets pledged | $ 166,600 | $ 125,200 |
Available-for-sale securities, amortized cost | 381,729 | 345,306 |
Held-to-maturity securities, allowance for credit losses | 78 | |
Loans | $ 44,474 | $ 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, shares (in shares) | 0 | 472,953 |
Treasury stock, shares (in shares) | 1,055,499,435 | 1,020,912,567 |
Trading assets | ||
Assets | ||
Assets pledged | $ 130,645 | $ 111,522 |
Investment securities - AFS | ||
Assets | ||
Assets pledged | 32,227 | 10,325 |
Other assets | ||
Assets | ||
Assets pledged | 3,739 | 3,349 |
Recurring | ||
Assets | ||
Federal funds sold and securities purchased under resale agreements | 238,015 | 14,561 |
Securities borrowed | 52,983 | 6,237 |
Loans | 44,474 | 44,955 |
Liabilities | ||
Deposits | 14,484 | 28,589 |
Federal funds purchased and securities loaned or sold under repurchase agreements | 155,735 | 549 |
Short-term borrowings | 16,893 | 5,920 |
Accounts payable and other liabilities | 3,476 | 3,728 |
Beneficial interests issued by consolidated VIEs | 41 | 36 |
Long-term debt | 76,817 | 75,745 |
Recurring | Other assets | ||
Assets | ||
Other assets | $ 13,827 | $ 12,676 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Millions | Total | Preferred stock | Common stock | Additional paid-in capital | Retained earnings | Retained earningsCumulative effect of change in accounting principles | Accumulated other comprehensive income | Accumulated other comprehensive incomeCumulative effect of change in accounting principles | Shares held in RSU Trust, at cost | Treasury stock, at cost |
Beginning balance at Dec. 31, 2017 | $ 26,068 | $ 4,105 | $ 90,579 | $ 177,676 | $ (183) | $ (119) | $ 88 | $ (21) | $ (42,595) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance | 1,696 | |||||||||
Redemption | (1,696) | |||||||||
Shares issued and commitments to issue common stock for employee share-based compensation awards, and related tax effects | (738) | |||||||||
Other | (679) | |||||||||
Net income | $ 32,474 | 32,474 | ||||||||
Dividends declared: | ||||||||||
Preferred stock | (1,551) | |||||||||
Common stock ($3.60, $3.40 and $2.72 per share for 2020, 2019 and 2018, respectively) | (9,214) | |||||||||
Other comprehensive income/(loss), after-tax | (1,476) | (1,476) | ||||||||
Liquidation of RSU Trust | 0 | |||||||||
Repurchase | (19,983) | (19,983) | ||||||||
Reissuance | 2,084 | |||||||||
Ending balance at Dec. 31, 2018 | 256,515 | 26,068 | 4,105 | 89,162 | 199,202 | 62 | (1,507) | (21) | (60,494) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance | 5,000 | |||||||||
Redemption | (4,075) | |||||||||
Shares issued and commitments to issue common stock for employee share-based compensation awards, and related tax effects | (591) | |||||||||
Other | (49) | |||||||||
Net income | 36,431 | 36,431 | ||||||||
Dividends declared: | ||||||||||
Preferred stock | (1,587) | |||||||||
Common stock ($3.60, $3.40 and $2.72 per share for 2020, 2019 and 2018, respectively) | (10,897) | |||||||||
Other comprehensive income/(loss), after-tax | 3,076 | 3,076 | ||||||||
Liquidation of RSU Trust | 0 | |||||||||
Repurchase | (24,121) | (24,121) | ||||||||
Reissuance | 1,566 | |||||||||
Ending 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 share-based compensation awards, and related tax effects | (72) | |||||||||
Other | (56) | |||||||||
Net income | 29,131 | 29,131 | ||||||||
Dividends declared: | ||||||||||
Preferred stock | (1,583) | |||||||||
Common stock ($3.60, $3.40 and $2.72 per share for 2020, 2019 and 2018, respectively) | (11,119) | |||||||||
Other comprehensive income/(loss), after-tax | 6,417 | 6,417 | ||||||||
Liquidation of RSU Trust | 21 | |||||||||
Repurchase | (6,397) | (6,397) | ||||||||
Reissuance | 1,262 | |||||||||
Ending balance at Dec. 31, 2020 | $ 279,354 | $ 30,063 | $ 4,105 | $ 88,394 | $ 236,990 | $ 7,986 | $ 0 | $ (88,184) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared, Common stock (in dollars per share) | $ 3.60 | $ 3.40 | $ 2.72 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Operating activities | ||||
Net income | $ 29,131 | $ 36,431 | $ 32,474 | |
Adjustments to reconcile net income to net cash provided by/(used in) operating activities: | ||||
Provision for credit losses | 17,480 | 5,585 | 4,871 | |
Depreciation and amortization | 8,614 | 8,368 | 7,791 | |
Deferred tax expense | (3,981) | 949 | 1,721 | |
Other | 1,649 | 1,996 | 2,717 | |
Originations and purchases of loans held-for-sale | [1] | (166,504) | (169,289) | (172,728) |
Proceeds from sales, securitizations and paydowns of loans held-for-sale | [1] | 175,490 | 171,415 | 163,747 |
Net change in: | ||||
Trading assets | [1] | (148,749) | 6,551 | (35,067) |
Securities borrowed | (20,734) | (27,631) | (6,861) | |
Accrued interest and accounts receivable | (18,012) | (78) | (5,849) | |
Other assets | [1] | (42,434) | (17,570) | (8,779) |
Trading liabilities | 77,198 | (14,516) | 18,290 | |
Accounts payable and other liabilities | 7,827 | (352) | 14,630 | |
Other operating adjustments | [1] | 3,115 | 2,233 | (1,343) |
Net cash provided by/(used in) operating activities | (79,910) | 4,092 | 15,614 | |
Net change in: | ||||
Federal funds sold and securities purchased under resale agreements | (47,115) | 72,396 | (123,201) | |
Held-to-maturity securities: | ||||
Proceeds from paydowns and maturities | 21,360 | 3,423 | 2,945 | |
Purchases | (12,400) | (13,427) | (9,368) | |
Available-for-sale securities: | ||||
Proceeds from paydowns and maturities | 57,675 | 52,200 | 37,401 | |
Proceeds from sales | 149,758 | 70,181 | 46,067 | |
Purchases | (397,145) | (242,149) | (95,091) | |
Proceeds from sales and securitizations of loans held-for-investment | 23,559 | 62,095 | 29,826 | |
Other changes in loans, net | [1] | (50,263) | (51,743) | (83,013) |
All other investing activities, net | (7,341) | (5,035) | (4,986) | |
Net cash (used in) investing activities | (261,912) | (52,059) | (199,420) | |
Net change in: | ||||
Deposits | 602,765 | 101,002 | 26,728 | |
Federal funds purchased and securities loaned or sold under repurchase agreements | 31,528 | 1,347 | 23,415 | |
Short-term borrowings | (28,561) | |||
Short-term borrowings | 4,438 | 18,476 | ||
Beneficial interests issued by consolidated VIEs | 1,347 | 4,289 | 1,712 | |
Proceeds from long-term borrowings | 78,686 | 61,085 | 71,662 | |
Payments of long-term borrowings | (105,055) | (69,610) | (76,313) | |
Proceeds from issuance of preferred stock | 4,500 | 5,000 | 1,696 | |
Redemption of preferred stock | (1,430) | (4,075) | (1,696) | |
Treasury stock repurchased | (6,517) | (24,001) | (19,983) | |
Dividends paid | (12,690) | (12,343) | (10,109) | |
All other financing activities, net | (927) | (1,146) | (1,430) | |
Net cash provided by financing activities | 596,645 | 32,987 | 34,158 | |
Effect of exchange rate changes on cash and due from banks and deposits with banks | 9,155 | (182) | (2,863) | |
Net increase/(decrease) in cash and due from banks and deposits with banks | 263,978 | (15,162) | (152,511) | |
Cash and due from banks and deposits with banks at the beginning of the period | 263,631 | 278,793 | 431,304 | |
Cash and due from banks and deposits with banks at the end of the period | 527,609 | 263,631 | 278,793 | |
Cash interest paid | 13,077 | 29,918 | 21,152 | |
Cash income taxes paid, net | $ 7,661 | $ 5,624 | $ 3,542 | |
[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 | 12 Months Ended |
Dec. 31, 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 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 32 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. Certain amounts reported in prior periods have been reclassified to conform with the current presentation. Consolidation The Consolidated Financial Statements include the accounts of JPMorgan Chase and other entities in which the Firm has a controlling financial interest. All material intercompany balances and transactions have been eliminated. Assets held for clients in an agency or fiduciary capacity by the Firm are not assets of JPMorgan Chase and are not included on the Consolidated balance sheets. The Firm determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity. Voting interest entities Voting interest entities are entities that have sufficient equity and provide the equity investors voting rights that enable them to make significant decisions relating to the entity’s operations. For these types of entities, the Firm’s determination of whether it has a controlling interest is primarily based on the amount of voting equity interests held. Entities in which the Firm has a controlling financial interest, through ownership of the majority of the entities’ voting equity interests, or through other contractual rights that give the Firm control, are consolidated by the Firm. Investments in companies in which the Firm has significant influence over operating and financing decisions (but does not own a majority of the voting equity interests) are accounted for (i) in accordance with the equity method of accounting (which requires the Firm to recognize its proportionate share of the entity’s net earnings), or (ii) at fair value if the fair value option was elected. These investments are generally included in other assets, with income or loss included in noninterest revenue. Certain Firm-sponsored asset management funds are structured as limited partnerships or limited liability companies. For many of these entities, the Firm is the general partner or managing member, but the non-affiliated partners or members have the ability to remove the Firm as the general partner or managing member without cause (i.e., kick-out rights), based on a simple majority vote, or the non-affiliated partners or members have rights to participate in important decisions. Accordingly, the Firm does not consolidate these voting interest entities. However, in the limited cases where the non-managing partners or members do not have substantive kick-out or participating rights, the Firm evaluates the funds as VIEs and consolidates the funds if the Firm is t h e general partner or managing member and has a potentially significant interest. The Firm’s investment companies and asset management funds have investments in both publicly-held and privately-held entities, including investments in buyouts, growth equity and venture opportunities. These investments are accounted for under investment company guidelines and, accordingly, irrespective of the percentage of equity ownership interests held, are carried on the Consolidated balance sheets at fair value, and are recorded in other assets, with income or loss included in noninterest revenue. If consolidated, the Firm retains the accounting under such specialized investment company guidelines. Variable interest entities VIEs are entities that, by design, either (1) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) have equity investors that do not have the ability to make significant decisions relating to the entity’s operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. The most common type of VIE is an SPE. SPEs are commonly used in securitization transactions in order to isolate certain assets and distribute the cash flows from those assets to investors. The basic SPE structure involves a company selling assets to the SPE; the SPE funds the purchase of those assets by issuing securities to investors. The legal documents that govern the transaction specify how the cash earned on the assets must be allocated to the SPE’s investors and other parties that have rights to those cash flows. SPEs are generally structured to insulate investors from claims on the SPE’s assets by creditors of other entities, including the creditors of the seller of the assets. The primary beneficiary of a VIE (i.e., the party that has a controlling financial interest) is required to consolidate the assets and liabilities of the VIE. The primary beneficiary is the party that has both (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and (2) through its interests in the VIE, the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. To assess whether the Firm has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, the Firm considers all the facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes, first, identifying the activities that most significantly impact the VIE’s economic performance; and second, identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE (such as asset managers, collateral managers, servicers, or owners of call options or liquidation rights over the VIE’s assets) or have the right to unilaterally remove those decision-makers are deemed to have the power to direct the activities of a VIE. To assess whether the Firm has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Firm considers all of its economic interests, including debt and equity investments, servicing fees, and derivatives or other arrangements deemed to be variable interests in the VIE. This assessment requires that the Firm apply judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE’s capital structure; and the reasons why the interests are held by the Firm. The Firm performs on-going reassessments of: (1) whether entities previously evaluated under the majority voting-interest framework have become VIEs, based on certain events, and are therefore subject to the VIE consolidation framework; and (2) whether changes in the facts and circumstances regarding the Firm’s involvement with a VIE cause the Firm’s consolidation conclusion to change. Refer to Note 14 for further discussion of the Firm’s VIEs. Revenue recognition Interest income The Firm recognizes interest income on loans, debt securities, and other debt instruments, generally on a level-yield basis, based on the underlying contractual rate. Refer to Note 7 for further discussion of interest income. Revenue from contracts with customers JPMorgan Chase recognizes noninterest revenue from certain contracts with customers , in investment banking fees, deposit-related fees, asset management administration and commissions, and components of card income, when the Firm’s related performance obligations are satisfied. Refer to Note 6 for further discussion of the Firm’s revenue from contracts with customers. Principal transactions revenue JPMorgan Chase carries a portion of its assets and liabilities at fair value. Changes in fair value are reported primarily in principal transactions revenue. Refer to Notes 2 and 3 for further discussion of fair value measurement. Refer to Note 6 for further discussion of principal transactions revenue. Use of estimates in the preparation of consolidated financial statements The preparation of the Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expense, and disclosures of contingent assets and liabilities. Actual results could be different from these estimates. Foreign currency translation JPMorgan Chase revalues assets, liabilities, revenue and expense denominated in non-U.S. currencies into U.S. dollars using applicable exchange rates. Gains and losses relating to translating functional currency financial statements for U.S. reporting are included in the Consolidated statements of comprehensive income. Gains and losses relating to nonfunctional currency transactions, including non-U.S. operations where the functional currency is the U.S. dollar, are reported in the Consolidated statements of income. Offsetting assets and liabilities U.S. GAAP permits entities to present derivative receivables and derivative payables with the same counterparty and the related cash collateral receivables and payables on a net basis on the Consolidated balance sheets when a legally enforceable master netting agreement exists. U.S. GAAP also permits securities sold and purchased under repurchase agreements and securities borrowed or loaned under securities loan agreements to be presented net when specified conditions are met, including the existence of a legally enforceable master netting agreement. The Firm has elected to net such balances when the specified conditions are met. The Firm uses master netting agreements to mitigate counterparty credit risk in certain transactions, including derivative contracts, resale, repurchase, securities borrowed and securities loaned agreements. A master netting agreement is a single agreement with a counterparty that permits multiple transactions governed by that agreement to be terminated or accelerated and settled through a single payment in a single currency in the event of a default (e.g., bankruptcy, failure to make a required payment or securities transfer or deliver collateral or margin when due). Upon the exercise of derivatives termination rights by the non-defaulting party (i) all transactions are terminated, (ii) all transactions are valued and the positive values of “in the money” transactions are netted against the negative values of “out of the money” transactions and (iii) the only remaining payment obligation is of one of the parties to pay the netted termination amount. Upon exercise of default rights under repurchase agreements and securities loan agreements in general (i) all transactions are terminated and accelerated, (ii) all values of securities or cash held or to be delivered are calculated, and all such sums are netted against each other and (iii) the only remaining payment obligation is of one of the parties to pay the netted termination amount. Typical master netting agreements for these types of transactions also often contain a collateral/margin agreement that provides for a security interest in, or title transfer of, securities or cash collateral/margin to the party that has the right to demand margin (the “demanding party”). The collateral/margin agreement typically requires a party to transfer collateral/margin to the demanding party with a value equal to the amount of the margin deficit on a net basis across all transactions governed by the master netting agreement, less any threshold. The collateral/margin agreement grants to the demanding party, upon default by the counterparty, the right to set-off any amounts payable by the counterparty against any posted collateral or the cash equivalent of any posted collateral/margin. It also grants to the demanding party the right to liquidate collateral/margin and to apply the proceeds to an amount payable by the counterparty. Refer to Note 5 for further discussion of the Firm’s derivative instruments. Refer to Note 11 for further discussion of the Firm’s securities financing agreements. Statements of cash flows For JPMorgan Chase’s Consolidated statements of cash flows, cash is defined as those amounts included in cash and due from banks and deposits with banks. 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. Prior to the adoption of the CECL accounting guidance, the Firm’s allowance for credit losses represented management’s estimate of probable credit losses inherent in the Firm’s retained loan portfolios and certain lending-related commitments. 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 permitted under the U.S. capital rules issued by the federal banking agencies in 2019, 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 27 for further information. Accounting standards adopted January 1, 2018 Effective January 1, 2018, the Firm adopted several accounting standards resulting in a net decrease of $183 million to retained earnings and a net increase of $88 million to AOCI. The adoption of the recognition and measurement guidance resulted in $505 million of fair value gains in the first quarter of 2018, recorded in total net revenue, on certain equity investments that were previously held at cost. Significant accounting policies The following table identifies JPMorgan Chase’s other significant accounting policies and the Note and page where a detailed description of each policy can be found. Fair value measurement Note 2 page 171 Fair value option Note 3 page 192 Derivative instruments Note 5 page 198 Noninterest revenue and noninterest expense Note 6 page 212 Interest income and Interest expense Note 7 page 215 Pension and other postretirement employee benefit plans Note 8 page 216 Employee share-based incentives Note 9 page 221 Investment securities Note 10 page 223 Securities financing activities Note 11 page 229 Loans Note 12 page 232 Allowance for credit losses Note 13 page 248 Variable interest entities Note 14 page 253 Goodwill and Mortgage servicing rights Note 15 page 261 Premises and equipment Note 16 page 265 Leases Note 18 page 266 Long-term debt Note 20 page 269 Earnings per share Note 23 page 274 Income taxes Note 25 page 277 Off–balance sheet lending-related financial instruments, guarantees and other commitments Note 28 page 283 Litigation Note 30 page 290 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair value measurement JPMorgan Chase carries a portion of its assets and liabilities at fair value. These assets and liabilities are predominantly carried at fair value on a recurring basis (i.e., assets and liabilities that are measured and reported at fair value on the Firm’s Consolidated balance sheets). Certain assets, liabilities and unfunded lending-related commitments are measured at fair value on a nonrecurring basis; that is, they are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is based on quoted market prices or inputs, where available. If prices or quotes are not available, fair value is based on valuation models and other valuation techniques that consider relevant transaction characteristics (such as maturity) and use, as inputs, observable or unobservable market parameters, including yield curves, interest rates, volatilities, prices (such as commodity, equity or debt prices), correlations, foreign exchange rates and credit curves. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value, as described below. The level of precision in estimating unobservable market inputs or other factors can affect the amount of gain or loss recorded for a particular position. Furthermore, while the Firm believes its valuation methods are appropriate and consistent with those of other market participants, the methods and assumptions used reflect management judgment and may vary across the Firm’s businesses and portfolios. The Firm uses various methodologies and assumptions in the determination of fair value. The use of different methodologies or assumptions by other market participants compared with those used by the Firm could result in the Firm deriving a different estimate of fair value at the reporting date. Valuation process Risk-taking functions are responsible for providing fair value estimates for assets and liabilities carried on the Consolidated balance sheets at fair value. The Firm’s VCG, which is part of the Firm’s Finance function and independent of the risk-taking functions, is responsible for verifying these estimates and determining any fair value adjustments that may be required to ensure that the Firm’s positions are recorded at fair value. The VGF is composed of senior finance and risk executives and is responsible for overseeing the management of risks arising from valuation activities conducted across the Firm. The Firmwide VGF is chaired by the Firmwide head of the VCG (under the direction of the Firm’s Controller), and includes sub-forums covering the CIB, CCB, CB, AWM and certain corporate functions including Treasury and CIO. Price verification process The VCG verifies fair value estimates provided by the risk-taking functions by leveraging independently derived prices, valuation inputs and other market data, where available. Where independent prices or inputs are not available, the VCG performs additional review to ensure the reasonableness of the estimates. The additional review may include evaluating the limited market activity including client unwinds, benchmarking valuation inputs to those used for similar instruments, decomposing the valuation of structured instruments into individual components, comparing expected to actual cash flows, reviewing profit and loss trends, and reviewing trends in collateral valuation. There are also additional levels of management review for more significant or complex positions. The VCG determines any valuation adjustments that may be required to the estimates provided by the risk-taking functions. No adjustments to quoted prices are applied for instruments classified within level 1 of the fair value hierarchy (refer to the discussion below for further information on the fair value hierarchy). For other positions, judgment is required to assess the need for valuation adjustments to appropriately reflect liquidity considerations, unobservable parameters, and, for certain portfolios that meet specified criteria, the size of the net open risk position. The determination of such adjustments follows a consistent framework across the Firm: • Liquidity valuation adjustments are considered where an observable external price or valuation parameter exists but is of lower reliability, potentially due to lower market activity. Liquidity valuation adjustments are made based on current market conditions. Factors that may be considered in determining the liquidity adjustment include analysis of: (1) the estimated bid-offer spread for the instrument being traded; (2) alternative pricing points for similar instruments in active markets; and (3) the range of reasonable values that the price or parameter could take. • The Firm manages certain portfolios of financial instruments on the basis of net open risk exposure and, as permitted by U.S. GAAP, has elected to estimate the fair value of such portfolios on the basis of a transfer of the entire net open risk position in an orderly transaction. Where this is the case, valuation adjustments may be necessary to reflect the cost of exiting a larger-than-normal market-size net open risk position. Where applied, such adjustments are based on factors that a relevant market participant would consider in the transfer of the net open risk position, including the size of the adverse market move that is likely to occur during the period required to reduce the net open risk position to a normal market-size. • Uncertainty adjustments related to unobservable parameters may be made when positions are valued using prices or input parameters to valuation models that are unobservable due to a lack of market activity or because they cannot be implied from observable market data. Such prices or parameters must be estimated and are, therefore, subject to management judgment. Adjustments are made to reflect the uncertainty inherent in the resulting valuation estimate. • Where appropriate, the Firm also applies adjustments to its estimates of fair value in order to appropriately reflect counterparty credit quality (CVA), the Firm’s own creditworthiness (DVA) and the impact of funding (FVA), using a consistent framework across the Firm. Refer to Credit and funding adjustments on page 188 of this Note for more information on such adjustments. Valuation model review and approval If prices or quotes are not available for an instrument or a similar instrument, fair value is generally determined using valuation models that consider relevant transaction terms such as maturity and use as inputs market-based or independently sourced parameters. Where this is the case the price verification process described above is applied to the inputs in those models. Under the Firm’s Estimations and Model Risk Management Policy, the MRGR reviews and approves new models, as well as material changes to existing models, prior to implementation in the operating environment. In certain circumstances exceptions may be granted to the Firm’s policy to allow a model to be used prior to review or approval. The MRGR may also require the user to take appropriate actions to mitigate the model risk if it is to be used in the interim. These actions will depend on the model and may include, for example, limitation of trading activity. Valuation hierarchy A three-level valuation hierarchy has been established under U.S. GAAP for disclosure of fair value measurements. The valuation hierarchy is based on the observability of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows. • Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 – one or more inputs to the valuation methodology are unobservable and significant to the fair value measurement. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following table describes the valuation methodologies generally used by the Firm to measure its significant products/instruments at fair value, including the general classification of such instruments pursuant to the valuation hierarchy. Product/instrument Valuation methodology Classifications in the valuation hierarchy Securities financing agreements Valuations are based on discounted cash flows, which consider: Predominantly level 2 • Derivative features: refer to the discussion of derivatives below for further information. • Market rates for the respective maturity • Collateral characteristics Loans and lending-related commitments — wholesale Loans carried at fair value Where observable market data is available, valuations are based on: Level 2 or 3 • Observed market prices (circumstances are infrequent) • Relevant broker quotes • Observed market prices for similar instruments Where observable market data is unavailable or limited, valuations are based on discounted cash flows, which consider the following: • Credit spreads derived from the cost of CDS; or benchmark credit curves developed by the Firm, by industry and credit rating • Prepayment speed • Collateral characteristics Loans — consumer Loans carried at fair value — conforming residential mortgage loans expected to be sold Fair value is based on observable prices for mortgage-backed securities with similar collateral and incorporates adjustments to these prices to account for differences between the securities and the value of the underlying loans, which include credit characteristics, portfolio composition, and liquidity. Predominantly level 2 Investment and trading securities Quoted market prices Level 1 In the absence of quoted market prices, securities are valued based on: Level 2 or 3 • Observable market prices for similar securities • Relevant broker quotes • Discounted cash flows In addition, the following inputs to discounted cash flows are used for the following products: Mortgage- and asset-backed securities specific inputs: • Collateral characteristics • Deal-specific payment and loss allocations • Current market assumptions related to yield, prepayment speed, conditional default rates and loss severity Collateralized loan obligations (“CLOs”) specific inputs: • Collateral characteristics • Deal-specific payment and loss allocations • Expected prepayment speed, conditional default rates, loss severity • Credit spreads • Credit rating data Physical commodities Valued using observable market prices or data. Level 1 or 2 Product/instrument Valuation methodology Classifications in the valuation hierarchy Derivatives Exchange-traded derivatives that are actively traded and valued using the exchange price. Level 1 Derivatives that are valued using models such as the Black-Scholes option pricing model, simulation models, or a combination of models that may use observable or unobservable valuation inputs as well as considering the contractual terms. Level 2 or 3 In addition, specific inputs used for derivatives that are valued based on models with significant unobservable inputs are as follows: Structured credit derivatives specific inputs include: • CDS spreads and recovery rates • Credit correlation between the underlying debt instruments Equity option specific inputs include: • Forward equity price • Equity volatility • Equity correlation • Equity-FX correlation • Equity-IR correlation Interest rate and FX exotic options specific inputs include: • Interest rate volatility • Interest rate spread volatility • Interest rate correlation • Foreign exchange correlation • Interest rate-FX correlation Commodity derivatives specific inputs include: • Commodity volatility • Forward commodity price • Commodity correlation Additionally, adjustments are made to reflect counterparty credit quality (CVA) and the impact of funding (FVA). Refer to page 188 of this Note. Mortgage servicing rights Refer to Mortgage servicing rights in Note 15. Level 3 Private equity direct investments Fair value is estimated using all available information; the range of potential inputs include: Level 2 or 3 • Transaction prices • Trading multiples of comparable public companies • Operating performance of the underlying portfolio company • Adjustments as required, since comparable public companies are not identical to the company being valued, and for company-specific issues and lack of liquidity. • Additional available inputs relevant to the investment. Fund investments (e.g., mutual/collective investment funds, private equity funds, hedge funds, and real estate funds) Net asset value • NAV is supported by the ability to redeem and purchase at the NAV level. Level 1 • Adjustments to the NAV as required, for restrictions on redemption (e.g., lock-up periods or withdrawal limitations) or where observable activity is limited. Level 2 or 3 (a) Beneficial interests issued by consolidated VIEs Valued using observable market information, where available. Level 2 or 3 In the absence of observable market information, valuations are based on the fair value of the underlying assets held by the VIE. (a) Excludes certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient. Product/instrument Valuation methodology Classification in the valuation hierarchy Structured notes (included in deposits, short-term borrowings and long-term debt) • Valuations are based on discounted cash flow analyses that consider the embedded derivative and the terms and payment structure of the note. • The embedded derivative features are considered using models such as the Black-Scholes option pricing model, simulation models, or a combination of models that may use observable or unobservable valuation inputs, depending on the embedded derivative. The specific inputs used vary according to the nature of the embedded derivative features, as described in the discussion above regarding derivatives valuation. Adjustments are then made to this base valuation to reflect the Firm’s own credit risk (DVA). Refer to page 188 of this Note. Level 2 or 3 The following table presents the assets and liabilities reported at fair value as of December 31, 2020 and 2019, by major product category and fair value hierarchy. Assets and liabilities measured at fair value on a recurring basis Fair value hierarchy December 31, 2020 (in millions) Level 1 Level 2 Level 3 Derivative netting adjustments (g) Total fair value Federal funds sold and securities purchased under resale agreements $ — $ 238,015 $ — $ — $ 238,015 Securities borrowed — 52,983 — — 52,983 Trading assets: Debt instruments: Mortgage-backed securities: U.S. GSEs and government agencies (a) — 68,395 449 — 68,844 Residential – nonagency — 2,138 28 — 2,166 Commercial – nonagency — 1,327 3 — 1,330 Total mortgage-backed securities — 71,860 480 — 72,340 U.S. Treasury, GSEs and government agencies (a) 104,263 10,996 — — 115,259 Obligations of U.S. states and municipalities — 7,184 8 — 7,192 Certificates of deposit, bankers’ acceptances and commercial paper — 1,230 — — 1,230 Non-U.S. government debt securities 26,772 40,671 182 — 67,625 Corporate debt securities — 21,017 507 — 21,524 Loans (b) — 6,101 893 — 6,994 Asset-backed securities — 2,304 28 — 2,332 Total debt instruments 131,035 161,363 2,098 — 294,496 Equity securities 97,035 2,652 179 — 99,866 Physical commodities (c) 6,382 5,189 — — 11,571 Other — 17,165 346 — 17,511 Total debt and equity instruments (d) 234,452 186,369 2,623 — 423,444 Derivative receivables: Interest rate 2,318 386,865 2,307 (355,765) 35,725 Credit — 12,879 624 (12,823) 680 Foreign exchange 146 205,127 987 (190,479) 15,781 Equity — 71,279 3,519 (54,125) 20,673 Commodity — 21,272 231 (14,732) 6,771 Total derivative receivables 2,464 697,422 7,668 (627,924) 79,630 Total trading assets (e) 236,916 883,791 10,291 (627,924) 503,074 Available-for-sale securities: Mortgage-backed securities: U.S. GSEs and government agencies (a) 21,018 92,283 — — 113,301 Residential – nonagency — 10,233 — — 10,233 Commercial – nonagency — 2,856 — — 2,856 Total mortgage-backed securities 21,018 105,372 — — 126,390 U.S. Treasury and government agencies 201,951 — — — 201,951 Obligations of U.S. states and municipalities — 20,396 — — 20,396 Certificates of deposit — — — — — Non-U.S. government debt securities 13,135 9,793 — — 22,928 Corporate debt securities — 216 — — 216 Asset-backed securities: Collateralized loan obligations — 10,048 — — 10,048 Other — 6,249 — — 6,249 Total available-for-sale securities 236,104 152,074 — — 388,178 Loans (b)(f) — 42,169 2,305 — 44,474 Mortgage servicing rights — — 3,276 — 3,276 Other assets (b)(e) 8,110 4,561 538 — 13,209 Total assets measured at fair value on a recurring basis $ 481,130 $ 1,373,593 $ 16,410 $ (627,924) $ 1,243,209 Deposits $ — $ 11,571 $ 2,913 $ — $ 14,484 Federal funds purchased and securities loaned or sold under repurchase agreements — 155,735 — — 155,735 Short-term borrowings — 14,473 2,420 — 16,893 Trading liabilities: Debt and equity instruments (d) 82,669 16,838 51 — 99,558 Derivative payables: Interest rate 2,496 349,082 2,049 (340,615) 13,012 Credit — 14,344 848 (13,197) 1,995 Foreign exchange 132 214,373 1,421 (194,493) 21,433 Equity — 74,032 7,381 (55,515) 25,898 Commodity — 21,767 962 (14,444) 8,285 Total derivative payables 2,628 673,598 12,661 (618,264) 70,623 Total trading liabilities 85,297 690,436 12,712 (618,264) 170,181 Accounts payable and other liabilities 2,895 513 68 — 3,476 Beneficial interests issued by consolidated VIEs — 41 — — 41 Long-term debt — 53,420 23,397 — 76,817 Total liabilities measured at fair value on a recurring basis $ 88,192 $ 926,189 $ 41,510 $ (618,264) $ 437,627 Fair value hierarchy December 31, 2019 (in millions) Level 1 Level 2 Level 3 Derivative netting adjustments (g) 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 December 31, 2020 and 2019, included total U.S. GSE obligations of $117.6 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 December 31, 2020 and 2019, the fair values of these investments, which include certain hedge funds, private equity funds, real estate and other funds, were $670 million and $684 million, respectively. Included in these balances at December 31, 2020 and 2019, were trading assets of $52 million and $54 million, respectively, and other assets of $618 million and $630 million, respectively. (f) At December 31, 2020 and 2019, included within loans were $15.1 billion and $19.8 billion, respectively, of residential first-lien mortgages, and $6.3 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 $8.4 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 The Firm has established well-structured processes for determining fair value, including for instruments where fair value is estimated using significant unobservable inputs (level 3). Refer to pages 171-175 of this Note for further information on the Firm’s valuation process and a detailed discussion of the determination of fair value for individual financial instruments. Estimating fair value requires the application of judgment. The type and level of judgment required is largely dependent on the amount of observable market information available to the Firm. For instruments valued using internally developed valuation models and other valuation techniques that use significant unobservable inputs and are therefore classified within level 3 of the fair value hierarchy, judgments used to estimate fair value are more significant than those required when estimating the fair value of instruments classified within levels 1 and 2. In arriving at an estimate of fair value for an instrument within level 3, management must first determine the appropriate valuation model or other valuation technique to use. Second, due to the lack of observability of significant inputs, management must assess relevant empirical data in deriving valuation inputs including transaction details, yield curves, interest rates, prepayment speed, default rates, volatilities, correlations, prices (such as commodity, equity or debt prices), valuations of comparable instruments, foreign exchange rates and credit curves. 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) December 31, 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) $ 1,282 Discounted cash flows Yield 0% – 18% 6% Prepayment speed 0% – 46% 10% Conditional default rate 0% – 30% 14% Loss severity 0% – 107% 7% Commercial mortgage-backed securities and loans (c) 466 Market comparables Price $0 – $101 $84 Corporate debt securities 507 Market comparables Price $2 – $116 $85 Loans (d) 1,930 Market comparables Price $10 – $104 $72 Asset-backed securities 28 Market comparables Price $1 – $97 $57 Net interest rate derivatives 238 Option pricing Interest rate volatility 7bps – 513bps 101bps Interest rate spread volatility 11bps – 23bps 15bps Interest rate correlation (65)% – 99% 35% IR-FX correlation (35)% – 50% 0% 20 Discounted cash flows Prepayment speed 0% – 30% 8% Net credit derivatives (260) Discounted cash flows Credit correlation 34% – 65% 48% Credit spread 3bps – 1,302bps 441bps Recovery rate 0% – 67% 46% Conditional default rate 2% – 100% 58% Loss severity 100% 100% 36 Market comparables Price $1 – $115 $71 Net foreign exchange derivatives (298) Option pricing IR-FX correlation (40)% – 65% 18% (136) Discounted cash flows Prepayment speed 9% 9% Net equity derivatives (3,862) Option pricing Forward equity price (h) 61% – 106% 99% Equity volatility 5% – 138% 35% Equity correlation 18% – 99% 60% Equity-FX correlation (79)% – 55% (27)% Equity-IR correlation 20% – 50% 28% Net commodity derivatives (731) Option pricing Oil Commodity Forward $600 / MT – $609 / MT $605 / MT Forward power price $12 / MWH – $55 / MWH $34 / MWH Commodity volatility 1% – 58% 29% Commodity correlation (49)% – 95% 23% MSRs 3,276 Discounted cash flows Refer to Note 15 Other assets 299 Discounted cash flows Credit spread 45bps 45bps Yield 4% 30% 7% 585 Market comparables Price $29 – $29 $29 Long-term debt, short-term borrowings, and deposits (e) 27,912 Option pricing Interest rate volatility 7bps – 513bps 101bps Interest rate correlation (65)% – 99% 35% IR-FX correlation (35)% – 50% 0% Equity correlation 18% – 99% 60% Equity-FX correlation (79)% – 55% (27)% Equity-IR correlation 20% – 50% 28% 818 Discounted cash flows Credit correlation 34% – 65% 48% 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 $449 million, nonagency securities of $28 million and non-trading loans of $805 million. (c) Comprises nonagency securities of $3 million, trading loans of $43 million and non-trading loans of $420 million. (d) Comprises trading loans of $850 million and non-trading loans of $1.1 billion. (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 The following discussion provides a description of the impact on a fair value measurement of a change in each unobservable input in isolation, and the interrelationship between unobservable inputs, where relevant and significant. The impact of changes in inputs may not be independent, as a change in one unobservable input may give rise to a change in another unobservable input. Where relationships do exist between two unobservable inputs, those relationships are dis |
Fair Value Option
Fair Value Option | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2020, 2019 and 2018, 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. 2020 2019 2018 December 31, (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) Principal transactions All other income Total changes in fair value recorded (f) Federal funds sold and securities purchased under resale agreements $ 12 $ — $ 12 $ (36) $ — $ (36) $ (35) $ — $ (35) Securities borrowed 143 — 143 133 — 133 22 — 22 Trading assets: Debt and equity instruments, excluding loans 1,546 (1) (d) 1,545 2,482 (1) (d) 2,481 (1,680) 1 (d) (1,679) Loans reported as trading assets: Changes in instrument-specific credit risk (a) 135 — 135 248 — 248 15 — 15 Other changes in fair value (a) (19) — (19) (1) — (1) 28 — 28 Loans: Changes in instrument-specific credit risk (a) 190 7 (d) 197 475 2 (d) 477 385 1 (d) 386 Other changes in fair value (a) 470 3,239 (d) 3,709 267 1,224 (d) 1,491 138 185 (d) 323 Other assets (a) 103 (65) (e) 38 8 6 (e) 14 11 (45) (e) (34) Deposits (b) (726) — (726) (1,730) — (1,730) 181 — 181 Federal funds purchased and securities loaned or sold under repurchase agreements (6) — (6) (8) — (8) 11 — 11 Short-term borrowings (b) 294 — 294 (693) — (693) 862 — 862 Trading liabilities 2 — 2 6 — 6 1 — 1 Other liabilities (94) — (94) (16) — (16) — — — Long-term debt (b)(c) (2,120) (1) (d) (2,121) (6,173) 1 (d) (6,172) 2,695 — 2,695 (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 and subsequently recorded in principal transactions revenue when realized. Realized gains/(losses) due to instrument-specific credit risk recorded in principal transactions revenue were $20 million for the year ended December 31,2020 and were not material for the years ended December 31, 2019 and 2018. (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. Determination of instrument-specific credit risk for items for which the fair value option was elected The following describes how the gains and losses that are attributable to changes in instrument-specific credit risk, were determined. • Loans and lending-related commitments: For floating-rate instruments, all changes in value are attributed to instrument-specific credit risk. For fixed-rate instruments, an allocation of the changes in value for the period is made between those changes in value that are interest rate-related and changes in value that are credit-related. Allocations are generally based on an analysis of borrower-specific credit spread and recovery information, where available, or benchmarking to similar entities or industries. • Long-term debt: Changes in value attributable to instrument-specific credit risk were derived principally from observable changes in the Firm’s credit spread as observed in the bond market. • Securities financing agreements: Generally, for these types of agreements, there is a requirement that collateral be maintained with a market value equal to or in excess of the principal amount loaned; as a result, there would be no adjustment or an immaterial adjustment for instrument-specific credit risk related to these agreements. Difference between aggregate fair value and aggregate remaining contractual principal balance outstanding The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of December 31, 2020 and 2019, for loans, long-term debt and long-term beneficial interests for which the fair value option has been elected. 2020 2019 December 31, (in millions) Contractual principal outstanding Fair value Fair value over/(under) contractual principal outstanding Contractual principal outstanding Fair value Fair value over/(under) contractual principal outstanding Loans Nonaccrual loans Loans reported as trading assets (a) $ 3,386 $ 555 $ (2,831) $ 2,563 $ 234 $ (2,329) Loans (a) 1,867 1,507 (360) 964 696 (268) Subtotal 5,253 2,062 (3,191) 3,527 930 (2,597) 90 or more days past due and government guaranteed (b) Loans reported as trading assets — — — — — — Loans 328 317 (11) 138 129 (9) Subtotal 328 317 (11) 138 129 (9) All other performing loans (c) Loans reported as trading assets (a) 7,917 6,439 (1,478) 8,288 6,779 (1,509) Loans (a) 42,022 42,650 628 43,955 44,130 175 Subtotal 49,939 49,089 (850) 52,243 50,909 (1,334) Total loans $ 55,520 $ 51,468 $ (4,052) $ 55,908 $ 51,968 $ (3,940) Long-term debt Principal-protected debt $ 40,560 (e) $ 40,526 $ (34) $ 40,124 (e) $ 39,246 $ (878) Nonprincipal-protected debt (d) NA 36,291 NA NA 36,499 NA Total long-term debt NA $ 76,817 NA NA $ 75,745 NA Long-term beneficial interests Nonprincipal-protected debt (d) NA $ 41 NA NA $ 36 NA Total long-term beneficial interests NA $ 41 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 December 31, 2020 and 2019. (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 December 31, 2020 and 2019, the contractual amount of lending-related commitments for which the fair value option was elected was $18.1 billion and $8.6 billion, respectively, with a corresponding fair value of $(39) million and $(120) million, respectively. Refer to Note 28 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. December 31, 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 $ 38,129 $ 65 $ 5,057 $ 43,251 $ 35,470 $ 34 $ 16,692 $ 52,196 Credit 6,409 1,022 — 7,431 5,715 875 — 6,590 Foreign exchange 3,613 92 — 3,705 3,862 48 5 3,915 Equity 26,943 5,021 6,893 38,857 29,294 4,852 8,177 42,323 Commodity 250 13 232 495 472 32 1,454 1,958 Total structured notes $ 75,344 $ 6,213 $ 12,182 $ 93,739 $ 74,813 $ 5,841 $ 26,328 $ 106,982 |
Credit Risk Concentrations
Credit Risk Concentrations | 12 Months Ended |
Dec. 31, 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 credit exposure by the Firm’s three credit portfolio segments as of December 31, 2020 and 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. 2020 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) December 31, (in millions) Loans (i) Derivatives Loans (i) Derivatives Consumer, excluding credit card $ 375,898 $ 318,579 (j) $ — $ 57,319 $ 357,986 $ 317,817 $ — $ 40,169 Credit card (a) 802,722 144,216 — 658,506 819,644 168,924 — 650,720 Total consumer-related (a) 1,178,620 462,795 — 715,825 1,177,630 486,741 — 690,889 Wholesale-related (b) Real Estate 148,498 118,299 1,385 28,814 150,919 117,709 619 32,591 Individuals and Individual Entities (c) 122,870 109,746 1,750 11,374 105,027 94,616 694 9,717 Consumer & Retail 108,437 39,013 2,802 66,622 106,986 36,985 1,424 68,577 Technology, Media & 72,150 14,687 4,252 53,211 60,033 15,322 2,766 41,945 Asset Managers 66,573 31,059 9,277 26,237 54,304 24,008 7,160 23,136 Industrials 66,470 21,143 1,851 43,476 62,483 22,063 878 39,542 Healthcare 60,118 19,405 3,252 37,461 50,824 17,607 2,078 31,139 Banks & Finance Cos 54,032 31,004 8,044 14,984 50,786 31,191 5,165 14,430 Automotive 43,331 17,128 5,995 20,208 35,118 18,844 368 15,906 Oil & Gas 39,159 11,267 1,643 26,249 41,641 13,101 852 27,688 State & Municipal Govt (d) 38,286 18,054 2,347 17,885 30,095 13,271 2,000 14,824 Utilities 30,124 4,874 3,340 21,910 34,843 5,157 2,573 27,113 Chemicals & Plastics 17,176 4,884 856 11,436 17,499 4,864 459 12,176 Central Govt 17,025 3,396 12,313 1,316 14,865 2,840 10,477 1,548 Transportation 16,232 6,566 1,495 8,171 14,497 5,253 715 8,529 Metals & Mining 15,542 4,854 882 9,806 15,586 5,364 402 9,820 Insurance 13,141 1,042 2,527 9,572 12,348 1,356 2,282 8,710 Securities Firms 8,048 469 4,838 2,741 7,381 757 4,507 2,117 Financial Markets Infrastructure 6,515 19 3,757 2,739 4,121 13 2,482 1,626 All other (e) 100,713 58,038 7,024 35,651 79,598 51,357 1,865 26,376 Subtotal 1,044,440 514,947 79,630 449,863 948,954 481,678 49,766 417,510 Loans held-for-sale and loans at fair value 35,111 35,111 — — 29,201 29,201 — — Receivables from customers (f) 47,710 — — — 33,706 — — — Total wholesale-related 1,127,261 550,058 79,630 449,863 1,011,861 510,879 49,766 417,510 Total exposure (g)(h) $ 2,305,881 $ 1,012,853 $ 79,630 $ 1,165,688 $ 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 December 31, 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 December 31, 2020 and 2019, noted above, the Firm held: $7.2 billion and $6.5 billion, respectively, of trading assets; $20.4 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 92% and 8%, respectively, at December 31, 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, CCB 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). Because of this collateralization, no allowance for credit losses is generally held against these receivables. To manage its credit risk the Firm establishes margin requirements and monitors the required margin levels on an ongoing basis, and requires clients to deposit additional cash or other collateral, or to reduce positions, when appropriate. These receivables are reported within accrued interest and accounts receivable on the Firm’s Consolidated balance sheets. (g) Excludes cash placed with banks of $516.9 billion and $254.0 billion, at December 31, 2020 and 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 cash 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, which resulted in a corresponding reclassification of certain off-balance sheet commitments. Prior-period amounts have been revised to conform with the current presentation. (j) At December 31, 2020, included $19.2 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. (k) Represents lending-related financial instruments. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative instruments Derivative contracts derive their value from underlying asset prices, indices, reference rates, other inputs or a combination of these factors and may expose counterparties to risks and rewards of an underlying asset or liability without having to initially invest in, own or exchange the asset or liability. JPMorgan Chase makes markets in derivatives for clients and also uses derivatives to hedge or manage its own risk exposures. Predominantly all of the Firm’s derivatives are entered into for market-making or risk management purposes. Market-making derivatives The majority of the Firm’s derivatives are entered into for market-making purposes. Clients use derivatives to mitigate or modify interest rate, credit, foreign exchange, equity and commodity risks. The Firm actively manages the risks from its exposure to these derivatives by entering into other derivative contracts or by purchasing or selling other financial instruments that partially or fully offset the exposure from client derivatives. Risk management derivatives The Firm manages certain market and credit risk exposures using derivative instruments, including derivatives in hedge accounting relationships and other derivatives that are used to manage risks associated with specified assets and liabilities. The Firm generally uses interest rate derivatives to manage the risk associated with changes in interest rates. Fixed-rate assets and liabilities appreciate or depreciate in market value as interest rates change. Similarly, interest income and expense increase or decrease as a result of variable-rate assets and liabilities resetting to current market rates, and as a result of the repayment and subsequent origination or issuance of fixed-rate assets and liabilities at current market rates. Gains and losses on the derivative instruments related to these assets and liabilities are expected to substantially offset this variability. Foreign currency derivatives are used to manage the foreign exchange risk associated with certain foreign currency–denominated (i.e., non-U.S. dollar) assets and liabilities and forecasted transactions, as well as the Firm’s net investments in certain non-U.S. subsidiaries or branches whose functional currencies are not the U.S. dollar. As a result of fluctuations in foreign currencies, the U.S. dollar–equivalent values of the foreign currency–denominated assets and liabilities or the forecasted revenues or expenses increase or decrease. Gains or losses on the derivative instruments related to these foreign currency–denominated assets or liabilities, or forecasted transactions, are expected to substantially offset this variability. Commodities derivatives are used to manage the price risk of certain commodities inventories. Gains or losses on these derivative instruments are expected to substantially offset the depreciation or appreciation of the related inventory. Credit derivatives are used to manage the counterparty credit risk associated with loans and lending-related commitments. Credit derivatives compensate the purchaser when the entity referenced in the contract experiences a credit event, such as bankruptcy or a failure to pay an obligation when due. Credit derivatives primarily consist of CDS. Refer to the Credit derivatives section on pages 209-211 of this Note for a further discussion of credit derivatives. Refer to the risk management derivatives gains and losses table on page 209 of this Note, and the hedge accounting gains and losses tables on pages 206-208 of this Note for more information about risk management derivatives. Derivative counterparties and settlement types The Firm enters into OTC derivatives, which are negotiated and settled bilaterally with the derivative counterparty. The Firm also enters into, as principal, certain ETD such as futures and options, and OTC-cleared derivative contracts with CCPs. ETD contracts are generally standardized contracts traded on an exchange and cleared by the CCP, which is the Firm’s counterparty from the inception of the transactions. OTC-cleared derivatives are traded on a bilateral basis and then novated to the CCP for clearing. Derivative clearing services The Firm provides clearing services for clients in which the Firm acts as a clearing member at certain exchanges and clearing houses. The Firm does not reflect the clients’ derivative contracts in its Consolidated Financial Statements. Refer to Note 28 for further information on the Firm’s clearing services. Accounting for derivatives All free-standing derivatives that the Firm executes for its own account are required to be recorded on the Consolidated balance sheets at fair value. As permitted under U.S. GAAP, the Firm nets derivative assets and liabilities, and the related cash collateral receivables and payables, when a legally enforceable master netting agreement exists between the Firm and the derivative counterparty. Refer to Note 1 for further discussion of the offsetting of assets and liabilities. The accounting for changes in value of a derivative depends on whether or not the transaction has been designated and qualifies for hedge accounting. Derivatives that are not designated as hedges are reported and measured at fair value through earnings. The tabular disclosures on pages 202-209 of this Note provide additional information on the amount of, and reporting for, derivative assets, liabilities, gains and losses. Refer to Notes 2 and 3 for a further discussion of derivatives embedded in structured notes. Derivatives designated as hedges The Firm applies hedge accounting to certain derivatives executed for risk management purposes – generally interest rate, foreign exchange and commodity derivatives. However, JPMorgan Chase does not seek to apply hedge accounting to all of the derivatives involved in the Firm’s risk management activities. For example, the Firm does not apply hedge accounting to purchased CDS used to manage the credit risk of loans and lending-related commitments, because of the difficulties in qualifying such contracts as hedges. For the same reason, the Firm does not apply hedge accounting to certain interest rate, foreign exchange, and commodity derivatives used for risk management purposes. To qualify for hedge accounting, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. In addition, for a derivative to be designated as a hedge, the risk management objective and strategy must be documented. Hedge documentation must identify the derivative hedging instrument, the asset or liability or forecasted transaction and type of risk to be hedged, and how the effectiveness of the derivative is assessed prospectively and retrospectively. To assess effectiveness, the Firm uses statistical methods such as regression analysis, nonstatistical methods such as dollar-value comparisons of the change in the fair value of the derivative to the change in the fair value or cash flows of the hedged item, and qualitative comparisons of critical terms and the evaluation of any changes in those terms. The extent to which a derivative has been, and is expected to continue to be, highly effective at offsetting changes in the fair value or cash flows of the hedged item must be assessed and documented at least quarterly. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued. There are three types of hedge accounting designations: fair value hedges, cash flow hedges and net investment hedges. JPMorgan Chase uses fair value hedges primarily to hedge fixed-rate long-term debt, AFS securities and certain commodities inventories. For qualifying fair value hedges, the changes in the fair value of the derivative, and in the value of the hedged item for the risk being hedged, are recognized in earnings. Certain amounts excluded from the assessment of effectiveness are recorded in OCI and recognized in earnings over the life of the derivative. If the hedge relationship is terminated, then the adjustment to the hedged item continues to be reported as part of the basis of the hedged item, and for benchmark interest rate hedges, is amortized to earnings as a yield adjustment. Derivative amounts affecting earnings are recognized consistent with the classification of the hedged item – primarily net interest income and principal transactions revenue. JPMorgan Chase uses cash flow hedges primarily to hedge the exposure to variability in forecasted cash flows from floating-rate assets and liabilities and foreign currency–denominated revenue and expense. For qualifying cash flow hedges, changes in the fair value of the derivative are recorded in OCI and recognized in earnings as the hedged item affects earnings. Derivative amounts affecting earnings are recognized consistent with the classification of the hedged item – primarily noninterest revenue, net interest income and compensation expense. If the hedge relationship is terminated, then the change in value of the derivative recorded in AOCI is recognized in earnings when the cash flows that were hedged affect earnings. For hedge relationships that are discontinued because a forecasted transaction is expected to not occur according to the original hedge forecast, any related derivative values recorded in AOCI are immediately recognized in earnings. JPMorgan Chase uses net investment hedges to protect the value of the Firm’s net investments in certain non-U.S. subsidiaries or branches whose functional currencies are not the U.S. dollar. For qualifying net investment hedges, changes in the fair value of the derivatives due to changes in spot foreign exchange rates are recorded in OCI as translation adjustments. Amounts excluded from the assessment of effectiveness are recorded directly in earnings. The following table outlines the Firm’s primary uses of derivatives and the related hedge accounting designation or disclosure category. Type of Derivative Use of Derivative Designation and disclosure Affected segment or unit Page reference Manage specifically identified risk exposures in qualifying hedge accounting relationships: • Interest rate Hedge fixed rate assets and liabilities Fair value hedge Corporate 206-207 • Interest rate Hedge floating-rate assets and liabilities Cash flow hedge Corporate 208 • Foreign exchange Hedge foreign currency-denominated assets and liabilities Fair value hedge Corporate 206-207 • Foreign exchange Hedge foreign currency-denominated forecasted revenue and expense Cash flow hedge Corporate 208 • Foreign exchange Hedge the value of the Firm’s investments in non-U.S. dollar functional currency entities Net investment hedge Corporate 208 • Commodity Hedge commodity inventory Fair value hedge CIB 206-207 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 209 • Credit Manage the credit risk associated with wholesale lending exposures Specified risk management CIB 209 • Interest rate and foreign exchange Manage the risk associated with certain other specified assets and liabilities Specified risk management Corporate 209 Market-making derivatives and other activities: • Various Market-making and related risk management Market-making and other CIB 209 • Various Other derivatives Market-making and other CIB, AWM, Corporate 209 Notional amount of derivative contracts The following table summarizes the notional amount of derivative contracts outstanding as of December 31, 2020 and 2019. Notional amounts (b) December 31, (in billions) 2020 2019 Interest rate contracts Swaps $ 20,986 $ 21,228 Futures and forwards 3,057 3,152 Written options 3,375 3,938 Purchased options 3,675 4,361 Total interest rate contracts 31,093 32,679 Credit derivatives (a) 1,201 1,242 Foreign exchange contracts Cross-currency swaps 3,924 3,604 Spot, futures and forwards 6,871 5,577 Written options 830 700 Purchased options 825 718 Total foreign exchange contracts 12,450 10,599 Equity contracts Swaps 448 406 Futures and forwards 140 142 Written options 676 646 Purchased options 621 611 Total equity contracts 1,885 1,805 Commodity contracts Swaps 138 147 Spot, futures and forwards 198 211 Written options 124 135 Purchased options 105 124 Total commodity contracts 565 617 Total derivative notional amounts $ 47,194 $ 46,942 (a) Refer to the Credit derivatives discussion on pages 209-211 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 December 31, 2020 and 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 December 31, 2020 Not designated as hedges Designated as hedges Total derivative receivables Net derivative receivables (b) Not designated as hedges Designated as hedges Total derivative payables Net derivative payables (b) Trading assets and liabilities Interest rate $ 390,659 $ 831 $ 391,490 $ 35,725 $ 353,627 $ — $ 353,627 $ 13,012 Credit 13,503 — 13,503 680 15,192 — 15,192 1,995 Foreign exchange 205,359 901 206,260 15,781 214,229 1,697 215,926 21,433 Equity 74,798 — 74,798 20,673 81,413 — 81,413 25,898 Commodity 20,579 924 21,503 6,771 20,834 1,895 22,729 8,285 Total fair value of trading assets and liabilities $ 704,898 $ 2,656 $ 707,554 $ 79,630 $ 685,295 $ 3,592 $ 688,887 $ 70,623 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 as hedges 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 December 31, 2020 and 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 liquid securities and other 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. Liquid securities represent high quality liquid assets as defined in the LCR rule; • the amount of collateral held or transferred that exceeds the fair value exposure at the individual counterparty level, as of the date presented, which is excluded from the tables below; and • collateral held or transferred that relates to derivative receivables or payables where an appropriate legal opinion has not been either sought or obtained with respect to the master netting agreement, which is excluded from the tables below. 2020 2019 December 31, (in millions) Gross derivative receivables Amounts netted on the Consolidated balance sheets Net derivative receivables Gross derivative receivables Amounts netted on the Consolidated balance sheets Net U.S. GAAP nettable derivative receivables Interest rate contracts: OTC $ 367,056 $ (337,451) $ 29,605 $ 299,205 $ (276,255) $ 22,950 OTC–cleared 18,340 (17,919) 421 9,442 (9,360) 82 Exchange-traded (a) 554 (395) 159 347 (258) 89 Total interest rate contracts 385,950 (355,765) 30,185 308,994 (285,873) 23,121 Credit contracts: OTC 9,052 (8,514) 538 10,743 (10,317) 426 OTC–cleared 4,326 (4,309) 17 3,864 (3,858) 6 Total credit contracts 13,378 (12,823) 555 14,607 (14,175) 432 Foreign exchange contracts: OTC 201,349 (189,655) 11,694 136,252 (129,324) 6,928 OTC–cleared 834 (819) 15 185 (152) 33 Exchange-traded (a) 35 (5) 30 10 (6) 4 Total foreign exchange contracts 202,218 (190,479) 11,739 136,447 (129,482) 6,965 Equity contracts: OTC 34,030 (27,374) 6,656 23,106 (20,820) 2,286 Exchange-traded (a) 28,294 (26,751) 1,543 19,654 (18,430) 1,224 Total equity contracts 62,324 (54,125) 8,199 42,760 (39,250) 3,510 Commodity contracts: OTC 10,924 (7,901) 3,023 7,093 (5,149) 1,944 OTC–cleared 20 (20) — 28 (28) — Exchange-traded (a) 6,833 (6,811) 22 6,154 (5,903) 251 Total commodity contracts 17,777 (14,732) 3,045 13,275 (11,080) 2,195 Derivative receivables with appropriate legal opinion 681,647 (627,924) 53,723 (d) 516,083 (479,860) 36,223 (d) Derivative receivables where an appropriate legal opinion has not been either sought or obtained 25,907 25,907 13,543 13,543 Total derivative receivables recognized on the Consolidated balance sheets $ 707,554 $ 79,630 $ 529,626 $ 49,766 Collateral not nettable on the Consolidated balance sheets (b)(c) (14,806) (13,052) Net amounts $ 64,824 $ 36,714 2020 2019 December 31, (in millions) Gross derivative payables Amounts netted on the Consolidated balance sheets Net derivative payables Gross derivative payables Amounts netted on the Consolidated balance sheets Net U.S. GAAP nettable derivative payables Interest rate contracts: OTC $ 331,854 $ (320,780) $ 11,074 $ 267,311 $ (260,229) $ 7,082 OTC–cleared 19,710 (19,494) 216 10,217 (10,138) 79 Exchange-traded (a) 358 (341) 17 365 (303) 62 Total interest rate contracts 351,922 (340,615) 11,307 277,893 (270,670) 7,223 Credit contracts: OTC 10,671 (9,141) 1,530 11,570 (10,080) 1,490 OTC–cleared 4,075 (4,056) 19 3,390 (3,389) 1 Total credit contracts 14,746 (13,197) 1,549 14,960 (13,469) 1,491 Foreign exchange contracts: OTC 210,803 (193,672) 17,131 142,360 (131,792) 10,568 OTC–cleared 836 (819) 17 186 (152) 34 Exchange-traded (a) 34 (2) 32 12 (6) 6 Total foreign exchange contracts 211,673 (194,493) 17,180 142,558 (131,950) 10,608 Equity contracts: OTC 35,330 (28,763) 6,567 27,594 (21,778) 5,816 Exchange-traded (a) 34,491 (26,752) 7,739 20,216 (18,426) 1,790 Total equity contracts 69,821 (55,515) 14,306 47,810 (40,204) 7,606 Commodity contracts: OTC 10,365 (7,544) 2,821 8,714 (6,235) 2,479 OTC–cleared 32 (32) — 30 (30) — Exchange-traded (a) 7,391 (6,868) 523 6,012 (5,862) 150 Total commodity contracts 17,788 (14,444) 3,344 14,756 (12,127) 2,629 Derivative payables with appropriate legal opinion 665,950 (618,264) 47,686 (d) 497,977 (468,420) 29,557 (d) Derivative payables where an appropriate legal opinion has not been either sought or obtained 22,937 22,937 14,151 14,151 Total derivative payables recognized on the Consolidated balance sheets $ 688,887 $ 70,623 $ 512,128 $ 43,708 Collateral not nettable on the Consolidated balance sheets (b)(c) (11,964) (6,960) Net amounts $ 58,659 $ 36,748 (a) Exchange-traded derivative balances that relate to futures contracts are settled daily. (b) Includes liquid securities and other cash collateral held at third-party custodians related to derivative instruments where an appropriate legal opinion has been obtained. For some counterparties, the collateral amounts of financial instruments may exceed the derivative receivables and derivative payables balances. Where this is the case, the total amount reported is limited to the net derivative receivables and net derivative payables balances with that counterparty. In the fourth quarter of 2020, the Firm refined its approach for disclosing additional collateral held by the Firm that may be used as security when the fair value of the client’s exposure is in the Firm’s favor. Prior-period amounts have been revised to conform with the current presentation. (c) Derivative collateral relates only to OTC and OTC-cleared derivative instruments. (d) Net derivatives receivable included cash collateral netted of $88.0 billion and $65.9 billion at December 31, 2020 and 2019, respectively. Net derivatives payable included cash collateral netted of $78.4 billion and $54.4 billion at December 31, 2020 and 2019, respectively. Derivative cash collateral relates to OTC and OTC-cleared derivative instruments. Liquidity risk and credit-related contingent features In addition to the specific market risks introduced by each derivative contract type, derivatives expose JPMorgan Chase to credit risk — the risk that derivative counterparties may fail to meet their payment obligations under the derivative contracts and the collateral, if any, held by the Firm proves to be of insufficient value to cover the payment obligation. It is the policy of JPMorgan Chase to actively pursue, where possible, the use of legally enforceable master netting arrangements and collateral agreements to mitigate derivative counterparty credit risk inherent in derivative receivables. While derivative receivables expose the Firm to credit risk, derivative payables expose the Firm to liquidity risk, as the derivative contracts typically require the Firm to post cash or securities collateral with counterparties as the fair value of the contracts moves in the counterparties’ favor or upon specified downgrades in the Firm’s and its subsidiaries’ respective credit ratings. Certain derivative contracts also provide for termination of the contract, generally upon a downgrade of either the Firm or the counterparty, at the fair value of the derivative contracts. The following table shows the aggregate fair value of net derivative payables related to OTC and OTC-cleared derivatives that contain contingent collateral or termination features that may be triggered upon a ratings downgrade, and the associated collateral the Firm has posted in the normal course of business, at December 31, 2020 and 2019. OTC and OTC-cleared derivative payables containing downgrade triggers December 31, (in millions) 2020 2019 Aggregate fair value of net derivative payables $ 27,712 $ 14,819 Collateral posted 26,289 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 December 31, 2020 and 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 2020 2019 December 31, (in millions) Single-notch downgrade Two-notch downgrade Single-notch downgrade Two-notch downgrade Amount of additional collateral to be posted upon downgrade (a) $ 119 $ 1,243 $ 189 $ 1,467 Amount required to settle contracts with termination triggers upon downgrade (b) 153 2,449 104 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 both December 31, 2020 and 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 years ended December 31, 2020, 2019 and 2018, 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 Year ended December 31, 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) $ 2,962 $ (1,889) $ 1,073 $ — $ 1,093 $ — Foreign exchange (c) 793 (619) 174 (457) 174 25 Commodity (d) (2,507) 2,650 143 — 137 — Total $ 1,248 $ 142 $ 1,390 $ (457) $ 1,404 $ 25 Gains/(losses) recorded in income Income statement impact of excluded components (e) OCI impact Year ended December 31, 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) $ 3,204 $ (2,373) $ 831 $ — $ 828 $ — Foreign exchange (c) 154 328 482 (866) 482 39 Commodity (d) (77) 148 71 — 63 — Total $ 3,281 $ (1,897) $ 1,384 $ (866) $ 1,373 $ 39 Gains/(losses) recorded in income Income statement impact of excluded components (e) OCI impact Year ended December 31, 2018 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) $ (1,145) $ 1,782 $ 637 $ — $ 623 $ — Foreign exchange (c) 1,092 (616) 476 (566) 476 (140) Commodity (d) 789 (754) 35 — 26 — Total $ 736 $ 412 $ 1,148 $ (566) $ 1,125 $ (140) (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 December 31, 2020 and 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: December 31, 2020 Active hedging relationships Discontinued hedging relationships (d)(e) Total Assets Investment securities - AFS $ 139,684 (c) $ 3,572 $ 847 $ 4,419 Liabilities Long-term debt $ 177,611 $ 3,194 $ 11,473 $ 14,667 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 $11.5 billion and $6.5 billion at December 31, 2020 and 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 December 31, 2020 and 2019, the carrying amount excluded for AFS securities is $14.5 billion and $14.9 billion, respectively, and for long-term debt is $6.6 billion and $2.8 billion, respectively. (c) Carrying amount represents the amortized cost, net of allowance if applicable. Refer to Note 10 for additional information. (d) Represents basis adjustments existing on the balance sheet date associated with hedged items that have been de-designated from qualifying fair value hedging relationships. (e) Positive amounts related to assets represent cumulative fair value hedge basis adjustments that will reduce net interest income in future periods. Positive (negative) amounts related to liabilities represent cumulative fair value hedge basis adjustments that will increase (reduce) net interest income in future periods. 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 |
Noninterest Revenue and Noninte
Noninterest Revenue and Noninterest Expense | 12 Months Ended |
Dec. 31, 2020 | |
Noninterest Income (Expense) [Abstract] | |
Noninterest Revenue and Noninterest Expense | Noninterest revenue and noninterest expense Noninterest revenue The Firm records noninterest revenue from certain contracts with customers in investment banking fees, deposit-related fees, asset management, administration, and commissions, and components of card income. The related contracts are often terminable on demand and the Firm has no remaining obligation to deliver future services. For arrangements with a fixed term, the Firm may commit to deliver services in the future. Revenue associated with these remaining performance obligations typically depends on the occurrence of future events or underlying asset values, and is not recognized until the outcome of those events or values are known. Investment banking fees This revenue category includes debt and equity underwriting and advisory fees. As an underwriter, the Firm helps clients raise capital via public offering and private placement of various types of debt and equity instruments. Underwriting fees are primarily based on the issuance price and quantity of the underlying instruments, and are recognized as revenue typically upon execution of the client’s transaction. The Firm also manages and syndicates loan arrangements. Credit arrangement and syndication fees, included within debt underwriting fees, are recorded as revenue after satisfying certain retention, timing and yield criteria. The Firm also provides advisory services, by assisting its clients with mergers and acquisitions, divestitures, restructuring and other complex transactions. Advisory fees are recognized as revenue typically upon execution of the client’s transaction. The following table presents the components of investment banking fees. Year ended December 31, 2020 2019 2018 Underwriting Equity $ 2,759 $ 1,648 $ 1,684 Debt 4,362 3,513 3,347 Total underwriting 7,121 5,161 5,031 Advisory 2,365 2,340 2,519 Total investment banking fees $ 9,486 $ 7,501 $ 7,550 Investment banking fees are earned primarily by CIB. Refer to Note 32 for segment results. Principal transactions Principal transactions revenue is driven by many factors, including: • the bid-offer spread, which is the difference between the price at which a market participant is willing and able to sell an instrument to the Firm and the price at which another market participant is willing and able to buy it from the Firm, and vice versa; and • realized and unrealized gains and losses on financial instruments and commodities transactions, including those accounted for under the fair value option, primarily used in client-driven market-making activities, and on private equity investments. – Realized gains and losses result from the sale of instruments, closing out or termination of transactions, or interim cash payments. – Unrealized gains and losses result from changes in valuation. In connection with its client-driven market-making activities, the Firm transacts in debt and equity instruments, derivatives and commodities, including physical commodities inventories and financial instruments that reference commodities. Principal transactions revenue also includes realized and unrealized gains and losses related to: • derivatives designated in qualifying hedge accounting relationships, primarily fair value hedges of commodity and foreign exchange risk; • derivatives used for specific risk management purposes, primarily to mitigate credit risk and foreign exchange risk. Refer to Note 5 for further information on the income statement classification of gains and losses from derivatives activities. In the financial commodity markets, the Firm transacts in OTC derivatives (e.g., swaps, forwards, options) and ETD that reference a wide range of underlying commodities. In the physical commodity markets, the Firm primarily purchases and sells precious and base metals and may hold other commodities inventories under financing and other arrangements with clients. The following table presents all realized and unrealized gains and losses recorded in principal transactions revenue. This table excludes interest income and interest expense on trading assets and liabilities, which are an integral part of the overall performance of the Firm’s client-driven market-making activities 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. Year ended December 31, 2020 2019 2018 Trading revenue by instrument type Interest rate (a) $ 2,575 $ 2,739 (c) $ 1,844 (c) Credit (b) 2,753 1,628 (c) 1,625 (c) Foreign exchange 4,253 3,179 (c) 3,222 (c) Equity 6,171 5,589 (c) 4,822 (c) Commodity 2,088 1,133 (c) 895 (c) Total trading revenue 17,840 14,268 12,408 Private equity gains/ 181 (250) (349) Principal transactions $ 18,021 $ 14,018 $ 12,059 (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) The prior-period amounts have been revised to conform with the current presentation. Principal transactions revenue is earned primarily by CIB. Refer to Note 32 for segment results. Lending- and deposit-related fees Lending-related fees include fees earned from loan commitments, standby letters of credit, financial guarantees, and other loan-servicing activities. Deposit-related fees include fees earned from providing overdraft and other deposit account services, and from performing cash management activities. Lending- and deposit-related fees in this revenue category are recognized over the period in which the related service is provided. The following table presents the components of lending- and deposit-related fees. Year ended December 31, (in millions) 2020 2019 2018 Lending-related fees $ 1,271 $ 1,184 $ 1,117 Deposit-related fees (a) 5,240 5,442 5,260 Total lending- and deposit-related fees $ 6,511 $ 6,626 $ 6,377 (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. Lending- and deposit-related fees are earned by CCB, CIB, CB, and AWM. Refer to Note 32 for segment results. Asset management, administration and commissions This revenue category includes fees from investment management and related services, custody, brokerage services and other products. The Firm manages assets on behalf of its clients, including investors in Firm-sponsored funds and owners of separately managed investment accounts. Management fees are typically based on the value of assets under management and are collected and recognized at the end of each period over which the management services are provided and the value of the managed assets is known. The Firm also receives performance-based management fees, which are earned based on exceeding certain benchmarks or other performance targets and are accrued and recognized when the probability of reversal is remote, typically at the end of the related billing period. The Firm has contractual arrangements with third parties to provide distribution and other services in connection with its asset management activities. Amounts paid to these third-party service providers are generally recorded in professional and outside services expense. The following table presents the components of Firmwide asset management, administration and commissions. Year ended December 31, 2020 2019 2018 Asset management fees Investment management fees (a) $ 11,694 $ 10,865 $ 10,768 All other asset management fees (b) 338 315 270 Total asset management fees 12,032 11,180 11,038 Total administration fees (c) 2,249 2,197 2,179 Commissions and other fees Brokerage commissions (d) 2,959 2,439 2,505 All other commissions and fees (e) 937 1,092 1,071 Total commissions and fees 3,896 3,531 3,576 Total asset management, administration and commissions $ 18,177 $ 16,908 $ 16,793 (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. These fees are recorded as revenue at the time the service is rendered or, in the case of certain distribution fees based on the underlying fund’s asset value and/or investor redemption, recorded over time as the investor remains in the fund or upon investor redemption. (c) Predominantly includes fees for custody, securities lending, funds services and securities clearance. These fees are recorded as revenue over the period in which the related service is provided. (d) Represents commissions earned when the Firm acts as a broker, by facilitating its clients’ purchases and sales of securities and other financial instruments. Brokerage commissions are collected and recognized as revenue upon occurrence of the client transaction. The Firm reports certain costs paid to third-party clearing houses and exchanges net against commission revenue. (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. Asset management, administration and commissions are earned primarily by AWM, CIB and CCB. Refer to Note 32 for segment results. Mortgage fees and related income This revenue category reflects CCB’s Home Lending net production and net mortgage servicing revenue. Net production revenue includes fees and income recognized as earned on mortgage loans originated with the intent to sell, and the impact of risk management activities associated with the mortgage pipeline and warehouse loans. Net production revenue also includes gains and losses on sales and lower of cost or fair value adjustments on mortgage loans held-for-sale (excluding certain repurchased loans insured by U.S. government agencies), and changes in the fair value of financial instruments measured under the fair value option. Net mortgage servicing revenue includes operating revenue earned from servicing third-party mortgage loans, which is recognized over the period in which the service is provided; changes in the fair value of MSRs; the impact of risk management activities associated with MSRs; and gains and losses on securitization of excess mortgage servicing. Net mortgage servicing revenue also includes gains and losses on sales and lower of cost or fair value adjustments of certain repurchased loans insured by U.S. government agencies. Refer to Note 15 for further information on risk management activities and MSRs. Net interest income from mortgage loans is recorded in interest income. Card income This revenue category includes interchange and other income from credit and debit card transactions; and fees earned from processing card transactions for merchants, both of which are recognized when purchases are made by a cardholder and presented net of certain transaction-related costs. Card income also includes account origination costs and annual fees, which are deferred and recognized on a straight-line basis over a 12-month period. Certain credit card products offer the cardholder the ability to earn points based on account activity, which the cardholder can choose to redeem for cash and non-cash rewards. The cost to the Firm related to these proprietary rewards programs varies based on multiple factors including the terms and conditions of the rewards programs, cardholder activity, cardholder reward redemption rates and cardholder reward selections. The Firm maintains a liability for its obligations under its rewards programs and reports the current-period cost as a reduction of card income. Credit card revenue sharing agreements The Firm has contractual agreements with numerous co-brand partners that grant the Firm exclusive rights to issue co-branded credit card products and market them to the customers of such partners. These partners endorse the co-brand credit card programs and provide their customer or member lists to the Firm. The partners may also conduct marketing activities and provide rewards redeemable under their own loyalty programs that the Firm will grant to co-brand credit cardholders based on account activity. The terms of these agreements generally range from five The Firm typically makes payments to the co-brand credit card partners based on the cost of partners’ marketing activities and loyalty program rewards provided to credit cardholders, new account originations and sales volumes. Payments to partners based on marketing efforts undertaken by the partners are expensed by the Firm as incurred and reported as marketing expense. Payments for partner loyalty program rewards are reported as a reduction of card income when incurred. Payments to partners based on new credit card account originations are accounted for as direct loan origination costs and are deferred and recognized as a reduction of card income on a straight-line basis over a 12-month period. Payments to partners based on sales volumes are reported as a reduction of card income when the related interchange income is earned. The following table presents the components of card income: Year ended December 31, 2020 2019 2018 Interchange and merchant processing income $ 18,563 $ 20,370 $ 18,808 Reward costs and partner payments (a) (13,637) (14,540) (13,320) (c) Other card income (b) (491) (754) (745) Total card income $ 4,435 $ 5,076 $ 4,743 (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, which are deferred and recognized on a straight-line basis over a 12-month period. (c) Includes an adjustment to the credit card rewards liability of approximately $330 million, recorded in the second quarter of 2018. Card income is earned primarily by CCB, CIB and CB. Refer to Note 32 for segment results. Refer to Note 18 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: Year ended December 31, 2020 2019 2018 Legal expense/(benefit) $ 1,115 $ 239 $ 72 FDIC-related expense 717 457 1,239 |
Interest Income and Interest Ex
Interest Income and Interest Expense | 12 Months Ended |
Dec. 31, 2020 | |
Interest Income (Expense), Net [Abstract] | |
Interest Income and Interest Expense | Interest income and Interest expense Interest income and interest expense are recorded in the Consolidated statements of income and classified based on the nature of the underlying asset or liability. The following table presents the components of interest income and interest expense: Year ended December 31, 2020 2019 2018 Interest income Loans (a)(b) $ 43,758 $ 51,855 $ 49,032 Taxable securities 7,843 7,962 5,653 Non-taxable securities (c) 1,184 1,329 1,595 Total investment securities (a) 9,027 9,291 7,248 Trading assets - debt instruments (b) 7,832 9,141 7,146 Federal funds sold and securities purchased under resale agreements 2,436 6,146 3,819 Securities borrowed (d) (302) 1,574 913 Deposits with banks 749 3,887 5,907 All other interest-earning assets (b)(e) 1,023 2,146 2,035 Total interest income $ 64,523 $ 84,040 $ 76,100 Interest expense Interest bearing deposits $ 2,357 $ 8,957 $ 5,973 Federal funds purchased and securities loaned or sold under repurchase agreements 1,058 4,630 3,066 Short-term borrowings (f) 372 1,248 1,144 Trading liabilities - debt and all other interest-bearing liabilities (d)(g) 195 2,585 2,387 Long-term debt 5,764 8,807 7,978 Beneficial interest issued by consolidated VIEs 214 568 493 Total interest expense $ 9,960 $ 26,795 $ 21,041 Net interest income $ 54,563 $ 57,245 $ 55,059 Provision for credit losses 17,480 5,585 4,871 Net interest income after provision for credit losses $ 37,083 $ 51,660 $ 50,188 (a) Includes the amortization/accretion of unearned income (e.g., purchase premiums/discounts, net deferred fees/costs, and others). (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 that 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 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) All other interest-bearing liabilities includes interest expense on brokerage-related customer payables. |
Pension and Other Postretiremen
Pension and Other Postretirement Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Employee Benefit Plans | Pension and other postretirement employee benefit plans The Firm has various defined benefit pension plans and OPEB plans that provide benefits to its employees in the U.S. and certain non-U.S. locations. The Firm also provides a qualified defined contribution plan in the U.S. and maintains other similar arrangements in certain non-U.S. locations. The principal defined benefit pension plan in the U.S. is a qualified noncontributory plan that provides benefits to substantially all U.S. employees who were hired prior to December 2, 2017. The Firm has frozen the U.S. defined benefit pension plan (the “Plan Freeze”). Effective as of January 1, 2020 (and January 1, 2019 for new hires), new pay credits have been directed to the U.S. defined contribution plan. Interest credits will continue to accrue on the U.S. defined benefit pension plan. As a result of the Plan Freeze, a curtailment was triggered and a remeasurement of the U.S. defined benefit pension obligation and plan assets occurred as of November 30, 2018. The plan design change did not have a material impact on the U.S. defined benefit pension plan or the Firm’s Consolidated Financial Statements. The Firm also has defined benefit pension plans that are offered in certain non-U.S. locations based on factors such as eligible compensation, age and/or years of service. It is the Firm’s policy to fund the pension plans in amounts sufficient to meet the requirements under applicable laws. The Firm does not anticipate at this time making any contribution to the U.S. defined benefit pension plan in 2021. The 2021 contributions to the non-U.S. defined benefit pension plans are expected to be $50 million, of which $35 million are contractually required. The Firm also has a number of nonqualified noncontributory defined benefit pension plans that are unfunded. These plans provide supplemental defined pension benefits to certain employees. The Firm offers postretirement medical and life insurance benefits to certain U.S. retirees and postretirement medical benefits to certain qualifying U.S. and U.K. employees. The Firm partially defrays the cost of its U.S. OPEB obligation through corporate-owned life insurance (“COLI”) purchased on the lives of eligible employees and retirees. While the Firm owns the COLI policies, certain COLI proceeds (death benefits, withdrawals and other distributions) may be used only to reimburse the Firm for its net postretirement benefit claim payments and related administrative expense. The Firm has prefunded its U.S. postretirement benefit obligations. The U.K. OPEB plan is unfunded. Pension and OPEB accounting guidance generally requires that the difference between plan assets at fair value and the benefit obligation be measured and recorded on the balance sheet. Plans that are overfunded (excess of plan assets over benefit obligation) are recorded in other assets and plans that are underfunded (excess benefit obligation over plan assets) are recorded in other liabilities. Gains or losses resulting from changes in the benefit obligation and the fair value of plan assets are recorded in OCI and recognized as part of the net periodic benefit cost over subsequent periods as discussed in the Gains and losses section of this Note. Additionally, benefits earned during the year are reported in compensation expense; all other components of net periodic defined benefit costs are reported in other expense in the Consolidated statements of income. The following table presents the pretax changes in benefit obligations, plan assets, the net funded status, and the amounts recorded in AOCI on the Consolidated balance sheets for the Firm’s defined benefit pension and OPEB plans. As of or for the year ended December 31, Defined benefit (in millions) 2020 2019 Change in projected and accumulated benefit obligations, U.S. defined benefit pension plans Benefit obligation, beginning of year $ (13,277) $ (12,173) Benefits earned during the year (2) (327) Interest cost on benefit obligations (422) (518) Plan amendments — (5) Net gain/(loss) (1,086) (944) Benefits paid 640 690 Benefit obligations, end of year, U.S. defined benefit pension plans $ (14,147) $ (13,277) Benefit obligations, other defined benefit pension and OPEB plans (4,990) (4,428) Benefit obligations, end of year $ (19,137) $ (17,705) Change in plan assets, U.S. defined benefit pension plans Fair value of plan assets, beginning of year $ 16,329 $ 14,521 Actual return on plan assets 1,901 2,465 Firm contributions 29 33 Benefits paid (640) (690) Fair value of plan assets, end of year, U.S. defined benefit pension plans $ 17,619 $ 16,329 Fair value of plan assets, other defined benefit pension and OPEB plans 7,798 7,037 Fair value of plan assets, end of year $ 25,417 $ 23,366 Net funded status, U.S. defined benefit pension plans $ 3,472 $ 3,052 Net funded status, other defined benefit pension and OPEB plans 2,808 2,609 Net funded status $ 6,280 $ 5,661 Amounts recorded in accumulated other comprehensive income/(loss), U.S. defined benefit pension plans Net gain/(loss), U.S. defined benefit pension plans $ (1,558) $ (1,745) Prior service credit/(cost), U.S. defined benefit pension plans (4) (5) Accumulated other comprehensive income/(loss), end of year, U.S. defined benefit pension plans $ (1,562) $ (1,750) Accumulated other comprehensive income/(loss), other defined benefit pension and OPEB plans (24) (66) Accumulated other comprehensive income/(loss) $ (1,586) $ (1,816) The following table presents the weighted-average actuarial assumptions used to value the benefit obligations for the U.S. defined benefit pension plans. U.S. defined benefit As of December 31, 2020 2019 Discount rate 2.50% 3.30% Rate of compensation increase NA NA Interest crediting rate 4.65 4.65 Gains and losses For the Firm’s defined benefit pension plans, fair value is used to determine the expected return on plan assets. Amortization of net gains and losses is included in annual net periodic benefit cost if, as of the beginning of the year, the net gain or loss exceeds 10% of the greater of the projected benefit obligation or the fair value of the plan assets. Any excess is amortized over the average expected remaining lifetime of plan participants, which for the U.S. defined benefit pension plans is currently 37 years and for the non-U.S. defined benefit pension plans is the period appropriate for the affected plan. For the years ended December 31, 2020 and 2019, the net gain was primarily attributable to a market-driven increase in the fair value of plan assets, predominantly offset by a decrease in the discount rate. The following table presents the components of net periodic benefit costs reported in the Consolidated statements of income for the Firm’s defined benefit pension, defined contribution and OPEB plans, and in other comprehensive income for the defined benefit pension and OPEB plans. Pension and OPEB plans Year ended December 31, (in millions) 2020 2019 2018 Components of net periodic benefit cost, U.S. defined benefit pension plans Benefits earned during the year $ 2 $ 327 $ 323 Interest cost on benefit obligations 422 518 478 Expected return on plan assets (634) (776) (836) Amortization: Net (gain)/loss 6 147 80 Prior service (credit)/cost — — (21) Curtailment (gain)/loss — — 21 Net periodic defined benefit plan cost/(credit), U.S. defined benefit pension plans $ (204) $ 216 $ 45 Other defined benefit pension and OPEB plans (81) (72) (72) Total net periodic defined benefit plan cost/(credit) $ (285) $ 144 $ (27) Total defined contribution plans 1,332 952 872 Total pension and OPEB cost included in noninterest expense $ 1,047 $ 1,096 $ 845 Changes recognized in other comprehensive income, U.S. defined benefit pension plans Prior service (credit)/cost arising during the year — 5 — Net (gain)/loss arising during the year (181) (745) 453 Amortization of net (loss)/gain (6) (147) (80) Amortization of prior service (cost)/credit — — 21 Curtailment (loss)/gain — — (21) Total recognized in other comprehensive income, U.S. defined benefit pension plans $ (187) $ (887) $ 373 Other defined benefit pension and OPEB plans (27) (270) 77 Total recognized in other comprehensive income $ (214) $ (1,157) $ 450 Total recognized in net periodic defined benefit plan cost/(credit) and other comprehensive income $ (499) $ (1,013) $ 423 The following table presents the weighted-average actuarial assumptions used to determine the net periodic benefit costs for the U.S. defined benefit pension plans. U.S. defined benefit pension plans Year ended December 31, (in millions) 2020 2019 2018 Discount rate 3.30% 4.30% 3.70 / 4.50% Expected long-term rate of return on plan assets 4.00 5.50 5.50 Rate of compensation increase NA 2.30 2.30 Interest crediting rate 4.65 4.90 4.90 Plan assumptions The Firm’s expected long-term rate of return for defined benefit pension plan assets is a blended weighted average, by asset allocation of the projected long-term returns for the various asset classes, taking into consideration local market conditions and the specific allocation of plan assets. Returns on asset classes are developed using a forward-looking approach and are not strictly based on historical returns. Consideration is also given to current market conditions and the portfolio mix of each plan. The discount rate used in determining the benefit obligation under the U.S. defined benefit pension plan was provided by the Firm’s actuaries. This rate was selected by reference to the yields on portfolios of bonds with maturity dates and coupons that closely match each of the plan’s projected cash flows. At December 31, 2020, the Firm decreased the discount rates used to determine its benefit obligations for the U.S. defined benefit pension plans in light of current market interest rates, which is expected to decrease expense by approximately $64 million in 2021. The 2021 expected long-term rate of return on U.S. defined benefit pension plan assets is 3.00%. The following table represents the effect of a 25-basis point decline in the expected long-term rate of return of 3.00% and discount rate of 2.50%. Effect on U.S. defined benefit pension plans Pension expense Benefit obligation Expected long-term rate of return $ 43 NA Discount rate (20) 404 Investment strategy and asset allocation The assets of the Firm’s defined benefit pension plans are held in various trusts and are invested in well-diversified portfolios of equity and fixed income securities, cash and cash equivalents, and alternative investments. The trust-owned assets of the Firm’s U.S. OPEB plan are invested primarily in fixed income securities. COLI policies used to partially defray the cost of the Firm’s U.S. OPEB plan are invested in separate accounts of an insurance company and are allocated to investments intended to replicate equity and fixed income indices. The investment policies for the assets of the Firm’s defined benefit pension plans are to optimize the risk-return relationship as appropriate to the needs and goals of each plan. Assets are managed by a combination of internal and external investment managers. The Firm regularly reviews the asset allocations and asset managers, as well as other factors that could impact the portfolios, which are rebalanced when deemed necessary. Investments held by the Firm’s defined benefit pension and OPEB plans include financial instruments which are exposed to various risks such as interest rate, market and credit risks. Exposure to a concentration of credit risk is mitigated by the broad diversification of both U.S. and non-U.S. investments. Additionally, the investments in each of the collective investment funds and/or registered investment companies are further diversified into various financial instruments. As of December 31, 2020, assets held by the Firm’s defined benefit pension and OPEB plans do not include securities issued by JPMorgan Chase or its affiliates, except through indirect exposures through investments in ETFs, mutual funds and collective investment funds managed by third-parties. The defined benefit pension and OPEB plans hold investments that are sponsored or managed by affiliates of JPMorgan Chase in the amount of $2.7 billion and $3.1 billion, as of December 31, 2020 and 2019, respectively. The following table presents the weighted-average asset allocation of the fair values of total plan assets at December 31 for the years indicated, as well as the respective approved asset allocation ranges by asset class. U.S. defined benefit pension plan (c) Asset % of plan assets December 31, Allocation 2020 2019 Asset class Debt securities (a) 42-100% 77 % 74 % Equity securities 0-40 15 16 Real estate 0-4 1 1 Alternatives (b) 0-15 7 9 Total 100 % 100 % 100 % (a) Debt securities primarily includes cash and cash equivalents, corporate debt, U.S. federal, state, local and non-U.S. government, asset-backed and mortgage-backed securities. (b) Alternatives primarily include limited partnerships. (c) Represents the U.S. defined benefit pension plan only as it is the most significant plan. The other U.S. defined benefit pension plans are unfunded. The weighted-average asset allocation for the U.S. OPEB plan was 59% debt securities and 41% equity securities and 60% debt securities and 40% equity securities at December 31, 2020 and 2019, respectively. Fair value measurement of the plans’ assets and liabilities Refer to Note 2 for information on fair value measurements, including descriptions of level 1, 2, and 3 of the fair value hierarchy and the valuation methods employed by the Firm. Pension plan assets and liabilities measured at fair value Defined benefit pension and OPEB plans 2020 2019 December 31 , (in millions) Level 1 Level 2 Level 3 Total fair value Level 1 Level 2 Level 3 Total fair value Equity securities $ 2,353 $ — $ 2 $ 2,355 $ 2,259 $ 3 $ 2 $ 2,264 Corporate debt securities — 7,414 11 7,425 — 6,474 2 6,476 U.S. federal, state, local and non-U.S. government debt securities 1,395 360 — 1,755 1,616 401 — 2,017 Mortgage-backed securities 461 1,184 31 1,676 312 681 4 997 Other (a) 788 861 201 1,850 718 49 250 1,017 U.S. defined benefit pension plans (b) $ 4,997 $ 9,819 $ 245 $ 15,061 $ 4,905 $ 7,608 $ 258 $ 12,771 Other defined benefit pension and OPEB plans (c) 2,034 2,565 2,707 7,306 1,834 2,307 2,431 6,572 Total assets measured at fair value $ 7,031 $ 12,384 $ 2,952 $ 22,367 $ 6,739 $ 9,915 $ 2,689 $ 19,343 (a) Other consists primarily of mutual funds, money market funds and participating annuity contracts. (b) At December 31, 2020 and 2019, excludes $3.2 billion and $3.9 billion, respectively, of certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient, and $606 million and $343 million, respectively, of net defined benefit pension plan payables, primarily for investments sold and purchased, which are not required to be classified in the fair value hierarchy. Investments in level 3 of the valuation hierarchy include $199 million and $250 million of participating annuity contracts at December 31, 2020 and 2019, respectively. (c) At December 31, 2020 and 2019, excludes $487 million and $465 million, respectively, of certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient. Investments in level 3 of the valuation hierarchy include $2.7 billion and $2.4 billion of COLI policies at December 31, 2020 and 2019, respectively. Estimated future benefit payments The following table presents benefit payments expected to be paid for the U.S. defined benefit pension plans for the years indicated. Year ended December 31, U.S. defined benefit pension plans 2021 $ 912 2022 918 2023 897 2024 847 2025 829 Years 2026–2030 3,843 |
Employee Share-Based Incentives
Employee Share-Based Incentives | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Employee Share-Based Incentives | Employee share-based incentives Employee share-based awards In 2020, 2019 and 2018, JPMorgan Chase granted long-term share-based awards to certain employees under its LTIP, as amended and restated effective May 15, 2018. Under the terms of the LTIP, as of December 31, 2020, 67 million shares of common stock were available for issuance through May 2022. The LTIP is the only active plan under which the Firm is currently granting share-based incentive awards. In the following discussion, the LTIP, plus prior Firm plans and plans assumed as the result of acquisitions, are referred to collectively as the “LTI Plans,” and such plans constitute the Firm’s share-based incentive plans. RSUs are awarded at no cost to the recipient upon their grant. Generally, RSUs are granted annually and vest at a rate of 50% after two years and 50% after three years and are converted into shares of common stock as of the vesting date. In addition, RSUs typically include full-career eligibility provisions, which allow employees to continue to vest upon voluntary termination based on age or service-related requirements, subject to post-employment and other restrictions. All RSU awards are subject to forfeiture until vested and contain clawback provisions that may result in cancellation under certain specified circumstances. Predominantly all RSUs entitle the recipient to receive cash payments equivalent to any dividends paid on the underlying common stock during the period the RSUs are outstanding. Performance share units (“PSUs”) are granted annually, and approved by the Firm’s Board of Directors, to members of the Firm’s Operating Committee under the variable compensation program. PSUs are subject to the Firm’s achievement of specified performance criteria over a three Once the PSUs and dividend equivalent share units have vested, the shares of common stock that are delivered, after applicable tax withholding, must be held for an additional two five eight Under the LTI Plans, stock appreciation rights (“SARs”) and stock options have generally been granted with an exercise price equal to the fair value of JPMorgan Chase’s common stock on the grant date. SARs and stock options generally expire ten years after the grant date. There were no material grants of SARs or stock options in 2020, 2019 and 2018. The Firm separately recognizes compensation expense for each tranche of each award, net of estimated forfeitures, as if it were a separate award with its own vesting date. Generally, for each tranche granted, compensation expense is recognized on a straight-line basis from the grant date until the vesting date of the respective tranche, provided that the employees will not become full-career eligible during the vesting period. For awards with full-career eligibility provisions and awards granted with no future substantive service requirement, the Firm accrues the estimated value of awards expected to be awarded to employees as of the grant date without giving consideration to the impact of post-employment restrictions. For each tranche granted to employees who will become full-career eligible during the vesting period, compensation expense is recognized on a straight-line basis from the grant date until the earlier of the employee’s full-career eligibility date or the vesting date of the respective tranche. The Firm’s policy for issuing shares upon settlement of employee share-based incentive awards is to issue either new shares of common stock or treasury shares. During 2020, 2019 and 2018, the Firm settled all of its employee share-based awards by issuing treasury shares. Refer to Note 23 for further information on the classification of share-based awards for purposes of calculating earnings per share. RSUs, PSUs, SARs and stock options activity Generally, compensation expense for RSUs and PSUs is measured based on the number of units granted multiplied by the stock price at the grant date, and for SARs and stock options, is measured at the grant date using the Black-Scholes valuation model. Compensation expense for these awards is recognized in net income as described previously. The following table summarizes JPMorgan Chase’s RSUs, PSUs, SARs and stock options activity for 2020. RSUs/PSUs SARs/Options Year ended December 31, 2020 Number of Weighted-average grant Number of awards Weighted-average exercise price Weighted-average remaining contractual life Aggregate intrinsic value (in thousands, except weighted-average data, and where otherwise stated) Outstanding, January 1 52,239 $ 99.62 5,527 $ 41.36 Granted 17,891 132.17 1 137.80 Exercised or vested (21,502) 96.64 (2,389) 41.40 Forfeited (1,118) 111.59 (4) 122.59 Canceled NA NA (11) 39.33 Outstanding, December 31 47,510 $ 112.85 3,124 $ 41.25 1.4 $ 265,059 Exercisable, December 31 NA NA 3,124 41.25 1.4 265,059 The total fair value of RSUs that vested during the years ended December 31, 2020, 2019 and 2018, was $2.8 billion, $2.9 billion and $3.6 billion, respectively. The total intrinsic value of options exercised during the years ended December 31, 2020, 2019 and 2018, was $182 million, $503 million and $370 million, respectively. Compensation expense The Firm recognized the following noncash compensation expense related to its various employee share-based incentive plans in its Consolidated statements of income. Year ended December 31, (in millions) 2020 2019 2018 Cost of prior grants of RSUs, PSUs, SARs and stock options that are amortized over their applicable vesting periods $ 1,101 $ 1,141 $ 1,241 Accrual of estimated costs of share-based awards to be granted in future periods including those to full-career eligible employees 1,350 1,115 1,081 Total noncash compensation expense related to employee share-based incentive plans $ 2,451 $ 2,256 $ 2,322 Tax benefits Income tax benefits (including tax benefits from dividends or d ividend equivalents) related to share-based incentive arrangements recognized in the Firm’s Consolidated statements of income for the years ended December 31, 2020, 2019 and 2018, were $837 million, $895 million and $1.1 billion, respectively. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 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. AFS securities are carried at fair value on the Consolidated balance sheets. Unrealized gains and losses, after any applicable hedge accounting adjustments or allowance for credit losses, are reported in AOCI. The specific identification method is used to determine realized gains and losses on AFS securities, which are included in investment securities gains/(losses) on the Consolidated statements of income. HTM securities, which the Firm has the intent and ability to hold until maturity, are carried at amortized cost, net of allowance for credit losses, on the Consolidated balance sheets. For both AFS and HTM securities, purchase discounts or premiums are generally amortized into interest income on a level-yield basis over the contractual life of the security. However, premiums on certain callable debt securities are amortized to the earliest call date. 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 2020, the Firm transferred $164.2 billion of investment securities from AFS to HTM for capital management purposes. AOCI included pretax unrealized gains of $5.0 billion on the securities at the dates of transfer. 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. 2020 2019 December 31, (in millions) Amortized cost (e) Gross unrealized gains Gross unrealized losses Fair Amortized cost (e) Gross unrealized gains Gross unrealized losses Fair Available-for-sale securities Mortgage-backed securities: U.S. GSEs and government agencies (a) $ 110,979 $ 2,372 $ 50 $ 113,301 $ 107,811 $ 2,395 $ 89 $ 110,117 Residential: U.S. 6,246 224 3 6,467 10,223 233 6 10,450 Non-U.S. 3,751 20 5 3,766 2,477 64 1 2,540 Commercial 2,819 71 34 2,856 5,137 64 13 5,188 Total mortgage-backed securities 123,795 2,687 92 126,390 125,648 2,756 109 128,295 U.S. Treasury and government agencies 199,910 2,141 100 201,951 139,162 449 175 139,436 Obligations of U.S. states and municipalities 18,993 1,404 1 20,396 27,693 2,118 1 29,810 Certificates of deposit — — — — 77 — — 77 Non-U.S. government debt securities 22,587 354 13 22,928 21,427 377 17 21,787 Corporate debt securities 215 4 3 216 823 22 — 845 Asset-backed securities: Collateralized loan obligations 10,055 24 31 10,048 25,038 9 56 24,991 Other 6,174 91 16 6,249 5,438 40 20 5,458 Total available-for-sale securities (b) 381,729 6,705 256 388,178 345,306 5,771 378 350,699 Held-to-maturity securities (c) Mortgage-backed securities: U.S. GSEs and government agencies (a) 107,889 2,968 29 110,828 36,523 1,165 62 37,626 U.S. Residential 4,345 8 30 4,323 — — — — Commercial 2,602 77 — 2,679 — — — — Total mortgage-backed securities 114,836 3,053 59 117,830 36,523 1,165 62 37,626 U.S. Treasury and government agencies 53,184 50 — 53,234 51 — 1 50 Obligations of U.S. states and municipalities 12,751 519 — 13,270 4,797 299 — 5,096 Asset-backed securities: Collateralized loan obligations 21,050 90 2 21,138 6,169 — — 6,169 Total held-to-maturity securities, net of allowance for credit losses (d) 201,821 3,712 61 205,472 47,540 1,464 63 48,941 Total investment securities, net of allowance for credit losses (d) $ 583,550 $ 10,417 $ 317 $ 593,650 $ 392,846 $ 7,235 $ 441 $ 399,640 (a) Includes AFS U.S. GSE obligations with fair values of $65.8 billion and $78.5 billion, and HTM U.S. GSE obligations with amortized cost of $86.3 billion and $31.6 billion, at December 31, 2020 and 2019, respectively. As of December 31, 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 $95.7 billion and $98.8 billion, and $54.7 billion and $55.8 billion, respectively. (b) There was no allowance for credit losses on AFS securities at December 31, 2020. (c) The Firm purchased $12.4 billion, $13.4 billion and $9.4 billion of HTM securities for the years ended December 31, 2020, 2019 and 2018, respectively. (d) HTM securities measured at amortized cost are reported net of allowance for credit losses of $78 million at December 31, 2020. (e) Excludes $2.1 billion and $1.9 billion of accrued interest receivables at December 31, 2020 and 2019, respectively. The Firm did not reverse through interest income any accrued interest receivables for the years ended December 31, 2020 and 2019. At December 31, 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 December 31, 2020 and 2019. The tables exclude U.S. Treasury and government agency securities and U.S. GSE and government agency MBS with unrealized losses of $150 million and $264 million, at December 31, 2020 and 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 December 31, 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. $ 562 $ 3 $ 32 $ — $ 594 $ 3 Non-U.S. 2,507 4 235 1 2,742 5 Commercial 699 18 124 16 823 34 Total mortgage-backed securities 3,768 25 391 17 4,159 42 Obligations of U.S. states and municipalities 49 1 — — 49 1 Certificates of deposit — — — — — — Non-U.S. government debt securities 2,709 9 968 4 3,677 13 Corporate debt securities 91 3 5 — 96 3 Asset-backed securities: Collateralized loan obligations 5,248 18 2,645 13 7,893 31 Other 268 1 685 15 953 16 Total available-for-sale securities with gross unrealized losses $ 12,133 $ 57 $ 4,694 $ 49 $ 16,827 $ 106 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. 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 investment securities gains/(losses) is equal to the full difference between the amortized cost (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 December 31, 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 December 31, 2020, all HTM securities were rated investment grade and were current and accruing, with approximately 98% rated at least AA+. 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. 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 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 $78 million as of December 31, 2020, reflecting $68 million recognized in the provision for credit losses for the year ended December 31, 2020. Selected impacts of investment securities on the Consolidated statements of income Year ended December 31, 2020 2019 2018 Realized gains $ 3,080 $ 650 $ 211 Realized losses (2,278) (392) (606) Net investment securities gains/(losses) $ 802 $ 258 $ (395) Provision for credit losses $ 68 NA NA Contractual maturities and yields The following table presents the amortized cost and estimated fair value at December 31, 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 $ — $ 741 $ 7,797 $ 115,257 $ 123,795 Fair value — 756 8,139 117,495 126,390 Average yield (a) — % 1.66 % 1.67 % 2.57 % 2.51 % U.S. Treasury and government agencies Amortized cost $ 33,633 $ 110,033 $ 46,827 $ 9,417 $ 199,910 Fair value 33,678 111,014 47,675 9,584 201,951 Average yield (a) 0.42 % 0.53 % 0.79 % 0.48 % 0.57 % Obligations of U.S. states and municipalities Amortized cost $ 33 $ 203 $ 1,047 $ 17,710 $ 18,993 Fair value 33 211 1,111 19,041 20,396 Average yield (a) 4.11 % 4.59 % 4.84 % 4.80 % 4.80 % Non-U.S. government debt securities Amortized cost $ 8,282 $ 8,011 $ 5,615 $ 679 $ 22,587 Fair value 8,297 8,225 5,726 680 22,928 Average yield (a) 1.25 % 1.70 % 0.68 % 0.17 % 1.24 % Corporate debt securities Amortized cost $ — $ 141 $ 74 $ — $ 215 Fair value — 139 77 — 216 Average yield (a) — % 1.21 % 1.92 % — % 1.45 % Asset-backed securities Amortized cost $ 554 $ 2,569 $ 5,987 $ 7,119 $ 16,229 Fair value 554 2,591 5,990 7,162 16,297 Average yield (a) 1.31 % 2.00 % 1.33 % 1.48 % 1.50 % Total available-for-sale securities Amortized cost $ 42,502 $ 121,698 $ 67,347 $ 150,182 $ 381,729 Fair value 42,562 122,936 68,718 153,962 388,178 Average yield (a) 0.59 % 0.65 % 1.00 % 2.64 % 1.49 % Held-to-maturity securities Mortgage-backed securities Amortized cost $ — $ 158 $ 11,908 $ 102,791 $ 114,857 Fair value — 160 12,707 104,963 117,830 Average yield (a) — % 1.56 % 2.42 % 2.94 % 2.88 % U.S. Treasury and government agencies Amortized cost $ 501 $ 42,477 $ 10,206 $ — $ 53,184 Fair value 501 42,511 10,222 — 53,234 Average yield (a) 1.86 % 0.60 % 0.94 % — % 0.67 % Obligations of U.S. states and municipalities Amortized cost $ — $ 65 $ 532 $ 12,211 $ 12,808 Fair value — 67 565 12,638 13,270 Average yield (a) — % 3.09 % 3.57 % 3.62 % 3.62 % Asset-backed securities Amortized cost $ — $ — $ 11,617 $ 9,433 $ 21,050 Fair value — — 11,658 9,480 21,138 Average yield (a) — % — % 1.40 % 1.33 % 1.37 % Total held-to-maturity securities Amortized cost $ 501 $ 42,700 $ 34,263 $ 124,435 $ 201,899 Fair value 501 42,738 35,152 127,081 205,472 Average yield (a) 1.86 % 0.60 % 1.65 % 2.88 % 2.19 % (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 5 years for agency residential MBS, 4 years for agency residential collateralized mortgage obligations and 3 years for nonagency residential collateralized mortgage obligations. |
Securities Financing Activities
Securities Financing Activities | 12 Months Ended |
Dec. 31, 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 December 31, 2020 and 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 29 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 December 31, 2020 and 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. 2020 December 31, (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 $ 666,467 $ (370,183) $ 296,284 $ (273,206) $ 23,078 Securities borrowed 193,700 (33,065) 160,635 (115,219) 45,416 Liabilities Securities sold under repurchase agreements $ 578,060 $ (370,183) $ 207,877 $ (191,980) $ 15,897 Securities loaned and other (a) 41,366 (33,065) 8,301 (8,257) 44 2019 December 31, (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 $ (231,147) (d) $ 17,999 (d) 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 $3.4 billion and $3.7 billion at December 31, 2020 and 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 December 31, 2020 and 2019, included $17.0 billion and $11.0 billion, respectively, of securities purchased under resale agreements; $42.1 billion and $31.9 billion, respectively, of securities borrowed; $14.5 billion and $22.7 billion, respectively, of securities sold under repurchase agreements; and $8 million and $7 million, respectively, of securities loaned and other. (d) The prior period amounts have been revised to conform with the current period presentation. The tables below present as of December 31, 2020 and 2019 the types of financial assets pledged in securities financing agreements and the remaining contractual maturity of the securities financing agreements. Gross liability balance 2020 2019 December 31, (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 $ 56,744 $ — $ 34,119 $ — Residential - nonagency 1,016 — 1,239 — Commercial - nonagency 855 — 1,612 — U.S. Treasury, GSEs and government agencies 315,834 143 334,398 29 Obligations of U.S. states and municipalities 1,525 2 1,181 — Non-U.S. government debt 157,563 1,730 145,548 1,528 Corporate debt securities 22,849 1,864 13,826 1,580 Asset-backed securities 694 — 1,794 — Equity securities 20,980 37,627 21,455 33,512 Total $ 578,060 $ 41,366 $ 555,172 $ 36,649 Remaining contractual maturity of the agreements Overnight and continuous Greater than 2020 (in millions) Up to 30 days 30 – 90 days Total Total securities sold under repurchase agreements $ 238,667 $ 230,980 $ 70,777 $ 37,636 $ 578,060 Total securities loaned and other 37,887 1,647 500 1,332 41,366 Remaining contractual maturity of the agreements Overnight and continuous Greater than 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) The prior period amounts have been revised to conform with the current period presentation. Transfers not qualifying for sale accounting |
Loans
Loans | 12 Months Ended |
Dec. 31, 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 the Firm’s loans by category: 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. Expected losses related to accrued interest on certain performing, modified loans to borrowers impacted by COVID-19 are considered in the Firm’s allowance for loan losses. 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 lower of the amortized cost or 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 lower of its amortized cost or the estimated net realizable value of the underlying collateral, 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 result in obtaining appraisal updates or broker price opinions at more frequent intervals. 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 because: • they represent short-term or other insignificant modifications, whether under the Firm’s regular loan modification assessments or as permitted by regulatory guidance, or • the Firm has elected to apply the option to suspend the application of accounting guidance for TDRs as provided by the CARES Act and extended by the Consolidated Appropriations Act. To the extent that certain modifications do not meet any of the above criteria, the Firm accounts for them as TDRs. As permitted by regulatory guidance, the Firm does not place loans with deferrals granted due to COVID-19 on nonaccrual status where such loans are not otherwise reportable as nonaccrual. The Firm considers expected losses of principal and accrued interest associated with all COVID-19 related loan modifications in its allowance for credit losses. Assistance provided in response to the COVID-19 pandemic could delay the recognition of delinquencies, nonaccrual status, and net charge-offs for those customers who would have otherwise moved into past due or nonaccrual status. 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. In response to the COVID-19 pandemic, the Firm has temporarily suspended certain foreclosure activities. This could delay recognition of foreclosed properties until the foreclosure moratoriums are lifted. 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 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 for more information on SPEs. The following tables summarize the Firm’s loan balances by portfolio segment. December 31, 2020 Consumer, excluding credit card Credit card Wholesale Total (b)(c) (in millions) Retained $ 302,127 $ 143,432 $ 514,947 $ 960,506 Held-for-sale 1,305 784 5,784 7,873 At fair value (a) 15,147 — 29,327 44,474 Total $ 318,579 $ 144,216 $ 550,058 $ 1,012,853 December 31, 2019 Consumer, excluding credit card Credit card Wholesale Total (b)(c) (in millions) Retained $ 294,999 $ 168,924 $ 481,678 $ 945,601 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 $2.9 billion of accrued interest receivables at both December 31, 2020 and 2019. The Firm wrote off accrued interest receivables of $121 million and $50 million for the years ended December 31, 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 December 31, 2020 and 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 Year ended December 31, Consumer, excluding Credit card Wholesale Total Purchases $ 3,474 (b)(c) $ — $ 1,159 $ 4,633 Sales 352 — 17,916 18,268 Retained loans reclassified to held-for-sale (a) 2,084 787 1,580 4,451 2019 Year ended December 31, Consumer, excluding Credit card Wholesale Total Purchases $ 1,282 (b)(c) $ — $ 1,291 $ 2,573 Sales 30,474 — 23,445 53,919 Retained loans reclassified to held-for-sale (a) 9,188 — 2,371 11,559 2018 Year ended December 31, Consumer, excluding Credit card Wholesale Total Purchases $ 2,543 (b)(c) $ — $ 2,354 $ 4,897 Sales 9,984 — 16,741 26,725 Retained loans reclassified to held-for-sale (a) 36 — 2,276 2,312 (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 years ended December 31, 2020, 2019 and 2018. 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 $15.3 billion, $16.6 billion and $18.6 billion for the years ended December 31, 2020, 2019 and 2018, respectively. Gains and losses on sales of loans 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. December 31, (in millions) 2020 2019 Residential real estate $ 225,302 $ 243,317 Auto and other (a) 76,825 51,682 Total retained loans $ 302,127 $ 294,999 (a) At December 31, 2020, included $19.2 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 to be 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) December 31, 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 $ 55,562 $ 31,820 $ 13,900 $ 20,410 $ 27,978 $ 50,232 $ 7,370 $ 15,792 $ 223,064 $ 239,979 30–149 days past due 9 25 20 22 29 674 21 245 1,045 1,910 150 or more days past due 3 14 10 18 18 844 22 264 1,193 1,428 Total retained loans $ 55,574 $ 31,859 $ 13,930 $ 20,450 $ 28,025 $ 51,750 $ 7,413 $ 16,301 $ 225,302 $ 243,317 % of 30+ days past due to total retained loans (c) 0.02 % 0.12 % 0.22 % 0.20 % 0.17 % 2.86 % 0.58 % 3.12 % 0.98 % 1.35 % (a) Individual delinquency classifications include mortgage loans insured by U.S. government agencies as follows: current included $36 million and $17 million; 30–149 days past due included $16 million and $20 million; and 150 or more days past due included $24 million and $26 million at December 31, 2020 and 2019, respectively. (b) At December 31, 2020, loans under payment deferral programs offered in response to the COVID-19 pandemic which are still within their deferral period and performing according to their modified terms are generally not considered delinquent. (c) At December 31, 2020 and 2019, residential real estate loans excluded mortgage loans insured by U.S. government agencies of $40 million and $46 million, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee. Approximately 35% 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) December 31, 2020 December 31, 2019 Nonaccrual loans (a)(b)(c)(d)(e) $ 5,313 $ 2,780 90 or more days past due and government guaranteed (f) 33 38 Current estimated LTV ratios (g)(h) Greater than 125% and refreshed FICO scores: Equal to or greater than 660 $ 10 $ 31 Less than 660 18 38 101% to 125% and refreshed FICO scores: Equal to or greater than 660 72 134 Less than 660 65 132 80% to 100% and refreshed FICO scores: Equal to or greater than 660 2,365 5,953 Less than 660 435 764 Less than 80% and refreshed FICO scores: Equal to or greater than 660 208,457 219,469 Less than 660 12,072 14,681 No FICO/LTV available 1,732 2,052 U.S. government-guaranteed 76 63 Total retained loans $ 225,302 $ 243,317 Weighted average LTV ratio (g)(i) 54 % 55 % Weighted average FICO (h)(i) 763 758 Geographic region (j) California $ 73,444 $ 82,147 New York 32,287 31,996 Florida 13,981 13,668 Texas 13,773 14,474 Illinois 13,130 15,587 Colorado 8,235 8,447 Washington 7,917 8,990 New Jersey 7,227 7,752 Massachusetts 5,784 6,210 Connecticut 5,024 4,954 All other (k) 44,500 49,092 Total retained loans $ 225,302 $ 243,317 (a) Includes collateral-dependent residential real estate loans that are charged down to the lower of amortized cost or the fair value of the underlying collateral less costs to sell. The Firm reports, in accordance with regulatory guidance, residential real estate loans that have been discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower (“Chapter 7 loans”) as collateral-dependent nonaccrual TDRs, regardless of their delinquency status. At December 31, 2020, approximately 7% of Chapter 7 residential real estate loans were 30 days or more past due, respectively. (b) At December 31, 2020, nonaccrual loans included $1.6 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 lower of amortized cost or the fair value of their underlying collateral less costs to sell. If the value of the underlying collateral improves subsequent to the charge down, the related allowance may be negative. (d) Interest income on nonaccrual loans recognized on a cash basis was $161 million and $166 million for the years ended December 31, 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 also at least 150 days past due and therefore considered collateral-dependent. Collateral-dependent loans are 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 December 31, 2020 and 2019, these balances included $33 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 December 31, 2020 and 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 December 31, 2020. (k) At December 31, 2020 and 2019, included mortgage loans insured by U.S. government agencies of $76 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 short-term or other insignificant modifications that are not considered concessions are not TDRs nor are loans for which the Firm has elected to apply the option to suspend the application of accounting guidance for TDRs as provided by the CARES Act and extended by the Consolidated Appropriations Act. The carrying value of new TDRs was $819 million, $490 million and $736 million for the years ended December 31, 2020, 2019 and 2018 , respectively. There were no |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 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 Consolidated balance sheets, • the allowance for lending-related commitments, which is presented on the Consolidated balance sheets in accounts payable and other liabilities, and • the allowance for credit losses on investment securities, which covers the Firm’s HTM and AFS securities and is recognized within Investment Securities on the Consolidated balance sheets. 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 considered 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 these receivables 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 judgment. 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 has created additional challenges in the use of modeled credit loss estimates and increased the reliance on management judgment. In periods where certain MEVs are outside the range of historical experience on which the Firm’s models have been trained, the Firm makes adjustments to appropriately address these economic circumstances. The Firm also considers the impact of other events, such as government unemployment benefits or other stimulus programs, when determining whether adjustments are necessary. The quantitative calculation is 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 judgment 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. Throughout 2020, the Firm made adjustments to its quantitative calculation 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 for loans 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. (Table continued on next page) 2020 (e) Year ended December 31, Consumer, Credit card Wholesale Total Allowance for loan losses Beginning balance at January 1, $ 2,538 $ 5,683 $ 4,902 $ 13,123 Cumulative effect of a change in accounting principle 297 5,517 (1,642) 4,172 Gross charge-offs 805 5,077 954 6,836 Gross recoveries collected (631) (791) (155) (1,577) Net charge-offs 174 4,286 799 5,259 Write-offs of PCI loans (a) NA NA NA NA Provision for loan losses 974 10,886 4,431 16,291 Other 1 — — 1 Ending balance at December 31, $ 3,636 $ 17,800 $ 6,892 $ 28,328 Allowance for lending-related commitments Beginning balance at January 1, $ 12 $ — $ 1,179 $ 1,191 Cumulative effect of a change in accounting principle 133 — (35) 98 Provision for lending-related commitments 42 — 1,079 1,121 Other — — (1) (1) Ending balance at December 31, $ 187 $ — $ 2,222 $ 2,409 Total allowance for credit losses $ 3,823 $ 17,800 $ 9,114 $ 30,737 Allowance for loan losses by impairment methodology Asset-specific (b) $ (7) $ 633 $ 682 $ 1,308 Portfolio-based 3,643 17,167 6,210 27,020 PCI NA NA NA NA Total allowance for loan losses $ 3,636 $ 17,800 $ 6,892 $ 28,328 Loans by impairment methodology Asset-specific (b) $ 16,648 $ 1,375 $ 3,606 $ 21,629 Portfolio-based 285,479 142,057 511,341 938,877 PCI NA NA NA NA Total retained loans $ 302,127 $ 143,432 $ 514,947 $ 960,506 Collateral-dependent loans Net charge-offs $ 133 $ — $ 76 $ 209 Loans measured at fair value of collateral less cost to sell 4,956 — 188 5,144 Allowance for lending-related commitments by impairment methodology Asset-specific $ — $ — $ 114 $ 114 Portfolio-based 187 — 2,108 2,295 Total allowance for lending-related commitments (c) $ 187 $ — $ 2,222 $ 2,409 Lending-related commitments by impairment methodology Asset-specific $ — $ — $ 577 $ 577 Portfolio-based (d) 37,783 — 426,871 464,654 Total lending-related commitments $ 37,783 $ — $ 427,448 $ 465,231 (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 December 31, 2020, 2019 and 2018, lending-related commitments excluded $19.5 billion, $9.8 billion and $8.7 billion, respectively, for the consumer, excluding credit card portfolio segment; $658.5 billion, $650.7 billion and $605.4 billion, respectively, for the credit card portfolio segment; and $22.4 billion, $24.1 billion and $24.8 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 $78 million and a provision for credit losses of $68 million as of and for the year ended December 31, 2020. (table continued from previous page) 2019 2018 Consumer, Credit card Wholesale Total Consumer, Credit card Wholesale Total $ 3,434 $ 5,184 $ 4,827 $ 13,445 $ 3,892 $ 4,884 $ 4,828 $ 13,604 NA NA NA NA NA NA NA NA 902 5,436 472 6,810 977 5,011 361 6,349 (536) (588) (57) (1,181) (827) (493) (173) (1,493) 366 4,848 415 5,629 150 4,518 188 4,856 151 — — 151 187 — — 187 (378) 5,348 479 5,449 (121) 4,818 188 4,885 (1) (1) 11 9 — — (1) (1) $ 2,538 $ 5,683 $ 4,902 $ 13,123 $ 3,434 $ 5,184 $ 4,827 $ 13,445 $ 12 $ — $ 1,043 $ 1,055 $ 12 $ — $ 1,056 $ 1,068 NA NA NA NA NA NA NA NA — — 136 136 — — (14) (14) — — — — — — 1 1 $ 12 $ — $ 1,179 $ 1,191 $ 12 $ — $ 1,043 $ 1,055 $ 2,550 $ 5,683 $ 6,081 $ 14,314 $ 3,446 $ 5,184 $ 5,870 $ 14,500 $ 75 $ 477 $ 295 $ 847 $ 143 $ 440 $ 350 $ 933 1,476 5,206 4,607 11,289 1,503 4,744 4,477 10,724 987 — — 987 1,788 — — 1,788 $ 2,538 $ 5,683 $ 4,902 $ 13,123 $ 3,434 $ 5,184 $ 4,827 $ 13,445 $ 5,961 $ 1,452 $ 1,123 $ 8,536 $ 6,665 $ 1,319 $ 1,459 $ 9,443 268,675 167,472 480,555 916,702 305,077 155,297 475,561 935,935 20,363 — — 20,363 24,034 — 3 24,037 $ 294,999 $ 168,924 $ 481,678 $ 945,601 $ 335,776 $ 156,616 $ 477,023 $ 969,415 $ 46 $ — $ 36 $ 82 $ 16 $ — $ 29 $ 45 2,053 — 87 2,140 2,076 — 206 2,282 $ — $ — $ 102 $ 102 $ — $ — $ 99 $ 99 12 — 1,077 1,089 12 — 944 956 $ 12 $ — $ 1,179 $ 1,191 $ 12 $ — $ 1,043 $ 1,055 $ — $ — $ 474 $ 474 $ — $ — $ 469 $ 469 30,417 — 392,967 423,384 26,502 — 374,996 401,498 $ 30,417 $ — $ 393,441 $ 423,858 $ 26,502 $ — $ 375,465 $ 401,967 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. As of December 31, 2020, the Firm’s central case reflected U.S. unemployment rates of approximately 7% through the second quarter of 2021 and remaining above 5% until the second half of 2022. This compared with relatively low levels of unemployment of approximately 4% throughout 2020 and 2021 in the Firm’s January 1, 2020 central case. Further, while the Firm’s January 1, 2020 central case U.S. GDP forecast reflected a 1.7% expansion in 2020, actual U.S. GDP contracted approximately 2.5% in 2020. As of December 31, 2020, the Firm’s central case assumptions reflect a return to pre-pandemic GDP levels in the fourth quarter of 2021. Due to elevated uncertainty in the near term outlook, driven by the potential for increased infection rates and related lock downs resulting from the pandemic, as well as the prospect that government and other consumer relief measures set to expire may not be extended, the Firm has placed significant weighting on its adverse scenarios. These scenarios incorporate more punitive macroeconomic factors than the central case assumptions, resulting in weighted average U.S. unemployment rates remaining elevated throughout 2021 and 2022, ending the fourth quarter of 2022 at approximately 6%, and in U.S. GDP ending 2022 approximately 0.9% higher than fourth quarter 2019 actual pre-pandemic levels. The Firm’s central case assumptions reflected U.S. unemployment rates and U.S. real GDP as follows: Assumptions at January 1, 2020 2Q20 4Q20 (b) 2Q21 U.S. unemployment rate (a) 3.7% 3.8% 4.0% Cumulative change in U.S. real GDP from 12/31/2019 0.9% 1.7% 2.4% Assumptions at December 31, 2020 2Q21 4Q21 2Q22 U.S. unemployment rate (a) 6.8% 5.7% 5.1% Cumulative change in U.S. real GDP from 12/31/2019 (1.9)% 0.6% 2.0% (a) Reflects quarterly average of forecasted U.S. unemployment rate. (b) 4Q20 actual U.S. unemployment rate (quarterly average) was 6.8%. 4Q20 actual cumulative change in U.S. real GDP from 4Q19 was (2.5%). Subsequent changes to this forecast and related estimates will be reflected in the provision for credit losses in future periods. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2020 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable interest entities Refer to Note 1 on page 167 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. The Firm considers a “sponsored” VIE to include any entity where: (1) JPMorgan Chase is the primary beneficiary of the structure; (2) the VIE is used by JPMorgan Chase to securitize Firm assets; (3) the VIE issues financial instruments with the JPMorgan Chase name; or (4) the entity is a JPMorgan Chase–administered asset-backed commercial paper conduit. Line of Business Transaction Type Activity 2020 Form 10-K CCB Credit card securitization trusts Securitization of originated credit card receivables 253-254 Mortgage securitization trusts Servicing and securitization of both originated and purchased residential mortgages 254-256 CIB Mortgage and other securitization trusts Securitization of both originated and purchased residential and commercial mortgages, and other consumer loans 254-256 Multi-seller conduits Assist clients in accessing the financial markets in a cost-efficient manner and structures transactions to meet investor needs 256 Municipal bond vehicles Financing of municipal bond investments 256-257 The Firm’s other business segments are also involved with VIEs (both third-party and Firm-sponsored), but to a lesser extent, as follows: • Asset & Wealth Management: AWM sponsors and manages certain funds that are deemed VIEs. As asset manager of the funds, AWM earns a fee based on assets managed; the fee varies with each fund’s investment objective and is competitively priced. For fund entities that qualify as VIEs, AWM’s interests are, in certain cases, considered to be significant variable interests that result in consolidation of the financial results of these entities. • Commercial Banking: CB provides financing and lending-related services to a wide spectrum of clients, including certain third-party-sponsored entities that may meet the definition of a VIE. CB does not control the activities of these entities and does not consolidate these entities. CB’s maximum loss exposure, regardless of whether the entity is a VIE, is generally limited to loans and lending-related commitments which are reported and disclosed in the same manner as any other third-party transaction. • Corporate : Corporate is involved with entities that may meet the definition of VIEs; however these entities are generally subject to specialized investment company accounting, which does not require the consolidation of investments, including VIEs. In addition, Treasury and CIO invest in securities generally issued by third parties which may meet the definition of VIEs (e.g., issuers of asset-backed securities). In general, the Firm does not have the power to direct the significant activities of these entities and therefore does not consolidate these entities. Refer to Note 10 for further information on the Firm’s investment securities portfolio. In addition, CIB also invests in and provides financing and other services to VIEs sponsored by third parties. Refer to page 258 of this Note for more information on the VIEs sponsored by third parties. Significant Firm-sponsored variable interest entities Credit card securitizations CCB’s Card business may securitize originated credit card loans, primarily through the Chase Issuance Trust (the “Trust”). The Firm’s continuing involvement in credit card securitizations includes servicing the receivables, retaining an undivided seller’s interest in the receivables, retaining certain senior and subordinated securities and maintaining escrow accounts. The Firm consolidates the assets and liabilities of its sponsored credit card trusts as it is considered to be the primary beneficiary of these securitization trusts based on the Firm’s ability to direct the activities of these VIEs through its servicing responsibilities and other duties, including making decisions as to the receivables that are transferred into those trusts and as to any related modifications and workouts. Additionally, the nature and extent of the Firm’s other continuing involvement with the trusts, as indicated above, obligates the Firm to absorb losses and gives the Firm the right to receive certain benefits from these VIEs that could potentially be significant. The underlying securitized credit card receivables and other assets of the securitization trusts are available only for payment of the beneficial interests issued by the securitization trusts; they are not available to pay the Firm’s other obligations or the claims of the Firm’s creditors. The agreements with the credit card securitization trusts require the Firm to maintain a minimum undivided interest in the credit card trusts (generally 5%). As of December 31, 2020 and 2019, the Firm held undivided interests in Firm-sponsored credit card securitization trusts of $5.4 billion and $5.3 billion, respectively. The Firm maintained an average undivided interest in principal receivables owned by those trusts of approximately 39% and 50% for the years ended December 31, 2020 and 2019. The Firm did not retain any senior securities and retained $1.5 billion and $3.0 billion of subordinated securities in certain of its credit card securitization trusts as of December 31, 2020 and 2019, respectively. The Firm’s undivided interests in the credit card trusts and securities retained are eliminated in consolidation. Firm-sponsored mortgage and other securitization trusts The Firm securitizes (or has securitized) originated and purchased residential mortgages, commercial mortgages and other consumer loans primarily in its CCB and CIB businesses. Depending on the particular transaction, as well as the respective business involved, the Firm may act as the servicer of the loans and/or retain certain beneficial interests in the securitization trusts. The following table presents the total unpaid principal amount of assets held in Firm-sponsored private-label securitization entities, including those in which the Firm has continuing involvement, and those that are consolidated by the Firm. Continuing involvement includes servicing the loans, holding senior interests or subordinated interests (including amounts required to be held pursuant to credit risk retention rules), recourse or guarantee arrangements, and derivative 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 259 of this Note for further information regarding the Firm’s cash flows associated with and interests retained in nonconsolidated VIEs, and pages 259-260 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) December 31, 2020 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 Chase Securitization-related (a) Residential mortgage: Prime/Alt-A and option ARMs $ 49,644 $ 1,693 $ 41,265 $ 574 $ 724 $ — $ 1,298 Subprime 12,896 46 12,154 9 — — 9 Commercial and other (b) 119,732 — 92,351 955 1,549 262 2,766 Total $ 182,272 $ 1,739 $ 145,770 $ 1,538 $ 2,273 $ 262 $ 4,073 Principal amount outstanding JPMorgan Chase interest in securitized assets in nonconsolidated VIEs (c)(d)(e) December 31, 2019 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 Chase 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 259-260 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 $105 million and $40 million, respectively, at December 31, 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 December 31, 2020 and 2019, 73% 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 $1.3 billion and $1.1 billion of investment-grade retained interests, and $41 million and $72 million of noninvestment-grade retained interests at December 31, 2020 and 2019, respectively. The retained interests in commercial and other securitization trusts consisted of $2.0 billion and $1.2 billion of investment-grade retained interests, and $753 million and $575 million of noninvestment-grade retained interests at December 31, 2020 and 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. CCB generally retains servicing for all residential mortgage loans it originated or purchased, and for certain mortgage loans purchased by CIB. For securitizations of loans serviced by CCB, the Firm has the power to direct the significant activities of the VIE because it is responsible for decisions related to loan modifications and workouts. CCB may also retain an interest upon securitization. In addition, CIB engages in underwriting and trading activities involving securities issued by Firm-sponsored securitization trusts. As a result, CIB at times retains senior and/or subordinated interests (including residual interests and amounts required to be held pursuant to credit risk retention rules) in residential mortgage securitizations at the time of securitization, and/or reacquires positions in the secondary market in the normal course of business. In certain instances, as a result of the positions retained or reacquired by CIB or held by Treasury and CIO or CCB, when considered together with the servicing arrangements entered into by CCB, the Firm is deemed to be the primary beneficiary of certain securitization trusts. Refer to the table on page 257 of this Note for more information on consolidated residential mortgage securitizations. The Firm does not consolidate residential mortgage securitizations (Firm-sponsored or third-party-sponsored) when it is not the servicer (and therefore does not have the power to direct the most significant activities of the trust) or does not hold a beneficial interest in the trust that could potentially be significant to the trust. Refer to the table on page 257 of this Note for more information on the consolidated residential mortgage securitizations, and the table on the previous page of this Note for further information on interests held in nonconsolidated residential mortgage securitizations. Commercial mortgages and other consumer securitizations CIB originates and securitizes commercial mortgage loans, and engages in underwriting and trading activities involving the securities issued by securitization trusts. CIB may retain unsold senior and/or subordinated interests (including amounts required to be held pursuant to credit risk retention rules) in commercial mortgage securitizations at the time of securitization but, generally, the Firm does not service commercial loan securitizations. Treasury and CIO may choose to invest in these securitizations as well. For commercial mortgage securitizations the power to direct the significant activities of the VIE generally is held by the servicer or investors in a specified class of securities (“controlling class”). The Firm generally does not retain an interest in the controlling class in its sponsored commercial mortgage securitization transactions. Refer to the table on page 257 of this Note for more information on the consolidated commercial mortgage securitizations, and the table on the previous page of this Note for further information on interests held in nonconsolidated securitizations. Re-securitizations The Firm engages in certain re-securitization transactions in which debt securities are transferred to a VIE in exchange for new beneficial interests. These transfers occur in connection with both U.S. GSEs and government agency sponsored VIEs, which are backed by residential mortgages. The Firm’s consolidation analysis is largely dependent on the Firm’s role and interest in the re-securitization trusts. The following table presents the principal amount of securities transferred to re-securitization VIEs. Year ended December 31, 2020 2019 2018 Transfers of securities to VIEs U.S. GSEs and government agencies $ 46,123 $ 25,852 $ 15,532 Most re-securitizations with which the Firm is involved are client-driven transactions in which a specific client or group of clients is seeking a specific return or risk profile. For these transactions, the Firm has concluded that the decision-making power of the entity is shared between the Firm and its clients, considering the joint effort and decisions in establishing the re-securitization trust and its assets, as well as the significant economic interest the client holds in the re-securitization trust; therefore the Firm does not consolidate the re-securitization VIE. The Firm did not transfer any private label securities to re-securitization VIEs during 2020, 2019 and 2018, respectively, and retained interests in any such Firm-sponsored VIEs as of December 31, 2020 and 2019 were immaterial. Additionally, the Firm may invest in beneficial interests of third-party-sponsored re-securitizations and generally purchases these interests in the secondary market. In these circumstances, the Firm does not have the unilateral ability to direct the most significant activities of the re-securitization trust, either because it was not involved in the initial design of the trust, or the Firm is involved with an independent third-party sponsor and demonstrates shared power over the creation of the trust; therefore, the Firm does not consolidate the re-securitization VIE. The following table presents information on the Firm's interests in nonconsolidated re-securitization VIEs. Nonconsolidated December 31, 2020 2019 U.S. GSEs and government agencies Interest in VIEs $ 2,631 $ 2,928 As of December 31, 2020 and 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 Multi-seller conduit entities are separate bankruptcy remote entities that provide secured financing, collateralized by pools of receivables and other financial assets, to customers of the Firm. The conduits fund their financing facilities through the issuance of highly rated commercial paper. The primary source of repayment of the commercial paper is the cash flows from the pools of assets. In most instances, the assets are structured with deal-specific credit enhancements provided to the conduits by the customers (i.e., sellers) or other third parties. Deal-specific credit enhancements are generally structured to cover a multiple of historical losses expected on the pool of assets, and are typically in the form of overcollateralization provided by the seller. The deal-specific credit enhancements mitigate the Firm’s potential losses on its agreements with the conduits. To ensure timely repayment of the commercial paper, and to provide the conduits with funding to provide financing to customers in the event that the conduits do not obtain funding in the commercial paper market, each asset pool financed by the conduits has a minimum 100% deal-specific liquidity facility associated with it provided by JPMorgan Chase Bank, N.A. JPMorgan Chase Bank, N.A. also provides the multi-seller conduit vehicles with uncommitted program-wide liquidity facilities and program-wide credit enhancement in the form of standby letters of credit. The amount of program-wide credit enhancement required is based upon commercial paper issuance and approximates 10% of the outstanding balance of commercial paper. The Firm consolidates its Firm-administered multi-seller conduits, as the Firm has both the power to direct the significant activities of the conduits and a potentially significant economic interest in the conduits. As administrative agent and in its role in structuring transactions, the Firm makes decisions regarding asset types and credit quality, and manages the commercial paper funding needs of the conduits. The Firm’s interests that could potentially be significant to the VIEs include the fees received as administrative agent and liquidity and program-wide credit enhancement provider, as well as the potential exposure created by the liquidity and credit enhancement facilities provided to the conduits. Refer to page 257 of this Note for further information on consolidated VIE assets and liabilities. In the normal course of business, JPMorgan Chase makes markets in and invests in commercial paper issued by the Firm-administered multi-seller conduits. The Firm held $13.5 billion and $16.3 billion of the commercial paper issued by the Firm-administered multi-seller conduits at December 31, 2020 and 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 $12.2 billion and $8.9 billion at December 31, 2020 and 2019, respectively, and are reported as off-balance sheet lending-related commitments in other unfunded commitments to extend credit. Refer to Note 28 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. In a typical TOB transaction, the trust purchases highly rated municipal bond(s) of a single issuer and funds the purchase by issuing two types of securities: (1) puttable floating-rate certificates (“floaters”) and (2) inverse floating-rate residual interests (“residuals”). The floaters are typically purchased by money market funds or other short-term investors and may be tendered, with requisite notice, to the TOB trust. The residuals are retained by the investor seeking to finance its municipal bond investment. TOB transactions where the residual is held by a third-party investor are typically known as customer TOB trusts, and non-customer TOB trusts are transactions where the Residual is retained by the Firm. Customer TOB trusts are sponsored by a third party; refer to page 258 of this Note for further information. The Firm serves as sponsor for all non-customer TOB transactions. The Firm may provide various services to a TOB trust, including remarketing agent, liquidity or tender option provider, and/or sponsor. J.P. Morgan Securities LLC may serve as a remarketing agent on the floaters for TOB trusts. The remarketing agent is responsible for establishing the periodic variable rate on the floaters, conducting the initial placement and remarketing tendered floaters. The remarketing agent may, but is not obligated to, make markets in floaters. Floaters held by the Firm were not material during 2020 and 2019. JPMorgan Chase Bank, N.A. or J.P. Morgan Securities LLC often serves as the sole liquidity or tender option provider for the TOB trusts. The liquidity provider’s obligation to perform is conditional and is limited by certain events (“Termination Events”), which include bankruptcy or failure to pay by the municipal bond issuer or credit enhancement provider, an event of taxability on the municipal bonds or the immediate downgrade of the municipal bond to below investment grade. In addition, the liquidity provider’s exposure is typically further limited by the high credit quality of the underlying municipal bonds, the excess collateralization in the vehicle, or, in certain transactions, the reimbursement agreements with the Residual holders. Holders of the floaters may “put,” or tender, their floaters to the TOB trust. If the remarketing agent cannot successfully remarket the floaters to another investor, the liquidity provider either provides a loan to the TOB trust for the TOB trust’s purchase of the floaters, or it directly purchases the tendered floaters. TOB trusts are considered to be variable interest entities. The Firm consolidates non-customer TOB trusts because as the Residual holder, the Firm has the right to make decisions that significantly impact the economic performance of the municipal bond vehicle, and it has the right to receive benefits and bear losses that could potentially be significant to the municipal bond vehicle. Consolidated VIE assets and liabilities The following table presents information on assets and liabilities related to VIEs consolidated by the Firm as of December 31, 2020 and 2019. Assets Liabilities December 31, 2020 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 $ — $ 11,962 $ 148 $ 12,110 $ 4,943 $ 3 $ 4,946 Firm-administered multi-seller conduits 2 23,787 188 23,977 10,523 33 10,556 Municipal bond vehicles 1,930 — 2 1,932 1,902 — 1,902 Mortgage securitization entities (a) — 1,694 94 1,788 210 108 318 Other 2 176 249 427 — 89 89 Total $ 1,934 $ 37,619 $ 681 $ 40,234 $ 17,578 $ 233 $ 17,811 Assets Liabilities December 31, 2019 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. Included in beneficial interests in VIE assets are long-term beneficial interests of $5.2 billion and $6.7 billion at December 31, 2020 and 2019, respectively. Refer to Note 20 for additional information on interest-bearing long-term beneficial interests. (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 $24.9 billion and $19.1 billion, of which $8.7 billion and $5.5 billion was unfunded at December 31, 2020 and 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 for further information on affordable housing tax credits. Refer to Note 28 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 December 31, 2020 and 2019, was $6.7 billion and $5.5 billion, respectively. The fair value of assets held by such VIEs at December 31, 2020 and 2019 was $10.5 billion and $8.6 billion, respectively. Refer to Note 28 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. The purposes of these securitization transactions were to satisfy investor demand and to generate liquidity for the Firm. For loan securitizations in which the Firm is not required to consolidate the trust, the Firm records the transfer of the loan receivable to the trust as a sale when all of the following accounting criteria for a sale are met: (1) the transferred financial assets are legally isolated from the Firm’s creditors; (2) the transferee or beneficial interest holder can pledge or exchange the transferred financial assets; and (3) the Firm does not maintain effective control over the transferred financial assets (e.g., the Firm cannot repurchase the transferred assets before their maturity and it does not have the ability to unilaterally cause the holder to return the transferred assets). For loan securitizations accounted for as a sale, the Firm recognizes a gain or loss based on the difference between the value of proceeds received (including cash, beneficial interests, or servicing assets received) and the carrying value of the assets sold. Gains and losses on securitizations are reported in noninterest revenue. Securitization activity The following table provides information related to the Firm’s securitization activities for the years ended December 31, 2020, 2019 and 2018, 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. 2020 2019 2018 Year ended December 31, Residential mortgage (d) Commercial and other (e) Residential mortgage (d) Commercial and other (e) Residential mortgage (d) Commercial and other (e) Principal securitized $ 7,103 $ 6,624 $ 9,957 $ 9,390 $ 6,431 $ 10,159 All cash flows during the period: (a) Proceeds received from loan sales as financial instruments (b)(c) $ 7,321 $ 6,865 $ 10,238 $ 9,544 $ 6,449 $ 10,218 Servicing fees collected 211 1 287 2 319 2 Cash flows received on interests 801 239 507 237 411 301 (a) Excludes re-securitization transactions. (b) Predominantly includes Level 2 assets. (c) The carrying value of the loans accounted for at fair value approximated the proceeds received upon loan sale. (d) Represents prime mortgages. Excludes loan securitization activity related to U.S. GSEs and government agencies. (e) Includes commercial mortgage and other consumer loans. Key assumptions used to value retained interests originated during the year are shown in the table below. Year ended December 31, 2020 2019 2018 Residential mortgage retained interest: Weighted-average life (in years) 4.7 4.8 7.6 Weighted-average discount rate 8.2 % 7.4 % 3.6 % Commercial mortgage retained interest: Weighted-average life (in years) 6.9 6.4 5.3 Weighted-average discount rate 3.0 % 4.1 % 4.0 % 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 28 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. Year ended December 31, 2020 2019 2018 Carrying value of loans sold $ 81,153 $ 92,349 $ 44,609 Proceeds received from loan sales as cash $ 45 $ 73 $ 9 |
Goodwill and Mortgage Servicing
Goodwill and Mortgage Servicing Rights | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Mortgage Servicing Rights | Goodwill and Mortgage servicing rights Goodwill Goodwill is recorded upon completion of a business combination as the difference between the purchase price and the fair value of the net assets acquired, and can be adjusted up to one year from the acquisition date as more information is obtained about the fair value of assets acquired and liabilities assumed. Subsequent to initial recognition, goodwill is not amortized but is tested for impairment during the fourth quarter of each fiscal year, or more often if events or circumstances, such as adverse changes in the business climate, indicate that there may be an impairment. The goodwill associated with each business combination is allocated to the related reporting units, which are determined based on how the Firm’s businesses are managed and how they are reviewed. The following table presents goodwill attributed to the business segments. December 31, (in millions) 2020 2019 2018 Consumer & Community Banking (a) $ 31,311 $ 30,133 $ 30,084 Corporate & Investment Bank (a) 7,913 7,901 7,721 Commercial Banking 2,985 2,982 2,860 Asset & Wealth Management (a) 7,039 6,807 6,806 Total goodwill $ 49,248 $ 47,823 $ 47,471 (a) In 2020, goodwill of $959 million was transferred from CCB to CIB and $51 million from AWM to CCB related to business realignments. Prior-period amounts have been revised to conform with the current presentation. Refer to Note 32 for additional information on these realignments. The following table presents changes in the carrying amount of goodwill. Year ended December 31, (in millions) 2020 2019 2018 Balance at beginning of period $ 47,823 $ 47,471 $ 47,507 Changes during the period from: Business combinations (a) 1,412 349 — Other (b) 13 3 (36) Balance at December 31, $ 49,248 $ 47,823 $ 47,471 (a) For 2020, represents estimated goodwill associated with the acquisitions of cxLoyalty in CCB and 55ip in AWM. For 2019, represents goodwill associated with the acquisition of InstaMed. This goodwill was allocated to CIB, CB and CCB. (b) Primarily relates to foreign currency adjustments. Goodwill impairment testing The Firm’s goodwill was not impaired at December 31, 2020, 2019 and 2018. 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. The goodwill impairment test is performed by comparing the current fair value of each reporting unit with its carrying value. If the fair value is in excess of the carrying value, then the reporting unit’s goodwill is considered not to be impaired. If the fair value is less than the carrying value, then an impairment charge is recognized for the amount by which the reporting unit’s carrying value exceeds its fair value, up to the amount of goodwill allocated to that reporting unit. The Firm uses the reporting units’ allocated capital plus goodwill and other intangible assets as a proxy for the carrying values of equity for the reporting units in the goodwill impairment testing. Reporting unit equity is determined on a similar basis as the allocation of capital to the LOBs which takes into consideration a variety of factors including capital levels of similarly rated peers and applicable regulatory capital requirements. Proposed LOB capital levels are incorporated into the Firm’s annual budget process, which is reviewed by the Firm’s Board of Directors. Allocated capital is further reviewed periodically and updated as needed. The primary method the Firm uses to estimate the fair value of its reporting units is the income approach. This approach projects cash flows for the forecast period and uses the perpetuity growth method to calculate terminal values. These cash flows and terminal values are then discounted using an appropriate discount rate. Projections of cash flows are based on the reporting units’ earnings forecasts which are reviewed with senior management of the Firm. The discount rate used for each reporting unit represents an estimate of the cost of equity for that reporting unit and is determined considering the Firm’s overall estimated cost of equity (estimated using the Capital Asset Pricing Model), as adjusted for the risk characteristics specific to each reporting unit (for example, for higher levels of risk or uncertainty associated with the business or management’s forecasts and assumptions). To assess the reasonableness of the discount rates used for each reporting unit, management compares the discount rate to the estimated cost of equity for publicly traded institutions with similar businesses and risk characteristics. In addition, the weighted average cost of equity (aggregating the various reporting units) is compared with the Firm’s overall estimated cost of equity to ensure reasonableness. The valuations derived from the discounted cash flow analysis are then compared with market-based trading and transaction multiples for relevant competitors. Trading and transaction comparables are used as general indicators to assess the overall reasonableness of the estimated fair values, although precise conclusions generally cannot be drawn due to the differences that naturally exist between the Firm’s businesses and competitor institutions. Management also takes into consideration a comparison between the aggregate fair values of the Firm’s reporting units and JPMorgan Chase’s market capitalization. In evaluating this comparison, management considers several factors, including (i) a control premium that would exist in a market transaction, (ii) factors related to the level of execution risk that would exist at the Firmwide level that do not exist at the reporting unit level and (iii) short-term market volatility and other factors that do not directly affect the value of individual reporting units. 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. Mortgage servicing rights MSRs represent the fair value of expected future cash flows for performing servicing activities for others. The fair value considers estimated future servicing fees and ancillary revenue, offset by estimated costs to service the loans, and generally declines over time as net servicing cash flows are received, effectively amortizing the MSR asset against contractual servicing and ancillary fee income. MSRs are either purchased from third parties or recognized upon sale or securitization of mortgage loans if servicing is retained. As permitted by U.S. GAAP, the Firm has elected to account for its MSRs at fair value. The Firm treats its MSRs as a single class of servicing assets based on the availability of market inputs used to measure the fair value of its MSR asset and its treatment of MSRs as one aggregate pool for risk management purposes. The Firm estimates the fair value of MSRs using an option-adjusted spread (“OAS”) model, which projects MSR cash flows over multiple interest rate scenarios in conjunction with the Firm’s prepayment model, and then discounts these cash flows at risk-adjusted rates. The model considers portfolio characteristics, contractually specified servicing fees, prepayment assumptions, delinquency rates, costs to service, late charges and other ancillary revenue, and other economic factors. The Firm compares fair value estimates and assumptions to observable market data where available, and also considers recent market activity and actual portfolio experience. The fair value of MSRs is sensitive to changes in interest rates, including their effect on prepayment speeds. MSRs typically decrease in value when interest rates decline because declining interest rates tend to increase prepayments and therefore reduce the expected life of the net servicing cash flows that comprise the MSR asset. Conversely, securities (e.g., mortgage-backed securities), and certain derivatives (e.g., those for which the Firm receives fixed-rate interest payments) increase in value when interest rates decline. JPMorgan Chase uses combinations of derivatives and securities to manage the risk of changes in the fair value of MSRs. The intent is to offset any interest-rate related changes in the fair value of MSRs with changes in the fair value of the related risk management instruments. The following table summarizes MSR activity for the years ended December 31, 2020, 2019 and 2018. As of or for the year ended December 31, (in millions, except where otherwise noted) 2020 2019 2018 Fair value at beginning of period $ 4,699 $ 6,130 $ 6,030 MSR activity: Originations of MSRs 944 1,384 931 Purchase of MSRs 248 105 315 Disposition of MSRs (a) (176) (789) (636) Net additions/(Dispositions) 1,016 700 610 Changes due to collection/realization of expected cash flows (899) (951) (740) Changes in valuation due to inputs and assumptions: Changes due to market interest rates and other (b) (1,568) (893) 300 Changes in valuation due to other inputs and assumptions: Projected cash flows (e.g., cost to service) (54) (333) (e) 15 Discount rates 199 153 24 Prepayment model changes and other (c) (117) (107) (109) Total changes in valuation due to other inputs and assumptions 28 (287) (70) Total changes in valuation due to inputs and assumptions (1,540) (1,180) 230 Fair value at December 31, $ 3,276 $ 4,699 $ 6,130 Change in unrealized gains/(losses) included in income related to MSRs held at December 31, $ (1,540) $ (1,180) $ 230 Contractual service fees, late fees and other ancillary fees included in income 1,325 1,639 1,778 Third-party mortgage loans serviced at December 31, (in billions) 448.0 522.0 521.0 Servicer advances, net of an allowance for uncollectible amounts, at December 31, (in billions) (d) 1.8 2.0 3.0 (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 years ended December 31, 2020, 2019 and 2018. Year ended December 31, 2020 2019 2018 CCB mortgage fees and related income Net production revenue $ 2,629 $ 1,618 $ 268 Net mortgage servicing revenue: Operating revenue: Loan servicing revenue 1,367 1,533 1,835 Changes in MSR asset fair value due to collection/realization of expected cash flows (899) (951) (740) Total operating revenue 468 582 1,095 Risk management: Changes in MSR asset fair value due to market interest rates and other (a) (1,568) (893) 300 Other changes in MSR asset fair value due to other inputs and assumptions in model (b) 28 (287) (70) Change in derivative fair value and other 1,522 1,015 (341) Total risk management (18) (165) (111) Total net mortgage servicing revenue 450 417 984 Total CCB mortgage fees and related income 3,079 2,035 1,252 All other 12 1 2 Mortgage fees and related income $ 3,091 $ 2,036 $ 1,254 (a) Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments. (b) Represents the aggregate impact of changes in model inputs and assumptions such as projected cash flows (e.g., cost to service), discount rates and changes in prepayments other than those attributable to changes in market interest rates (e.g., changes in prepayments due to changes in home prices). The table below outlines the key economic assumptions used to determine the fair value of the Firm’s MSRs at December 31, 2020 and 2019, and outlines the sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below. December 31, 2020 2019 Weighted-average prepayment speed assumption (constant prepayment rate) 14.90 % 11.67 % Impact on fair value of 10% adverse change $ (206) $ (200) Impact on fair value of 20% adverse change (392) (384) Weighted-average option adjusted spread (a) 7.19 % 7.93 % Impact on fair value of 100 basis points adverse change $ (134) $ (169) Impact on fair value of 200 basis points adverse change (258) (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. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and equipmentPremises and equipment, including leasehold improvements, are carried at cost less accumulated depreciation and amortization. JPMorgan Chase computes depreciation using the straight-line method over the estimated useful life of an asset. For leasehold improvements, the Firm uses the straight-line method computed over the lesser of the remainder of the lease term, or estimated useful life of the improvements. JPMorgan Chase capitalizes certain costs associated with the acquisition or development of internal-use software. Once the software is ready for its intended use, these costs are amortized on a straight-line basis over the software’s expected useful life and reviewed for impairment on an ongoing basis. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2020 | |
Deposits [Abstract] | |
Deposits | Deposits At December 31, 2020 and 2019, noninterest-bearing and interest-bearing deposits were as follows. December 31, (in millions) 2020 2019 U.S. offices Noninterest-bearing (included $9,873 and $22,637 at fair value) (a) $ 572,711 $ 395,667 Interest-bearing (included $2,567 and $2,534 at fair value) (a) 1,197,032 876,156 Total deposits in U.S. offices 1,769,743 1,271,823 Non-U.S. offices Noninterest-bearing (included $1,486 and $1,980 at fair value) (a) 23,435 20,087 Interest-bearing (included $558 and $1,438 at fair value) (a) 351,079 270,521 Total deposits in non-U.S. offices 374,514 290,608 Total deposits $ 2,144,257 $ 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 discussion. At December 31, 2020 and 2019, time deposits in denominations of $250,000 or more were as follows. December 31, (in millions) 2020 2019 U.S. offices $ 33,812 $ 44,127 Non-U.S. offices 50,523 50,840 Total $ 84,335 $ 94,967 At December 31, 2020, the maturities of interest-bearing time deposits were as follows. December 31, 2020 U.S. Non-U.S. Total 2021 $ 44,785 $ 48,142 $ 92,927 2022 1,451 175 1,626 2023 259 7 266 2024 210 36 246 2025 197 633 830 After 5 years 451 298 749 Total $ 47,353 $ 49,291 $ 96,644 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases Firm as lessee At December 31, 2020, JPMorgan Chase and its subsidiaries were obligated under a number of noncancelable leases, predominantly operating leases for premises and equipment used primarily for business purposes. These leases generally have terms of 20 years or less, determined based on the contractual maturity of the lease, and include periods covered by options to extend or terminate the lease when the Firm is reasonably certain that it will exercise those options. All leases with lease terms greater than twelve months are reported as a lease liability with a corresponding right-of-use (“ROU”) asset. None of these lease agreements impose restrictions on the Firm’s ability to pay dividends, engage in debt or equity financing transactions or enter into further lease agreements. Certain of these leases contain escalation clauses that will increase rental payments based on maintenance, utility and tax increases, which are non-lease components. The Firm elected not to separate lease and non-lease components of a contract for its real estate leases. As such, real estate lease payments represent payments on both lease and non-lease components. Operating lease liabilities and ROU assets are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term. The future lease payments are discounted at a rate that represents the Firm’s collateralized borrowing rate for financing instruments of a similar term and are included in accounts payable and other liabilities. The operating lease ROU asset, included in premises and equipment, also includes any lease prepayments made, plus initial direct costs incurred, less any lease incentives received. Rental expense associated with operating leases is recognized on a straight-line basis over the lease term, and generally included in occupancy expense in the Consolidated statements of income. The following tables provide information related to the Firm’s operating leases: December 31, 2020 2019 Right-of-use assets $ 8,006 $ 8,190 Lease liabilities 8,508 8,505 Weighted average remaining lease term (in years) 8.7 8.8 Weighted average discount rate 3.48 % 3.68 % Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities - operating cash flows $ 1,626 $ 1,572 Supplemental non-cash information Right-of-use assets obtained in exchange for operating lease obligations $ 1,350 $ 1,413 Year ended December 31, 2020 2019 Rental expense Gross rental expense $ 2,094 $ 2,057 Sublease rental income (166) (184) Net rental expense $ 1,928 $ 1,873 The following table presents future payments under operating leases as of December 31, 2020: Year ended December 31, (in millions) 2021 $ 1,606 2022 1,435 2023 1,270 2024 1,123 2025 947 After 2025 3,602 Total future minimum lease payments 9,983 Less: Imputed interest (1,475) Total $ 8,508 In addition to the table above, as of December 31, 2020, the Firm had additional future operating lease commitments of $1.2 billion that were signed but had not yet commenced. These operating leases will commence between 2021 and 2023 with lease terms up to 25 years. Firm as lessor The Firm provides auto and equipment lease financing to its customers through lease arrangements with lease terms that may contain renewal, termination and/or purchase options. Generally, the Firm’s lease financings are operating leases. These assets subject to operating leases are recognized in other assets on the Firm’s Consolidated balance sheets and are depreciated on a straight-line basis over the lease term to reduce the asset to its estimated residual value. Depreciation expense is included in technology, communications and equipment expense in the Consolidated statements of income. The Firm’s lease income is generally recognized on a straight-line basis over the lease term and is included in other income in the Consolidated statements of income. On a periodic basis, the Firm assesses leased assets for impairment, and if the carrying amount of the leased asset exceeds the undiscounted cash flows from the lease payments and the estimated residual value upon disposition of the leased asset, an impairment loss is recognized. The risk of loss on auto and equipment leased assets relating to the residual value of the leased assets is monitored through projections of the asset residual values at lease origination and periodic review of residual values, and is mitigated through arrangements with certain manufacturers or lessees. The following table presents the carrying value of assets subject to leases reported on the Consolidated balance sheets: December 31, 2020 2019 Carrying value of assets subject to operating leases, net of accumulated depreciation $ 21,155 $ 23,587 Accumulated depreciation 6,388 6,121 The following table presents the Firm’s operating lease income and the related depreciation expense on the Consolidated statements of income: 2020 2019 2018 Operating lease income $ 5,539 $ 5,455 $ 4,540 Depreciation expense 4,257 4,157 3,522 The following table presents future receipts under operating leases as of December 31, 2020: Year ended December 31, (in millions) 2021 $ 3,686 2022 2,084 2023 613 2024 52 2025 24 After 2025 34 Total future minimum lease receipts $ 6,493 |
Leases | Leases Firm as lessee At December 31, 2020, JPMorgan Chase and its subsidiaries were obligated under a number of noncancelable leases, predominantly operating leases for premises and equipment used primarily for business purposes. These leases generally have terms of 20 years or less, determined based on the contractual maturity of the lease, and include periods covered by options to extend or terminate the lease when the Firm is reasonably certain that it will exercise those options. All leases with lease terms greater than twelve months are reported as a lease liability with a corresponding right-of-use (“ROU”) asset. None of these lease agreements impose restrictions on the Firm’s ability to pay dividends, engage in debt or equity financing transactions or enter into further lease agreements. Certain of these leases contain escalation clauses that will increase rental payments based on maintenance, utility and tax increases, which are non-lease components. The Firm elected not to separate lease and non-lease components of a contract for its real estate leases. As such, real estate lease payments represent payments on both lease and non-lease components. Operating lease liabilities and ROU assets are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term. The future lease payments are discounted at a rate that represents the Firm’s collateralized borrowing rate for financing instruments of a similar term and are included in accounts payable and other liabilities. The operating lease ROU asset, included in premises and equipment, also includes any lease prepayments made, plus initial direct costs incurred, less any lease incentives received. Rental expense associated with operating leases is recognized on a straight-line basis over the lease term, and generally included in occupancy expense in the Consolidated statements of income. The following tables provide information related to the Firm’s operating leases: December 31, 2020 2019 Right-of-use assets $ 8,006 $ 8,190 Lease liabilities 8,508 8,505 Weighted average remaining lease term (in years) 8.7 8.8 Weighted average discount rate 3.48 % 3.68 % Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities - operating cash flows $ 1,626 $ 1,572 Supplemental non-cash information Right-of-use assets obtained in exchange for operating lease obligations $ 1,350 $ 1,413 Year ended December 31, 2020 2019 Rental expense Gross rental expense $ 2,094 $ 2,057 Sublease rental income (166) (184) Net rental expense $ 1,928 $ 1,873 The following table presents future payments under operating leases as of December 31, 2020: Year ended December 31, (in millions) 2021 $ 1,606 2022 1,435 2023 1,270 2024 1,123 2025 947 After 2025 3,602 Total future minimum lease payments 9,983 Less: Imputed interest (1,475) Total $ 8,508 In addition to the table above, as of December 31, 2020, the Firm had additional future operating lease commitments of $1.2 billion that were signed but had not yet commenced. These operating leases will commence between 2021 and 2023 with lease terms up to 25 years. Firm as lessor The Firm provides auto and equipment lease financing to its customers through lease arrangements with lease terms that may contain renewal, termination and/or purchase options. Generally, the Firm’s lease financings are operating leases. These assets subject to operating leases are recognized in other assets on the Firm’s Consolidated balance sheets and are depreciated on a straight-line basis over the lease term to reduce the asset to its estimated residual value. Depreciation expense is included in technology, communications and equipment expense in the Consolidated statements of income. The Firm’s lease income is generally recognized on a straight-line basis over the lease term and is included in other income in the Consolidated statements of income. On a periodic basis, the Firm assesses leased assets for impairment, and if the carrying amount of the leased asset exceeds the undiscounted cash flows from the lease payments and the estimated residual value upon disposition of the leased asset, an impairment loss is recognized. The risk of loss on auto and equipment leased assets relating to the residual value of the leased assets is monitored through projections of the asset residual values at lease origination and periodic review of residual values, and is mitigated through arrangements with certain manufacturers or lessees. The following table presents the carrying value of assets subject to leases reported on the Consolidated balance sheets: December 31, 2020 2019 Carrying value of assets subject to operating leases, net of accumulated depreciation $ 21,155 $ 23,587 Accumulated depreciation 6,388 6,121 The following table presents the Firm’s operating lease income and the related depreciation expense on the Consolidated statements of income: 2020 2019 2018 Operating lease income $ 5,539 $ 5,455 $ 4,540 Depreciation expense 4,257 4,157 3,522 The following table presents future receipts under operating leases as of December 31, 2020: Year ended December 31, (in millions) 2021 $ 3,686 2022 2,084 2023 613 2024 52 2025 24 After 2025 34 Total future minimum lease receipts $ 6,493 |
Accounts Payable and Other Liab
Accounts Payable and Other Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Accounts Payable and Other Liabilities | Accounts payable and other liabilities Accounts payable and other liabilities consist of brokerage payables, which include payables to customers and payables related to security purchases that did not settle, as well as other accrued expenses, such as income tax payables, operating lease liabilities, credit card rewards liability, and litigation reserves. The following table details the components of accounts payable and other liabilities. December 31, (in millions) 2020 2019 Brokerage payables $ 140,291 $ 118,375 Other payables and liabilities (a) 92,308 92,032 Total accounts payable and other liabilities $ 232,599 $ 210,407 (a) Includes credit card rewards liability of $7.7 billion and $6.4 billion at December 31, 2020 and 2019, respectively. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term debt JPMorgan Chase issues long-term debt denominated in various currencies, predominantly U.S. dollars, with both fixed and variable interest rates. Included in senior and subordinated debt below are various equity-linked or other indexed instruments, which the Firm has elected to measure at fair value. Changes in fair value are recorded in principal transactions revenue in the Consolidated statements of income, except for unrealized gains/(losses) due to DVA which are recorded in OCI. The following table is a summary of long-term debt carrying values (including unamortized premiums and discounts, issuance costs, valuation adjustments and fair value adjustments, where applicable) by remaining contractual maturity as of December 31, 2020. By remaining maturity at 2020 2019 Under 1 year 1-5 years After 5 years Total Total Parent company Senior debt: Fixed rate $ 9,225 $ 49,987 $ 114,296 $ 173,508 $ 161,198 Variable rate 1,580 8,644 8,353 18,577 18,615 Interest rates (a) 1.33-4.63% 0.50-4.50% 0.17-6.40% 0.17-6.40% 0.15-6.40% Subordinated debt: Fixed rate $ — $ 5,678 $ 13,577 $ 19,255 $ 15,155 Variable rate — — 9 9 9 Interest rates (a) —% 3.38-7.75% 2.96-8.00% 2.96-8.00% 3.38-8.00% Subtotal $ 10,805 $ 64,309 $ 136,235 $ 211,349 $ 194,977 Subsidiaries Federal Home Loan Banks advances: Fixed rate $ 7 $ 45 $ 71 $ 123 $ 135 Variable rate 3,000 11,000 — 14,000 28,500 Interest rates (a) 0.57-0.60% 0.19-0.24% 4.66-7.73% 0.19-7.73% 1.67-8.31% (h) Senior debt: Fixed rate $ 1,067 $ 3,157 $ 11,534 $ 15,758 $ 19,597 Variable rate 12,055 18,448 7,608 38,111 45,861 Interest rates (a) —% 7.28% 1.00-1.30% 1.00-7.28% 1.00-9.43% Subordinated debt: Fixed rate $ — $ 309 $ — $ 309 $ 305 Variable rate — — — — — Interest rates (a) — % 8.25 % — % 8.25 % 8.25 % Subtotal $ 16,129 $ 32,959 $ 19,213 $ 68,301 $ 94,398 Junior subordinated debt: Fixed rate $ — $ — $ 738 $ 738 $ 693 Variable rate — — 1,297 1,297 1,430 Interest rates (a) —% —% 0.71-8.75% 0.71-8.75% 2.41-8.75% Subtotal $ — $ — $ 2,035 $ 2,035 $ 2,123 Total long-term debt (b)(c)(d) $ 26,934 $ 97,268 $ 157,483 $ 281,685 (f)(g) $ 291,498 Long-term beneficial interests: Fixed rate $ 625 $ 1,744 $ — $ 2,369 $ 2,990 Variable rate 1,924 650 210 2,784 3,748 Interest rates 0.36-2.77% 0.00-2.39% 0.00-3.75% 0.00-3.75% 0.00-4.06% Total long-term beneficial interests (e) $ 2,549 $ 2,394 $ 210 $ 5,153 $ 6,738 (a) The interest rates shown are the range of contractual rates in effect at December 31, 2020 and 2019, respectively, including non-U.S. dollar fixed- and variable-rate issuances, which excludes the effects of the associated derivative instruments used in hedge accounting relationships, if applicable. The use of these derivative instruments modifies the Firm’s exposure to the contractual interest rates disclosed in the table above. Including the effects of the hedge accounting derivatives, the range of modified rates in effect at December 31, 2020, for total long-term debt was (0.40)% to 7.28%, versus the contractual range of 0.17% to 8.75% presented in the table above. The interest rate ranges shown exclude structured notes accounted for at fair value. (b) Included long-term debt of $17.2 billion and $32.0 billion secured by assets totaling $166.4 billion and $186.1 billion at December 31, 2020 and 2019, respectively. The amount of long-term debt secured by assets does not include amounts related to hybrid instruments. (c) Included $76.8 billion and $75.7 billion of long-term debt accounted for at fair value at December 31, 2020 and 2019, respectively. (d) Included $16.1 billion and $14.0 billion of outstanding zero-coupon notes at December 31, 2020 and 2019, respectively. The aggregate principal amount of these notes at their respective maturities is $45.3 billion and $39.7 billion, respectively. The aggregate principal amount reflects the contractual principal payment at maturity, which may exceed the contractual principal payment at the Firm’s next call date, if applicable. (e) Included on the Consolidated balance sheets in beneficial interests issued by consolidated VIEs. Also included $41 million and $36 million accounted for at fair value at December 31, 2020 and 2019, respectively. Excluded short-term commercial paper and other short-term beneficial interests of $12.4 billion and $11.1 billion at December 31, 2020 and 2019, respectively. (f) At December 31, 2020, long-term debt in the aggregate of $151.3 billion was redeemable at the option of JPMorgan Chase, in whole or in part, prior to maturity, based on the terms specified in the respective instruments. (g) The aggregate carrying values of debt that matures in each of the five years subsequent to 2020 is $26.9 billion in 2021, $18.4 billion in 2022, $32.2 billion in 2023, $29.6 billion in 2024 and $17.1 billion in 2025. (h) Prior-period amounts have been revised to conform with the current presentation. The weighted-average contractual interest rates for total long-term debt excluding structured notes accounted for at fair value were 2.89% and 3.13% as of December 31, 2020 and 2019, respectively. In order to modify exposure to interest rate and currency exchange rate movements, JPMorgan Chase utilizes derivative instruments, primarily interest rate and cross-currency interest rate swaps, in conjunction with some of its debt issuances. The use of these instruments modifies the Firm’s interest expense on the associated debt. The modified weighted-average interest rates for total long-term debt, including the effects of related derivative instruments, were 1.58% and 3.19% as of December 31, 2020 and 2019, respectively. JPMorgan Chase & Co. has guaranteed certain long-term debt of its subsidiaries, including structured notes. These guarantees rank on parity with the Firm’s other unsecured and unsubordinated indebtedness. The amount of such guaranteed long-term debt and structured notes was $13.8 billion and $14.4 billion at December 31, 2020 and 2019, respectively. The Firm’s unsecured debt does not contain requirements that would call for an acceleration of payments, maturities or changes in the structure of the existing debt, provide any limitations on future borrowings or require additional collateral, based on unfavorable changes in the Firm’s credit ratings, financial ratios, earnings or stock price. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Preferred Stock | Preferred stock At December 31, 2020 and 2019, JPMorgan Chase was authorized to issue 200 million shares of preferred stock, in one or more series, with a par value of $1 per share. In the event of a liquidation or dissolution of the Firm, JPMorgan Chase’s preferred stock then outstanding takes precedence over the Firm’s common stock with respect to the payment of dividends and the distribution of assets. The following is a summary of JPMorgan Chase’s non-cumulative preferred stock outstanding as of December 31, 2020 and 2019. Shares (a) Carrying value Issue date Contractual rate Earliest redemption date (b) Floating annualized rate of three-month LIBOR/Term SOFR plus: Dividend declared per share (c) December 31, December 31, Year ended December 31, 2020 2019 2020 2019 2020 2019 2018 Fixed-rate: Series P — — $ — $ — 2/5/2013 — % 3/1/2018 NA $— $545.00 $545.00 Series T — — — — 1/30/2014 — 3/1/2019 NA — 167.50 670.00 Series W — — — — 6/23/2014 — 9/1/2019 NA — 472.50 630.00 Series Y — 143,000 — 1,430 2/12/2015 — 3/1/2020 NA 153.13 612.52 612.52 Series AA 142,500 142,500 1,425 1,425 6/4/2015 6.100 9/1/2020 NA 610.00 610.00 610.00 Series BB 115,000 115,000 1,150 1,150 7/29/2015 6.150 9/1/2020 NA 615.00 615.00 615.00 Series DD 169,625 169,625 1,696 1,696 9/21/2018 5.750 12/1/2023 NA 575.00 575.00 111.81 (d) Series EE 185,000 185,000 1,850 1,850 1/24/2019 6.000 3/1/2024 NA 600.00 511.67 NA (e) Series GG 90,000 90,000 900 900 11/7/2019 4.750 12/1/2024 NA 506.67 NA NA (f) 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% $428.03 $593.23 $646.38 (g) Series Q 150,000 150,000 1,500 1,500 4/23/2013 5.150 5/1/2023 LIBOR + 3.25 515.00 515.00 515.00 Series R 150,000 150,000 1,500 1,500 7/29/2013 6.000 8/1/2023 LIBOR + 3.30 600.00 600.00 600.00 Series S 200,000 200,000 2,000 2,000 1/22/2014 6.750 2/1/2024 LIBOR + 3.78 675.00 675.00 675.00 Series U 100,000 100,000 1,000 1,000 3/10/2014 6.125 4/30/2024 LIBOR + 3.33 612.50 612.50 612.50 Series V 250,000 250,000 2,500 2,500 6/9/2014 LIBOR + 3.32% 7/1/2019 LIBOR + 3.32 436.85 534.09 500.00 (h) Series X 160,000 160,000 1,600 1,600 9/23/2014 6.100 10/1/2024 LIBOR + 3.33 610.00 610.00 610.00 Series Z 200,000 200,000 2,000 2,000 4/21/2015 LIBOR + 3.80% 5/1/2020 LIBOR + 3.80 453.52 530.00 530.00 (i) Series CC 125,750 125,750 1,258 1,258 10/20/2017 4.625 11/1/2022 LIBOR + 2.58 462.50 462.50 462.50 Series FF 225,000 225,000 2,250 2,250 7/31/2019 5.000 8/1/2024 SOFR + 3.38 500.00 251.39 NA (j) Series HH 300,000 — 3,000 — 1/23/2020 4.600 2/1/2025 SOFR + 3.125 470.22 NA NA (k) Series II 150,000 — 1,500 — 2/24/2020 4.000 4/1/2025 SOFR + 2.745 341.11 NA NA (l) Total preferred stock 3,006,250 2,699,250 $ 30,063 $ 26,993 (a) Represented by depositary shares. (b) Fixed-to-floating rate notes convert to a floating rate at the earliest redemption date. (c) Dividends are declared quarterly. Dividends are payable quarterly on fixed-rate preferred stock. Dividends are payable semiannually on fixed-to-floating-rate preferred stock while at a fixed rate, and payable quarterly after converting to a floating rate. (d) Dividends in the amount of $111.81 per share were declared on December 1, 2018 and include dividends from the original issue date of September 21, 2018 through November 30, 2018. (e) Dividends in the amount of $211.67 per share were declared on April 12,2019 and include dividends from the original issue date of January 24, 2019 through May 31, 2019. Dividends in the amount of $150.00 per share were declared thereafter on July 10, 2019 and October 9, 2019. (f) No dividends were declared for Series GG from the original issue date of November 7, 2019 through December 31, 2019. (g) The dividend rate for Series I preferred stock became floating and payable quarterly starting on April 30, 2018; prior to which the dividend rate was fixed at 7.90% or $395.00 per share payable semi annually. (h) The dividend rate for Series V preferred stock became floating and payable quarterly starting on July 1, 2019; prior to which the dividend rate was fixed at 5% or $250.00 per share payable semi annually. The Firm declared a dividend of $144.11 and $139.98 per share on outstanding Series V preferred stock on August 15, 2019 and November 15, 2019, respectively. (i) Prior to May 1, 2020, the dividend rate was fixed at 5.3%. (j) Dividends in the amount of $126.39 per share were declared on September 9, 2019 and include dividends from the original issue date of July 31, 2019 through October 31, 2019. Dividends in the amount of $125.00 per share were declared thereafter on December 10, 2019. (k) Dividends in the amount of $125.22 per share were declared on March 13, 2020 and include dividends from the original issue date of January 23, 2020 through April 30, 2020. Dividends in the amount of $115.00 per share were declared quarterly thereafter. (l) Dividends in the amount of $141.11 per share were declared on May 15, 2020 and include dividends from the original issue date of February 24, 2020 through June 30, 2020. Dividends in the amount of $100.00 per share were declared quarterly thereafter. 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 $30.5 billion at December 31, 2020. On March 1, 2020, the Firm redeemed all $1.43 billion of its 6.125% non-cumulative preferred stock, Series Y. On December 1, 2019, the Firm redeemed all $900 million of its 5.45% non-cumulative preferred stock, Series P. On October 30, 2019, the Firm redeemed $1.37 billion of its fixed-to-floating rate non-cumulative perpetual preferred stock, Series I. On September 1, 2019, the Firm redeemed all $880 million of its 6.30% non-cumulative preferred stock, Series W. On March 1, 2019, the Firm redeemed all $925 million of its 6.70% non-cumulative preferred stock, Series T. Redemption rights Each series of the Firm’s preferred stock may be redeemed on any dividend payment date on or after the earliest redemption date for that series. All outstanding preferred stock series except Series I may also be redeemed following a “capital treatment event,” as described in the terms of each series. Any redemption of the Firm’s preferred stock is subject to non-objection from the Board of Governors of the Federal Reserve System (the “Federal Reserve”). |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Common Stock | Common stock At December 31, 2020 and 2019, JPMorgan Chase was authorized to issue 9.0 billion shares of common stock with a par value of $1 per share. Common shares issued (reissuances from treasury) by JPMorgan Chase during the years ended December 31, 2020, 2019 and 2018 were as follows. Year ended December 31, 2020 2019 2018 Total issued – balance at January 1 4,104.9 4,104.9 4,104.9 Treasury – balance at January 1 (1,020.9) (829.1) (679.6) Repurchase (50.0) (213.0) (181.5) Reissuance: Employee benefits and compensation plans 14.2 20.4 21.7 Warrant exercise — — 9.4 Employee stock purchase plans 1.2 0.8 0.9 Total reissuance 15.4 21.2 32.0 Total treasury – balance at December 31 (1,055.5) (1,020.9) (829.1) Outstanding at December 31 3,049.4 3,084.0 3,275.8 There were no warrants to purchase shares of common stock (“Warrants”) outstanding at December 31, 2020 and December 31, 2019 as any Warrants that were not exercised on or before October 29, 2018 have expired. On March 15, 2020, in response to the economic disruptions caused by the COVID-19 pandemic, the Firm temporarily suspended repurchases of its common stock. Subsequently, the Federal Reserve directed all large banks, including the Firm, to discontinue net share repurchases through the end of 2020. On December 18, 2020, the Federal Reserve announced that all large banks, including the Firm, could resume share repurchases commencing in the first quarter of 2021, subject to certain restrictions. The Firm's Board of Directors has authorized a new common share repurchase program for up to $30 billion. The following table sets forth the Firm’s repurchases of common stock for the years ended December 31, 2020, 2019 and 2018. There were no Warrants repurchased during 2018. Year ended December 31, (in millions) 2020 2019 2018 Total number of shares of common stock repurchased 50.0 213.0 181.5 Aggregate purchase price of common stock repurchases $ 6,397 $ 24,121 $ 19,983 The authorization to repurchase common shares is utilized at management’s discretion, and the timing of purchases and the exact amount of common shares that may be repurchased is subject to various factors, including market conditions; legal and regulatory considerations affecting the amount and timing of repurchase activity; the Firm’s capital position (taking into account goodwill and intangibles); internal capital generation; and alternative investment opportunities. The repurchase program does not include specific price targets or timetables; may be suspended by management at any time; and may be executed through open market purchases or privately negotiated transactions, or utilizing Rule 10b5-1 plans, which are written trading plans that the Firm may enter into from time to time under Rule 10b5-1 of the Securities Exchange Act of 1934 and which allow the Firm to repurchase its common shares during periods when it may otherwise not be repurchasing common shares —for example, during internal trading blackout periods. As of December 31, 2020, approximately 62.1 million shares of common stock were reserved for issuance under various employee incentive, compensation, option and stock purchase plans, and directors’ compensation plans. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per share Basic earnings per share (“EPS”) is calculated using the two-class method. Under the two-class method, all earnings (distributed and undistributed) are allocated to common stock and participating securities. JPMorgan Chase grants RSUs under its share-based compensation programs, predominantly all of which entitle recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to dividends paid to holders of the Firm’s common stock. These unvested RSUs meet the definition of participating securities based on their respective rights to receive nonforfeitable dividends, and they are treated as a separate class of securities in computing basic EPS. Participating securities are not included as incremental shares in computing diluted EPS; refer to Note 9 for additional information. Diluted EPS incorporates the potential impact of contingently issuable shares, including awards which require future service as a condition of delivery of the underlying common stock. Diluted EPS is calculated under both the two-class and treasury stock methods, and the more dilutive amount is reported. For each of the periods presented in the table below, diluted EPS calculated under the two-class method was more dilutive. The following table presents the calculation of net income applicable to common stockholders and basic and diluted EPS for the years ended December 31, 2020, 2019 and 2018. Year ended December 31, 2020 2019 2018 Basic earnings per share Net income $ 29,131 $ 36,431 $ 32,474 Less: Preferred stock dividends 1,583 1,587 1,551 Net income applicable to common equity 27,548 34,844 30,923 Less: Dividends and undistributed earnings allocated to participating securities 138 202 214 Net income applicable to common stockholders $ 27,410 $ 34,642 $ 30,709 Total weighted-average basic shares outstanding 3,082.4 3,221.5 3,396.4 Net income per share $ 8.89 $ 10.75 $ 9.04 Diluted earnings per share Net income applicable to common stockholders $ 27,410 $ 34,642 $ 30,709 Total weighted-average basic shares outstanding 3,082.4 3,221.5 3,396.4 Add: Dilutive impact of SARs and employee stock options, unvested PSUs and nondividend-earning RSUs, and warrants 5.0 8.9 17.6 Total weighted-average diluted shares outstanding 3,087.4 3,230.4 3,414.0 Net income per share $ 8.88 $ 10.72 $ 9.00 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income/(Loss) | 12 Months Ended |
Dec. 31, 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). Year ended December 31, Unrealized Translation adjustments, net of hedges Fair value Cash flow hedges Defined benefit pension and OPEB plans DVA on fair value option elected liabilities Accumulated other comprehensive income/(loss) Balance at December 31, 2017 $ 2,164 $ (470) $ — $ 76 $ (1,521) $ (368) $ (119) Cumulative effect of changes in accounting principles (a) 896 (277) (54) 16 (414) (79) 88 Net change (1,858) 20 (107) (201) (373) 1,043 (1,476) Balance at December 31, 2018 $ 1,202 $ (727) $ (161) $ (109) $ (2,308) $ 596 $ (1,507) Net change 2,855 20 30 172 964 (965) 3,076 Balance at December 31, 2019 $ 4,057 $ (707) $ (131) $ 63 $ (1,344) $ (369) $ 1,569 Net change 4,123 234 19 2,320 212 (491) 6,417 Balance at December 31, 2020 $ 8,180 (b) $ (473) $ (112) $ 2,383 $ (1,132) $ (860) $ 7,986 (a) Represents the adjustment to AOCI as a result of the accounting standards adopted in the first quarter of 2018. Refer to Note 1 for additional information. (b) Includes after-tax net unamortized unrealized gains of $3.3 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 2018 Year ended December 31, (in millions) Pre-tax Tax effect After-tax Pre-tax Tax effect After-tax Pre-tax Tax effect After-tax Unrealized gains/(losses) on investment securities: Net unrealized gains/(losses) arising during the period $ 6,228 $ (1,495) $ 4,733 $ 4,025 $ (974) $ 3,051 $ (2,825) $ 665 $ (2,160) Reclassification adjustment for realized (gains)/losses included in net income (a) (802) 192 (610) (258) 62 (196) 395 (93) 302 Net change 5,426 (1,303) 4,123 3,767 (912) 2,855 (2,430) 572 (1,858) Translation adjustments (b) : Translation 1,407 (103) 1,304 (49) 33 (16) (1,078) 156 (922) Hedges (1,411) 341 (1,070) 46 (10) 36 1,236 (294) 942 Net change (4) 238 234 (3) 23 20 158 (138) 20 Fair value hedges, net change (c) : 25 (6) 19 39 (9) 30 (140) 33 (107) Cash flow hedges: Net unrealized gains/(losses) arising during the period 3,623 (870) 2,753 122 (28) 94 (245) 58 (187) Reclassification adjustment for realized (gains)/losses included in net income (d) (570) 137 (433) 103 (25) 78 (18) 4 (14) Net change 3,053 (733) 2,320 225 (53) 172 (263) 62 (201) Defined benefit pension and OPEB plans, net change: 214 (2) 212 1,157 (193) 964 (450) 77 (373) DVA on fair value option elected liabilities, net change: $ (648) $ 157 $ (491) $ (1,264) $ 299 $ (965) $ 1,364 $ (321) $ 1,043 Total other comprehensive income/(loss) $ 8,066 $ (1,649) $ 6,417 $ 3,921 $ (845) $ 3,076 $ (1,761) $ 285 $ (1,476) (a) The pre-tax amount is reported in Investment securities gains/(losses) in the Consolidated statements of income. (b) Reclassifications of pre-tax realized gains/(losses) on translation adjustments and related hedges are reported in other income/expense in the Consolidated statements of income. During the year ended December 31, 2020, the Firm reclassified a net pre-tax gain of $6 million to other income related to the liquidation of legal entities, $3 million related to net investment hedge gains and $3 million related to cumulative translation adjustments. During the year ended December 31, 2019, the Firm reclassified net pre-tax gains of $7 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 $18 million related to net investment hedge gains and $10 million related to cumulative translation adjustments. During the year ended December 31, 2018, the Firm reclassified a net pre-tax loss of $168 million to other expense related to the liquidation of certain legal entities, $17 million related to net investment hedge losses and $151 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes JPMorgan Chase and its eligible subsidiaries file a consolidated U.S. federal income tax return. JPMorgan Chase uses the asset and liability method to provide income taxes on all transactions recorded in the Consolidated Financial Statements. This method requires that income taxes reflect the expected future tax consequences of temporary differences between the carrying amounts of assets or liabilities for book and tax purposes. Accordingly, a deferred tax asset or liability for each temporary difference is determined based on the tax rates that the Firm expects to be in effect when the underlying items of income and expense are realized. JPMorgan Chase’s expense for income taxes includes the current and deferred portions of that expense. A valuation allowance is established to reduce deferred tax assets to the amount the Firm expects to realize. Due to the inherent complexities arising from the nature of the Firm’s businesses, and from conducting business and being taxed in a substantial number of jurisdictions, significant judgments and estimates are required to be made. Agreement of tax liabilities between JPMorgan Chase and the many tax jurisdictions in which the Firm files tax returns may not be finalized for several years. Thus, the Firm’s final tax-related assets and liabilities may ultimately be different from those currently reported. Effective tax rate and expense The following table presents a reconciliation of the applicable statutory U.S. federal income tax rate to the effective tax rate. Effective tax rate Year ended December 31, 2020 2019 2018 Statutory U.S. federal tax rate 21.0 % 21.0 % 21.0 % Increase/(decrease) in tax rate resulting from: U.S. state and local income taxes, net of U.S. federal income tax benefit 2.5 3.5 4.0 Tax-exempt income (1.6) (1.4) (1.5) Non-U.S. earnings 1.4 1.8 0.6 Business tax credits (6.3) (4.4) (3.5) Tax audit resolutions — (2.3) (0.1) Impact of the TCJA (a) — — (0.7) Other, net 0.7 — 0.5 Effective tax rate 17.7 % 18.2 % 20.3 % (a) Represents changes in the estimates related to the remeasurement of certain deferred taxes and the deemed repatriation tax on non-U.S. earnings under SEC Staff Accounting Bulletin No. 118 which was completed in 2018. The following table reflects the components of income tax expense/(benefit) included in the Consolidated statements of income. Income tax expense/(benefit) Year ended December 31, 2020 2019 2018 Current income tax expense/(benefit) U.S. federal $ 5,759 $ 3,284 $ 2,854 Non-U.S. 2,705 2,103 2,077 U.S. state and local 1,793 1,778 1,638 Total current income tax expense/(benefit) 10,257 7,165 6,569 Deferred income tax expense/(benefit) U.S. federal (3,184) 709 1,359 Non-U.S. (126) 20 (93) U.S. state and local (671) 220 455 Total deferred income tax (3,981) 949 1,721 Total income tax expense $ 6,276 $ 8,114 $ 8,290 Total income tax expense includes $72 million, $1.1 billion and $54 million of tax benefits recorded in 2020, 2019, and 2018, respectively, resulting from the resolution of tax audits. Tax effect of items recorded in stockholders’ equity Results from Non-U.S. earnings The following table presents the U.S. and non-U.S. components of income before income tax expense. Year ended December 31, 2020 2019 2018 U.S. $ 26,904 $ 36,670 $ 33,052 Non-U.S. (a) 8,503 7,875 7,712 Income before income tax expense $ 35,407 $ 44,545 $ 40,764 (a) For purposes of this table, non-U.S. income is defined as income generated from operations located outside the U.S. Deferred taxes Deferred income tax expense/(benefit) results from differences between assets and liabilities measured for financial reporting purposes versus income tax return purposes. Deferred tax assets are recognized if, in management’s judgment, their realizability is determined to be more likely than not. If a deferred tax asset is determined to be unrealizable, a valuation allowance is established. The significant components of deferred tax assets and liabilities are reflected in the following table. December 31, (in millions) 2020 2019 Deferred tax assets Allowance for loan losses $ 7,270 $ 3,400 Employee benefits 1,104 1,039 Accrued expenses and other 3,332 2,767 Non-U.S. operations 849 949 Tax attribute carryforwards 757 605 Gross deferred tax assets 13,312 8,760 Valuation allowance (560) (557) Deferred tax assets, net of valuation allowance $ 12,752 $ 8,203 Deferred tax liabilities Depreciation and amortization $ 3,329 $ 2,852 Mortgage servicing rights, net of hedges 2,184 2,354 Leasing transactions 5,124 5,598 Other, net 6,025 4,683 Gross deferred tax liabilities 16,662 15,487 Net deferred tax (liabilities)/assets $ (3,910) $ (7,284) JPMorgan Chase has recorded deferred tax assets of $757 million at December 31, 2020, in connection with U.S. federal and non-U.S. NOL carryforwards, FTC carryforwards, and state and local capital loss carryforwards. At December 31, 2020, total U.S. federal NOL carryforwards were $799 million, non-U.S. NOL carryforwards were $139 million, FTC carryforwards were $444 million, state and local capital loss carryforwards were $1.1 billion, and other federal tax attributes were $393 million. If not utilized, a portion of the U.S. federal NOL carryforwards and other U.S. federal tax attributes will expire between 2022 and 2037 whereas others have an unlimited carryforward period. Similarly, certain non-U.S. NOL carryforwards will expire between 2026 and 2036 whereas others have an unlimited carryforward period. The FTC carryforwards will expire between 2029 and 2030, and the state and local capital loss carryforwards will expire between 2021 and 2022. The valuation allowance at December 31, 2020, was due to the state and local capital loss carryforwards, FTC carryforwards, and certain non-U.S. deferred tax assets, including NOL carryforwards. Unrecognized tax benefits At December 31, 2020, 2019 and 2018, JPMorgan Chase’s unrecognized tax benefits, excluding related interest expense and penalties, were $4.3 billion, $4.0 billion and $4.9 billion, respectively, of which $3.1 billion, $2.8 billion and $3.8 billion, respectively, if recognized, would reduce the annual effective tax rate. Included in the amount of unrecognized tax benefits are certain items that would not affect the effective tax rate if they were recognized in the Consolidated statements of income. These unrecognized items include the tax effect of certain temporary differences, the portion of gross state and local unrecognized tax benefits that would be offset by the benefit from associated U.S. federal income tax deductions, and the portion of gross non-U.S. unrecognized tax benefits that would have offsets in other jurisdictions. JPMorgan Chase is presently under audit by a number of taxing authorities, most notably by the Internal Revenue Service as summarized in the Tax examination status table below. As JPMorgan Chase is presently under audit by a number of taxing authorities, it is reasonably possible that over the next 12 months the resolution of these examinations may increase or decrease the gross balance of unrecognized tax benefits by as much as approximately $300 million. Upon settlement of an audit, the change in the unrecognized tax benefit would result from payment or income statement recognition. The following table presents a reconciliation of the beginning and ending amount of unrecognized tax benefits. Year ended December 31, 2020 2019 2018 Balance at January 1, $ 4,024 $ 4,861 $ 4,747 Increases based on tax positions related to the current period 685 871 980 Increases based on tax positions related to prior periods 362 10 649 Decreases based on tax positions related to prior periods (705) (706) (1,249) Decreases related to cash settlements with taxing authorities (116) (1,012) (266) Balance at December 31, $ 4,250 $ 4,024 $ 4,861 After-tax interest expense/(benefit) and penalties related to income tax liabilities recognized in income tax expense were $147 million, $(52) million and $192 million in 2020, 2019 and 2018, respectively. Tax examination status JPMorgan Chase is continually under examination by the Internal Revenue Service, by taxing authorities throughout the world, and by many state and local jurisdictions throughout the U.S. The following table summarizes the status of significant income tax examinations of JPMorgan Chase and its consolidated subsidiaries as of December 31, 2020. Periods under examination Status JPMorgan Chase – U.S. 2009 – 2013 Field examination of amended returns JPMorgan Chase – U.S. 2014 - 2016 Field Examination JPMorgan Chase – New York State 2012 - 2014 Field Examination JPMorgan Chase – New York City 2012 - 2014 Field Examination JPMorgan Chase – California 2011 – 2012 Field Examination JPMorgan Chase – U.K. 2006 – 2018 Field examination of certain select entities |
Restricted Cash, Other Restrict
Restricted Cash, Other Restricted Assets and Intercompany Funds Transfers | 12 Months Ended |
Dec. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Restricted Cash, Other Restricted Assets and Intercompany Funds Transfers | Restricted cash, other restricted assets and intercompany funds transfers 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 business of JPMorgan Chase Bank, N.A. is subject to examination and regulation by the OCC. The Bank is a member of the U.S. Federal Reserve System, and its deposits in the U.S. are insured by the FDIC, subject to applicable limits. The Firm is required to maintain cash reserves at certain non-US central banks. 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-dealers (principally J.P. Morgan Securities LLC in the U.S and J.P. Morgan Securities plc in the U.K.) are subject to certain restrictions on cash and other assets. The following table presents the components of the Firm’s restricted cash: December 31, (in billions) 2020 2019 Cash reserves – Federal Reserve Banks (a) $ — $ 26.6 Segregated for the benefit of securities and cleared derivative customers 19.3 16.0 Cash reserves at non-U.S. central banks and held for other general purposes 5.1 3.9 Total restricted cash (b) $ 24.4 $ 46.5 (a) Effective March 26, 2020, the Federal Reserve eliminated reserve requirements for depository institutions (b) Comprises $22.7 billion and $45.3 billion in deposits with banks, and $1.7 billion and $1.2 billion in cash and due from banks on the Consolidated balance sheets as of December 31, 2020 and 2019, respectively. Also, as of December 31, 2020 and 2019, the Firm had the following other restricted assets: • Cash and securities pledged with clearing organizations for the benefit of customers of $37.2 billion and $24.7 billion, respectively. • Securities with a fair value of $1.3 billion and $8.8 billion, respectively, were also restricted in relation to customer activity. Intercompany funds transfers Restrictions imposed by U.S. federal law prohibit JPMorgan Chase & Co. (“Parent Company”) and certain of its affiliates from borrowing from banking subsidiaries unless the loans are secured in specified amounts. Such secured loans provided by any banking subsidiary to the Parent Company or to any particular affiliate, together with certain other transactions with such affiliate (collectively referred to as “covered transactions”), are generally limited to 10% of the banking subsidiary’s total capital, as determined by the risk-based capital guidelines; the aggregate amount of covered transactions between any banking subsidiary and all of its affiliates is limited to 20% of the banking subsidiary’s total capital. The Parent Company’s two principal subsidiaries are JPMorgan Chase Bank, N.A. and JPMorgan Chase Holdings LLC, an intermediate holding company (the “IHC”). The IHC holds the stock of substantially all of JPMorgan Chase’s subsidiaries other than JPMorgan Chase Bank, N.A. and its subsidiaries. The IHC also owns other assets and owes intercompany indebtedness to the holding company. The Parent Company is obligated to contribute to the IHC substantially all the net proceeds received from securities issuances (including issuances of senior and subordinated debt securities and of preferred and common stock). The principal sources of income and funding for the Parent Company are dividends from JPMorgan Chase Bank, N.A. and dividends and extensions of credit from the IHC. In addition to dividend restrictions set forth in statutes and regulations, the Federal Reserve, the OCC and the FDIC have authority under the Financial Institutions Supervisory Act to prohibit or to limit the payment of dividends by the banking organizations they supervise, including the Parent Company and its subsidiaries that are banks or bank holding companies, if, in the banking regulator’s opinion, payment of a dividend would constitute an unsafe or unsound practice in light of the financial condition of the banking organization. The IHC is prohibited from paying dividends or extending credit to the Parent Company if certain capital or liquidity “thresholds” are breached or if limits are otherwise imposed by the Parent Company’s management or Board of Directors. At January 1, 2021, the Parent Company’s banking subsidiaries could pay, in the aggregate, approximately $13 billion in dividends to their respective bank holding companies without the prior approval of their relevant banking regulators. The capacity to pay dividends in 2021 will be supplemented by the banking subsidiaries’ earnings during the year. |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 2020 | |
Banking Regulation [Abstract] | |
Regulatory Capital | Regulatory capital The Federal Reserve establishes capital requirements, including well-capitalized standards, for the consolidated financial holding company. The OCC establishes similar minimum capital requirements and standards for the Firm’s principal IDI subsidiary, JPMorgan Chase Bank, N.A. The capital rules under Basel III establish minimum capital ratios and overall capital adequacy standards for large and internationally active U.S. bank holding companies and banks, including the Firm and its IDI subsidiaries, including JPMorgan Chase Bank, N.A. Two comprehensive approaches are prescribed for calculating RWA: a standardized approach (“Basel III Standardized”), and an advanced approach (“Basel III Advanced”). For each of the risk-based capital ratios, the capital adequacy of the Firm and JPMorgan Chase Bank, N.A. is evaluated against the lower of the Standardized or Advanced approaches compared to their respective minimum capital ratios. The three components of regulatory capital under the Basel III rules are as illustrated below: 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 December 31, 2020 and 2019. Standardized Minimum capital ratios Advanced Minimum capital ratios Well-capitalized ratios BHC (a)(b)(c) IDI (c)(d) BHC (a)(c) IDI (c)(d) BHC (e) IDI (f) Capital ratios CET1 capital 11.3 % 7.0 % 10.5 % 7.0 % NA 6.5 % Tier 1 capital 12.8 8.5 12.0 8.5 6.0 8.0 Total capital 14.8 10.5 14.0 10.5 10.0 10.0 Tier 1 leverage 4.0 4.0 4.0 4.0 NA 5.0 SLR NA NA 5.0 6.0 NA 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. The CET1, Tier 1 and Total capital minimum capital ratios each include a respective minimum requirement plus a GSIB surcharge of 3.5% as calculated under Method 2; plus a 3.3% SCB for Basel III Standardized ratios and a fixed 2.5% capital conservation buffer for Basel III Advanced ratios. The countercyclical buffer is currently set to 0% by the federal banking agencies. (b) For the period ended December 31, 2019, the CET1, Tier 1, Total, Tier 1 leverage and SLR minimum capital ratios under Basel III Standardized applicable to the Firm were 10.5%, 12.0%, 14.0%, 4.0%, and 5.0%, respectively. (c) 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. (d) Represents requirements for JPMorgan Chase’s IDI subsidiaries. The CET1, Tier 1 and Total capital minimum capital ratios include a fixed capital conservation buffer requirement of 2.5% that is applicable to the IDI subsidiaries. The IDI subsidiaries are not subject to the GSIB surcharge. (e) Represents requirements for bank holding companies pursuant to regulations issued by the Federal Reserve. (f) Represents requirements for IDI subsidiaries pursuant to regulations issued under the FDIC Improvement Act. Current Expected Credit Losses Effective January 1, 2020, the Firm adopted the Financial Instruments – Credit Losses guidance under U.S. GAAP. As permitted under the U.S. capital rules issued by the federal banking agencies in 2019, 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 year ended December 31, 2020, the capital metrics of the Firm exclude $5.7 billion , which is the $2.7 billion day 1 impact to retained earnings and 25% of the $12.2 billion increase in the allowance for credit losses (excluding allowances on PCD loans). The impacts of the CECL capital transition provisions have also been incorporated into Tier 2 capital, adjusted average assets, and total leverage exposure. 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 December 31, 2020, the capital metrics are presented applying the CECL capital transition provisions. As of December 31, 2020 and 2019, JPMorgan Chase and JPMorgan Chase Bank, N.A. were well-capitalized and met all capital requirements to which each was subject. December 31, 2020 Basel III Standardized Basel III Advanced JPMorgan Chase & Co. (c) JPMorgan Chase Bank, N.A. (c) JPMorgan Chase & Co. (c) JPMorgan Chase Bank, N.A. (c) Risk-based capital metrics: CET1 capital $ 205,078 $ 234,235 $ 205,078 $ 234,235 Tier 1 capital 234,844 234,237 234,844 234,237 Total capital 269,923 252,045 257,228 239,673 Risk-weighted assets 1,560,609 1,492,138 1,484,431 1,343,185 CET1 capital ratio 13.1 % 15.7 % 13.8 % 17.4 % Tier 1 capital ratio 15.0 15.7 15.8 17.4 Total capital ratio 17.3 16.9 17.3 17.8 Leverage-based capital metrics: Adjusted average assets (a) $ 3,353,319 $ 2,970,285 $ 3,353,319 $ 2,970,285 Tier 1 leverage ratio 7.0 % 7.9 % 7.0 % 7.9 % Total leverage exposure (b) NA NA $ 3,401,542 $ 3,688,797 SLR (b) NA NA 6.9 % 6.3 % December 31, 2019 Basel III Standardized Basel III Advanced JPMorgan JPMorgan Chase Bank, N.A. JPMorgan JPMorgan Chase Bank, N.A. Risk-based capital metrics: 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 (a) $ 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) 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. (b) As of December 31, 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 December 31, 2020, JPMorgan Chase Bank, N.A. has not elected to apply this exclusion . (c) As of December 31, 2020, the capital metrics for the Firm reflect the exclusion of assets purchased from money market mutual fund clients pursuant to nonrecourse advances provided under the MMLF. Additionally, loans originated under the PPP for the Firm and JPMorgan Chase Bank, N.A. receive a zero percent risk weight. |
Off-balance Sheet Lending-relat
Off-balance Sheet Lending-related Financial Instruments, Guarantees, and Other Commitments | 12 Months Ended |
Dec. 31, 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. 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 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 December 31, 2020 and 2019. The amounts in the table below for credit card and home equity lending-related commitments represent the total available credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit for these products will be utilized at the same time. The Firm can reduce or cancel credit card lines of credit by providing the borrower notice or, in some cases as permitted by law, without notice. In addition, the Firm typically closes credit card lines when the borrower is 60 days or more past due. The Firm may reduce or close HELOCs when there are significant decreases in the value of the underlying property, or when there has been a demonstrable decline in the creditworthiness of the borrower. 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 in 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) 2020 2019 2020 2019 By remaining maturity at December 31, Expires in 1 year or less Expires after Expires after Expires after 5 years Total Total Lending-related Consumer, excluding credit card: Residential Real Estate (a) $ 26,788 $ 1,597 $ 3,962 $ 13,700 $ 46,047 $ 30,217 148 12 Auto and other 10,471 1 8 792 11,272 9,952 — — Total consumer, excluding credit card 37,259 1,598 3,970 14,492 57,319 40,169 148 12 Credit card (b) 658,506 — — — 658,506 650,720 — — Total consumer (b)(c) 695,765 1,598 3,970 14,492 715,825 690,889 148 12 Wholesale: Other unfunded commitments to extend credit (d)(e) 96,490 174,335 128,736 16,267 415,828 380,307 2,148 952 Standby letters of credit and other financial guarantees (d) 17,478 7,986 4,051 1,467 30,982 34,242 443 618 Other letters of credit (d) 2,982 45 26 — 3,053 2,961 14 4 Total wholesale (c) 116,950 182,366 132,813 17,734 449,863 417,510 2,605 1,574 Total lending-related $ 812,715 $ 183,964 $ 136,783 $ 32,226 $ 1,165,688 $ 1,108,399 $ 2,753 $ 1,586 Other guarantees and commitments Securities lending indemnification agreements and guarantees (f) $ 250,418 $ — $ — $ — $ 250,418 $ 204,827 $ — $ — Derivatives qualifying as guarantees 2,489 541 12,182 39,203 54,415 53,089 322 159 Unsettled resale and securities borrowed agreements 95,084 1,764 — — 96,848 117,951 2 — Unsettled repurchase and securities loaned agreements 104,289 612 — — 104,901 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 889 944 23 27 Exchange & clearing house guarantees and commitments (g) 142,003 — — — 142,003 206,432 — — Other guarantees and commitments (e)(h) 2,457 574 758 2,541 6,330 6,334 (i) 52 (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 December 31, 2020 and 2019, reflected the contractual amount net of risk participations totaling $72 million and $76 million, respectively, for other unfunded commitments to extend credit; $8.5 billion and $9.8 billion, respectively, for standby letters of credit and other financial guarantees; and $357 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 December 31, 2020 and 2019, collateral held by the Firm in support of securities lending indemnification agreements was $264.3 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 December 31, 2020 and 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 December 31, 2020 and 2019, primarily includes letters of credit hedged by derivative transactions and managed on a market risk basis, and unfunded commitments 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. 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. Guarantees U.S. GAAP requires that a guarantor recognize, at the inception of a guarantee, a liability in an amount equal to the fair value of the obligation undertaken in issuing the guarantee. U.S. GAAP defines a guarantee as a contract that contingently requires the guarantor to pay a guaranteed party based upon: (a) changes in an underlying asset, liability or equity security of the guaranteed party; or (b) a third party’s failure to perform under a specified agreement. The Firm considers the following off–balance sheet arrangements to be guarantees under U.S. GAAP: standby letters of credit and other financial guarantees, securities lending indemnifications, certain indemnification agreements included within third-party contractual arrangements, certain derivative contracts and the guarantees under the sponsored member repo program. As required by U.S. GAAP, the Firm initially records guarantees at the inception date fair value of the non-contingent obligation assumed (e.g., the amount of consideration received or the net present value of the premium receivable). For these obligations, the Firm records this fair value amount in other liabilities with an offsetting entry recorded in cash (for premiums received), or other assets (for premiums receivable). Any premium receivable recorded in other assets is reduced as cash is received under the contract, and the fair value of the liability recorded at inception is amortized into income as lending and deposit-related fees over the life of the guarantee contract. The lending-related contingent obligation is recognized based on expected credit losses in addition to, and separate from, any non-contingent obligation. Non-lending-related contingent obligations are recognized when the liability becomes probable and reasonably estimable. These obligations are not recognized if the estimated amount is less than the carrying amount of any non-contingent liability recognized at inception (adjusted for any amortization). Examples of non-lending-related contingent obligations include indemnifications provided in sales agreements, where a portion of the sale proceeds is allocated to the guarantee, which adjusts the gain or loss that would otherwise result from the transaction. For these indemnifications, the initial liability is amortized to income as the Firm’s risk is reduced (i.e., over time or when the indemnification expires). The contractual amount and carrying value of guarantees and indemnifications are included in the table on page 284. For additional information on the guarantees, see below. Standby letters of credit and other financial guarantees Standby letters of credit and other financial guarantees are conditional lending commitments issued by the Firm to guarantee the performance of a client or customer to a third party under certain arrangements, such as commercial paper facilities, bond financings, acquisition financings, trade and similar transactions. The 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 December 31, 2020 and 2019. Standby letters of credit, other financial guarantees and other letters of credit 2020 2019 December 31, Standby letters of credit and Other letters Standby letters of credit and Other letters Investment-grade (a) $ 22,850 $ 2,263 $ 26,880 $ 2,137 Noninvestment-grade (a) 8,132 790 7,362 824 Total contractual amount $ 30,982 $ 3,053 $ 34,242 $ 2,961 Allowance for lending-related commitments $ 80 $ 14 $ 216 $ 4 Guarantee liability 363 — 402 — Total carrying value $ 443 $ 14 $ 618 $ 4 Commitments with collateral $ 17,238 $ 498 $ 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. Securities lending indemnifications Through the Firm’s securities lending program, counterparties’ securities, via custodial and non-custodial arrangements, may be lent to third parties. As part of this program, the Firm provides an indemnification in the lending agreements which protects the lender against the failure of the borrower to return the lent securities. To minimize its liability under these indemnification agreements, the Firm obtains cash or other highly liquid collateral with a market value exceeding 100% of the value of the securities on loan from the borrower. Collateral is marked to market daily to help assure that collateralization is adequate. Additional collateral is called from the borrower if a shortfall exists, or collateral may be released to the borrower in the event of overcollateralization. If a borrower defaults, the Firm would use the collateral held to purchase replacement securities in the market or to credit the lending client or counterparty with the cash equivalent thereof. The cash collateral held by the Firm may be invested on behalf of the client in indemnified resale agreements, whereby the Firm indemnifies the client against the loss of principal invested. To minimize its liability under these agreements, the Firm obtains collateral with a market value exceeding 100% of the principal invested. Derivatives qualifying as guarantees The Firm transacts in certain derivative contracts that have the characteristics of a guarantee under U.S. GAAP. These contracts include written put options that require the Firm to purchase assets upon exercise by the option holder at a specified price by a specified date in the future. The Firm may enter into written put option contracts in order to meet client needs, or for other trading purposes. The terms of written put options are typically five years or less. Derivatives deemed to be guarantees also includes stable value contracts, commonly referred to as “stable value products”, that require the Firm to make a payment of the difference between the market value and the book value of a counterparty’s reference portfolio of assets in the event that market value is less than book value and certain other conditions have been met. Stable value products are transacted in order to allow investors to realize investment returns with less volatility than an unprotected portfolio. These contracts are typically longer-term or may have no stated maturity, but allow the Firm to elect to terminate the contract under certain conditions. The notional value of derivatives guarantees generally represents the Firm’s maximum exposure. However, exposure to certain stable value products is contractually limited to a substantially lower percentage of the notional amount. The fair value of derivative guarantees reflects the probability, in the Firm’s view, of whether the Firm will be required to perform under the contract. The Firm reduces exposures to these contracts by entering into offsetting transactions, or by entering into contracts that hedge the market risk related to the derivative guarantees. The following table summarizes the derivatives qualifying as guarantees as of December 31, 2020 and 2019. (in millions) December 31, 2020 December 31, 2019 Notional amounts Derivative guarantees $ 54,415 $ 53,089 Stable value contracts with contractually limited exposure 27,752 28,877 Maximum exposure of stable value contracts with contractually limited exposure 2,803 2,967 Fair value Derivative payables 322 159 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. Unsettled securities financing agreements In the normal course of business, the Firm enters into resale and securities borrowed agreements. At settlement, these commitments result in the Firm advancing cash to and receiving securities collateral from the counterparty. The Firm also enters into repurchase and securities loaned agreements. At settlement, these commitments result in the Firm receiving cash from and providing securities collateral to the counterparty. Such agreements settle at a future date. These agreements generally do not meet the definition of a derivative, and therefore, are not recorded on the Consolidated balance sheets until settlement date. These agreements predominantly have regular-way settlement terms. Refer to Note 11 for a further discussion of securities financing agreements. Loan sales- and securitization-related indemnifications Mortgage repurchase liability In connection with the Firm’s mortgage loan sale and securitization activities with U.S. 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. Private label securitizations The liability related to repurchase demands associated with private label securitizations is separately evaluated by the Firm in establishing its litigation reserves. Refer to Note 30 for additional information regarding litigation. Loans sold with recourse The Firm provides servicing for mortgages and certain commercial lending products on both a recourse and nonrecourse basis. In nonrecourse servicing, the principal credit risk to the Firm is the cost of temporary servicing advances of funds (i.e., normal servicing advances). In recourse servicing, the servicer agrees to share credit risk with the owner of the mortgage loans, such as Fannie Mae or Freddie Mac or a private investor, insurer or guarantor. Losses on recourse servicing predominantly occur when foreclosure sales proceeds of the property underlying a defaulted loan are less than the sum of the outstanding principal balance, plus accrued interest on the loan and the cost of holding and disposing of the underlying property. The Firm’s securitizations are predominantly nonrecourse, thereby effectively transferring the risk of future credit losses to the purchaser of the mortgage-backed securities issued by the trust. At December 31, 2020 and 2019, the unpaid principal balance of loans sold with recourse totaled $889 million and $944 million, respectively. The carrying value of the related liability that the Firm has recorded in accounts payable and other liabilities on the Consolidated balance sheets, which is representative of the Firm’s view of the likelihood it will have to perform under its recourse obligations, was $23 million and $27 million at December 31, 2020 and 2019, respectively. Other off-balance sheet arrangements Indemnification agreements – general In connection with issuing securities to investors outside the U.S., the Firm may agree to pay additional amounts to the holders of the securities in the event that, due to a change in tax law, certain types of withholding taxes are imposed on payments on the securities. The terms of the securities may also give the Firm the right to redeem the securities if such additional amounts are payable. The Firm may also enter into indemnification clauses in connection with the licensing of software to clients (“software licensees”) or when it sells a business or assets to a third party (“third-party purchasers”), pursuant to which it indemnifies software licensees for claims of liability or damages that may occur subsequent to the licensing of the software, or third-party purchasers for losses they may incur due to actions taken by the Firm prior to the sale of the business or assets. It is difficult to estimate the Firm’s maximum exposure under these indemnification arrangements, since this would require an assessment of future changes in tax law and future claims that may be made against the Firm that have not yet occurred. However, based on historical experience, management expects the risk of loss to be remote. 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 $12 million and $11 million at December 31, 2020 and 2019, respectively. For the years ended December 31, 2020, 2019 and 2018, Merchant Services processed an aggregate volume of $1,597.3 billion, $1,511.5 billion, and $1,366.1 billion, respectively. Clearing Services – Client Credit Risk The Firm provides clearing services for clients by entering into securities purchases and sales and derivative contracts with CCPs, including ETDs such as futures and options, as well as OTC-cleared derivative contracts. As a clearing member, the Firm stands behind the performance of its clients, collects cash and securities collateral (margin) as well as any settlement amounts due from or to clients, and remits them to the relevant CCP or client in whole or part. There are two types of margin: variation margin is posted on a daily basis based on the value of clients’ derivative contracts and initial margin is posted at inception of a derivative contract, generally on the basis of the potential changes in the variation margin requirement for the contract. As a clearing member, the Firm is exposed to the risk of nonperformance by its clients, but is not liable to clients for the performance of the CCPs. Where possible, the Firm seeks to mitigate its risk to the client through the collection of appropriate amounts of margin at inception and throughout the life of the transactions. The Firm can also cease providing clearing services if clients do not adhere to their obligations under the clearing agreement. In the event of nonperformance by a client, the Firm would close out the client’s positions and access available margin. The CCP would utilize any margin it holds to make itself whole, with any remaining shortfalls required to be paid by the Firm as a clearing member. The Firm reflects its exposure to nonperformance risk of the client through the recognition of margin receivables from clients and margin payables to CCPs; the clients’ underlying securities or derivative contracts are not reflected in the Firm’s Consolidated Financial Statements. It is difficult to estimate the Firm’s maximum possible exposure through its role as a clearing member, as this would require an assessment of transactions that clients may execute in the future. However, based upon historical experience, and the credit risk mitigants available to the Firm, management believes it is unlikely that the Firm will have to make any material payments under these arrangements and the risk of loss is expected to be remote. Refer to Note 5 for information on the derivatives that the Firm executes for its own account and records in its Consolidated Financial Statements. Exchange & Clearing House Memberships The Firm is a member of several securities and derivative exchanges and clearing houses, both in the U.S. and other countries, and it provides clearing services to its clients. Membership in some of these organizations requires the Firm to pay a pro rata share of the losses incurred by the organization as a result of the default of another member. Such obligations vary with different organizations. These obligations may be limited to the amount (or a multiple of the amount) of the Firm’s contribution to the guarantee fund maintained by a clearing house or exchange as part of the resources available to cover any losses in the event of a member default. Alternatively, these obligations may also include a pro rata share of the residual losses after applying the guarantee fund. Additionally, certain clearing houses require the Firm as a member to pay a pro rata share of losses that may result from the clearing house’s investment of guarantee fund contributions and initial margin, unrelated to and independent of the default of another member. Generally a payment would only be required should such losses exceed the resources of the clearing house or exchange that are contractually required to absorb the losses in the first instance. In certain cases, it is difficult to estimate the Firm’s maximum possible exposure under these membership agreements, since this would require an assessment of future claims that may be made against the Firm that have not yet occurred. However, based on historical experience, management expects the risk of loss to the Firm to be remote. Where the Firm’s maximum possible exposure can be estimated, the amount is disclosed in the table on page 284, in the Exchange & clearing house guarantees and commitments line. 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 284. Refer to Note 11 for additional information on credit risk mitigation practices on resale agreements and the types of collateral pledged under repurchase agreements. Guarantees of subsidiaries In the normal course of business, the Parent Company may provide counterparties with guarantees of certain of the trading and other obligations of its subsidiaries on a contract-by-contract basis, as negotiated with the Firm’s counterparties. The obligations of the subsidiaries are included on the Firm’s Consolidated balance sheets or are reflected as off-balance sheet commitments; therefore, the Parent Company has not recognized a separate liability for these guarantees. The Firm believes that the occurrence of any event that would trigger payments by the Parent Company under these guarantees is remote. The Parent Company has guaranteed certain long-term debt and structured notes of its subsidiaries, including JPMorgan Chase Financial Company LLC (“JPMFC”), a 100%-owned and consolidated finance subsidiary. All securities issued by JPMFC are fully and unconditionally guaranteed by the Parent Company and no other subsidiary of the parent company guarantees these securities. These guarantees, which rank on a parity with the Firm’s unsecured and unsubordinated indebtedness, are not included in the table on page 284 of this Note. Refer to Note 20 for additional information. |
Pledged Assets and Collateral
Pledged Assets and Collateral | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Pledged Assets and Collateral | 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. December 31, (in billions) 2020 2019 Assets that may be sold or repledged or otherwise used by secured parties $ 166.6 $ 125.2 Assets that may not be sold or repledged or otherwise used by secured parties 113.9 80.2 Assets pledged at Federal Reserve banks and FHLBs 455.3 478.9 Total pledged assets $ 735.8 $ 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 for additional information on the Firm’s long-term debt. The significant components of the Firm’s pledged assets were as follows. December 31, (in billions) 2020 2019 Investment securities $ 80.2 $ 35.9 Loans 420.5 460.4 Trading assets and other 235.1 188.0 Total pledged assets $ 735.8 $ 684.3 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. December 31, (in billions) 2020 2019 Collateral permitted to be sold or repledged, delivered, or otherwise used $ 1,451.7 $ 1,282.5 Collateral sold, repledged, delivered or otherwise used 1,038.9 1,000.5 (a) (a) Includes collateral repledged to the Federal Reserve under the Federal Reserve’s open market operations. |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2020 | |
Litigation [Abstract] | |
Litigation | Litigation Contingencies As of December 31, 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 $1.5 billion at December 31, 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 . In November 2020, JPMorgan Chase Bank, N.A. entered into a resolution with the Office of the Comptroller of the Currency (“OCC”) regarding historical deficiencies in internal controls and internal audit for certain fiduciary activities. In connection with the resolution, JPMorgan Chase Bank, N.A. paid a $250 million Civil Money Penalty. The OCC found that JPMorgan Chase Bank, N.A. has remediated the deficiencies that led to the penalty. 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 a trial has been scheduled to commence in February 2022. 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 Court approved a settlement by the Firm and 11 other defendants of a class action filed by purported indirect purchasers for a total of $10 million. In addition, some FX-related individual and putative class actions based on similar alleged underlying conduct have been filed outside the U.S., including in the U.K., Israel 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”), and 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. The Court consolidated these putative class actions in October 2020 and set a deadline of February 2021 for the filing of a consolidated complaint. Two putative class action complaints have 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. Plaintiffs have filed a stipulation seeking consolidation of the actions and the appointment of co-lead plaintiffs and counsel, which is pending Court approval. Wendel. Since 2012, the French criminal authorities have been investigating a series of transactions entered into by senior managers of Wendel Investissement (“Wendel”) during the period from 2004 through 2007 to restructure their shareholdings in Wendel. JPMorgan Chase Bank, N.A., Paris branch provided financing for the transactions to a number of managers of Wendel in 2007. JPMorgan Chase has cooperated with the investigation. The investigating judges issued an ordonnance de renvoi in November 2016, referring JPMorgan Chase Bank, N.A. to the French tribunal correctionnel for alleged complicity in tax fraud. 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 . The Court of Appeal found in January 2021 that it had no power to take further action against JPMorgan Chase following the Court of Cassation’s ruling. At the opening of a trial of the managers of Wendel in January 2021, the tribunal correctionnel directed the criminal authorities to clarify whether a further investigation should be opened against JPMorgan Chase, pending which the trial was postponed. In addition, a number of the managers have commenced civil proceedings against JPMorgan Chase Bank, N.A. The claims are separate, involve different allegations and are at various stages of proceedings. * * * In addition to the various legal proceedings discussed above, JPMorgan Chase and its subsidiaries are named as defendants or are otherwise involved in a substantial number of other legal proceedings. The Firm believes it has meritorious defenses to the claims asserted against it in its currently outstanding legal proceedings and it intends to defend itself vigorously. Additional legal proceedings may be initiated from time to time in the future. The Firm has established reserves for several hundred of its currently outstanding legal proceedings. In accordance with the provisions of U.S. GAAP for contingencies, the Firm accrues for a litigation-related liability when it is probable that such a liability has been incurred and the amount of the loss can be reasonably estimated. The Firm evaluates its outstanding legal proceedings each quarter to assess its litigation reserves, and makes adjustments in such reserves, upward or downward, as appropriate, based on management’s best judgment after consultation with counsel. The Firm’s legal expense was $1.1 billion, $239 million and $72 million for the years ended December 31, 2020, 2019 and 2018, respectively. There is no assurance that the Firm’s litigation reserves will not need to be adjusted in the future. In view of the inherent difficulty of predicting the outcome of legal proceedings, particularly where the claimants seek very large or indeterminate damages, or where the matters present novel legal theories, involve a large number of parties or are in early stages of discovery, the Firm cannot state with confidence what will be the eventual outcomes of the currently pending matters, the timing of their ultimate resolution or the eventual losses, fines, penalties or consequences related to those matters. JPMorgan Chase believes, based upon its current knowledge and after consultation with counsel, consideration of the material legal proceedings described above and after taking into account its current litigation reserves and its estimated aggregate range of possible losses, that the other legal proceedings currently pending against it should not have a material adverse effect on the Firm’s consolidated financial condition. The Firm notes, however, that in light of the uncertainties involved in such proceedings, there is no assurance that the ultimate resolution of these matters will not significantly exceed the reserves it has currently accrued or that a matter will not have material reputational consequences. As a result, the outcome of a particular matter may be material to JPMorgan Chase’s operating results for a particular period, depending on, among other factors, the size of the loss or liability imposed and the level of JPMorgan Chase’s income for that period. |
International Operations
International Operations | 12 Months Ended |
Dec. 31, 2020 | |
Segments, Geographical Areas [Abstract] | |
International Operations | International operations The following table presents income statement and balance sheet-related information for JPMorgan Chase by major international geographic area. The Firm defines international activities for purposes of this footnote presentation as business transactions that involve clients residing outside of the U.S., and the information presented below is based predominantly on the domicile of the client, the location from which the client relationship is managed, booking location or the location of the trading desk. However, many of the Firm’s U.S. operations serve international businesses. As the Firm’s operations are highly integrated, estimates and subjective assumptions have been made to apportion revenue and expense between U.S. and international operations. These estimates and assumptions are consistent with the allocations used for the Firm’s segment reporting as set forth in Note 32. The Firm’s long-lived assets for the periods presented are not considered by management to be significant in relation to total assets. The majority of the Firm’s long-lived assets are located in the U.S. As of or for the year ended December 31, Revenue (c) Expense (d) Income before income tax Net income Total assets 2020 Europe/Middle East/Africa $ 16,566 $ 10,987 $ 5,579 $ 3,868 $ 530,687 (e) Asia-Pacific 9,289 5,558 3,731 2,630 252,553 Latin America/Caribbean 2,740 1,590 1,150 837 61,980 Total international 28,595 18,135 10,460 7,335 845,220 North America (a) 90,948 66,001 24,947 21,796 2,540,851 Total $ 119,543 $ 84,136 $ 35,407 $ 29,131 $ 3,386,071 2019 (b) Europe/Middle East/Africa $ 15,887 $ 9,860 $ 6,027 $ 4,158 $ 391,369 (e) Asia-Pacific 7,254 5,060 2,194 1,467 183,023 Latin America/Caribbean 2,405 1,561 844 609 47,820 Total international 25,546 16,481 9,065 6,234 622,212 North America (a) 89,853 54,373 35,480 30,197 2,065,167 Total $ 115,399 $ 70,854 $ 44,545 $ 36,431 $ 2,687,379 2018 (b) Europe/Middle East/Africa $ 16,459 $ 10,032 $ 6,427 $ 4,569 $ 424,935 (e) Asia-Pacific 6,991 4,884 2,107 1,481 171,547 Latin America/Caribbean 2,365 1,301 1,064 744 43,871 Total international 25,815 16,217 9,598 6,794 640,353 North America (a) 82,968 51,802 31,166 25,680 1,982,179 Total $ 108,783 $ 68,019 $ 40,764 $ 32,474 $ 2,622,532 (a) Substantially reflects the U.S. (b) Prior-period amounts have been revised to conform with the current presentation. (c) Revenue is composed of net interest income and noninterest revenue. (d) Expense is composed of noninterest expense and the provision for credit losses. (e) Total assets for the U.K. were approximately $353 billion, $309 billion and $299 billion at December 31, 2020, 2019 and 2018, respectively. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 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 of this footnote for a further discussion of JPMorgan Chase’s business segments. The following is a description of each of the Firm’s business segments, and the products and services they provide to their respective client bases. Consumer & Community Banking Consumer & Community Banking offers services to consumers and businesses through bank branches, ATMs, digital (including mobile and online) and telephone banking. CCB is organized into Consumer & Business Banking (including Consumer Banking, J.P. Morgan Wealth Management and Business Banking), Home Lending (including Home Lending Production, Home Lending Servicing and Real Estate Portfolios) and Card & Auto. Consumer & Business Banking offers deposit and investment products, payments and services to consumers, and lending, deposit, and cash management and payment solutions to small businesses. Home Lending includes mortgage origination and servicing activities, as well as portfolios consisting of residential mortgages and home equity loans. Card & Auto issues credit cards to consumers and small businesses and originates and services auto loans and leases. Corporate & Investment Bank The Corporate & Investment Bank, which consists of Banking and Markets & Securities Services, offers a broad suite of investment banking, market-making, prime brokerage, and treasury and securities products and services to a global client base of corporations, investors, financial institutions, merchants, government and municipal entities. Banking offers a full range of investment banking products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt markets, as well as loan origination and syndication. Banking also includes Wholesale Payments, which provides payments services enabling clients to manage payments and receipts globally, and cross-border financing. Markets & Securities Services includes Markets, a global market-maker across products, including cash and derivative instruments, which also offers sophisticated risk management solutions, prime brokerage, and research. Markets & Securities Services also includes Securities Services, a leading global custodian which provides custody, fund accounting and administration, and securities lending products principally for asset managers, insurance companies and public and private investment funds. Commercial Banking Commercial Banking provides comprehensive financial solutions, including lending, wholesale payments, investment banking and asset management products across three primary client segments: Middle Market Banking, Corporate Client Banking and Commercial Real Estate Banking. Other includes amounts not aligned with a primary client segment. Middle Market Banking covers small and midsized companies, local governments and nonprofit clients. Corporate Client Banking covers large corporations. Commercial Real Estate Banking covers investors, developers, and owners of multifamily, office, retail, industrial and affordable housing properties. Asset & Wealth Management Asset & Wealth Management, with client assets of $3.7 trillion, is a global leader in investment and wealth management. Asset Management Offers multi-asset investment management solutions across equities, fixed income, alternatives and money market funds to institutional and retail investors providing for a broad range of clients’ investment needs. Wealth Management Provides retirement products and services, brokerage, custody, trusts and estates, loans, mortgages, deposits and investment management to high net worth clients. The majority of AWM’s client assets are in actively managed portfolios. Corporate The Corporate segment consists of Treasury and Chief Investment Office and Other Corporate, which includes corporate staff functions and expense that is centrally managed. Treasury and CIO is predominantly responsible for measuring, monitoring, reporting and managing the Firm’s liquidity, funding, capital, structural interest rate and foreign exchange risks. The major Other Corporate functions include Real Estate, Technology, Legal, Corporate Finance, Human Resources, Internal Audit, Risk Management, Compliance, Control Management, Corporate Responsibility and various Other Corporate groups. Segment results The following table provides a summary of the Firm’s segment results as of or for the years ended December 31, 2020, 2019 and 2018, on a managed basis. The Firm’s definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm (and each of the reportable business segments) on an FTE basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. This allows management to assess the comparability of revenue from year-to-year arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense/(benefit). These adjustments have no impact on net income as reported by the Firm as a whole or by the LOBs. Business segment capital allocation Each business segment is allocated capital by taking into consideration a variety of factors including capital levels of similarly rated peers and applicable regulatory capital requirements. ROE is measured and internal targets for expected returns are established as key measures of a business segment’s performance. The Firm’s allocation methodology incorporates Basel III Standardized RWA, Basel III Advanced RWA, the GSIB surcharge, and a simulation of capital in a severe stress environment. The assumptions and methodologies used to allocate capital are periodically assessed and as a result, the capital allocated to the LOBs may change from time to time. Business segment changes In the fourth quarter of 2020, the Firm transferred certain assets, liabilities, revenue, expense and headcount associated with certain wealth management clients from AWM to the J.P. Morgan Wealth Management business unit within CCB. Prior-period amounts have been revised to conform with the current presentation, including the transfer of approximately 1,650 technology and support staff during the second and third quarters of 2020. Ultra-high-net-worth and certain high-net-worth client relationships remained in AWM. 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. In the fourth quarter of 2020, payment processing-only clients along with the associated revenue and expenses were realigned to CIB’s Wholesale Payments business from CCB and CB. Payment processing-only clients are those that only use payment services offered by Merchant Services, and in general do not currently utilize other services offered by the Firm. Prior-period amounts have been revised to reflect this realignment and revised allocation methodology. Segment results and reconciliation (a) (Table continued on next page) As of or for the year ended Consumer & Community Banking (b) Corporate & Investment Bank Commercial Banking Asset & Wealth Management 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 Noninterest revenue $ 17,740 $ 17,796 $ 15,338 $ 35,120 $ 30,060 $ 27,854 $ 3,067 $ 2,710 $ 2,620 $ 10,822 $ 10,236 $ 10,052 Net interest income 33,528 37,337 35,933 14,164 9,205 9,528 6,246 6,554 6,716 3,418 3,355 3,375 Total net revenue 51,268 55,133 51,271 49,284 39,265 37,382 9,313 9,264 9,336 14,240 13,591 13,427 Provision for credit losses 12,312 4,954 4,754 2,726 277 (60) 2,113 296 129 263 59 52 Noninterest expense 27,990 28,276 27,168 23,538 22,444 21,876 3,798 3,735 3,627 9,957 9,747 9,575 Income/(loss) before income tax expense/(benefit) 10,966 21,903 19,349 23,020 16,544 15,566 3,402 5,233 5,580 4,020 3,785 3,800 Income tax expense/(benefit) 2,749 5,362 4,642 5,926 4,590 3,767 824 1,275 1,316 1,028 918 855 Net income/(loss) $ 8,217 $ 16,541 $ 14,707 $ 17,094 $ 11,954 $ 11,799 $ 2,578 $ 3,958 $ 4,264 $ 2,992 $ 2,867 $ 2,945 Average equity $ 52,000 $ 52,000 $ 51,000 $ 80,000 $ 80,000 $ 70,000 $ 22,000 $ 22,000 $ 20,000 $ 10,500 $ 10,500 $ 9,000 Total assets 496,705 541,367 560,177 1,097,219 914,705 909,292 228,932 220,514 220,229 203,384 173,175 161,047 Return on equity 15 % 31 % 28 % 20 % 14 % 16 % 11 % 17 % 20 % 28 % 26 % 32 % Overhead ratio 55 51 53 48 57 59 41 40 39 70 72 71 (Table continued from previous page) As of or for the year ended Corporate Reconciling Items (a) Total (b) 2020 2019 2018 2020 2019 2018 2020 2019 2018 Noninterest revenue $ 1,199 $ (114) $ (263) $ (2,968) $ (2,534) $ (1,877) $ 64,980 $ 58,154 $ 53,724 Net interest income (2,375) 1,325 135 (418) (531) (628) 54,563 57,245 55,059 Total net revenue (1,176) 1,211 (128) (3,386) (3,065) (2,505) 119,543 115,399 108,783 Provision for credit losses 66 (1) (4) — — — 17,480 5,585 4,871 Noninterest expense 1,373 1,067 902 — — — 66,656 65,269 63,148 Income/(loss) before income tax expense/(benefit) (2,615) 145 (1,026) (3,386) (3,065) (2,505) 35,407 44,545 40,764 Income tax expense/(benefit) (865) (966) 215 (3,386) (3,065) (2,505) 6,276 8,114 8,290 Net income/(loss) $ (1,750) $ 1,111 $ (1,241) $ — $ — $ — $ 29,131 $ 36,431 $ 32,474 Average equity $ 72,365 $ 68,407 $ 79,222 $ — $ — $ — $ 236,865 $ 232,907 $ 229,222 Total assets 1,359,831 837,618 771,787 NA NA NA 3,386,071 2,687,379 2,622,532 Return on equity NM NM NM NM NM NM 12 % 15 % 13 % Overhead ratio NM NM NM NM NM NM 56 57 58 (a) Segment results on a managed basis reflect revenue on a FTE basis with the corresponding income tax impact recorded within income tax expense/(benefit). These adjustments are eliminated in reconciling items to arrive at the Firm’s reported U.S. GAAP results. (b) 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. |
Parent Company
Parent Company | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company | Parent Company The following tables present Parent Company-only financial statements. Statements of income and comprehensive income Year ended December 31, 2020 2019 2018 Income Dividends from subsidiaries and affiliates: Bank and bank holding company $ 6,000 $ 26,000 $ 32,501 Non-bank (a) — — 2 Interest income from subsidiaries 63 223 216 Other income from subsidiaries: Bank and bank holding company 2,019 2,738 515 Non-bank (569) 197 (444) Other income 205 (1,731) 888 Total income 7,718 27,427 33,678 Expense Interest expense/(income) to subsidiaries and affiliates (a) (8,830) (5,303) 2,291 Other interest expense 14,150 13,246 4,581 Noninterest expense 2,222 1,992 1,793 Total expense 7,542 9,935 8,665 Income before income tax benefit and undistributed net income of subsidiaries 176 17,492 25,013 Income tax benefit 1,324 2,033 1,838 Equity in undistributed net income of subsidiaries 27,631 16,906 5,623 Net income $ 29,131 $ 36,431 $ 32,474 Other comprehensive income, net 6,417 3,076 (1,476) Comprehensive income $ 35,548 $ 39,507 $ 30,998 Balance sheets December 31, (in millions) 2020 2019 Assets Cash and due from banks $ 54 $ 32 Deposits with banking subsidiaries 6,811 5,309 Trading assets 1,775 3,011 Advances to, and receivables from, subsidiaries: Bank and bank holding company 27 2,358 Non-bank 86 84 Investments (at equity) in subsidiaries and affiliates: Bank and bank holding company 508,602 471,207 Non-bank 1,011 1,044 Other assets 10,058 10,699 Total assets $ 528,424 $ 493,744 Liabilities and stockholders’ equity Borrowings from, and payables to, subsidiaries and affiliates (a) $ 25,150 $ 23,410 Short-term borrowings 924 2,616 Other liabilities 9,612 9,288 Long-term debt (b)(c) 213,384 197,100 Total liabilities (c) 249,070 232,414 Total stockholders’ equity 279,354 261,330 Total liabilities and stockholders’ equity $ 528,424 $ 493,744 Statements of cash flows Year ended December 31, 2020 2019 2018 Operating activities Net income $ 29,131 $ 36,431 $ 32,474 Less: Net income of subsidiaries and affiliates (a) 33,631 42,906 38,125 Parent company net loss (4,500) (6,475) (5,651) Cash dividends from subsidiaries and affiliates (a) 6,000 26,000 32,501 Other operating adjustments 15,357 9,862 (4,400) Net cash provided by/(used in) operating activities 16,857 29,387 22,450 Investing activities Net change in: Advances to and investments in subsidiaries and affiliates, net (2,663) (6) (e) 8,036 All other investing activities, net 24 71 63 Net cash provided by/(used in) investing activities (2,639) 65 8,099 Financing activities Net change in: Borrowings from subsidiaries and affiliates (a) 1,425 2,941 (2,273) Short-term borrowings (20) (56) (678) Proceeds from long-term borrowings 37,312 25,569 25,845 Payments of long-term borrowings (34,194) (21,226) (21,956) Proceeds from issuance of preferred stock 4,500 5,000 1,696 Redemption of preferred stock (1,430) (4,075) (1,696) Treasury stock repurchased (6,517) (24,001) (19,983) Dividends paid (12,690) (12,343) (10,109) All other financing activities, net (1,080) (1,290) (1,526) Net cash used in financing activities (12,694) (29,481) (30,680) Net decrease in cash and due from banks and deposits with banking subsidiaries 1,524 (29) (131) Cash and due from banks and deposits with banking subsidiaries at the beginning of the year 5,341 5,370 5,501 Cash and due from banks and deposits with banking subsidiaries at the end of the year $ 6,865 $ 5,341 $ 5,370 Cash interest paid $ 5,445 $ 7,957 $ 6,911 Cash income taxes paid, net (d) 5,366 3,910 1,782 (a) Affiliates include trusts that issued guaranteed capital debt securities (“issuer trusts”). (b) At December 31, 2020, long-term debt that contractually matures in 2021 through 2025 totaled $10.8 billion, $10.0 billion, $19.1 billion, $21.8 billion, and $13.5 billion, respectively. (c) Refer to Notes 20 and 28 for information regarding the Parent Company’s guarantees of its subsidiaries’ obligations. (d) Represents payments, net of refunds, made by the Parent Company to various taxing authorities and includes taxes paid on behalf of certain of its subsidiaries that are subsequently reimbursed. The reimbursements were $8.3 billion, $6.4 billion, and $1.2 billion for the years ended December 31, 2020, 2019, and 2018, respectively. (e) As a result of the merger of Chase Bank USA, N.A. with and into JPMorgan Chase Bank, N.A., JPMorgan Chase Bank, N.A. distributed $13.5 billion to the Parent company as a return of capital, which the Parent company contributed to the IHC. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 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. |
Reclassifications policy | Certain amounts reported in prior periods have been reclassified to conform with the current presentation. |
Consolidation policy | The Consolidated Financial Statements include the accounts of JPMorgan Chase and other entities in which the Firm has a controlling financial interest. All material intercompany balances and transactions have been eliminated. Assets held for clients in an agency or fiduciary capacity by the Firm are not assets of JPMorgan Chase and are not included on the Consolidated balance sheets. The Firm determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity. Voting interest entities Voting interest entities are entities that have sufficient equity and provide the equity investors voting rights that enable them to make significant decisions relating to the entity’s operations. For these types of entities, the Firm’s determination of whether it has a controlling interest is primarily based on the amount of voting equity interests held. Entities in which the Firm has a controlling financial interest, through ownership of the majority of the entities’ voting equity interests, or through other contractual rights that give the Firm control, are consolidated by the Firm. Investments in companies in which the Firm has significant influence over operating and financing decisions (but does not own a majority of the voting equity interests) are accounted for (i) in accordance with the equity method of accounting (which requires the Firm to recognize its proportionate share of the entity’s net earnings), or (ii) at fair value if the fair value option was elected. These investments are generally included in other assets, with income or loss included in noninterest revenue. Certain Firm-sponsored asset management funds are structured as limited partnerships or limited liability companies. For many of these entities, the Firm is the general partner or managing member, but the non-affiliated partners or members have the ability to remove the Firm as the general partner or managing member without cause (i.e., kick-out rights), based on a simple majority vote, or the non-affiliated partners or members have rights to participate in important decisions. Accordingly, the Firm does not consolidate these voting interest entities. However, in the limited cases where the non-managing partners or members do not have substantive kick-out or participating rights, the Firm evaluates the funds as VIEs and consolidates the funds if the Firm is t h e general partner or managing member and has a potentially significant interest. The Firm’s investment companies and asset management funds have investments in both publicly-held and privately-held entities, including investments in buyouts, growth equity and venture opportunities. These investments are accounted for under investment company guidelines and, accordingly, irrespective of the percentage of equity ownership interests held, are carried on the Consolidated balance sheets at fair value, and are recorded in other assets, with income or loss included in noninterest revenue. If consolidated, the Firm retains the accounting under such specialized investment company guidelines. Variable interest entities VIEs are entities that, by design, either (1) lack sufficient equity to permit the entity to finance its activities without additional subordinated financial support from other parties, or (2) have equity investors that do not have the ability to make significant decisions relating to the entity’s operations through voting rights, or do not have the obligation to absorb the expected losses, or do not have the right to receive the residual returns of the entity. The most common type of VIE is an SPE. SPEs are commonly used in securitization transactions in order to isolate certain assets and distribute the cash flows from those assets to investors. The basic SPE structure involves a company selling assets to the SPE; the SPE funds the purchase of those assets by issuing securities to investors. The legal documents that govern the transaction specify how the cash earned on the assets must be allocated to the SPE’s investors and other parties that have rights to those cash flows. SPEs are generally structured to insulate investors from claims on the SPE’s assets by creditors of other entities, including the creditors of the seller of the assets. The primary beneficiary of a VIE (i.e., the party that has a controlling financial interest) is required to consolidate the assets and liabilities of the VIE. The primary beneficiary is the party that has both (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and (2) through its interests in the VIE, the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. To assess whether the Firm has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, the Firm considers all the facts and circumstances, including its role in establishing the VIE and its ongoing rights and responsibilities. This assessment includes, first, identifying the activities that most significantly impact the VIE’s economic performance; and second, identifying which party, if any, has power over those activities. In general, the parties that make the most significant decisions affecting the VIE (such as asset managers, collateral managers, servicers, or owners of call options or liquidation rights over the VIE’s assets) or have the right to unilaterally remove those decision-makers are deemed to have the power to direct the activities of a VIE. To assess whether the Firm has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, the Firm considers all of its economic interests, including debt and equity investments, servicing fees, and derivatives or other arrangements deemed to be variable interests in the VIE. This assessment requires that the Firm apply judgment in determining whether these interests, in the aggregate, are considered potentially significant to the VIE. Factors considered in assessing significance include: the design of the VIE, including its capitalization structure; subordination of interests; payment priority; relative share of interests held across various classes within the VIE’s capital structure; and the reasons why the interests are held by the Firm. The Firm performs on-going reassessments of: (1) whether entities previously evaluated under the majority voting-interest framework have become VIEs, based on certain events, and are therefore subject to the VIE consolidation framework; and (2) whether changes in the facts and circumstances regarding the Firm’s involvement with a VIE cause the Firm’s consolidation conclusion to change. |
Revenue recognition policy | Interest income The Firm recognizes interest income on loans, debt securities, and other debt instruments, generally on a level-yield basis, based on the underlying contractual rate. Refer to Note 7 for further discussion of interest income. Revenue from contracts with customers JPMorgan Chase recognizes noninterest revenue from certain contracts with customers , in investment banking fees, deposit-related fees, asset management administration and commissions, and components of card income, when the Firm’s related performance obligations are satisfied. Refer to Note 6 for further discussion of the Firm’s revenue from contracts with customers. Principal transactions revenue Investment banking fees This revenue category includes debt and equity underwriting and advisory fees. As an underwriter, the Firm helps clients raise capital via public offering and private placement of various types of debt and equity instruments. Underwriting fees are primarily based on the issuance price and quantity of the underlying instruments, and are recognized as revenue typically upon execution of the client’s transaction. The Firm also manages and syndicates loan arrangements. Credit arrangement and syndication fees, included within debt underwriting fees, are recorded as revenue after satisfying certain retention, timing and yield criteria. The Firm also provides advisory services, by assisting its clients with mergers and acquisitions, divestitures, restructuring and other complex transactions. Advisory fees are recognized as revenue typically upon execution of the client’s transaction. Principal transactions Principal transactions revenue is driven by many factors, including: • the bid-offer spread, which is the difference between the price at which a market participant is willing and able to sell an instrument to the Firm and the price at which another market participant is willing and able to buy it from the Firm, and vice versa; and • realized and unrealized gains and losses on financial instruments and commodities transactions, including those accounted for under the fair value option, primarily used in client-driven market-making activities, and on private equity investments. – Realized gains and losses result from the sale of instruments, closing out or termination of transactions, or interim cash payments. – Unrealized gains and losses result from changes in valuation. In connection with its client-driven market-making activities, the Firm transacts in debt and equity instruments, derivatives and commodities, including physical commodities inventories and financial instruments that reference commodities. Principal transactions revenue also includes realized and unrealized gains and losses related to: • derivatives designated in qualifying hedge accounting relationships, primarily fair value hedges of commodity and foreign exchange risk; • derivatives used for specific risk management purposes, primarily to mitigate credit risk and foreign exchange risk. Refer to Note 5 for further information on the income statement classification of gains and losses from derivatives activities. In the financial commodity markets, the Firm transacts in OTC derivatives (e.g., swaps, forwards, options) and ETD that reference a wide range of underlying commodities. In the physical commodity markets, the Firm primarily purchases and sells precious and base metals and may hold other commodities inventories under financing and other arrangements with clients. Lending- and deposit-related fees Lending-related fees include fees earned from loan commitments, standby letters of credit, financial guarantees, and other loan-servicing activities. Deposit-related fees include fees earned from providing overdraft and other deposit account services, and from performing cash management activities. Lending- and deposit-related fees in this revenue category are recognized over the period in which the related service is provided. Asset management, administration and commissions This revenue category includes fees from investment management and related services, custody, brokerage services and other products. The Firm manages assets on behalf of its clients, including investors in Firm-sponsored funds and owners of separately managed investment accounts. Management fees are typically based on the value of assets under management and are collected and recognized at the end of each period over which the management services are provided and the value of the managed assets is known. The Firm also receives performance-based management fees, which are earned based on exceeding certain benchmarks or other performance targets and are accrued and recognized when the probability of reversal is remote, typically at the end of Mortgage fees and related income This revenue category reflects CCB’s Home Lending net production and net mortgage servicing revenue. Net production revenue includes fees and income recognized as earned on mortgage loans originated with the intent to sell, and the impact of risk management activities associated with the mortgage pipeline and warehouse loans. Net production revenue also includes gains and losses on sales and lower of cost or fair value adjustments on mortgage loans held-for-sale (excluding certain repurchased loans insured by U.S. government agencies), and changes in the fair value of financial instruments measured under the fair value option. Net mortgage servicing revenue includes operating revenue earned from servicing third-party mortgage loans, which is recognized over the period in which the service is provided; changes in the fair value of MSRs; the impact of risk management activities associated with MSRs; and gains and losses on securitization of excess mortgage servicing. Net mortgage servicing revenue also includes gains and losses on sales and lower of cost or fair value adjustments of certain repurchased loans insured by U.S. government agencies. Refer to Note 15 for further information on risk management activities and MSRs. Net interest income from mortgage loans is recorded in interest income. Card income This revenue category includes interchange and other income from credit and debit card transactions; and fees earned from processing card transactions for merchants, both of which are recognized when purchases are made by a cardholder and presented net of certain transaction-related costs. Card income also includes account origination costs and annual fees, which are deferred and recognized on a straight-line basis over a 12-month period. Certain credit card products offer the cardholder the ability to earn points based on account activity, which the cardholder can choose to redeem for cash and non-cash rewards. The cost to the Firm related to these proprietary rewards programs varies based on multiple factors including the terms and conditions of the rewards programs, cardholder activity, cardholder reward redemption rates and cardholder reward selections. The Firm maintains a liability for its obligations under its rewards programs and reports the current-period cost as a reduction of card income. Credit card revenue sharing agreements The Firm has contractual agreements with numerous co-brand partners that grant the Firm exclusive rights to issue co-branded credit card products and market them to the customers of such partners. These partners endorse the co-brand credit card programs and provide their customer or member lists to the Firm. The partners may also conduct marketing activities and provide rewards redeemable under their own loyalty programs that the Firm will grant to co-brand credit cardholders based on account activity. The terms of these agreements generally range from five |
Use of estimates in the preparation of consolidated financial statements policy | The preparation of the Consolidated Financial Statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenue and expense, and disclosures of contingent assets and liabilities. Actual results could be different from these estimates. |
Foreign currency translation policy | JPMorgan Chase revalues assets, liabilities, revenue and expense denominated in non-U.S. currencies into U.S. dollars using applicable exchange rates. Gains and losses relating to translating functional currency financial statements for U.S. reporting are included in the Consolidated statements of comprehensive income. Gains and losses relating to nonfunctional currency transactions, including non-U.S. operations where the functional currency is the U.S. dollar, are reported in the Consolidated statements of income. |
Offsetting assets and liabilities policy | U.S. GAAP permits entities to present derivative receivables and derivative payables with the same counterparty and the related cash collateral receivables and payables on a net basis on the Consolidated balance sheets when a legally enforceable master netting agreement exists. U.S. GAAP also permits securities sold and purchased under repurchase agreements and securities borrowed or loaned under securities loan agreements to be presented net when specified conditions are met, including the existence of a legally enforceable master netting agreement. The Firm has elected to net such balances when the specified conditions are met. The Firm uses master netting agreements to mitigate counterparty credit risk in certain transactions, including derivative contracts, resale, repurchase, securities borrowed and securities loaned agreements. A master netting agreement is a single agreement with a counterparty that permits multiple transactions governed by that agreement to be terminated or accelerated and settled through a single payment in a single currency in the event of a default (e.g., bankruptcy, failure to make a required payment or securities transfer or deliver collateral or margin when due). Upon the exercise of derivatives termination rights by the non-defaulting party (i) all transactions are terminated, (ii) all transactions are valued and the positive values of “in the money” transactions are netted against the negative values of “out of the money” transactions and (iii) the only remaining payment obligation is of one of the parties to pay the netted termination amount. Upon exercise of default rights under repurchase agreements and securities loan agreements in general (i) all transactions are terminated and accelerated, (ii) all values of securities or cash held or to be delivered are calculated, and all such sums are netted against each other and (iii) the only remaining payment obligation is of one of the parties to pay the netted termination amount. |
Statements of cash flows policy | For JPMorgan Chase’s Consolidated statements of cash flows, cash is defined as those amounts included in cash and due from banks and deposits with banks. |
Accounting standard adopted January 1, 2020 and Accounting standards adopted January 1, 2018 | 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. Prior to the adoption of the CECL accounting guidance, the Firm’s allowance for credit losses represented management’s estimate of probable credit losses inherent in the Firm’s retained loan portfolios and certain lending-related commitments. 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 permitted under the U.S. capital rules issued by the federal banking agencies in 2019, 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 27 for further information. Accounting standards adopted January 1, 2018 Effective January 1, 2018, the Firm adopted several accounting standards resulting in a net decrease of $183 million to retained earnings and a net increase of $88 million to AOCI. The adoption of the recognition and measurement guidance resulted in $505 million of fair value gains in the first quarter of 2018, recorded in total net revenue, on certain equity investments that were previously held at cost. |
Fair value policy | JPMorgan Chase carries a portion of its assets and liabilities at fair value. These assets and liabilities are predominantly carried at fair value on a recurring basis (i.e., assets and liabilities that are measured and reported at fair value on the Firm’s Consolidated balance sheets). Certain assets, liabilities and unfunded lending-related commitments are measured at fair value on a nonrecurring basis; that is, they are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). |
Fair value option policy | The fair value option provides an option to elect fair value as an alternative measurement for selected financial assets, financial liabilities, unrecognized firm commitments, and written loan commitments. The Firm has elected to measure certain instruments at fair value for several reasons including to mitigate income statement volatility caused by the differences between the measurement basis of elected instruments (e.g., certain instruments 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 |
Derivatives policy | All free-standing derivatives that the Firm executes for its own account are required to be recorded on the Consolidated balance sheets at fair value. As permitted under U.S. GAAP, the Firm nets derivative assets and liabilities, and the related cash collateral receivables and payables, when a legally enforceable master netting agreement exists between the Firm and the derivative counterparty. Refer to Note 1 for further discussion of the offsetting of assets and liabilities. The accounting for changes in value of a derivative depends on whether or not the transaction has been designated and qualifies for hedge accounting. Derivatives that are not designated as hedges are reported and measured at fair value through earnings. The tabular disclosures on pages 202-209 of this Note provide additional information on the amount of, and reporting for, derivative assets, liabilities, gains and losses. Refer to Notes 2 and 3 for a further discussion of derivatives embedded in structured notes. Derivatives designated as hedges The Firm applies hedge accounting to certain derivatives executed for risk management purposes – generally interest rate, foreign exchange and commodity derivatives. However, JPMorgan Chase does not seek to apply hedge accounting to all of the derivatives involved in the Firm’s risk management activities. For example, the Firm does not apply hedge accounting to purchased CDS used to manage the credit risk of loans and lending-related commitments, because of the difficulties in qualifying such contracts as hedges. For the same reason, the Firm does not apply hedge accounting to certain interest rate, foreign exchange, and commodity derivatives used for risk management purposes. To qualify for hedge accounting, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. In addition, for a derivative to be designated as a hedge, the risk management objective and strategy must be documented. Hedge documentation must identify the derivative hedging instrument, the asset or liability or forecasted transaction and type of risk to be hedged, and how the effectiveness of the derivative is assessed prospectively and retrospectively. To assess effectiveness, the Firm uses statistical methods such as regression analysis, nonstatistical methods such as dollar-value comparisons of the change in the fair value of the derivative to the change in the fair value or cash flows of the hedged item, and qualitative comparisons of critical terms and the evaluation of any changes in those terms. The extent to which a derivative has been, and is expected to continue to be, highly effective at offsetting changes in the fair value or cash flows of the hedged item must be assessed and documented at least quarterly. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued. There are three types of hedge accounting designations: fair value hedges, cash flow hedges and net investment hedges. JPMorgan Chase uses fair value hedges primarily to hedge fixed-rate long-term debt, AFS securities and certain commodities inventories. For qualifying fair value hedges, the changes in the fair value of the derivative, and in the value of the hedged item for the risk being hedged, are recognized in earnings. Certain amounts excluded from the assessment of effectiveness are recorded in OCI and recognized in earnings over the life of the derivative. If the hedge relationship is terminated, then the adjustment to the hedged item continues to be reported as part of the basis of the hedged item, and for benchmark interest rate hedges, is amortized to earnings as a yield adjustment. Derivative amounts affecting earnings are recognized consistent with the classification of the hedged item – primarily net interest income and principal transactions revenue. JPMorgan Chase uses cash flow hedges primarily to hedge the exposure to variability in forecasted cash flows from floating-rate assets and liabilities and foreign currency–denominated revenue and expense. For qualifying cash flow hedges, changes in the fair value of the derivative are recorded in OCI and recognized in earnings as the hedged item affects earnings. Derivative amounts affecting earnings are recognized consistent with the classification of the hedged item – primarily noninterest revenue, net interest income and compensation expense. If the hedge relationship is terminated, then the change in value of the derivative recorded in AOCI is recognized in earnings when the cash flows that were hedged affect earnings. For hedge relationships that are discontinued because a forecasted transaction is expected to not occur according to the original hedge forecast, any related derivative values recorded in AOCI are immediately recognized in earnings. |
Interest income and interest expense policy | Interest income and interest expense includes the current-period interest accruals for financial instruments measured at fair value, except for derivatives and financial instruments containing embedded derivatives that would be separately accounted for in accordance with U.S. GAAP, absent the fair value option election; for those instruments, all changes in fair value including any interest elements, are reported in principal transactions revenue. For financial instruments that are not measured at fair value, the related interest is included within interest income or interest expense, as applicable. Refer to Notes 12, 10, 11 and 20, for further information on accounting for interest income and interest expense related to loans, investment securities, securities financing activities (i.e., securities purchased or sold under resale or repurchase agreements; securities borrowed; and securities loaned) and long-term debt, respectively. |
Pension and other postretirement plans policy | The Firm has various defined benefit pension plans and OPEB plans that provide benefits to its employees in the U.S. and certain non-U.S. locations. The Firm also provides a qualified defined contribution plan in the U.S. and maintains other similar arrangements in certain non-U.S. locations. The principal defined benefit pension plan in the U.S. is a qualified noncontributory plan that provides benefits to substantially all U.S. employees who were hired prior to December 2, 2017. The Firm has frozen the U.S. defined benefit pension plan (the “Plan Freeze”). Effective as of January 1, 2020 (and January 1, 2019 for new hires), new pay credits have been directed to the U.S. defined contribution plan. Interest credits will continue to accrue on the U.S. defined benefit pension plan. As a result of the Plan Freeze, a curtailment was triggered and a remeasurement of the U.S. defined benefit pension obligation and plan assets occurred as of November 30, 2018. The plan design change did not have a material impact on the U.S. defined benefit pension plan or the Firm’s Consolidated Financial Statements. The Firm also has defined benefit pension plans that are offered in certain non-U.S. locations based on factors such as eligible compensation, age and/or years of service. It is the Firm’s policy to fund the pension plans in amounts sufficient to meet the requirements under applicable laws. The Firm does not anticipate at this time making any contribution to the U.S. defined benefit pension plan in 2021. The 2021 contributions to the non-U.S. defined benefit pension plans are expected to be $50 million, of which $35 million are contractually required. The Firm also has a number of nonqualified noncontributory defined benefit pension plans that are unfunded. These plans provide supplemental defined pension benefits to certain employees. The Firm offers postretirement medical and life insurance benefits to certain U.S. retirees and postretirement medical benefits to certain qualifying U.S. and U.K. employees. The Firm partially defrays the cost of its U.S. OPEB obligation through corporate-owned life insurance (“COLI”) purchased on the lives of eligible employees and retirees. While the Firm owns the COLI policies, certain COLI proceeds (death benefits, withdrawals and other distributions) may be used only to reimburse the Firm for its net postretirement benefit claim payments and related administrative expense. The Firm has prefunded its U.S. postretirement benefit obligations. The U.K. OPEB plan is unfunded. |
Share-based compensation, option and incentive plans policy | RSUs are awarded at no cost to the recipient upon their grant. Generally, RSUs are granted annually and vest at a rate of 50% after two years and 50% after three years and are converted into shares of common stock as of the vesting date. In addition, RSUs typically include full-career eligibility provisions, which allow employees to continue to vest upon voluntary termination based on age or service-related requirements, subject to post-employment and other restrictions. All RSU awards are subject to forfeiture until vested and contain clawback provisions that may result in cancellation under certain specified circumstances. Predominantly all RSUs entitle the recipient to receive cash payments equivalent to any dividends paid on the underlying common stock during the period the RSUs are outstanding. Performance share units (“PSUs”) are granted annually, and approved by the Firm’s Board of Directors, to members of the Firm’s Operating Committee under the variable compensation program. PSUs are subject to the Firm’s achievement of specified performance criteria over a three Once the PSUs and dividend equivalent share units have vested, the shares of common stock that are delivered, after applicable tax withholding, must be held for an additional two five eight Under the LTI Plans, stock appreciation rights (“SARs”) and stock options have generally been granted with an exercise price equal to the fair value of JPMorgan Chase’s common stock on the grant date. SARs and stock options generally expire ten years after the grant date. There were no material grants of SARs or stock options in 2020, 2019 and 2018. The Firm separately recognizes compensation expense for each tranche of each award, net of estimated forfeitures, as if it were a separate award with its own vesting date. Generally, for each tranche granted, compensation expense is recognized on a straight-line basis from the grant date until the vesting date of the respective tranche, provided that the employees will not become full-career eligible during the vesting period. For awards with full-career eligibility provisions and awards granted with no future substantive service requirement, the Firm accrues the estimated value of awards expected to be awarded to employees as of the grant date without giving consideration to the impact of post-employment restrictions. For each tranche granted to employees who will become full-career eligible during the vesting period, compensation expense is recognized on a straight-line basis from the grant date until the earlier of the employee’s full-career eligibility date or the vesting date of the respective tranche. |
Loans receivable policy | 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 the Firm’s loans by category: 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. Expected losses related to accrued interest on certain performing, modified loans to borrowers impacted by COVID-19 are considered in the Firm’s allowance for loan losses. 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 lower of the amortized cost or 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 lower of its amortized cost or the estimated net realizable value of the underlying collateral, 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 result in obtaining appraisal updates or broker price opinions at more frequent intervals. 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 because: • they represent short-term or other insignificant modifications, whether under the Firm’s regular loan modification assessments or as permitted by regulatory guidance, or • the Firm has elected to apply the option to suspend the application of accounting guidance for TDRs as provided by the CARES Act and extended by the Consolidated Appropriations Act. To the extent that certain modifications do not meet any of the above criteria, the Firm accounts for them as TDRs. As permitted by regulatory guidance, the Firm does not place loans with deferrals granted due to COVID-19 on nonaccrual status where such loans are not otherwise reportable as nonaccrual. The Firm considers expected losses of principal and accrued interest associated with all COVID-19 related loan modifications in its allowance for credit losses. Assistance provided in response to the COVID-19 pandemic could delay the recognition of delinquencies, nonaccrual status, and net charge-offs for those customers who would have otherwise moved into past due or nonaccrual status. 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. In response to the COVID-19 pandemic, the Firm has temporarily suspended certain foreclosure activities. This could delay recognition of foreclosed properties until the foreclosure moratoriums are lifted. |
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 Consolidated balance sheets, • the allowance for lending-related commitments, which is presented on the Consolidated balance sheets in accounts payable and other liabilities, and • the allowance for credit losses on investment securities, which covers the Firm’s HTM and AFS securities and is recognized within Investment Securities on the Consolidated balance sheets. 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 considered 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 these receivables 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 judgment. 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 has created additional challenges in the use of modeled credit loss estimates and increased the reliance on management judgment. In periods where certain MEVs are outside the range of historical experience on which the Firm’s models have been trained, the Firm makes adjustments to appropriately address these economic circumstances. The Firm also considers the impact of other events, such as government unemployment benefits or other stimulus programs, when determining whether adjustments are necessary. The quantitative calculation is 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 judgment 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. Throughout 2020, the Firm made adjustments to its quantitative calculation 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 for loans 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. The purposes of these securitization transactions were to satisfy investor demand and to generate liquidity for the Firm. For loan securitizations in which the Firm is not required to consolidate the trust, the Firm records the transfer of the loan receivable to the trust as a sale when all of the following accounting criteria for a sale are met: (1) the transferred financial assets are legally isolated from the Firm’s creditors; (2) the transferee or beneficial interest holder can pledge or exchange the transferred financial assets; and (3) the Firm does not maintain effective control over the transferred financial assets (e.g., the Firm cannot repurchase the transferred assets before their maturity and it does not have the ability to unilaterally cause the holder to return the transferred assets). For loan securitizations accounted for as a sale, the Firm recognizes a gain or loss based on the difference between the value of proceeds received (including cash, beneficial interests, or servicing assets received) and the carrying value of the assets sold. Gains and losses on securitizations are reported in noninterest revenue. |
Goodwill policy | Goodwill is recorded upon completion of a business combination as the difference between the purchase price and the fair value of the net assets acquired, and can be adjusted up to one year from the acquisition date as more information is obtained about the fair value of assets acquired and liabilities assumed. Subsequent to initial recognition, goodwill is not amortized but is tested for impairment during the fourth quarter of each fiscal year, or more often if events or circumstances, such as adverse changes in the business climate, indicate that there may be an impairment.The goodwill associated with each business combination is allocated to the related reporting units, which are determined based on how the Firm’s businesses are managed and how they are reviewed. |
Mortgage servicing rights policy | MSRs represent the fair value of expected future cash flows for performing servicing activities for others. The fair value considers estimated future servicing fees and ancillary revenue, offset by estimated costs to service the loans, and generally declines over time as net servicing cash flows are received, effectively amortizing the MSR asset against contractual servicing and ancillary fee income. MSRs are either purchased from third parties or recognized upon sale or securitization of mortgage loans if servicing is retained.As permitted by U.S. GAAP, the Firm has elected to account for its MSRs at fair value. The Firm treats its MSRs as a single class of servicing assets based on the availability of market inputs used to measure the fair value of its MSR asset and its treatment of MSRs as one aggregate pool for risk management purposes. The Firm estimates the fair value of MSRs using an option-adjusted spread (“OAS”) model, which projects MSR cash flows over multiple interest rate scenarios in conjunction with the Firm’s prepayment model, and then discounts these cash flows at risk-adjusted rates. The model considers portfolio characteristics, contractually specified servicing fees, prepayment assumptions, delinquency rates, costs to service, late charges and other ancillary revenue, and other economic factors. The Firm compares fair value estimates and assumptions to observable market data where available, and also considers recent market activity and actual portfolio experience. |
Premises and equipment policy | Premises and equipment, including leasehold improvements, are carried at cost less accumulated depreciation and amortization. JPMorgan Chase computes depreciation using the straight-line method over the estimated useful life of an asset. For leasehold improvements, the Firm uses the straight-line method computed over the lesser of the remainder of the lease term, or estimated useful life of the improvements. |
Internal use software policy | JPMorgan Chase capitalizes certain costs associated with the acquisition or development of internal-use software. Once the software is ready for its intended use, these costs are amortized on a straight-line basis over the software’s expected useful life and reviewed for impairment on an ongoing basis. |
Debt policy | JPMorgan Chase issues long-term debt denominated in various currencies, predominantly U.S. dollars, with both fixed and variable interest rates. Included in senior and subordinated debt below are various equity-linked or other indexed instruments, which the Firm has elected to measure at fair value. Changes in fair value are recorded in principal transactions revenue in the Consolidated statements of income, except for unrealized gains/(losses) due to DVA which are recorded in OCI. |
Earnings per share policy | Basic earnings per share (“EPS”) is calculated using the two-class method. Under the two-class method, all earnings (distributed and undistributed) are allocated to common stock and participating securities. JPMorgan Chase grants RSUs under its share-based compensation programs, predominantly all of which entitle recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to dividends paid to holders of the Firm’s common stock. These unvested RSUs meet the definition of participating securities based on their respective rights to receive nonforfeitable dividends, and they are treated as a separate class of securities in computing basic EPS. Participating securities are not included as incremental shares in computing diluted EPS; refer to Note 9 for additional information. Diluted EPS incorporates the potential impact of contingently issuable shares, including awards which require future service as a condition of delivery of the underlying common stock. Diluted EPS is calculated under both the two-class and treasury stock methods, and the more dilutive amount is reported. For each of the periods presented in the table below, diluted EPS calculated under the two-class method was more dilutive. |
Income tax policy | JPMorgan Chase and its eligible subsidiaries file a consolidated U.S. federal income tax return. JPMorgan Chase uses the asset and liability method to provide income taxes on all transactions recorded in the Consolidated Financial Statements. This method requires that income taxes reflect the expected future tax consequences of temporary differences between the carrying amounts of assets or liabilities for book and tax purposes. Accordingly, a deferred tax asset or liability for each temporary difference is determined based on the tax rates that the Firm expects to be in effect when the underlying items of income and expense are realized. JPMorgan Chase’s expense for income taxes includes the current and deferred portions of that expense. A valuation allowance is established to reduce deferred tax assets to the amount the Firm expects to realize. |
Off-balance sheet credit exposure policy | To provide for expected credit losses in wholesale and certain consumer lending-related commitments, an allowance for credit losses on lending-related commitments is maintained. U.S. GAAP requires that a guarantor recognize, at the inception of a guarantee, a liability in an amount equal to the fair value of the obligation undertaken in issuing the guarantee. U.S. GAAP defines a guarantee as a contract that contingently requires the guarantor to pay a guaranteed party based upon: (a) changes in an underlying asset, liability or equity security of the guaranteed party; or (b) a third party’s failure to perform under a specified agreement. The Firm considers the following off–balance sheet arrangements to be guarantees under U.S. GAAP: standby letters of credit and other financial guarantees, securities lending indemnifications, certain indemnification agreements included within third-party contractual arrangements, certain derivative contracts and the guarantees under the sponsored member repo program. As required by U.S. GAAP, the Firm initially records guarantees at the inception date fair value of the non-contingent obligation assumed (e.g., the amount of consideration received or the net present value of the premium receivable). For these obligations, the Firm records this fair value amount in other liabilities with an offsetting entry recorded in cash (for premiums received), or other assets (for premiums receivable). Any premium receivable recorded in other assets is reduced as cash is received under the contract, and the fair value of the liability recorded at inception is amortized into income as lending and deposit-related fees over the life of the guarantee contract. The lending-related contingent obligation is recognized based on expected credit losses in addition to, and separate from, any non-contingent obligation. Non-lending-related contingent obligations are recognized when the liability becomes probable and reasonably estimable. These obligations are not recognized if the estimated amount is less than the carrying amount of any non-contingent liability recognized at inception (adjusted for any amortization). Examples of non-lending-related contingent obligations include indemnifications provided in sales agreements, where a portion of the sale proceeds is allocated to the guarantee, which adjusts the gain or loss that would otherwise result from the transaction. For these indemnifications, the initial liability is amortized to income as the Firm’s risk is reduced (i.e., over time or when the indemnification expires). The contractual amount and carrying value of guarantees and indemnifications are included in the table on page 284. |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 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. |
Schedule of significant accounting policies | The following table identifies JPMorgan Chase’s other significant accounting policies and the Note and page where a detailed description of each policy can be found. Fair value measurement Note 2 page 171 Fair value option Note 3 page 192 Derivative instruments Note 5 page 198 Noninterest revenue and noninterest expense Note 6 page 212 Interest income and Interest expense Note 7 page 215 Pension and other postretirement employee benefit plans Note 8 page 216 Employee share-based incentives Note 9 page 221 Investment securities Note 10 page 223 Securities financing activities Note 11 page 229 Loans Note 12 page 232 Allowance for credit losses Note 13 page 248 Variable interest entities Note 14 page 253 Goodwill and Mortgage servicing rights Note 15 page 261 Premises and equipment Note 16 page 265 Leases Note 18 page 266 Long-term debt Note 20 page 269 Earnings per share Note 23 page 274 Income taxes Note 25 page 277 Off–balance sheet lending-related financial instruments, guarantees and other commitments Note 28 page 283 Litigation Note 30 page 290 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value methodologies | The following table describes the valuation methodologies generally used by the Firm to measure its significant products/instruments at fair value, including the general classification of such instruments pursuant to the valuation hierarchy. Product/instrument Valuation methodology Classifications in the valuation hierarchy Securities financing agreements Valuations are based on discounted cash flows, which consider: Predominantly level 2 • Derivative features: refer to the discussion of derivatives below for further information. • Market rates for the respective maturity • Collateral characteristics Loans and lending-related commitments — wholesale Loans carried at fair value Where observable market data is available, valuations are based on: Level 2 or 3 • Observed market prices (circumstances are infrequent) • Relevant broker quotes • Observed market prices for similar instruments Where observable market data is unavailable or limited, valuations are based on discounted cash flows, which consider the following: • Credit spreads derived from the cost of CDS; or benchmark credit curves developed by the Firm, by industry and credit rating • Prepayment speed • Collateral characteristics Loans — consumer Loans carried at fair value — conforming residential mortgage loans expected to be sold Fair value is based on observable prices for mortgage-backed securities with similar collateral and incorporates adjustments to these prices to account for differences between the securities and the value of the underlying loans, which include credit characteristics, portfolio composition, and liquidity. Predominantly level 2 Investment and trading securities Quoted market prices Level 1 In the absence of quoted market prices, securities are valued based on: Level 2 or 3 • Observable market prices for similar securities • Relevant broker quotes • Discounted cash flows In addition, the following inputs to discounted cash flows are used for the following products: Mortgage- and asset-backed securities specific inputs: • Collateral characteristics • Deal-specific payment and loss allocations • Current market assumptions related to yield, prepayment speed, conditional default rates and loss severity Collateralized loan obligations (“CLOs”) specific inputs: • Collateral characteristics • Deal-specific payment and loss allocations • Expected prepayment speed, conditional default rates, loss severity • Credit spreads • Credit rating data Physical commodities Valued using observable market prices or data. Level 1 or 2 Product/instrument Valuation methodology Classifications in the valuation hierarchy Derivatives Exchange-traded derivatives that are actively traded and valued using the exchange price. Level 1 Derivatives that are valued using models such as the Black-Scholes option pricing model, simulation models, or a combination of models that may use observable or unobservable valuation inputs as well as considering the contractual terms. Level 2 or 3 In addition, specific inputs used for derivatives that are valued based on models with significant unobservable inputs are as follows: Structured credit derivatives specific inputs include: • CDS spreads and recovery rates • Credit correlation between the underlying debt instruments Equity option specific inputs include: • Forward equity price • Equity volatility • Equity correlation • Equity-FX correlation • Equity-IR correlation Interest rate and FX exotic options specific inputs include: • Interest rate volatility • Interest rate spread volatility • Interest rate correlation • Foreign exchange correlation • Interest rate-FX correlation Commodity derivatives specific inputs include: • Commodity volatility • Forward commodity price • Commodity correlation Additionally, adjustments are made to reflect counterparty credit quality (CVA) and the impact of funding (FVA). Refer to page 188 of this Note. Mortgage servicing rights Refer to Mortgage servicing rights in Note 15. Level 3 Private equity direct investments Fair value is estimated using all available information; the range of potential inputs include: Level 2 or 3 • Transaction prices • Trading multiples of comparable public companies • Operating performance of the underlying portfolio company • Adjustments as required, since comparable public companies are not identical to the company being valued, and for company-specific issues and lack of liquidity. • Additional available inputs relevant to the investment. Fund investments (e.g., mutual/collective investment funds, private equity funds, hedge funds, and real estate funds) Net asset value • NAV is supported by the ability to redeem and purchase at the NAV level. Level 1 • Adjustments to the NAV as required, for restrictions on redemption (e.g., lock-up periods or withdrawal limitations) or where observable activity is limited. Level 2 or 3 (a) Beneficial interests issued by consolidated VIEs Valued using observable market information, where available. Level 2 or 3 In the absence of observable market information, valuations are based on the fair value of the underlying assets held by the VIE. (a) Excludes certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient. Product/instrument Valuation methodology Classification in the valuation hierarchy Structured notes (included in deposits, short-term borrowings and long-term debt) • Valuations are based on discounted cash flow analyses that consider the embedded derivative and the terms and payment structure of the note. • The embedded derivative features are considered using models such as the Black-Scholes option pricing model, simulation models, or a combination of models that may use observable or unobservable valuation inputs, depending on the embedded derivative. The specific inputs used vary according to the nature of the embedded derivative features, as described in the discussion above regarding derivatives valuation. Adjustments are then made to this base valuation to reflect the Firm’s own credit risk (DVA). Refer to page 188 of this Note. Level 2 or 3 |
Assets and liabilities measured at fair value on a recurring basis | The following table presents the assets and liabilities reported at fair value as of December 31, 2020 and 2019, by major product category and fair value hierarchy. Assets and liabilities measured at fair value on a recurring basis Fair value hierarchy December 31, 2020 (in millions) Level 1 Level 2 Level 3 Derivative netting adjustments (g) Total fair value Federal funds sold and securities purchased under resale agreements $ — $ 238,015 $ — $ — $ 238,015 Securities borrowed — 52,983 — — 52,983 Trading assets: Debt instruments: Mortgage-backed securities: U.S. GSEs and government agencies (a) — 68,395 449 — 68,844 Residential – nonagency — 2,138 28 — 2,166 Commercial – nonagency — 1,327 3 — 1,330 Total mortgage-backed securities — 71,860 480 — 72,340 U.S. Treasury, GSEs and government agencies (a) 104,263 10,996 — — 115,259 Obligations of U.S. states and municipalities — 7,184 8 — 7,192 Certificates of deposit, bankers’ acceptances and commercial paper — 1,230 — — 1,230 Non-U.S. government debt securities 26,772 40,671 182 — 67,625 Corporate debt securities — 21,017 507 — 21,524 Loans (b) — 6,101 893 — 6,994 Asset-backed securities — 2,304 28 — 2,332 Total debt instruments 131,035 161,363 2,098 — 294,496 Equity securities 97,035 2,652 179 — 99,866 Physical commodities (c) 6,382 5,189 — — 11,571 Other — 17,165 346 — 17,511 Total debt and equity instruments (d) 234,452 186,369 2,623 — 423,444 Derivative receivables: Interest rate 2,318 386,865 2,307 (355,765) 35,725 Credit — 12,879 624 (12,823) 680 Foreign exchange 146 205,127 987 (190,479) 15,781 Equity — 71,279 3,519 (54,125) 20,673 Commodity — 21,272 231 (14,732) 6,771 Total derivative receivables 2,464 697,422 7,668 (627,924) 79,630 Total trading assets (e) 236,916 883,791 10,291 (627,924) 503,074 Available-for-sale securities: Mortgage-backed securities: U.S. GSEs and government agencies (a) 21,018 92,283 — — 113,301 Residential – nonagency — 10,233 — — 10,233 Commercial – nonagency — 2,856 — — 2,856 Total mortgage-backed securities 21,018 105,372 — — 126,390 U.S. Treasury and government agencies 201,951 — — — 201,951 Obligations of U.S. states and municipalities — 20,396 — — 20,396 Certificates of deposit — — — — — Non-U.S. government debt securities 13,135 9,793 — — 22,928 Corporate debt securities — 216 — — 216 Asset-backed securities: Collateralized loan obligations — 10,048 — — 10,048 Other — 6,249 — — 6,249 Total available-for-sale securities 236,104 152,074 — — 388,178 Loans (b)(f) — 42,169 2,305 — 44,474 Mortgage servicing rights — — 3,276 — 3,276 Other assets (b)(e) 8,110 4,561 538 — 13,209 Total assets measured at fair value on a recurring basis $ 481,130 $ 1,373,593 $ 16,410 $ (627,924) $ 1,243,209 Deposits $ — $ 11,571 $ 2,913 $ — $ 14,484 Federal funds purchased and securities loaned or sold under repurchase agreements — 155,735 — — 155,735 Short-term borrowings — 14,473 2,420 — 16,893 Trading liabilities: Debt and equity instruments (d) 82,669 16,838 51 — 99,558 Derivative payables: Interest rate 2,496 349,082 2,049 (340,615) 13,012 Credit — 14,344 848 (13,197) 1,995 Foreign exchange 132 214,373 1,421 (194,493) 21,433 Equity — 74,032 7,381 (55,515) 25,898 Commodity — 21,767 962 (14,444) 8,285 Total derivative payables 2,628 673,598 12,661 (618,264) 70,623 Total trading liabilities 85,297 690,436 12,712 (618,264) 170,181 Accounts payable and other liabilities 2,895 513 68 — 3,476 Beneficial interests issued by consolidated VIEs — 41 — — 41 Long-term debt — 53,420 23,397 — 76,817 Total liabilities measured at fair value on a recurring basis $ 88,192 $ 926,189 $ 41,510 $ (618,264) $ 437,627 Fair value hierarchy December 31, 2019 (in millions) Level 1 Level 2 Level 3 Derivative netting adjustments (g) 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 December 31, 2020 and 2019, included total U.S. GSE obligations of $117.6 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 December 31, 2020 and 2019, the fair values of these investments, which include certain hedge funds, private equity funds, real estate and other funds, were $670 million and $684 million, respectively. Included in these balances at December 31, 2020 and 2019, were trading assets of $52 million and $54 million, respectively, and other assets of $618 million and $630 million, respectively. (f) At December 31, 2020 and 2019, included within loans were $15.1 billion and $19.8 billion, respectively, of residential first-lien mortgages, and $6.3 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 $8.4 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 | 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. Level 3 inputs (a) December 31, 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) $ 1,282 Discounted cash flows Yield 0% – 18% 6% Prepayment speed 0% – 46% 10% Conditional default rate 0% – 30% 14% Loss severity 0% – 107% 7% Commercial mortgage-backed securities and loans (c) 466 Market comparables Price $0 – $101 $84 Corporate debt securities 507 Market comparables Price $2 – $116 $85 Loans (d) 1,930 Market comparables Price $10 – $104 $72 Asset-backed securities 28 Market comparables Price $1 – $97 $57 Net interest rate derivatives 238 Option pricing Interest rate volatility 7bps – 513bps 101bps Interest rate spread volatility 11bps – 23bps 15bps Interest rate correlation (65)% – 99% 35% IR-FX correlation (35)% – 50% 0% 20 Discounted cash flows Prepayment speed 0% – 30% 8% Net credit derivatives (260) Discounted cash flows Credit correlation 34% – 65% 48% Credit spread 3bps – 1,302bps 441bps Recovery rate 0% – 67% 46% Conditional default rate 2% – 100% 58% Loss severity 100% 100% 36 Market comparables Price $1 – $115 $71 Net foreign exchange derivatives (298) Option pricing IR-FX correlation (40)% – 65% 18% (136) Discounted cash flows Prepayment speed 9% 9% Net equity derivatives (3,862) Option pricing Forward equity price (h) 61% – 106% 99% Equity volatility 5% – 138% 35% Equity correlation 18% – 99% 60% Equity-FX correlation (79)% – 55% (27)% Equity-IR correlation 20% – 50% 28% Net commodity derivatives (731) Option pricing Oil Commodity Forward $600 / MT – $609 / MT $605 / MT Forward power price $12 / MWH – $55 / MWH $34 / MWH Commodity volatility 1% – 58% 29% Commodity correlation (49)% – 95% 23% MSRs 3,276 Discounted cash flows Refer to Note 15 Other assets 299 Discounted cash flows Credit spread 45bps 45bps Yield 4% 30% 7% 585 Market comparables Price $29 – $29 $29 Long-term debt, short-term borrowings, and deposits (e) 27,912 Option pricing Interest rate volatility 7bps – 513bps 101bps Interest rate correlation (65)% – 99% 35% IR-FX correlation (35)% – 50% 0% Equity correlation 18% – 99% 60% Equity-FX correlation (79)% – 55% (27)% Equity-IR correlation 20% – 50% 28% 818 Discounted cash flows Credit correlation 34% – 65% 48% 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 $449 million, nonagency securities of $28 million and non-trading loans of $805 million. (c) Comprises nonagency securities of $3 million, trading loans of $43 million and non-trading loans of $420 million. (d) Comprises trading loans of $850 million and non-trading loans of $1.1 billion. (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 years ended December 31, 2020, 2019 and 2018. 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 Year ended Fair value at January 1, 2020 Total realized/unrealized gains/(losses) Transfers into (i) Transfers (out of) level 3 (i) Fair value at Dec. 31, 2020 Change in unrealized gains/(losses) related to financial instruments held at Dec. 31, 2020 Purchases (g) Sales Settlements (h) Assets: (a) Trading assets: Debt instruments: Mortgage-backed securities: U.S. GSEs and government agencies $ 797 $ (172) $ 134 $ (149) $ (161) $ — $ — $ 449 $ (150) Residential – nonagency 23 2 15 (5) (4) — (3) 28 (1) Commercial – nonagency 4 — 1 — (1) 2 (3) 3 — Total mortgage-backed securities 824 (170) 150 (154) (166) 2 (6) 480 (151) U.S. Treasury, GSEs and government agencies — — — — — — — — — Obligations of U.S. states and municipalities 10 — — (1) (1) — — 8 — Non-U.S. government debt securities 155 21 281 (245) (7) — (23) 182 11 Corporate debt securities 558 (23) 582 (205) (236) 411 (580) 507 (25) Loans (b) 673 (73) 1,112 (484) (182) 791 (944) 893 (40) Asset-backed securities 37 (3) 44 (40) (9) 9 (10) 28 (4) Total debt instruments 2,257 (248) 2,169 (1,129) (601) 1,213 (1,563) 2,098 (209) Equity securities 196 (75) 53 (376) (1) 535 (153) 179 (20) Other 232 271 245 (9) (154) 6 (245) 346 206 Total trading assets – debt and equity instruments 2,685 (52) (d) 2,467 (1,514) (756) 1,754 (1,961) 2,623 (23) (d) Net derivative receivables: (c) Interest rate (332) 2,682 308 (148) (2,228) (332) 308 258 325 Credit (139) (212) 73 (154) 181 59 (32) (224) (110) Foreign exchange (607) 49 49 (24) 83 13 3 (434) 116 Equity (3,395) (65) 1,664 (2,317) 1,162 (935) 24 (3,862) (556) Commodity (16) (546) 27 (241) 356 (310) (1) (731) 267 Total net derivative receivables (4,489) 1,908 (d) 2,121 (2,884) (446) (1,505) 302 (4,993) 42 (d) Available-for-sale securities: Mortgage-backed securities 1 — — — (1) — — — — Asset-backed securities — — — — — — — — — Total available-for-sale securities 1 — — — (1) — — — — Loans (b) 516 (243) (d) 962 (84) (733) 2,571 (684) 2,305 (18) (d) Mortgage servicing rights 4,699 (1,540) (e) 1,192 (176) (899) — — 3,276 (1,540) (e) Other assets (b) 917 (63) (d) 75 (104) (320) 40 (7) 538 (3) (d) Fair value measurements using significant unobservable inputs Year ended Fair value at January 1, 2020 Total realized/unrealized (gains)/losses Transfers (out of) level 3 (i) Fair value at Dec. 31, 2020 Change in unrealized (gains)/losses related to financial instruments held at Dec. 31, 2020 Purchases Sales Issuances Settlements (h) Transfers into (i) Liabilities: (a) Deposits $ 3,360 $ 165 (d)(f) $ — $ — $ 671 $ (605) $ 265 $ (943) $ 2,913 $ 455 (d)(f) Short-term borrowings 1,674 (338) (d)(f) — — 5,140 (4,115) 105 (46) 2,420 143 (d)(f) Trading liabilities – debt and equity instruments 41 (2) (d) (126) 14 — (4) 136 (8) 51 (1) (d) Accounts payable and other liabilities 45 33 (d) (87) 37 — — 47 (7) 68 28 (d) Beneficial interests issued by consolidated VIEs — — — — — — — — — — Long-term debt 23,339 40 (d)(f) — — 9,883 (9,833) 1,250 (1,282) 23,397 1,920 (d)(f) Fair value measurements using significant unobservable inputs Year ended Fair value at January 1, 2019 Total realized/unrealized gains/(losses) Transfers (out of) level 3 (i) Fair value at Dec. 31, 2019 Change in unrealized gains/(losses) related to financial instruments held at Dec. 31, 2019 Purchases (g) Sales Settlements (h) Transfers into (i) Assets: (a) Trading assets: Debt instruments: Mortgage-backed securities: U.S. GSEs and government agencies $ 549 $ (62) $ 773 $ (310) $ (134) $ 1 $ (20) $ 797 $ (58) Residential – nonagency 64 25 83 (86) (20) 15 (58) 23 2 Commercial – nonagency 11 2 20 (26) (14) 15 (4) 4 1 Total mortgage-backed securities 624 (35) 876 (422) (168) 31 (82) 824 (55) U.S. Treasury, GSEs and government agencies — — — — — — — — — Obligations of U.S. states and municipalities 689 13 85 (159) (8) — (610) 10 13 Non-U.S. government debt securities 155 1 290 (287) — 14 (18) 155 4 Corporate debt securities 334 47 437 (247) (52) 112 (73) 558 40 Loans (b) 738 29 456 (519) (82) 437 (386) 673 13 Asset-backed securities 127 — 37 (93) (40) 28 (22) 37 (3) Total debt instruments 2,667 55 2,181 (1,727) (350) 622 (1,191) 2,257 12 Equity securities 232 (41) 58 (103) (22) 181 (109) 196 (18) Other 301 (36) 50 (26) (54) 2 (5) 232 91 Total trading assets – debt and equity instruments 3,200 (22) (d) 2,289 (1,856) (426) 805 (1,305) 2,685 85 (d) Net derivative receivables: (c) Interest rate (38) (394) 109 (125) 5 (7) 118 (332) (599) Credit (107) (36) 20 (9) 8 29 (44) (139) (127) Foreign exchange (297) (551) 17 (67) 312 (22) 1 (607) (380) Equity (2,225) (310) 397 (573) (503) (405) 224 (3,395) (1,608) Commodity (1,129) 497 36 (348) 89 (6) 845 (16) 130 Total net derivative receivables (3,796) (794) (d) 579 (1,122) (89) (411) 1,144 (4,489) (2,584) (d) Available-for-sale securities: Mortgage-backed securities 1 — — — — — — 1 — Asset-backed securities — — — — — — — — — Total available-for-sale securities 1 — — — — — — 1 — Loans (b) 856 59 (d) 236 (188) (482) 188 (153) 516 38 (d) Mortgage servicing rights 6,130 (1,180) (e) 1,489 (789) (951) — — 4,699 (1,180) (e) Other assets (b) 1,161 (150) (d) 229 (166) (156) 6 (7) 917 (180) (d) Fair value measurements using significant unobservable inputs Year ended Fair value at January 1, 2019 Total realized/unrealized (gains)/losses Transfers (out of) level 3 (i) Fair value at Dec. 31, 2019 Change in unrealized (gains)/losses related to financial instruments held at Dec. 31, 2019 Purchases Sales Issuances Settlements (h) Transfers into (i) Liabilities: (a) Deposits $ 4,169 $ 278 (d)(f) $ — $ — $ 916 $ (806) $ 12 $ (1,209) $ 3,360 $ 307 (d)(f) Short-term borrowings 1,523 229 (d)(f) — — 3,441 (3,356) 85 (248) 1,674 155 (d)(f) Trading liabilities – debt and equity instruments 50 2 (d) (22) 41 — 1 16 (47) 41 3 (d) Accounts payable and other liabilities 10 (2) (d) (84) 115 — — 6 — 45 29 (d) Beneficial interests issued by consolidated VIEs 1 (1) (d) — — — — — — — — Long-term debt 19,418 2,815 (d)(f) — — 10,441 (8,538) 651 (1,448) 23,339 2,822 (d)(f) Fair value measurements using significant unobservable inputs Year ended Fair value at January 1, 2018 Total realized/unrealized gains/(losses) Transfers (out of) level 3 (i) Fair value at Change in unrealized gains/(losses) related to financial instruments held at Dec. 31, 2018 Purchases (g) Sales Settlements (h) Transfers into (i) Assets: (a) Trading assets: Debt instruments: Mortgage-backed securities: U.S. GSEs and government agencies $ 307 $ (23) $ 478 $ (164) $ (73) $ 94 $ (70) $ 549 $ (21) Residential – nonagency 60 (2) 78 (50) (7) 59 (74) 64 1 Commercial – nonagency 11 2 18 (18) (17) 36 (21) 11 (2) Total mortgage-backed securities 378 (23) 574 (232) (97) 189 (165) 624 (22) U.S. Treasury, GSEs and government agencies 1 — — — — — (1) — — Obligations of U.S. states and municipalities 744 (17) 112 (70) (80) — — 689 (17) Non-U.S. government debt securities 78 (22) 459 (277) (12) 23 (94) 155 (9) Corporate debt securities 312 (18) 364 (309) (48) 262 (229) 334 (1) Loans (b) 612 1 941 (536) (219) 619 (680) 738 (13) Asset-backed securities 153 28 98 (41) (55) 45 (101) 127 22 Total debt instruments 2,278 (51) 2,548 (1,465) (511) 1,138 (1,270) 2,667 (40) Equity securities 295 (40) 118 (120) (1) 107 (127) 232 9 Other 690 (285) 55 (40) (118) 3 (4) 301 (301) Total trading assets – debt and equity instruments 3,263 (376) (d) 2,721 (1,625) (630) 1,248 (1,401) 3,200 (332) (d) Net derivative receivables: (c) Interest rate 264 150 107 (133) (430) (15) 19 (38) 187 Credit (35) (40) 5 (7) (57) 4 23 (107) (28) Foreign exchange (396) 103 52 (20) 30 (108) 42 (297) (63) Equity (3,409) 198 1,676 (2,208) 1,805 (617) 330 (2,225) 561 Commodity (674) (73) 1 (72) (301) 7 (17) (1,129) 146 Total net derivative receivables (4,250) 338 (d) 1,841 (2,440) 1,047 (729) 397 (3,796) 803 (d) Available-for-sale securities: — Mortgage-backed securities 1 — — — — — — 1 — Asset-backed securities 276 1 — — (277) — — — — Total available-for-sale securities 277 1 (j) — — (277) — — 1 — Loans (b) 2,152 9 (d) 412 (1,256) (496) 194 (159) 856 (4) (d) Mortgage servicing rights 6,030 230 (e) 1,246 (636) (740) — — 6,130 230 (e) Other assets (b) 1,496 (319) (d) 195 (38) (176) 4 (1) 1,161 (331) (d) Fair value measurements using significant unobservable inputs Year ended Fair value at January 1, 2018 Total realized/unrealized (gains)/losses Transfers into level 3 (i) Transfers (out of) level 3 (i) Fair value at Dec. 31, 2018 Change in unrealized (gains)/losses related to financial instruments held at Dec. 31, 2018 Purchases Sales Issuances Settlements (h) Liabilities: (a) Deposits $ 4,142 $ (136) (d)(f) $ — $ — $ 1,437 $ (736) $ 2 $ (540) $ 4,169 $ (204) (d)(f) Short-term borrowings 1,665 (329) (d)(f) — — 3,455 (3,388) 272 (152) 1,523 (131) (d)(f) Trading liabilities – debt and equity instruments 39 19 (d) (99) 114 — (1) 14 (36) 50 16 (d) Accounts payable and other liabilities 13 — (12) 5 — — 4 — 10 — Beneficial interests issued by consolidated VIEs 39 — — 1 — (39) — — 1 — Long-term debt 16,125 (1,169) (d)(f) — — 11,919 (7,769) 1,143 (831) 19,418 (1,385) (d)(f) (a) Level 3 assets at fair value as a percentage of total Firm assets accounted for at fair value (including assets measured at fair value on a nonrecurring basis) were 1%, 2% and 3% at December 31, 2020, 2019 and 2018, 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%, 16% and 15% at December 31, 2020, 2019 and 2018, 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 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 they were not material for the years ended December 31, 2020, 2019 and 2018, respectively. Unrealized (gains)/losses are reported in OCI, and they were $221 million, $319 million and $(277) million for the years ended December 31, 2020, 2019 and 2018, 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, deconsolidation 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. (j) Realized gains/(losses) on AFS securities, as well as other-than-temporary impairment (“OTTI”) losses that are recorded in earnings, are reported in investment securities gains/(losses). Unrealized gains/(losses) are reported in OCI. There were no realized gains/(losses) and foreign exchange hedge accounting adjustments recorded in income on AFS securities for the years ended December 31, 2020 and 2019, respectively and $1 million recorded for the year ended December 31, 2018. There were no material unrealized gains/(losses) recorded on AFS securities in OCI for the years ended December 31, 2020, 2019 and 2018 respectively. |
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. Year ended December 31, 2020 2019 2018 Credit and funding adjustments: Derivatives CVA $ (337) $ 241 $ 193 Derivatives FVA (64) 199 (74) |
Assets and liabilities measured at fair value on a nonrecurring basis | The following tables present the assets and liabilities held as of December 31, 2020 and 2019, respectively, for which nonrecurring fair value adjustments were recorded during the years ended December 31, 2020 and 2019, respectively, by major product category and fair value hierarchy. Fair value hierarchy Total fair value December 31, 2020 (in millions) Level 1 Level 2 Level 3 Loans $ — $ 1,611 (c) $ 972 (d) $ 2,583 Other assets (a) — 5 979 984 Total assets measured at fair value on a nonrecurring basis $ — $ 1,616 $ 1,951 $ 3,567 Accounts payable and other liabilities (b) — — 12 12 Total liabilities measured at fair value on a nonrecurring basis $ — $ — $ 12 $ 12 Fair value hierarchy Total fair value December 31, 2019 (in millions) Level 1 Level 2 Level 3 Loans $ — $ 3,462 (c) $ 269 $ 3,731 Other assets — 14 1,043 (e) 1,057 Total assets measured at fair value on a nonrecurring basis $ — $ 3,476 $ 1,312 $ 4,788 (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 $979 million in level 3 assets measured at fair value on a nonrecurring basis as of December 31, 2020, $535 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) There were no liabilities measured at fair value on a nonrecurring basis at December 31, 2019. (c) Primarily includes certain mortgage loans that were reclassified to held-for-sale. (d) Of the $972 million in level 3 assets measured at fair value on a nonrecurring basis as of December 31, 2020, $602 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 13% to 46% with a weighted average of 27%. (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 years ended December 31, 2020, 2019 and 2018, related to assets and liabilities held at those dates. December 31, (in millions) 2020 2019 2018 Loans (a) $ (393) $ (274) $ (68) Other assets (b) (529) 182 (c) 132 Accounts payable and other liabilities (11) — — Total nonrecurring fair value gains/(losses) $ (933) $ (92) $ 64 (a) Includes the impact of certain mortgage loans that were reclassified to held-for-sale. (b) Included $(134) million, $201 million and $149 million for the years ended December 31, 2020, 2019 and 2018, respectively,of net (losses)/gains as a result of the measurement alternative. (c) Prior-period amounts have been revised to conform with the current presentation. |
Carrying value of equity securities without readily determinable fair values | The following table presents the carrying value of equity securities without readily determinable fair values held as of December 31, 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. As of or for the year ended December 31, (in millions) 2020 2019 Other assets Carrying value (a) $ 2,368 $ 2,441 Upward carrying value changes (b) 167 243 (d) Downward carrying value changes/impairment (c) (301) (42) (a) 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 December 31, 2020 were $708 million. (c) The cumulative downward carrying value changes/impairment between January 1, 2018 and December 31, 2020 were $(430) 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 December 31, 2020 and 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. December 31, 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 $ 24.9 $ 24.9 $ — $ — $ 24.9 $ 21.7 $ 21.7 $ — $ — $ 21.7 Deposits with banks 502.7 502.7 — — 502.7 241.9 241.9 — — 241.9 Accrued interest and accounts receivable 89.4 — 89.3 0.1 89.4 71.3 — 71.2 0.1 71.3 Federal funds sold and securities purchased under resale agreements 58.3 — 58.3 — 58.3 234.6 — 234.6 — 234.6 Securities borrowed 107.7 — 107.7 — 107.7 133.5 — 133.5 — 133.5 Investment securities, held-to-maturity 201.8 53.2 152.3 — 205.5 47.5 0.1 48.8 — 48.9 Loans, net of allowance for loan losses (a) 940.1 — 210.9 755.6 966.5 939.5 — 214.1 734.9 949.0 Other 81.8 — 80.0 1.9 81.9 61.3 — 60.6 0.8 61.4 Financial liabilities Deposits $ 2,129.8 $ — $ 2,128.9 $ — $ 2,128.9 $ 1,533.8 $ — $ 1,534.1 $ — $ 1,534.1 Federal funds purchased and securities loaned or sold under repurchase agreements 59.5 — 59.5 — 59.5 183.1 — 183.1 — 183.1 Short-term borrowings 28.3 — 28.3 — 28.3 35.0 — 35.0 — 35.0 Accounts payable and other liabilities 186.6 — 181.9 4.3 186.2 164.0 0.1 160.0 3.5 163.6 Beneficial interests issued by consolidated VIEs 17.5 — 17.6 — 17.6 17.8 — 17.9 — 17.9 Long-term debt 204.8 — 209.2 3.2 212.4 215.5 — 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. December 31, 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)(b) Level 1 Level 2 Level 3 Total estimated fair value Wholesale lending-related commitments $ 2.2 $ — $ — $ 2.1 $ 2.1 $ 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. |
Fair Value Option (Tables)
Fair Value Option (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2020, 2019 and 2018, 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. 2020 2019 2018 December 31, (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) Principal transactions All other income Total changes in fair value recorded (f) Federal funds sold and securities purchased under resale agreements $ 12 $ — $ 12 $ (36) $ — $ (36) $ (35) $ — $ (35) Securities borrowed 143 — 143 133 — 133 22 — 22 Trading assets: Debt and equity instruments, excluding loans 1,546 (1) (d) 1,545 2,482 (1) (d) 2,481 (1,680) 1 (d) (1,679) Loans reported as trading assets: Changes in instrument-specific credit risk (a) 135 — 135 248 — 248 15 — 15 Other changes in fair value (a) (19) — (19) (1) — (1) 28 — 28 Loans: Changes in instrument-specific credit risk (a) 190 7 (d) 197 475 2 (d) 477 385 1 (d) 386 Other changes in fair value (a) 470 3,239 (d) 3,709 267 1,224 (d) 1,491 138 185 (d) 323 Other assets (a) 103 (65) (e) 38 8 6 (e) 14 11 (45) (e) (34) Deposits (b) (726) — (726) (1,730) — (1,730) 181 — 181 Federal funds purchased and securities loaned or sold under repurchase agreements (6) — (6) (8) — (8) 11 — 11 Short-term borrowings (b) 294 — 294 (693) — (693) 862 — 862 Trading liabilities 2 — 2 6 — 6 1 — 1 Other liabilities (94) — (94) (16) — (16) — — — Long-term debt (b)(c) (2,120) (1) (d) (2,121) (6,173) 1 (d) (6,172) 2,695 — 2,695 (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 and subsequently recorded in principal transactions revenue when realized. Realized gains/(losses) due to instrument-specific credit risk recorded in principal transactions revenue were $20 million for the year ended December 31,2020 and were not material for the years ended December 31, 2019 and 2018. (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 December 31, 2020 and 2019, for loans, long-term debt and long-term beneficial interests for which the fair value option has been elected. 2020 2019 December 31, (in millions) Contractual principal outstanding Fair value Fair value over/(under) contractual principal outstanding Contractual principal outstanding Fair value Fair value over/(under) contractual principal outstanding Loans Nonaccrual loans Loans reported as trading assets (a) $ 3,386 $ 555 $ (2,831) $ 2,563 $ 234 $ (2,329) Loans (a) 1,867 1,507 (360) 964 696 (268) Subtotal 5,253 2,062 (3,191) 3,527 930 (2,597) 90 or more days past due and government guaranteed (b) Loans reported as trading assets — — — — — — Loans 328 317 (11) 138 129 (9) Subtotal 328 317 (11) 138 129 (9) All other performing loans (c) Loans reported as trading assets (a) 7,917 6,439 (1,478) 8,288 6,779 (1,509) Loans (a) 42,022 42,650 628 43,955 44,130 175 Subtotal 49,939 49,089 (850) 52,243 50,909 (1,334) Total loans $ 55,520 $ 51,468 $ (4,052) $ 55,908 $ 51,968 $ (3,940) Long-term debt Principal-protected debt $ 40,560 (e) $ 40,526 $ (34) $ 40,124 (e) $ 39,246 $ (878) Nonprincipal-protected debt (d) NA 36,291 NA NA 36,499 NA Total long-term debt NA $ 76,817 NA NA $ 75,745 NA Long-term beneficial interests Nonprincipal-protected debt (d) NA $ 41 NA NA $ 36 NA Total long-term beneficial interests NA $ 41 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 December 31, 2020 and 2019. (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. December 31, 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 $ 38,129 $ 65 $ 5,057 $ 43,251 $ 35,470 $ 34 $ 16,692 $ 52,196 Credit 6,409 1,022 — 7,431 5,715 875 — 6,590 Foreign exchange 3,613 92 — 3,705 3,862 48 5 3,915 Equity 26,943 5,021 6,893 38,857 29,294 4,852 8,177 42,323 Commodity 250 13 232 495 472 32 1,454 1,958 Total structured notes $ 75,344 $ 6,213 $ 12,182 $ 93,739 $ 74,813 $ 5,841 $ 26,328 $ 106,982 |
Credit Risk Concentrations (Tab
Credit Risk Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Concentrations of credit exposure | The table below presents both on–balance sheet and off–balance sheet consumer and wholesale credit exposure by the Firm’s three credit portfolio segments as of December 31, 2020 and 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. 2020 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) December 31, (in millions) Loans (i) Derivatives Loans (i) Derivatives Consumer, excluding credit card $ 375,898 $ 318,579 (j) $ — $ 57,319 $ 357,986 $ 317,817 $ — $ 40,169 Credit card (a) 802,722 144,216 — 658,506 819,644 168,924 — 650,720 Total consumer-related (a) 1,178,620 462,795 — 715,825 1,177,630 486,741 — 690,889 Wholesale-related (b) Real Estate 148,498 118,299 1,385 28,814 150,919 117,709 619 32,591 Individuals and Individual Entities (c) 122,870 109,746 1,750 11,374 105,027 94,616 694 9,717 Consumer & Retail 108,437 39,013 2,802 66,622 106,986 36,985 1,424 68,577 Technology, Media & 72,150 14,687 4,252 53,211 60,033 15,322 2,766 41,945 Asset Managers 66,573 31,059 9,277 26,237 54,304 24,008 7,160 23,136 Industrials 66,470 21,143 1,851 43,476 62,483 22,063 878 39,542 Healthcare 60,118 19,405 3,252 37,461 50,824 17,607 2,078 31,139 Banks & Finance Cos 54,032 31,004 8,044 14,984 50,786 31,191 5,165 14,430 Automotive 43,331 17,128 5,995 20,208 35,118 18,844 368 15,906 Oil & Gas 39,159 11,267 1,643 26,249 41,641 13,101 852 27,688 State & Municipal Govt (d) 38,286 18,054 2,347 17,885 30,095 13,271 2,000 14,824 Utilities 30,124 4,874 3,340 21,910 34,843 5,157 2,573 27,113 Chemicals & Plastics 17,176 4,884 856 11,436 17,499 4,864 459 12,176 Central Govt 17,025 3,396 12,313 1,316 14,865 2,840 10,477 1,548 Transportation 16,232 6,566 1,495 8,171 14,497 5,253 715 8,529 Metals & Mining 15,542 4,854 882 9,806 15,586 5,364 402 9,820 Insurance 13,141 1,042 2,527 9,572 12,348 1,356 2,282 8,710 Securities Firms 8,048 469 4,838 2,741 7,381 757 4,507 2,117 Financial Markets Infrastructure 6,515 19 3,757 2,739 4,121 13 2,482 1,626 All other (e) 100,713 58,038 7,024 35,651 79,598 51,357 1,865 26,376 Subtotal 1,044,440 514,947 79,630 449,863 948,954 481,678 49,766 417,510 Loans held-for-sale and loans at fair value 35,111 35,111 — — 29,201 29,201 — — Receivables from customers (f) 47,710 — — — 33,706 — — — Total wholesale-related 1,127,261 550,058 79,630 449,863 1,011,861 510,879 49,766 417,510 Total exposure (g)(h) $ 2,305,881 $ 1,012,853 $ 79,630 $ 1,165,688 $ 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 December 31, 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 December 31, 2020 and 2019, noted above, the Firm held: $7.2 billion and $6.5 billion, respectively, of trading assets; $20.4 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 92% and 8%, respectively, at December 31, 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, CCB 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). Because of this collateralization, no allowance for credit losses is generally held against these receivables. To manage its credit risk the Firm establishes margin requirements and monitors the required margin levels on an ongoing basis, and requires clients to deposit additional cash or other collateral, or to reduce positions, when appropriate. These receivables are reported within accrued interest and accounts receivable on the Firm’s Consolidated balance sheets. (g) Excludes cash placed with banks of $516.9 billion and $254.0 billion, at December 31, 2020 and 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 cash 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, which resulted in a corresponding reclassification of certain off-balance sheet commitments. Prior-period amounts have been revised to conform with the current presentation. (j) At December 31, 2020, included $19.2 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. (k) Represents lending-related financial instruments. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 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 segment or unit Page reference Manage specifically identified risk exposures in qualifying hedge accounting relationships: • Interest rate Hedge fixed rate assets and liabilities Fair value hedge Corporate 206-207 • Interest rate Hedge floating-rate assets and liabilities Cash flow hedge Corporate 208 • Foreign exchange Hedge foreign currency-denominated assets and liabilities Fair value hedge Corporate 206-207 • Foreign exchange Hedge foreign currency-denominated forecasted revenue and expense Cash flow hedge Corporate 208 • Foreign exchange Hedge the value of the Firm’s investments in non-U.S. dollar functional currency entities Net investment hedge Corporate 208 • Commodity Hedge commodity inventory Fair value hedge CIB 206-207 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 209 • Credit Manage the credit risk associated with wholesale lending exposures Specified risk management CIB 209 • Interest rate and foreign exchange Manage the risk associated with certain other specified assets and liabilities Specified risk management Corporate 209 Market-making derivatives and other activities: • Various Market-making and related risk management Market-making and other CIB 209 • Various Other derivatives Market-making and other CIB, AWM, Corporate 209 |
Notional amount of derivative contracts | The following table summarizes the notional amount of derivative contracts outstanding as of December 31, 2020 and 2019. Notional amounts (b) December 31, (in billions) 2020 2019 Interest rate contracts Swaps $ 20,986 $ 21,228 Futures and forwards 3,057 3,152 Written options 3,375 3,938 Purchased options 3,675 4,361 Total interest rate contracts 31,093 32,679 Credit derivatives (a) 1,201 1,242 Foreign exchange contracts Cross-currency swaps 3,924 3,604 Spot, futures and forwards 6,871 5,577 Written options 830 700 Purchased options 825 718 Total foreign exchange contracts 12,450 10,599 Equity contracts Swaps 448 406 Futures and forwards 140 142 Written options 676 646 Purchased options 621 611 Total equity contracts 1,885 1,805 Commodity contracts Swaps 138 147 Spot, futures and forwards 198 211 Written options 124 135 Purchased options 105 124 Total commodity contracts 565 617 Total derivative notional amounts $ 47,194 $ 46,942 (a) Refer to the Credit derivatives discussion on pages 209-211 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 December 31, 2020 and 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 December 31, 2020 Not designated as hedges Designated as hedges Total derivative receivables Net derivative receivables (b) Not designated as hedges Designated as hedges Total derivative payables Net derivative payables (b) Trading assets and liabilities Interest rate $ 390,659 $ 831 $ 391,490 $ 35,725 $ 353,627 $ — $ 353,627 $ 13,012 Credit 13,503 — 13,503 680 15,192 — 15,192 1,995 Foreign exchange 205,359 901 206,260 15,781 214,229 1,697 215,926 21,433 Equity 74,798 — 74,798 20,673 81,413 — 81,413 25,898 Commodity 20,579 924 21,503 6,771 20,834 1,895 22,729 8,285 Total fair value of trading assets and liabilities $ 704,898 $ 2,656 $ 707,554 $ 79,630 $ 685,295 $ 3,592 $ 688,887 $ 70,623 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 as hedges 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 December 31, 2020 and 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 liquid securities and other 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. Liquid securities represent high quality liquid assets as defined in the LCR rule; • the amount of collateral held or transferred that exceeds the fair value exposure at the individual counterparty level, as of the date presented, which is excluded from the tables below; and • collateral held or transferred that relates to derivative receivables or payables where an appropriate legal opinion has not been either sought or obtained with respect to the master netting agreement, which is excluded from the tables below. 2020 2019 December 31, (in millions) Gross derivative receivables Amounts netted on the Consolidated balance sheets Net derivative receivables Gross derivative receivables Amounts netted on the Consolidated balance sheets Net U.S. GAAP nettable derivative receivables Interest rate contracts: OTC $ 367,056 $ (337,451) $ 29,605 $ 299,205 $ (276,255) $ 22,950 OTC–cleared 18,340 (17,919) 421 9,442 (9,360) 82 Exchange-traded (a) 554 (395) 159 347 (258) 89 Total interest rate contracts 385,950 (355,765) 30,185 308,994 (285,873) 23,121 Credit contracts: OTC 9,052 (8,514) 538 10,743 (10,317) 426 OTC–cleared 4,326 (4,309) 17 3,864 (3,858) 6 Total credit contracts 13,378 (12,823) 555 14,607 (14,175) 432 Foreign exchange contracts: OTC 201,349 (189,655) 11,694 136,252 (129,324) 6,928 OTC–cleared 834 (819) 15 185 (152) 33 Exchange-traded (a) 35 (5) 30 10 (6) 4 Total foreign exchange contracts 202,218 (190,479) 11,739 136,447 (129,482) 6,965 Equity contracts: OTC 34,030 (27,374) 6,656 23,106 (20,820) 2,286 Exchange-traded (a) 28,294 (26,751) 1,543 19,654 (18,430) 1,224 Total equity contracts 62,324 (54,125) 8,199 42,760 (39,250) 3,510 Commodity contracts: OTC 10,924 (7,901) 3,023 7,093 (5,149) 1,944 OTC–cleared 20 (20) — 28 (28) — Exchange-traded (a) 6,833 (6,811) 22 6,154 (5,903) 251 Total commodity contracts 17,777 (14,732) 3,045 13,275 (11,080) 2,195 Derivative receivables with appropriate legal opinion 681,647 (627,924) 53,723 (d) 516,083 (479,860) 36,223 (d) Derivative receivables where an appropriate legal opinion has not been either sought or obtained 25,907 25,907 13,543 13,543 Total derivative receivables recognized on the Consolidated balance sheets $ 707,554 $ 79,630 $ 529,626 $ 49,766 Collateral not nettable on the Consolidated balance sheets (b)(c) (14,806) (13,052) Net amounts $ 64,824 $ 36,714 |
Offsetting liabilities | 2020 2019 December 31, (in millions) Gross derivative payables Amounts netted on the Consolidated balance sheets Net derivative payables Gross derivative payables Amounts netted on the Consolidated balance sheets Net U.S. GAAP nettable derivative payables Interest rate contracts: OTC $ 331,854 $ (320,780) $ 11,074 $ 267,311 $ (260,229) $ 7,082 OTC–cleared 19,710 (19,494) 216 10,217 (10,138) 79 Exchange-traded (a) 358 (341) 17 365 (303) 62 Total interest rate contracts 351,922 (340,615) 11,307 277,893 (270,670) 7,223 Credit contracts: OTC 10,671 (9,141) 1,530 11,570 (10,080) 1,490 OTC–cleared 4,075 (4,056) 19 3,390 (3,389) 1 Total credit contracts 14,746 (13,197) 1,549 14,960 (13,469) 1,491 Foreign exchange contracts: OTC 210,803 (193,672) 17,131 142,360 (131,792) 10,568 OTC–cleared 836 (819) 17 186 (152) 34 Exchange-traded (a) 34 (2) 32 12 (6) 6 Total foreign exchange contracts 211,673 (194,493) 17,180 142,558 (131,950) 10,608 Equity contracts: OTC 35,330 (28,763) 6,567 27,594 (21,778) 5,816 Exchange-traded (a) 34,491 (26,752) 7,739 20,216 (18,426) 1,790 Total equity contracts 69,821 (55,515) 14,306 47,810 (40,204) 7,606 Commodity contracts: OTC 10,365 (7,544) 2,821 8,714 (6,235) 2,479 OTC–cleared 32 (32) — 30 (30) — Exchange-traded (a) 7,391 (6,868) 523 6,012 (5,862) 150 Total commodity contracts 17,788 (14,444) 3,344 14,756 (12,127) 2,629 Derivative payables with appropriate legal opinion 665,950 (618,264) 47,686 (d) 497,977 (468,420) 29,557 (d) Derivative payables where an appropriate legal opinion has not been either sought or obtained 22,937 22,937 14,151 14,151 Total derivative payables recognized on the Consolidated balance sheets $ 688,887 $ 70,623 $ 512,128 $ 43,708 Collateral not nettable on the Consolidated balance sheets (b)(c) (11,964) (6,960) Net amounts $ 58,659 $ 36,748 (a) Exchange-traded derivative balances that relate to futures contracts are settled daily. (b) Includes liquid securities and other cash collateral held at third-party custodians related to derivative instruments where an appropriate legal opinion has been obtained. For some counterparties, the collateral amounts of financial instruments may exceed the derivative receivables and derivative payables balances. Where this is the case, the total amount reported is limited to the net derivative receivables and net derivative payables balances with that counterparty. In the fourth quarter of 2020, the Firm refined its approach for disclosing additional collateral held by the Firm that may be used as security when the fair value of the client’s exposure is in the Firm’s favor. Prior-period amounts have been revised to conform with the current presentation. (c) Derivative collateral relates only to OTC and OTC-cleared derivative instruments. (d) Net derivatives receivable included cash collateral netted of $88.0 billion and $65.9 billion at December 31, 2020 and 2019, respectively. Net derivatives payable included cash collateral netted of $78.4 billion and $54.4 billion at December 31, 2020 and 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 December 31, 2020 and 2019. OTC and OTC-cleared derivative payables containing downgrade triggers December 31, (in millions) 2020 2019 Aggregate fair value of net derivative payables $ 27,712 $ 14,819 Collateral posted 26,289 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 December 31, 2020 and 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 2020 2019 December 31, (in millions) Single-notch downgrade Two-notch downgrade Single-notch downgrade Two-notch downgrade Amount of additional collateral to be posted upon downgrade (a) $ 119 $ 1,243 $ 189 $ 1,467 Amount required to settle contracts with termination triggers upon downgrade (b) 153 2,449 104 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 years ended December 31, 2020, 2019 and 2018, 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 Year ended December 31, 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) $ 2,962 $ (1,889) $ 1,073 $ — $ 1,093 $ — Foreign exchange (c) 793 (619) 174 (457) 174 25 Commodity (d) (2,507) 2,650 143 — 137 — Total $ 1,248 $ 142 $ 1,390 $ (457) $ 1,404 $ 25 Gains/(losses) recorded in income Income statement impact of excluded components (e) OCI impact Year ended December 31, 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) $ 3,204 $ (2,373) $ 831 $ — $ 828 $ — Foreign exchange (c) 154 328 482 (866) 482 39 Commodity (d) (77) 148 71 — 63 — Total $ 3,281 $ (1,897) $ 1,384 $ (866) $ 1,373 $ 39 Gains/(losses) recorded in income Income statement impact of excluded components (e) OCI impact Year ended December 31, 2018 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) $ (1,145) $ 1,782 $ 637 $ — $ 623 $ — Foreign exchange (c) 1,092 (616) 476 (566) 476 (140) Commodity (d) 789 (754) 35 — 26 — Total $ 736 $ 412 $ 1,148 $ (566) $ 1,125 $ (140) (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 December 31, 2020 and 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: December 31, 2020 Active hedging relationships Discontinued hedging relationships (d)(e) Total Assets Investment securities - AFS $ 139,684 (c) $ 3,572 $ 847 $ 4,419 Liabilities Long-term debt $ 177,611 $ 3,194 $ 11,473 $ 14,667 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 $11.5 billion and $6.5 billion at December 31, 2020 and 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 December 31, 2020 and 2019, the carrying amount excluded for AFS securities is $14.5 billion and $14.9 billion, respectively, and for long-term debt is $6.6 billion and $2.8 billion, respectively. (c) Carrying amount represents the amortized cost, net of allowance if applicable. Refer to Note 10 for additional information. (d) Represents basis adjustments existing on the balance sheet date associated with hedged items that have been de-designated from qualifying fair value hedging relationships. (e) Positive amounts related to assets represent cumulative fair value hedge basis adjustments that will reduce net interest income in future periods. Positive (negative) amounts related to liabilities represent cumulative fair value hedge basis adjustments that will increase (reduce) net interest income in future periods. |
Cash flow hedge gains and losses | The following tables present derivative instruments, by contract type, used in cash flow hedge accounting relationships, and the pre-tax gains/(losses) recorded on such derivatives, for the years ended December 31, 2020, 2019 and 2018, respectively. The Firm includes the gains/(losses) on the hedging derivative in the same line item in the Consolidated statements of income as the change in cash flows on the related hedged item. Derivatives gains/(losses) recorded in income and other comprehensive income/(loss) Year ended December 31, 2020 (in millions) Amounts reclassified from AOCI to income Amounts recorded in OCI Total change in OCI for period Contract type Interest rate (a) $ 570 $ 3,582 $ 3,012 Foreign exchange (b) — 41 41 Total $ 570 $ 3,623 $ 3,053 Derivatives gains/(losses) recorded in income and other comprehensive income/(loss) Year ended December 31, 2019 Amounts reclassified from AOCI to income Amounts recorded in OCI Total change Contract type Interest rate (a) $ (28) $ (3) $ 25 Foreign exchange (b) (75) 125 200 Total $ (103) $ 122 $ 225 Derivatives gains/(losses) recorded in income and other comprehensive income/(loss) Year ended December 31, 2018 Amounts reclassified from AOCI to income Amounts recorded in OCI Total change Contract type Interest rate (a) $ 44 $ (44) $ (88) Foreign exchange (b) (26) (201) (175) Total $ 18 $ (245) $ (263) (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. |
Net investment hedge gains and losses | The following table presents hedging instruments, by contract type, that were used in net investment hedge accounting relationships, and the pre-tax gains/(losses) recorded on such instruments for the years ended December 31, 2020, 2019 and 2018. 2020 2019 2018 Year ended December 31, Amounts recorded in income (a)(b) Amounts recorded in Amounts recorded in income (a)(b) Amounts recorded in Amounts recorded in income (a)(b) Amounts recorded in Foreign exchange derivatives $(122) $(1,408) $72 $64 $11 $1,219 (a) Certain components of hedging derivatives are permitted to be excluded from the assessment of hedge effectiveness, such as forward points on foreign exchange forward contracts. The Firm elects to record changes in fair value of these amounts directly in other income. (b) Excludes amounts reclassified from AOCI to income on the sale or liquidation of hedged entities. The Firm reclassified net pre-tax gains/(losses) of $3 million and $18 million to other income, and $(17) million to other expense related to the liquidation of certain legal entities during the years ended December 31, 2020, 2019 and 2018, respectively. Refer to Note 24 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) Year ended December 31, 2020 2019 2018 Contract type Interest rate (a) $ 2,994 $ 1,491 $ 79 Credit (b) (176) (30) (21) Foreign exchange (c) 43 (5) 117 Total $ 2,861 $ 1,456 $ 175 (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 and credit-related notes | Total credit derivatives and credit-related notes Maximum payout/Notional amount Protection sold Protection purchased with identical underlyings (b) Net protection (sold)/purchased (c) Other protection purchased (d) December 31, 2020 (in millions) Credit derivatives Credit default swaps $ (535,094) $ 554,565 $ 19,471 $ 4,001 Other credit derivatives (a) (40,084) 57,344 17,260 9,415 Total credit derivatives (575,178) 611,909 36,731 13,416 Credit-related notes — — — 10,248 Total $ (575,178) $ 611,909 $ 36,731 $ 23,664 Maximum payout/Notional amount Protection sold Protection purchased with identical underlyings (b) Net protection (sold)/purchased (c) Other protection purchased (d) December 31, 2019 (in millions) 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 December 31, 2020 and 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 December 31, 2020 (in millions) <1 year 1–5 years >5 years Total notional amount Fair value of receivables (b) Fair value of payables (b) Net fair value Risk rating of reference entity Investment-grade $ (93,905) $ (307,648) $ (35,326) $ (436,879) $ 5,521 $ (835) $ 4,686 Noninvestment-grade (31,809) (97,337) (9,153) (138,299) 3,953 (2,542) 1,411 Total $ (125,714) $ (404,985) $ (44,479) $ (575,178) $ 9,474 $ (3,377) $ 6,097 December 31, 2019 <1 year (c) 1–5 years >5 years Total notional amount 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) | 12 Months Ended |
Dec. 31, 2020 | |
Noninterest Income (Expense) [Abstract] | |
Components of investment banking fees | The following table presents the components of investment banking fees. Year ended December 31, 2020 2019 2018 Underwriting Equity $ 2,759 $ 1,648 $ 1,684 Debt 4,362 3,513 3,347 Total underwriting 7,121 5,161 5,031 Advisory 2,365 2,340 2,519 Total investment banking fees $ 9,486 $ 7,501 $ 7,550 |
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. Year ended December 31, 2020 2019 2018 Trading revenue by instrument type Interest rate (a) $ 2,575 $ 2,739 (c) $ 1,844 (c) Credit (b) 2,753 1,628 (c) 1,625 (c) Foreign exchange 4,253 3,179 (c) 3,222 (c) Equity 6,171 5,589 (c) 4,822 (c) Commodity 2,088 1,133 (c) 895 (c) Total trading revenue 17,840 14,268 12,408 Private equity gains/ 181 (250) (349) Principal transactions $ 18,021 $ 14,018 $ 12,059 (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. |
Components of lending and deposit-related fees | The following table presents the components of lending- and deposit-related fees. Year ended December 31, (in millions) 2020 2019 2018 Lending-related fees $ 1,271 $ 1,184 $ 1,117 Deposit-related fees (a) 5,240 5,442 5,260 Total lending- and deposit-related fees $ 6,511 $ 6,626 $ 6,377 (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 Firmwide asset management, administration and commissions. Year ended December 31, 2020 2019 2018 Asset management fees Investment management fees (a) $ 11,694 $ 10,865 $ 10,768 All other asset management fees (b) 338 315 270 Total asset management fees 12,032 11,180 11,038 Total administration fees (c) 2,249 2,197 2,179 Commissions and other fees Brokerage commissions (d) 2,959 2,439 2,505 All other commissions and fees (e) 937 1,092 1,071 Total commissions and fees 3,896 3,531 3,576 Total asset management, administration and commissions $ 18,177 $ 16,908 $ 16,793 (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. These fees are recorded as revenue at the time the service is rendered or, in the case of certain distribution fees based on the underlying fund’s asset value and/or investor redemption, recorded over time as the investor remains in the fund or upon investor redemption. (c) Predominantly includes fees for custody, securities lending, funds services and securities clearance. These fees are recorded as revenue over the period in which the related service is provided. (d) Represents commissions earned when the Firm acts as a broker, by facilitating its clients’ purchases and sales of securities and other financial instruments. Brokerage commissions are collected and recognized as revenue upon occurrence of the client transaction. The Firm reports certain costs paid to third-party clearing houses and exchanges net against commission revenue. (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: Year ended December 31, 2020 2019 2018 Interchange and merchant processing income $ 18,563 $ 20,370 $ 18,808 Reward costs and partner payments (a) (13,637) (14,540) (13,320) (c) Other card income (b) (491) (754) (745) Total card income $ 4,435 $ 5,076 $ 4,743 (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, which are deferred and recognized on a straight-line basis over a 12-month period. |
Components of noninterest expense | Other expense on the Firm’s Consolidated statements of income included the following: Year ended December 31, 2020 2019 2018 Legal expense/(benefit) $ 1,115 $ 239 $ 72 FDIC-related expense 717 457 1,239 |
Interest Income and Interest _2
Interest Income and Interest Expense (Tables) | 12 Months Ended |
Dec. 31, 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: Year ended December 31, 2020 2019 2018 Interest income Loans (a)(b) $ 43,758 $ 51,855 $ 49,032 Taxable securities 7,843 7,962 5,653 Non-taxable securities (c) 1,184 1,329 1,595 Total investment securities (a) 9,027 9,291 7,248 Trading assets - debt instruments (b) 7,832 9,141 7,146 Federal funds sold and securities purchased under resale agreements 2,436 6,146 3,819 Securities borrowed (d) (302) 1,574 913 Deposits with banks 749 3,887 5,907 All other interest-earning assets (b)(e) 1,023 2,146 2,035 Total interest income $ 64,523 $ 84,040 $ 76,100 Interest expense Interest bearing deposits $ 2,357 $ 8,957 $ 5,973 Federal funds purchased and securities loaned or sold under repurchase agreements 1,058 4,630 3,066 Short-term borrowings (f) 372 1,248 1,144 Trading liabilities - debt and all other interest-bearing liabilities (d)(g) 195 2,585 2,387 Long-term debt 5,764 8,807 7,978 Beneficial interest issued by consolidated VIEs 214 568 493 Total interest expense $ 9,960 $ 26,795 $ 21,041 Net interest income $ 54,563 $ 57,245 $ 55,059 Provision for credit losses 17,480 5,585 4,871 Net interest income after provision for credit losses $ 37,083 $ 51,660 $ 50,188 (a) Includes the amortization/accretion of unearned income (e.g., purchase premiums/discounts, net deferred fees/costs, and others). (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 that 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 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. |
Pension and Other Postretirem_2
Pension and Other Postretirement Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Changes in benefit obligations and plan assets and funded status amounts | The following table presents the pretax changes in benefit obligations, plan assets, the net funded status, and the amounts recorded in AOCI on the Consolidated balance sheets for the Firm’s defined benefit pension and OPEB plans. As of or for the year ended December 31, Defined benefit (in millions) 2020 2019 Change in projected and accumulated benefit obligations, U.S. defined benefit pension plans Benefit obligation, beginning of year $ (13,277) $ (12,173) Benefits earned during the year (2) (327) Interest cost on benefit obligations (422) (518) Plan amendments — (5) Net gain/(loss) (1,086) (944) Benefits paid 640 690 Benefit obligations, end of year, U.S. defined benefit pension plans $ (14,147) $ (13,277) Benefit obligations, other defined benefit pension and OPEB plans (4,990) (4,428) Benefit obligations, end of year $ (19,137) $ (17,705) Change in plan assets, U.S. defined benefit pension plans Fair value of plan assets, beginning of year $ 16,329 $ 14,521 Actual return on plan assets 1,901 2,465 Firm contributions 29 33 Benefits paid (640) (690) Fair value of plan assets, end of year, U.S. defined benefit pension plans $ 17,619 $ 16,329 Fair value of plan assets, other defined benefit pension and OPEB plans 7,798 7,037 Fair value of plan assets, end of year $ 25,417 $ 23,366 Net funded status, U.S. defined benefit pension plans $ 3,472 $ 3,052 Net funded status, other defined benefit pension and OPEB plans 2,808 2,609 Net funded status $ 6,280 $ 5,661 Amounts recorded in accumulated other comprehensive income/(loss), U.S. defined benefit pension plans Net gain/(loss), U.S. defined benefit pension plans $ (1,558) $ (1,745) Prior service credit/(cost), U.S. defined benefit pension plans (4) (5) Accumulated other comprehensive income/(loss), end of year, U.S. defined benefit pension plans $ (1,562) $ (1,750) Accumulated other comprehensive income/(loss), other defined benefit pension and OPEB plans (24) (66) Accumulated other comprehensive income/(loss) $ (1,586) $ (1,816) |
Weighted-average actuarial assumptions | The following table presents the weighted-average actuarial assumptions used to value the benefit obligations for the U.S. defined benefit pension plans. U.S. defined benefit As of December 31, 2020 2019 Discount rate 2.50% 3.30% Rate of compensation increase NA NA Interest crediting rate 4.65 4.65 The following table presents the weighted-average actuarial assumptions used to determine the net periodic benefit costs for the U.S. defined benefit pension plans. U.S. defined benefit pension plans Year ended December 31, (in millions) 2020 2019 2018 Discount rate 3.30% 4.30% 3.70 / 4.50% Expected long-term rate of return on plan assets 4.00 5.50 5.50 Rate of compensation increase NA 2.30 2.30 Interest crediting rate 4.65 4.90 4.90 |
Components of net periodic benefit costs reported in the Consolidated statements of income and other comprehensive income | The following table presents the components of net periodic benefit costs reported in the Consolidated statements of income for the Firm’s defined benefit pension, defined contribution and OPEB plans, and in other comprehensive income for the defined benefit pension and OPEB plans. Pension and OPEB plans Year ended December 31, (in millions) 2020 2019 2018 Components of net periodic benefit cost, U.S. defined benefit pension plans Benefits earned during the year $ 2 $ 327 $ 323 Interest cost on benefit obligations 422 518 478 Expected return on plan assets (634) (776) (836) Amortization: Net (gain)/loss 6 147 80 Prior service (credit)/cost — — (21) Curtailment (gain)/loss — — 21 Net periodic defined benefit plan cost/(credit), U.S. defined benefit pension plans $ (204) $ 216 $ 45 Other defined benefit pension and OPEB plans (81) (72) (72) Total net periodic defined benefit plan cost/(credit) $ (285) $ 144 $ (27) Total defined contribution plans 1,332 952 872 Total pension and OPEB cost included in noninterest expense $ 1,047 $ 1,096 $ 845 Changes recognized in other comprehensive income, U.S. defined benefit pension plans Prior service (credit)/cost arising during the year — 5 — Net (gain)/loss arising during the year (181) (745) 453 Amortization of net (loss)/gain (6) (147) (80) Amortization of prior service (cost)/credit — — 21 Curtailment (loss)/gain — — (21) Total recognized in other comprehensive income, U.S. defined benefit pension plans $ (187) $ (887) $ 373 Other defined benefit pension and OPEB plans (27) (270) 77 Total recognized in other comprehensive income $ (214) $ (1,157) $ 450 Total recognized in net periodic defined benefit plan cost/(credit) and other comprehensive income $ (499) $ (1,013) $ 423 |
Schedule of effect of 25-basis point decline on estimated future defined benefit plan expense and postretirement benefit obligations | The following table represents the effect of a 25-basis point decline in the expected long-term rate of return of 3.00% and discount rate of 2.50%. Effect on U.S. defined benefit pension plans Pension expense Benefit obligation Expected long-term rate of return $ 43 NA Discount rate (20) 404 |
Weighted-average asset allocation of the fair values of total plan assets | The following table presents the weighted-average asset allocation of the fair values of total plan assets at December 31 for the years indicated, as well as the respective approved asset allocation ranges by asset class. U.S. defined benefit pension plan (c) Asset % of plan assets December 31, Allocation 2020 2019 Asset class Debt securities (a) 42-100% 77 % 74 % Equity securities 0-40 15 16 Real estate 0-4 1 1 Alternatives (b) 0-15 7 9 Total 100 % 100 % 100 % (a) Debt securities primarily includes cash and cash equivalents, corporate debt, U.S. federal, state, local and non-U.S. government, asset-backed and mortgage-backed securities. (b) Alternatives primarily include limited partnerships. (c) Represents the U.S. defined benefit pension plan only as it is the most significant plan. The other U.S. defined benefit pension plans are unfunded. The weighted-average asset allocation for the U.S. OPEB plan was 59% debt securities and 41% equity securities and 60% debt securities and 40% equity securities at December 31, 2020 and 2019, respectively. |
Pension and OPEB plan assets and liabilities measured at fair value | Pension plan assets and liabilities measured at fair value Defined benefit pension and OPEB plans 2020 2019 December 31 , (in millions) Level 1 Level 2 Level 3 Total fair value Level 1 Level 2 Level 3 Total fair value Equity securities $ 2,353 $ — $ 2 $ 2,355 $ 2,259 $ 3 $ 2 $ 2,264 Corporate debt securities — 7,414 11 7,425 — 6,474 2 6,476 U.S. federal, state, local and non-U.S. government debt securities 1,395 360 — 1,755 1,616 401 — 2,017 Mortgage-backed securities 461 1,184 31 1,676 312 681 4 997 Other (a) 788 861 201 1,850 718 49 250 1,017 U.S. defined benefit pension plans (b) $ 4,997 $ 9,819 $ 245 $ 15,061 $ 4,905 $ 7,608 $ 258 $ 12,771 Other defined benefit pension and OPEB plans (c) 2,034 2,565 2,707 7,306 1,834 2,307 2,431 6,572 Total assets measured at fair value $ 7,031 $ 12,384 $ 2,952 $ 22,367 $ 6,739 $ 9,915 $ 2,689 $ 19,343 (a) Other consists primarily of mutual funds, money market funds and participating annuity contracts. (b) At December 31, 2020 and 2019, excludes $3.2 billion and $3.9 billion, respectively, of certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient, and $606 million and $343 million, respectively, of net defined benefit pension plan payables, primarily for investments sold and purchased, which are not required to be classified in the fair value hierarchy. Investments in level 3 of the valuation hierarchy include $199 million and $250 million of participating annuity contracts at December 31, 2020 and 2019, respectively. (c) At December 31, 2020 and 2019, excludes $487 million and $465 million, respectively, of certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient. Investments in level 3 of the valuation hierarchy include $2.7 billion and $2.4 billion of COLI policies at December 31, 2020 and 2019, respectively. |
Estimated future benefit payments | The following table presents benefit payments expected to be paid for the U.S. defined benefit pension plans for the years indicated. Year ended December 31, U.S. defined benefit pension plans 2021 $ 912 2022 918 2023 897 2024 847 2025 829 Years 2026–2030 3,843 |
Employee Share-Based Incentiv_2
Employee Share-Based Incentives (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of RSUs, PSUs, and SARs and stock options activity | The following table summarizes JPMorgan Chase’s RSUs, PSUs, SARs and stock options activity for 2020. RSUs/PSUs SARs/Options Year ended December 31, 2020 Number of Weighted-average grant Number of awards Weighted-average exercise price Weighted-average remaining contractual life Aggregate intrinsic value (in thousands, except weighted-average data, and where otherwise stated) Outstanding, January 1 52,239 $ 99.62 5,527 $ 41.36 Granted 17,891 132.17 1 137.80 Exercised or vested (21,502) 96.64 (2,389) 41.40 Forfeited (1,118) 111.59 (4) 122.59 Canceled NA NA (11) 39.33 Outstanding, December 31 47,510 $ 112.85 3,124 $ 41.25 1.4 $ 265,059 Exercisable, December 31 NA NA 3,124 41.25 1.4 265,059 |
Noncash compensation expense related to employee share-based incentive plans | The Firm recognized the following noncash compensation expense related to its various employee share-based incentive plans in its Consolidated statements of income. Year ended December 31, (in millions) 2020 2019 2018 Cost of prior grants of RSUs, PSUs, SARs and stock options that are amortized over their applicable vesting periods $ 1,101 $ 1,141 $ 1,241 Accrual of estimated costs of share-based awards to be granted in future periods including those to full-career eligible employees 1,350 1,115 1,081 Total noncash compensation expense related to employee share-based incentive plans $ 2,451 $ 2,256 $ 2,322 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 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. 2020 2019 December 31, (in millions) Amortized cost (e) Gross unrealized gains Gross unrealized losses Fair Amortized cost (e) Gross unrealized gains Gross unrealized losses Fair Available-for-sale securities Mortgage-backed securities: U.S. GSEs and government agencies (a) $ 110,979 $ 2,372 $ 50 $ 113,301 $ 107,811 $ 2,395 $ 89 $ 110,117 Residential: U.S. 6,246 224 3 6,467 10,223 233 6 10,450 Non-U.S. 3,751 20 5 3,766 2,477 64 1 2,540 Commercial 2,819 71 34 2,856 5,137 64 13 5,188 Total mortgage-backed securities 123,795 2,687 92 126,390 125,648 2,756 109 128,295 U.S. Treasury and government agencies 199,910 2,141 100 201,951 139,162 449 175 139,436 Obligations of U.S. states and municipalities 18,993 1,404 1 20,396 27,693 2,118 1 29,810 Certificates of deposit — — — — 77 — — 77 Non-U.S. government debt securities 22,587 354 13 22,928 21,427 377 17 21,787 Corporate debt securities 215 4 3 216 823 22 — 845 Asset-backed securities: Collateralized loan obligations 10,055 24 31 10,048 25,038 9 56 24,991 Other 6,174 91 16 6,249 5,438 40 20 5,458 Total available-for-sale securities (b) 381,729 6,705 256 388,178 345,306 5,771 378 350,699 Held-to-maturity securities (c) Mortgage-backed securities: U.S. GSEs and government agencies (a) 107,889 2,968 29 110,828 36,523 1,165 62 37,626 U.S. Residential 4,345 8 30 4,323 — — — — Commercial 2,602 77 — 2,679 — — — — Total mortgage-backed securities 114,836 3,053 59 117,830 36,523 1,165 62 37,626 U.S. Treasury and government agencies 53,184 50 — 53,234 51 — 1 50 Obligations of U.S. states and municipalities 12,751 519 — 13,270 4,797 299 — 5,096 Asset-backed securities: Collateralized loan obligations 21,050 90 2 21,138 6,169 — — 6,169 Total held-to-maturity securities, net of allowance for credit losses (d) 201,821 3,712 61 205,472 47,540 1,464 63 48,941 Total investment securities, net of allowance for credit losses (d) $ 583,550 $ 10,417 $ 317 $ 593,650 $ 392,846 $ 7,235 $ 441 $ 399,640 (a) Includes AFS U.S. GSE obligations with fair values of $65.8 billion and $78.5 billion, and HTM U.S. GSE obligations with amortized cost of $86.3 billion and $31.6 billion, at December 31, 2020 and 2019, respectively. As of December 31, 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 $95.7 billion and $98.8 billion, and $54.7 billion and $55.8 billion, respectively. (b) There was no allowance for credit losses on AFS securities at December 31, 2020. (c) The Firm purchased $12.4 billion, $13.4 billion and $9.4 billion of HTM securities for the years ended December 31, 2020, 2019 and 2018, respectively. (d) HTM securities measured at amortized cost are reported net of allowance for credit losses of $78 million at December 31, 2020. (e) Excludes $2.1 billion and $1.9 billion of accrued interest receivables at December 31, 2020 and 2019, respectively. The Firm did not reverse through interest income any accrued interest receivables for the years ended December 31, 2020 and 2019. |
Securities impairment | The following tables present the fair value and gross unrealized losses by aging category for AFS securities at December 31, 2020 and 2019. The tables exclude U.S. Treasury and government agency securities and U.S. GSE and government agency MBS with unrealized losses of $150 million and $264 million, at December 31, 2020 and 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 December 31, 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. $ 562 $ 3 $ 32 $ — $ 594 $ 3 Non-U.S. 2,507 4 235 1 2,742 5 Commercial 699 18 124 16 823 34 Total mortgage-backed securities 3,768 25 391 17 4,159 42 Obligations of U.S. states and municipalities 49 1 — — 49 1 Certificates of deposit — — — — — — Non-U.S. government debt securities 2,709 9 968 4 3,677 13 Corporate debt securities 91 3 5 — 96 3 Asset-backed securities: Collateralized loan obligations 5,248 18 2,645 13 7,893 31 Other 268 1 685 15 953 16 Total available-for-sale securities with gross unrealized losses $ 12,133 $ 57 $ 4,694 $ 49 $ 16,827 $ 106 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 | Year ended December 31, 2020 2019 2018 Realized gains $ 3,080 $ 650 $ 211 Realized losses (2,278) (392) (606) Net investment securities gains/(losses) $ 802 $ 258 $ (395) Provision for credit losses $ 68 NA NA |
Amortized cost and estimated fair value by contractual maturity | The following table presents the amortized cost and estimated fair value at December 31, 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 $ — $ 741 $ 7,797 $ 115,257 $ 123,795 Fair value — 756 8,139 117,495 126,390 Average yield (a) — % 1.66 % 1.67 % 2.57 % 2.51 % U.S. Treasury and government agencies Amortized cost $ 33,633 $ 110,033 $ 46,827 $ 9,417 $ 199,910 Fair value 33,678 111,014 47,675 9,584 201,951 Average yield (a) 0.42 % 0.53 % 0.79 % 0.48 % 0.57 % Obligations of U.S. states and municipalities Amortized cost $ 33 $ 203 $ 1,047 $ 17,710 $ 18,993 Fair value 33 211 1,111 19,041 20,396 Average yield (a) 4.11 % 4.59 % 4.84 % 4.80 % 4.80 % Non-U.S. government debt securities Amortized cost $ 8,282 $ 8,011 $ 5,615 $ 679 $ 22,587 Fair value 8,297 8,225 5,726 680 22,928 Average yield (a) 1.25 % 1.70 % 0.68 % 0.17 % 1.24 % Corporate debt securities Amortized cost $ — $ 141 $ 74 $ — $ 215 Fair value — 139 77 — 216 Average yield (a) — % 1.21 % 1.92 % — % 1.45 % Asset-backed securities Amortized cost $ 554 $ 2,569 $ 5,987 $ 7,119 $ 16,229 Fair value 554 2,591 5,990 7,162 16,297 Average yield (a) 1.31 % 2.00 % 1.33 % 1.48 % 1.50 % Total available-for-sale securities Amortized cost $ 42,502 $ 121,698 $ 67,347 $ 150,182 $ 381,729 Fair value 42,562 122,936 68,718 153,962 388,178 Average yield (a) 0.59 % 0.65 % 1.00 % 2.64 % 1.49 % Held-to-maturity securities Mortgage-backed securities Amortized cost $ — $ 158 $ 11,908 $ 102,791 $ 114,857 Fair value — 160 12,707 104,963 117,830 Average yield (a) — % 1.56 % 2.42 % 2.94 % 2.88 % U.S. Treasury and government agencies Amortized cost $ 501 $ 42,477 $ 10,206 $ — $ 53,184 Fair value 501 42,511 10,222 — 53,234 Average yield (a) 1.86 % 0.60 % 0.94 % — % 0.67 % Obligations of U.S. states and municipalities Amortized cost $ — $ 65 $ 532 $ 12,211 $ 12,808 Fair value — 67 565 12,638 13,270 Average yield (a) — % 3.09 % 3.57 % 3.62 % 3.62 % Asset-backed securities Amortized cost $ — $ — $ 11,617 $ 9,433 $ 21,050 Fair value — — 11,658 9,480 21,138 Average yield (a) — % — % 1.40 % 1.33 % 1.37 % Total held-to-maturity securities Amortized cost $ 501 $ 42,700 $ 34,263 $ 124,435 $ 201,899 Fair value 501 42,738 35,152 127,081 205,472 Average yield (a) 1.86 % 0.60 % 1.65 % 2.88 % 2.19 % (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 5 years for agency residential MBS, 4 years for agency residential collateralized mortgage obligations and 3 years for nonagency residential collateralized mortgage obligations. |
Securities Financing Activiti_2
Securities Financing Activities (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2020 and 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. 2020 December 31, (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 $ 666,467 $ (370,183) $ 296,284 $ (273,206) $ 23,078 Securities borrowed 193,700 (33,065) 160,635 (115,219) 45,416 Liabilities Securities sold under repurchase agreements $ 578,060 $ (370,183) $ 207,877 $ (191,980) $ 15,897 Securities loaned and other (a) 41,366 (33,065) 8,301 (8,257) 44 2019 December 31, (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 $ (231,147) (d) $ 17,999 (d) 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 $3.4 billion and $3.7 billion at December 31, 2020 and 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 December 31, 2020 and 2019, included $17.0 billion and $11.0 billion, respectively, of securities purchased under resale agreements; $42.1 billion and $31.9 billion, respectively, of securities borrowed; $14.5 billion and $22.7 billion, respectively, of securities sold under repurchase agreements; and $8 million and $7 million, respectively, of securities loaned and other. (d) The prior period amounts have been revised to conform with the current period presentation. |
Schedule of types of assets pledged in secured financing transactions | The tables below present as of December 31, 2020 and 2019 the types of financial assets pledged in securities financing agreements and the remaining contractual maturity of the securities financing agreements. Gross liability balance 2020 2019 December 31, (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 $ 56,744 $ — $ 34,119 $ — Residential - nonagency 1,016 — 1,239 — Commercial - nonagency 855 — 1,612 — U.S. Treasury, GSEs and government agencies 315,834 143 334,398 29 Obligations of U.S. states and municipalities 1,525 2 1,181 — Non-U.S. government debt 157,563 1,730 145,548 1,528 Corporate debt securities 22,849 1,864 13,826 1,580 Asset-backed securities 694 — 1,794 — Equity securities 20,980 37,627 21,455 33,512 Total $ 578,060 $ 41,366 $ 555,172 $ 36,649 Remaining contractual maturity of the agreements Overnight and continuous Greater than 2020 (in millions) Up to 30 days 30 – 90 days Total Total securities sold under repurchase agreements $ 238,667 $ 230,980 $ 70,777 $ 37,636 $ 578,060 Total securities loaned and other 37,887 1,647 500 1,332 41,366 Remaining contractual maturity of the agreements Overnight and continuous Greater than 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) The prior period amounts have been revised to conform with the current period presentation. |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 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 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 for more information on SPEs. |
Schedule of loans by portfolio segment | The following tables summarize the Firm’s loan balances by portfolio segment. December 31, 2020 Consumer, excluding credit card Credit card Wholesale Total (b)(c) (in millions) Retained $ 302,127 $ 143,432 $ 514,947 $ 960,506 Held-for-sale 1,305 784 5,784 7,873 At fair value (a) 15,147 — 29,327 44,474 Total $ 318,579 $ 144,216 $ 550,058 $ 1,012,853 December 31, 2019 Consumer, excluding credit card Credit card Wholesale Total (b)(c) (in millions) Retained $ 294,999 $ 168,924 $ 481,678 $ 945,601 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 $2.9 billion of accrued interest receivables at both December 31, 2020 and 2019. The Firm wrote off accrued interest receivables of $121 million and $50 million for the years ended December 31, 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 December 31, 2020 and 2019. The following table provides information about retained consumer loans, excluding credit card, by class. December 31, (in millions) 2020 2019 Residential real estate $ 225,302 $ 243,317 Auto and other (a) 76,825 51,682 Total retained loans $ 302,127 $ 294,999 |
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 Year ended December 31, Consumer, excluding Credit card Wholesale Total Purchases $ 3,474 (b)(c) $ — $ 1,159 $ 4,633 Sales 352 — 17,916 18,268 Retained loans reclassified to held-for-sale (a) 2,084 787 1,580 4,451 2019 Year ended December 31, Consumer, excluding Credit card Wholesale Total Purchases $ 1,282 (b)(c) $ — $ 1,291 $ 2,573 Sales 30,474 — 23,445 53,919 Retained loans reclassified to held-for-sale (a) 9,188 — 2,371 11,559 2018 Year ended December 31, Consumer, excluding Credit card Wholesale Total Purchases $ 2,543 (b)(c) $ — $ 2,354 $ 4,897 Sales 9,984 — 16,741 26,725 Retained loans reclassified to held-for-sale (a) 36 — 2,276 2,312 (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 years ended December 31, 2020, 2019 and 2018. 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 $15.3 billion, $16.6 billion and $18.6 billion for the years ended December 31, 2020, 2019 and 2018, 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) December 31, 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 $ 55,562 $ 31,820 $ 13,900 $ 20,410 $ 27,978 $ 50,232 $ 7,370 $ 15,792 $ 223,064 $ 239,979 30–149 days past due 9 25 20 22 29 674 21 245 1,045 1,910 150 or more days past due 3 14 10 18 18 844 22 264 1,193 1,428 Total retained loans $ 55,574 $ 31,859 $ 13,930 $ 20,450 $ 28,025 $ 51,750 $ 7,413 $ 16,301 $ 225,302 $ 243,317 % of 30+ days past due to total retained loans (c) 0.02 % 0.12 % 0.22 % 0.20 % 0.17 % 2.86 % 0.58 % 3.12 % 0.98 % 1.35 % (a) Individual delinquency classifications include mortgage loans insured by U.S. government agencies as follows: current included $36 million and $17 million; 30–149 days past due included $16 million and $20 million; and 150 or more days past due included $24 million and $26 million at December 31, 2020 and 2019, respectively. (b) At December 31, 2020, loans under payment deferral programs offered in response to the COVID-19 pandemic which are still within their deferral period and performing according to their modified terms are generally not considered delinquent. (c) At December 31, 2020 and 2019, residential real estate loans excluded mortgage loans insured by U.S. government agencies of $40 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) December 31, 2020 December 31, 2019 Nonaccrual loans (a)(b)(c)(d)(e) $ 5,313 $ 2,780 90 or more days past due and government guaranteed (f) 33 38 Current estimated LTV ratios (g)(h) Greater than 125% and refreshed FICO scores: Equal to or greater than 660 $ 10 $ 31 Less than 660 18 38 101% to 125% and refreshed FICO scores: Equal to or greater than 660 72 134 Less than 660 65 132 80% to 100% and refreshed FICO scores: Equal to or greater than 660 2,365 5,953 Less than 660 435 764 Less than 80% and refreshed FICO scores: Equal to or greater than 660 208,457 219,469 Less than 660 12,072 14,681 No FICO/LTV available 1,732 2,052 U.S. government-guaranteed 76 63 Total retained loans $ 225,302 $ 243,317 Weighted average LTV ratio (g)(i) 54 % 55 % Weighted average FICO (h)(i) 763 758 Geographic region (j) California $ 73,444 $ 82,147 New York 32,287 31,996 Florida 13,981 13,668 Texas 13,773 14,474 Illinois 13,130 15,587 Colorado 8,235 8,447 Washington 7,917 8,990 New Jersey 7,227 7,752 Massachusetts 5,784 6,210 Connecticut 5,024 4,954 All other (k) 44,500 49,092 Total retained loans $ 225,302 $ 243,317 (a) Includes collateral-dependent residential real estate loans that are charged down to the lower of amortized cost or the fair value of the underlying collateral less costs to sell. The Firm reports, in accordance with regulatory guidance, residential real estate loans that have been discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower (“Chapter 7 loans”) as collateral-dependent nonaccrual TDRs, regardless of their delinquency status. At December 31, 2020, approximately 7% of Chapter 7 residential real estate loans were 30 days or more past due, respectively. (b) At December 31, 2020, nonaccrual loans included $1.6 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 lower of amortized cost or the fair value of their underlying collateral less costs to sell. If the value of the underlying collateral improves subsequent to the charge down, the related allowance may be negative. (d) Interest income on nonaccrual loans recognized on a cash basis was $161 million and $166 million for the years ended December 31, 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 also at least 150 days past due and therefore considered collateral-dependent. Collateral-dependent loans are 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 December 31, 2020 and 2019, these balances included $33 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 December 31, 2020 and 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 December 31, 2020. (k) At December 31, 2020 and 2019, included mortgage loans insured by U.S. government agencies of $76 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. December 31, 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 $ 46,169 (b) $ 12,829 $ 7,367 $ 4,521 $ 2,058 $ 742 $ 2,517 $ 158 $ 76,361 $ 51,005 30–119 days past due 97 107 77 53 42 23 30 17 446 667 120 or more days past due — — — 1 — 1 8 8 18 10 Total retained loans $ 46,266 $ 12,936 $ 7,444 $ 4,575 $ 2,100 $ 766 $ 2,555 $ 183 $ 76,825 $ 51,682 % of 30+ days past due to total retained loans 0.21 % 0.83 % 1.03 % 1.18 % 2.00 % 3.13 % 1.49 % 13.66 % 0.60 % 1.31 % (a) At December 31, 2020 , loans under payment deferral programs offered in response to the COVID-19 pandemic which are still within their deferral period and performing according to their modified terms are generally not considered delinquent. (b) At December 31, 2020 , included $19.2 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 December 31, 2020 December 31, 2019 Nonaccrual loans (a)(b)(c) 151 146 Geographic region (d) California $ 12,302 $ 7,795 New York 8,824 3,706 Texas 8,235 5,457 Florida 4,668 3,025 Illinois 3,768 2,443 New Jersey 2,646 1,798 Arizona 2,465 1,347 Ohio 2,163 1,490 Pennsylvania 1,924 1,721 Colorado 1,910 1,247 All other 27,920 21,653 Total retained loans $ 76,825 $ 51,682 (a) There were no loans that were 90 or more days past due and still accruing interest at December 31, 2020 and 2019. (b) All nonaccrual auto and other consumer loans generally have an allowance. Certain nonaccrual loans that are considered collateral-dependent have been charged down to the lower of amortized cost or the fair value of their underlying collateral less costs to sell. If the value of the underlying collateral improves subsequent to the charge down, the related allowance may be negative. (c) Interest income on nonaccrual loans recognized on a cash basis was not material for the years ended December 31, 2020 and 2019 . (d) The geographic regions presented in this table are ordered based on the magnitude of the corresponding loan balances at December 31, 2020 . The following table provides information on delinquency, which is the primary credit quality indicator for retained credit card loans. (in millions, except ratios) December 31, 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 $ 139,783 $ 1,239 $ 141,022 $ 165,767 30–89 days past due and still accruing 997 94 1,091 1,550 90 or more days past due and still accruing 1,277 42 1,319 1,607 Total retained loans $ 142,057 $ 1,375 $ 143,432 $ 168,924 Loan delinquency ratios % of 30+ days past due to total retained loans 1.60 % 9.89 % 1.68 % 1.87 % % of 90+ days past due to total retained loans 0.90 3.05 0.92 0.95 (a) At December 31, 2020, loans under payment deferral programs offered in response to the COVID-19 pandemic which are still within their deferral period and performing according to their modified terms are generally not considered delinquent. (b) Represents TDRs. The following table provides information on other credit quality indicators for retained credit card loans. (in millions, except ratios) December 31, 2020 December 31, 2019 Geographic region (a) California $ 20,921 $ 25,783 Texas 14,544 16,728 New York 11,919 14,544 Florida 9,562 10,830 Illinois 8,006 9,579 New Jersey 5,927 7,165 Ohio 4,673 5,406 Pennsylvania 4,476 5,245 Colorado 4,092 4,763 Michigan 3,553 4,164 All other 55,759 64,717 Total retained loans $ 143,432 $ 168,924 Percentage of portfolio based on carrying value with estimated refreshed FICO scores Equal to or greater than 660 85.9 % 84.0 % Less than 660 13.9 15.4 No FICO available 0.2 0.6 (a) The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at December 31, 2020. The following tables provide information on internal risk rating, which is the primary credit quality indicator for retained wholesale loans. December 31, Secured by real estate Commercial and industrial Other (b) Total retained loans 2020 2019 2020 2019 2020 2019 2020 2019 Loans by risk ratings Investment-grade $ 90,147 $ 96,611 $ 71,917 (a) $ 80,489 $ 217,209 $ 186,344 $ 379,273 (a) $ 363,444 Noninvestment- grade: Noncriticized 26,129 22,493 57,870 60,437 33,053 27,591 117,052 110,521 Criticized performing 3,234 1,131 10,991 4,399 1,079 1,126 15,304 6,656 Criticized nonaccrual 483 183 1,931 844 904 30 3,318 1,057 Total noninvestment- grade 29,846 23,807 70,792 65,680 35,036 28,747 135,674 118,234 Total retained loans $ 119,993 $ 120,418 $ 142,709 $ 146,169 $ 252,245 $ 215,091 $ 514,947 $ 481,678 % of investment-grade to total retained loans 75.13 % 80.23 % 50.39 % 55.07 % 86.11 % 86.63 % 73.65 % 75.45 % % of total criticized to total retained loans 3.10 1.09 9.05 3.59 0.79 0.54 3.62 1.60 % of criticized nonaccrual to total retained loans 0.40 0.15 1.35 0.58 0.36 0.01 0.64 0.22 Secured by real estate December 31, 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 $ 16,560 $ 19,575 $ 12,192 $ 11,017 $ 13,439 $ 16,266 $ 1,098 $ — $ 90,147 $ 96,611 Noninvestment-grade 3,327 4,339 4,205 2,916 2,575 11,994 489 1 29,846 23,807 Total retained loans $ 19,887 $ 23,914 $ 16,397 $ 13,933 $ 16,014 $ 28,260 $ 1,587 $ 1 $ 119,993 $ 120,418 Commercial and industrial December 31, 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 $ 21,211 (a) $ 7,304 $ 2,934 $ 1,748 $ 1,032 $ 1,263 $ 36,424 $ 1 $ 71,917 $ 80,489 Noninvestment-grade 15,060 8,636 5,131 2,104 497 2,439 36,852 73 70,792 65,680 Total retained loans $ 36,271 $ 15,940 $ 8,065 $ 3,852 $ 1,529 $ 3,702 $ 73,276 $ 74 $ 142,709 $ 146,169 Other (b) December 31, 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 $ 31,389 $ 10,169 $ 6,994 $ 6,206 $ 3,553 $ 12,595 $ 145,524 $ 779 $ 217,209 $ 186,344 Noninvestment-grade 5,009 2,220 1,641 550 146 636 24,710 124 35,036 28,747 Total retained loans $ 36,398 $ 12,389 $ 8,635 $ 6,756 $ 3,699 $ 13,231 $ 170,234 $ 903 $ 252,245 $ 215,091 (a) At December 31, 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 and considered investment-grade. Other than in certain limited circumstances, the Firm typically does not recognize charge-offs, classify as nonaccrual nor record an allowance for loan losses on these loans. (b) 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 for more information on SPEs. The following table presents additional information on retained loans secured by real estate within the Wholesale portfolio, which consists of loans secured wholly or substantially by a lien or liens on real property at origination. Multifamily lending includes financing for acquisition, leasing and construction of apartment buildings. Other commercial lending largely includes financing for acquisition, leasing and construction, largely for office, retail and industrial real estate. Included in secured by real estate loans is $6.4 billion and $6.3 billion as of December 31, 2020 and 2019, respectively, of construction and development loans made to finance land development and on-site construction of commercial, industrial, residential, or farm buildings. December 31, Multifamily Other Commercial Total retained loans secured by real estate 2020 2019 2020 2019 2020 2019 Retained loans secured by real estate $ 73,078 $ 73,840 $ 46,915 $ 46,578 $ 119,993 $ 120,418 Criticized 1,144 340 2,573 974 3,717 1,314 % of total criticized to total retained loans secured by real estate 1.57 % 0.46 % 5.48 % 2.09 % 3.10 % 1.09 % Criticized nonaccrual $ 56 $ 28 $ 427 $ 155 $ 483 $ 183 % of criticized nonaccrual loans to total retained loans secured by real estate 0.08 % 0.04 % 0.91 % 0.33 % 0.40 % 0.15 % The following table provides additional information about retained wholesale loans, including geographic distribution, delinquency and net charge-offs. Secured by real estate Commercial Other Total December 31, 2020 2019 2020 2019 2020 2019 2020 2019 Loans by geographic distribution (a) Total U.S. $ 116,990 $ 117,836 $ 109,273 $ 111,954 $ 180,583 $ 150,512 $ 406,846 $ 380,302 Total non-U.S. 3,003 2,582 33,436 34,215 71,662 64,579 108,101 101,376 Total retained loans $ 119,993 $ 120,418 $ 142,709 $ 146,169 $ 252,245 $ 215,091 $ 514,947 $ 481,678 Loan delinquency (b) Current and less than 30 days past due and still accruing $ 118,894 $ 120,119 $ 140,100 $ 144,839 $ 249,713 $ 214,641 $ 508,707 $ 479,599 30–89 days past due and still accruing 601 115 658 449 1,606 415 2,865 979 90 or more days past due and still accruing (c) 15 1 20 37 22 5 57 43 Criticized nonaccrual 483 183 1,931 844 904 30 3,318 1,057 Total retained loans $ 119,993 $ 120,418 $ 142,709 $ 146,169 $ 252,245 $ 215,091 $ 514,947 $ 481,678 Net charge-offs/(recoveries) $ 10 $ 44 $ 737 $ 335 $ 52 $ 36 $ 799 $ 415 % of net charge-offs/(recoveries) to end-of-period retained loans 0.01 % 0.04 % 0.52 % 0.23 % 0.02 % 0.02 % 0.16 % 0.09 % (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, loans with short-term or other insignificant modifications that are not considered concessions, and loans for which the Firm has elected to apply the option to suspend the application of accounting guidance for TDRs as provided by the CARES Act and extended by the Consolidated Appropriations Act. Year ended December 31, 2020 2019 2018 Number of loans approved for a trial modification 5,522 5,872 7,175 Number of loans permanently modified 6,850 4,918 7,853 Concession granted: (a) Interest rate reduction 50 % 77 % 54 % Term or payment extension 49 71 62 Principal and/or interest deferred 14 13 29 Principal forgiveness 2 5 7 Other (b) 66 63 51 (a) Represents concessions granted in permanent modifications as a percentage of the number of loans permanently modified. The sum of the percentages exceeds 100% because predominantly all of the modifications include more than one type of concession. Concessions offered on trial modifications are generally consistent with those granted on permanent modifications. |
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, loans with short-term or other insignificant modifications that are not considered concessions, and loans for which the Firm has elected to apply the option to suspend the application of accounting guidance for TDRs as provided by the CARES Act and extended by the Consolidated Appropriations Act. Year ended December 31, 2020 2019 2018 Weighted-average interest rate of loans with interest rate reductions – before TDR 5.09 % 5.68 % 5.50 % Weighted-average interest rate of loans with interest rate reductions – after TDR 3.28 3.81 3.60 Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR 22 20 21 Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR 39 39 38 Charge-offs recognized upon permanent modification $ 5 $ 1 $ 2 Principal deferred 16 19 30 Principal forgiven 5 7 17 Balance of loans that redefaulted within one year of permanent modification (a) $ 199 $ 166 $ 161 (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. Year ended December 31, 2020 2019 2018 Balance of new TDRs (a) $ 818 $ 961 $ 866 Weighted-average interest rate of loans – before TDR 18.04 % 19.07 % 17.98 % Weighted-average interest rate of loans – after TDR 4.64 4.70 5.16 Balance of loans that redefaulted within one year of modification (b) $ 110 $ 148 $ 116 (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. December 31, Secured by real estate Commercial Other Total 2020 2019 2020 2019 2020 2019 2020 2019 Nonaccrual loans (a) With an allowance $ 351 $ 169 $ 1,667 $ 688 $ 800 $ 28 $ 2,818 $ 885 Without an allowance (b) 132 14 264 156 104 2 500 172 Total nonaccrual loans (c) $ 483 $ 183 $ 1,931 $ 844 $ 904 $ 30 $ 3,318 $ 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 December 31, 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 years ended December 31, 2020 and 2019. |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 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. (Table continued on next page) 2020 (e) Year ended December 31, Consumer, Credit card Wholesale Total Allowance for loan losses Beginning balance at January 1, $ 2,538 $ 5,683 $ 4,902 $ 13,123 Cumulative effect of a change in accounting principle 297 5,517 (1,642) 4,172 Gross charge-offs 805 5,077 954 6,836 Gross recoveries collected (631) (791) (155) (1,577) Net charge-offs 174 4,286 799 5,259 Write-offs of PCI loans (a) NA NA NA NA Provision for loan losses 974 10,886 4,431 16,291 Other 1 — — 1 Ending balance at December 31, $ 3,636 $ 17,800 $ 6,892 $ 28,328 Allowance for lending-related commitments Beginning balance at January 1, $ 12 $ — $ 1,179 $ 1,191 Cumulative effect of a change in accounting principle 133 — (35) 98 Provision for lending-related commitments 42 — 1,079 1,121 Other — — (1) (1) Ending balance at December 31, $ 187 $ — $ 2,222 $ 2,409 Total allowance for credit losses $ 3,823 $ 17,800 $ 9,114 $ 30,737 Allowance for loan losses by impairment methodology Asset-specific (b) $ (7) $ 633 $ 682 $ 1,308 Portfolio-based 3,643 17,167 6,210 27,020 PCI NA NA NA NA Total allowance for loan losses $ 3,636 $ 17,800 $ 6,892 $ 28,328 Loans by impairment methodology Asset-specific (b) $ 16,648 $ 1,375 $ 3,606 $ 21,629 Portfolio-based 285,479 142,057 511,341 938,877 PCI NA NA NA NA Total retained loans $ 302,127 $ 143,432 $ 514,947 $ 960,506 Collateral-dependent loans Net charge-offs $ 133 $ — $ 76 $ 209 Loans measured at fair value of collateral less cost to sell 4,956 — 188 5,144 Allowance for lending-related commitments by impairment methodology Asset-specific $ — $ — $ 114 $ 114 Portfolio-based 187 — 2,108 2,295 Total allowance for lending-related commitments (c) $ 187 $ — $ 2,222 $ 2,409 Lending-related commitments by impairment methodology Asset-specific $ — $ — $ 577 $ 577 Portfolio-based (d) 37,783 — 426,871 464,654 Total lending-related commitments $ 37,783 $ — $ 427,448 $ 465,231 (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 December 31, 2020, 2019 and 2018, lending-related commitments excluded $19.5 billion, $9.8 billion and $8.7 billion, respectively, for the consumer, excluding credit card portfolio segment; $658.5 billion, $650.7 billion and $605.4 billion, respectively, for the credit card portfolio segment; and $22.4 billion, $24.1 billion and $24.8 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 $78 million and a provision for credit losses of $68 million as of and for the year ended December 31, 2020. (table continued from previous page) 2019 2018 Consumer, Credit card Wholesale Total Consumer, Credit card Wholesale Total $ 3,434 $ 5,184 $ 4,827 $ 13,445 $ 3,892 $ 4,884 $ 4,828 $ 13,604 NA NA NA NA NA NA NA NA 902 5,436 472 6,810 977 5,011 361 6,349 (536) (588) (57) (1,181) (827) (493) (173) (1,493) 366 4,848 415 5,629 150 4,518 188 4,856 151 — — 151 187 — — 187 (378) 5,348 479 5,449 (121) 4,818 188 4,885 (1) (1) 11 9 — — (1) (1) $ 2,538 $ 5,683 $ 4,902 $ 13,123 $ 3,434 $ 5,184 $ 4,827 $ 13,445 $ 12 $ — $ 1,043 $ 1,055 $ 12 $ — $ 1,056 $ 1,068 NA NA NA NA NA NA NA NA — — 136 136 — — (14) (14) — — — — — — 1 1 $ 12 $ — $ 1,179 $ 1,191 $ 12 $ — $ 1,043 $ 1,055 $ 2,550 $ 5,683 $ 6,081 $ 14,314 $ 3,446 $ 5,184 $ 5,870 $ 14,500 $ 75 $ 477 $ 295 $ 847 $ 143 $ 440 $ 350 $ 933 1,476 5,206 4,607 11,289 1,503 4,744 4,477 10,724 987 — — 987 1,788 — — 1,788 $ 2,538 $ 5,683 $ 4,902 $ 13,123 $ 3,434 $ 5,184 $ 4,827 $ 13,445 $ 5,961 $ 1,452 $ 1,123 $ 8,536 $ 6,665 $ 1,319 $ 1,459 $ 9,443 268,675 167,472 480,555 916,702 305,077 155,297 475,561 935,935 20,363 — — 20,363 24,034 — 3 24,037 $ 294,999 $ 168,924 $ 481,678 $ 945,601 $ 335,776 $ 156,616 $ 477,023 $ 969,415 $ 46 $ — $ 36 $ 82 $ 16 $ — $ 29 $ 45 2,053 — 87 2,140 2,076 — 206 2,282 $ — $ — $ 102 $ 102 $ — $ — $ 99 $ 99 12 — 1,077 1,089 12 — 944 956 $ 12 $ — $ 1,179 $ 1,191 $ 12 $ — $ 1,043 $ 1,055 $ — $ — $ 474 $ 474 $ — $ — $ 469 $ 469 30,417 — 392,967 423,384 26,502 — 374,996 401,498 $ 30,417 $ — $ 393,441 $ 423,858 $ 26,502 $ — $ 375,465 $ 401,967 |
U.S. unemployment rates and cumulative change in U.S. real GDP | The Firm’s central case assumptions reflected U.S. unemployment rates and U.S. real GDP as follows: Assumptions at January 1, 2020 2Q20 4Q20 (b) 2Q21 U.S. unemployment rate (a) 3.7% 3.8% 4.0% Cumulative change in U.S. real GDP from 12/31/2019 0.9% 1.7% 2.4% Assumptions at December 31, 2020 2Q21 4Q21 2Q22 U.S. unemployment rate (a) 6.8% 5.7% 5.1% Cumulative change in U.S. real GDP from 12/31/2019 (1.9)% 0.6% 2.0% (a) Reflects quarterly average of forecasted U.S. unemployment rate. (b) 4Q20 actual U.S. unemployment rate (quarterly average) was 6.8%. 4Q20 actual cumulative change in U.S. real GDP from 4Q19 was (2.5%). |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 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. The Firm considers a “sponsored” VIE to include any entity where: (1) JPMorgan Chase is the primary beneficiary of the structure; (2) the VIE is used by JPMorgan Chase to securitize Firm assets; (3) the VIE issues financial instruments with the JPMorgan Chase name; or (4) the entity is a JPMorgan Chase–administered asset-backed commercial paper conduit. Line of Business Transaction Type Activity 2020 Form 10-K CCB Credit card securitization trusts Securitization of originated credit card receivables 253-254 Mortgage securitization trusts Servicing and securitization of both originated and purchased residential mortgages 254-256 CIB Mortgage and other securitization trusts Securitization of both originated and purchased residential and commercial mortgages, and other consumer loans 254-256 Multi-seller conduits Assist clients in accessing the financial markets in a cost-efficient manner and structures transactions to meet investor needs 256 Municipal bond vehicles Financing of municipal bond investments 256-257 |
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 259 of this Note for further information regarding the Firm’s cash flows associated with and interests retained in nonconsolidated VIEs, and pages 259-260 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) December 31, 2020 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 Chase Securitization-related (a) Residential mortgage: Prime/Alt-A and option ARMs $ 49,644 $ 1,693 $ 41,265 $ 574 $ 724 $ — $ 1,298 Subprime 12,896 46 12,154 9 — — 9 Commercial and other (b) 119,732 — 92,351 955 1,549 262 2,766 Total $ 182,272 $ 1,739 $ 145,770 $ 1,538 $ 2,273 $ 262 $ 4,073 Principal amount outstanding JPMorgan Chase interest in securitized assets in nonconsolidated VIEs (c)(d)(e) December 31, 2019 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 Chase 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 259-260 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 $105 million and $40 million, respectively, at December 31, 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. |
Schedule of re-securitizations | The following table presents the principal amount of securities transferred to re-securitization VIEs. Year ended December 31, 2020 2019 2018 Transfers of securities to VIEs U.S. GSEs and government agencies $ 46,123 $ 25,852 $ 15,532 The following table presents information on the Firm's interests in nonconsolidated re-securitization VIEs. Nonconsolidated December 31, 2020 2019 U.S. GSEs and government agencies Interest in VIEs $ 2,631 $ 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 December 31, 2020 and 2019. Assets Liabilities December 31, 2020 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 $ — $ 11,962 $ 148 $ 12,110 $ 4,943 $ 3 $ 4,946 Firm-administered multi-seller conduits 2 23,787 188 23,977 10,523 33 10,556 Municipal bond vehicles 1,930 — 2 1,932 1,902 — 1,902 Mortgage securitization entities (a) — 1,694 94 1,788 210 108 318 Other 2 176 249 427 — 89 89 Total $ 1,934 $ 37,619 $ 681 $ 40,234 $ 17,578 $ 233 $ 17,811 Assets Liabilities December 31, 2019 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. Included in beneficial interests in VIE assets are long-term beneficial interests of $5.2 billion and $6.7 billion at December 31, 2020 and 2019, respectively. Refer to Note 20 for additional information on interest-bearing long-term beneficial interests. (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 years ended December 31, 2020, 2019 and 2018, 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. 2020 2019 2018 Year ended December 31, Residential mortgage (d) Commercial and other (e) Residential mortgage (d) Commercial and other (e) Residential mortgage (d) Commercial and other (e) Principal securitized $ 7,103 $ 6,624 $ 9,957 $ 9,390 $ 6,431 $ 10,159 All cash flows during the period: (a) Proceeds received from loan sales as financial instruments (b)(c) $ 7,321 $ 6,865 $ 10,238 $ 9,544 $ 6,449 $ 10,218 Servicing fees collected 211 1 287 2 319 2 Cash flows received on interests 801 239 507 237 411 301 (a) Excludes re-securitization transactions. (b) Predominantly includes Level 2 assets. (c) The carrying value of the loans accounted for at fair value approximated the proceeds received upon loan sale. (d) Represents prime mortgages. Excludes loan securitization activity related to U.S. GSEs and government agencies. (e) Includes commercial mortgage and other consumer loans. Key assumptions used to value retained interests originated during the year are shown in the table below. Year ended December 31, 2020 2019 2018 Residential mortgage retained interest: Weighted-average life (in years) 4.7 4.8 7.6 Weighted-average discount rate 8.2 % 7.4 % 3.6 % Commercial mortgage retained interest: Weighted-average life (in years) 6.9 6.4 5.3 Weighted-average discount rate 3.0 % 4.1 % 4.0 % |
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. Year ended December 31, 2020 2019 2018 Carrying value of loans sold $ 81,153 $ 92,349 $ 44,609 Proceeds received from loan sales as cash $ 45 $ 73 $ 9 Proceeds from loan sales as securities (a)(b) 80,186 91,422 43,671 Total proceeds received from loan sales (c) $ 80,231 $ 91,495 $ 43,680 Gains/(losses) on loan sales (d)(e) $ 6 $ 499 $ (93) (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 of loans repurchased and options to repurchase delinquent loans | The following table presents loans the Firm repurchased or had an option to repurchase, real estate owned, and foreclosed government-guaranteed residential mortgage loans recognized on the Firm’s Consolidated balance sheets as of December 31, 2020 and 2019. Substantially all of these loans and real estate are insured or guaranteed by U.S. government agencies. December 31, 2020 2019 Loans repurchased or option to repurchase (a) $ 1,413 $ 2,941 Real estate owned 9 41 Foreclosed government-guaranteed residential mortgage loans (b) 64 198 (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 December 31, 2020 and 2019. Securitized assets 90 days past due Net liquidation losses As of or for the year ended December 31, (in millions) 2020 2019 2020 2019 2020 2019 Securitized loans Residential mortgage: Prime/ Alt-A & option ARMs $ 41,265 $ 48,734 $ 4,988 $ 2,449 $ 212 $ 579 Subprime 12,154 13,490 2,406 1,813 179 532 Commercial and other 92,351 80,878 5,958 187 30 445 Total loans securitized $ 145,770 $ 143,102 $ 13,352 $ 4,449 $ 421 $ 1,556 |
Goodwill and Mortgage Servici_2
Goodwill and Mortgage Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill attributed to the business segments | The following table presents goodwill attributed to the business segments. December 31, (in millions) 2020 2019 2018 Consumer & Community Banking (a) $ 31,311 $ 30,133 $ 30,084 Corporate & Investment Bank (a) 7,913 7,901 7,721 Commercial Banking 2,985 2,982 2,860 Asset & Wealth Management (a) 7,039 6,807 6,806 Total goodwill $ 49,248 $ 47,823 $ 47,471 (a) In 2020, goodwill of $959 million was transferred from CCB to CIB and $51 million from AWM to CCB related to business realignments. Prior-period amounts have been revised to conform with the current presentation. Refer to Note 32 for additional information on these realignments. The following table presents changes in the carrying amount of goodwill. Year ended December 31, (in millions) 2020 2019 2018 Balance at beginning of period $ 47,823 $ 47,471 $ 47,507 Changes during the period from: Business combinations (a) 1,412 349 — Other (b) 13 3 (36) Balance at December 31, $ 49,248 $ 47,823 $ 47,471 (a) For 2020, represents estimated goodwill associated with the acquisitions of cxLoyalty in CCB and 55ip in AWM. For 2019, represents goodwill associated with the 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 years ended December 31, 2020, 2019 and 2018. As of or for the year ended December 31, (in millions, except where otherwise noted) 2020 2019 2018 Fair value at beginning of period $ 4,699 $ 6,130 $ 6,030 MSR activity: Originations of MSRs 944 1,384 931 Purchase of MSRs 248 105 315 Disposition of MSRs (a) (176) (789) (636) Net additions/(Dispositions) 1,016 700 610 Changes due to collection/realization of expected cash flows (899) (951) (740) Changes in valuation due to inputs and assumptions: Changes due to market interest rates and other (b) (1,568) (893) 300 Changes in valuation due to other inputs and assumptions: Projected cash flows (e.g., cost to service) (54) (333) (e) 15 Discount rates 199 153 24 Prepayment model changes and other (c) (117) (107) (109) Total changes in valuation due to other inputs and assumptions 28 (287) (70) Total changes in valuation due to inputs and assumptions (1,540) (1,180) 230 Fair value at December 31, $ 3,276 $ 4,699 $ 6,130 Change in unrealized gains/(losses) included in income related to MSRs held at December 31, $ (1,540) $ (1,180) $ 230 Contractual service fees, late fees and other ancillary fees included in income 1,325 1,639 1,778 Third-party mortgage loans serviced at December 31, (in billions) 448.0 522.0 521.0 Servicer advances, net of an allowance for uncollectible amounts, at December 31, (in billions) (d) 1.8 2.0 3.0 (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. |
CCB mortgage fees and related income | The following table presents the components of mortgage fees and related income (including the impact of MSR risk management activities) for the years ended December 31, 2020, 2019 and 2018. Year ended December 31, 2020 2019 2018 CCB mortgage fees and related income Net production revenue $ 2,629 $ 1,618 $ 268 Net mortgage servicing revenue: Operating revenue: Loan servicing revenue 1,367 1,533 1,835 Changes in MSR asset fair value due to collection/realization of expected cash flows (899) (951) (740) Total operating revenue 468 582 1,095 Risk management: Changes in MSR asset fair value due to market interest rates and other (a) (1,568) (893) 300 Other changes in MSR asset fair value due to other inputs and assumptions in model (b) 28 (287) (70) Change in derivative fair value and other 1,522 1,015 (341) Total risk management (18) (165) (111) Total net mortgage servicing revenue 450 417 984 Total CCB mortgage fees and related income 3,079 2,035 1,252 All other 12 1 2 Mortgage fees and related income $ 3,091 $ 2,036 $ 1,254 (a) Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments. (b) Represents the aggregate impact of changes in model inputs and assumptions such as projected cash flows (e.g., cost to service), discount rates and changes in prepayments other than those attributable to changes in market interest rates (e.g., changes in prepayments due to changes in home prices). |
Key economic assumptions used to determine the fair value of the Firm's Mortgage Servicing Rights (MSRs) | The table below outlines the key economic assumptions used to determine the fair value of the Firm’s MSRs at December 31, 2020 and 2019, and outlines the sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below. December 31, 2020 2019 Weighted-average prepayment speed assumption (constant prepayment rate) 14.90 % 11.67 % Impact on fair value of 10% adverse change $ (206) $ (200) Impact on fair value of 20% adverse change (392) (384) Weighted-average option adjusted spread (a) 7.19 % 7.93 % Impact on fair value of 100 basis points adverse change $ (134) $ (169) Impact on fair value of 200 basis points adverse change (258) (326) (a) Includes the impact of operational risk and regulatory capital. |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deposits [Abstract] | |
Noninterest-bearing and interest-bearing deposits | At December 31, 2020 and 2019, noninterest-bearing and interest-bearing deposits were as follows. December 31, (in millions) 2020 2019 U.S. offices Noninterest-bearing (included $9,873 and $22,637 at fair value) (a) $ 572,711 $ 395,667 Interest-bearing (included $2,567 and $2,534 at fair value) (a) 1,197,032 876,156 Total deposits in U.S. offices 1,769,743 1,271,823 Non-U.S. offices Noninterest-bearing (included $1,486 and $1,980 at fair value) (a) 23,435 20,087 Interest-bearing (included $558 and $1,438 at fair value) (a) 351,079 270,521 Total deposits in non-U.S. offices 374,514 290,608 Total deposits $ 2,144,257 $ 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 discussion. |
Time deposits $250,000 or more | At December 31, 2020 and 2019, time deposits in denominations of $250,000 or more were as follows. December 31, (in millions) 2020 2019 U.S. offices $ 33,812 $ 44,127 Non-U.S. offices 50,523 50,840 Total $ 84,335 $ 94,967 |
Time deposits, by maturity | At December 31, 2020, the maturities of interest-bearing time deposits were as follows. December 31, 2020 U.S. Non-U.S. Total 2021 $ 44,785 $ 48,142 $ 92,927 2022 1,451 175 1,626 2023 259 7 266 2024 210 36 246 2025 197 633 830 After 5 years 451 298 749 Total $ 47,353 $ 49,291 $ 96,644 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of information related to operating leases | The following tables provide information related to the Firm’s operating leases: December 31, 2020 2019 Right-of-use assets $ 8,006 $ 8,190 Lease liabilities 8,508 8,505 Weighted average remaining lease term (in years) 8.7 8.8 Weighted average discount rate 3.48 % 3.68 % Supplemental cash flow information Cash paid for amounts included in the measurement of lease liabilities - operating cash flows $ 1,626 $ 1,572 Supplemental non-cash information Right-of-use assets obtained in exchange for operating lease obligations $ 1,350 $ 1,413 Year ended December 31, 2020 2019 Rental expense Gross rental expense $ 2,094 $ 2,057 Sublease rental income (166) (184) Net rental expense $ 1,928 $ 1,873 |
Schedule of future payments under operating leases | The following table presents future payments under operating leases as of December 31, 2020: Year ended December 31, (in millions) 2021 $ 1,606 2022 1,435 2023 1,270 2024 1,123 2025 947 After 2025 3,602 Total future minimum lease payments 9,983 Less: Imputed interest (1,475) Total $ 8,508 |
Schedule of carrying value of assets subject to leases | The following table presents the carrying value of assets subject to leases reported on the Consolidated balance sheets: December 31, 2020 2019 Carrying value of assets subject to operating leases, net of accumulated depreciation $ 21,155 $ 23,587 Accumulated depreciation 6,388 6,121 |
Schedule of operating lease income and related depreciation expense | The following table presents the Firm’s operating lease income and the related depreciation expense on the Consolidated statements of income: 2020 2019 2018 Operating lease income $ 5,539 $ 5,455 $ 4,540 Depreciation expense 4,257 4,157 3,522 |
Schedule of future receipts under operating leases | The following table presents future receipts under operating leases as of December 31, 2020: Year ended December 31, (in millions) 2021 $ 3,686 2022 2,084 2023 613 2024 52 2025 24 After 2025 34 Total future minimum lease receipts $ 6,493 |
Accounts Payable and Other Li_2
Accounts Payable and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Payable and Accrued Liabilities [Abstract] | |
Components of accounts payable and other liabilities | The following table details the components of accounts payable and other liabilities. December 31, (in millions) 2020 2019 Brokerage payables $ 140,291 $ 118,375 Other payables and liabilities (a) 92,308 92,032 Total accounts payable and other liabilities $ 232,599 $ 210,407 (a) Includes credit card rewards liability of $7.7 billion and $6.4 billion at December 31, 2020 and 2019, respectively. |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | The following table is a summary of long-term debt carrying values (including unamortized premiums and discounts, issuance costs, valuation adjustments and fair value adjustments, where applicable) by remaining contractual maturity as of December 31, 2020. By remaining maturity at 2020 2019 Under 1 year 1-5 years After 5 years Total Total Parent company Senior debt: Fixed rate $ 9,225 $ 49,987 $ 114,296 $ 173,508 $ 161,198 Variable rate 1,580 8,644 8,353 18,577 18,615 Interest rates (a) 1.33-4.63% 0.50-4.50% 0.17-6.40% 0.17-6.40% 0.15-6.40% Subordinated debt: Fixed rate $ — $ 5,678 $ 13,577 $ 19,255 $ 15,155 Variable rate — — 9 9 9 Interest rates (a) —% 3.38-7.75% 2.96-8.00% 2.96-8.00% 3.38-8.00% Subtotal $ 10,805 $ 64,309 $ 136,235 $ 211,349 $ 194,977 Subsidiaries Federal Home Loan Banks advances: Fixed rate $ 7 $ 45 $ 71 $ 123 $ 135 Variable rate 3,000 11,000 — 14,000 28,500 Interest rates (a) 0.57-0.60% 0.19-0.24% 4.66-7.73% 0.19-7.73% 1.67-8.31% (h) Senior debt: Fixed rate $ 1,067 $ 3,157 $ 11,534 $ 15,758 $ 19,597 Variable rate 12,055 18,448 7,608 38,111 45,861 Interest rates (a) —% 7.28% 1.00-1.30% 1.00-7.28% 1.00-9.43% Subordinated debt: Fixed rate $ — $ 309 $ — $ 309 $ 305 Variable rate — — — — — Interest rates (a) — % 8.25 % — % 8.25 % 8.25 % Subtotal $ 16,129 $ 32,959 $ 19,213 $ 68,301 $ 94,398 Junior subordinated debt: Fixed rate $ — $ — $ 738 $ 738 $ 693 Variable rate — — 1,297 1,297 1,430 Interest rates (a) —% —% 0.71-8.75% 0.71-8.75% 2.41-8.75% Subtotal $ — $ — $ 2,035 $ 2,035 $ 2,123 Total long-term debt (b)(c)(d) $ 26,934 $ 97,268 $ 157,483 $ 281,685 (f)(g) $ 291,498 Long-term beneficial interests: Fixed rate $ 625 $ 1,744 $ — $ 2,369 $ 2,990 Variable rate 1,924 650 210 2,784 3,748 Interest rates 0.36-2.77% 0.00-2.39% 0.00-3.75% 0.00-3.75% 0.00-4.06% Total long-term beneficial interests (e) $ 2,549 $ 2,394 $ 210 $ 5,153 $ 6,738 (a) The interest rates shown are the range of contractual rates in effect at December 31, 2020 and 2019, respectively, including non-U.S. dollar fixed- and variable-rate issuances, which excludes the effects of the associated derivative instruments used in hedge accounting relationships, if applicable. The use of these derivative instruments modifies the Firm’s exposure to the contractual interest rates disclosed in the table above. Including the effects of the hedge accounting derivatives, the range of modified rates in effect at December 31, 2020, for total long-term debt was (0.40)% to 7.28%, versus the contractual range of 0.17% to 8.75% presented in the table above. The interest rate ranges shown exclude structured notes accounted for at fair value. (b) Included long-term debt of $17.2 billion and $32.0 billion secured by assets totaling $166.4 billion and $186.1 billion at December 31, 2020 and 2019, respectively. The amount of long-term debt secured by assets does not include amounts related to hybrid instruments. (c) Included $76.8 billion and $75.7 billion of long-term debt accounted for at fair value at December 31, 2020 and 2019, respectively. (d) Included $16.1 billion and $14.0 billion of outstanding zero-coupon notes at December 31, 2020 and 2019, respectively. The aggregate principal amount of these notes at their respective maturities is $45.3 billion and $39.7 billion, respectively. The aggregate principal amount reflects the contractual principal payment at maturity, which may exceed the contractual principal payment at the Firm’s next call date, if applicable. (e) Included on the Consolidated balance sheets in beneficial interests issued by consolidated VIEs. Also included $41 million and $36 million accounted for at fair value at December 31, 2020 and 2019, respectively. Excluded short-term commercial paper and other short-term beneficial interests of $12.4 billion and $11.1 billion at December 31, 2020 and 2019, respectively. (f) At December 31, 2020, long-term debt in the aggregate of $151.3 billion was redeemable at the option of JPMorgan Chase, in whole or in part, prior to maturity, based on the terms specified in the respective instruments. (g) The aggregate carrying values of debt that matures in each of the five years subsequent to 2020 is $26.9 billion in 2021, $18.4 billion in 2022, $32.2 billion in 2023, $29.6 billion in 2024 and $17.1 billion in 2025. (h) Prior-period amounts have been revised to conform with the current presentation. |
Schedule of maturities of long-term debt | The following table is a summary of long-term debt carrying values (including unamortized premiums and discounts, issuance costs, valuation adjustments and fair value adjustments, where applicable) by remaining contractual maturity as of December 31, 2020. By remaining maturity at 2020 2019 Under 1 year 1-5 years After 5 years Total Total Parent company Senior debt: Fixed rate $ 9,225 $ 49,987 $ 114,296 $ 173,508 $ 161,198 Variable rate 1,580 8,644 8,353 18,577 18,615 Interest rates (a) 1.33-4.63% 0.50-4.50% 0.17-6.40% 0.17-6.40% 0.15-6.40% Subordinated debt: Fixed rate $ — $ 5,678 $ 13,577 $ 19,255 $ 15,155 Variable rate — — 9 9 9 Interest rates (a) —% 3.38-7.75% 2.96-8.00% 2.96-8.00% 3.38-8.00% Subtotal $ 10,805 $ 64,309 $ 136,235 $ 211,349 $ 194,977 Subsidiaries Federal Home Loan Banks advances: Fixed rate $ 7 $ 45 $ 71 $ 123 $ 135 Variable rate 3,000 11,000 — 14,000 28,500 Interest rates (a) 0.57-0.60% 0.19-0.24% 4.66-7.73% 0.19-7.73% 1.67-8.31% (h) Senior debt: Fixed rate $ 1,067 $ 3,157 $ 11,534 $ 15,758 $ 19,597 Variable rate 12,055 18,448 7,608 38,111 45,861 Interest rates (a) —% 7.28% 1.00-1.30% 1.00-7.28% 1.00-9.43% Subordinated debt: Fixed rate $ — $ 309 $ — $ 309 $ 305 Variable rate — — — — — Interest rates (a) — % 8.25 % — % 8.25 % 8.25 % Subtotal $ 16,129 $ 32,959 $ 19,213 $ 68,301 $ 94,398 Junior subordinated debt: Fixed rate $ — $ — $ 738 $ 738 $ 693 Variable rate — — 1,297 1,297 1,430 Interest rates (a) —% —% 0.71-8.75% 0.71-8.75% 2.41-8.75% Subtotal $ — $ — $ 2,035 $ 2,035 $ 2,123 Total long-term debt (b)(c)(d) $ 26,934 $ 97,268 $ 157,483 $ 281,685 (f)(g) $ 291,498 Long-term beneficial interests: Fixed rate $ 625 $ 1,744 $ — $ 2,369 $ 2,990 Variable rate 1,924 650 210 2,784 3,748 Interest rates 0.36-2.77% 0.00-2.39% 0.00-3.75% 0.00-3.75% 0.00-4.06% Total long-term beneficial interests (e) $ 2,549 $ 2,394 $ 210 $ 5,153 $ 6,738 (a) The interest rates shown are the range of contractual rates in effect at December 31, 2020 and 2019, respectively, including non-U.S. dollar fixed- and variable-rate issuances, which excludes the effects of the associated derivative instruments used in hedge accounting relationships, if applicable. The use of these derivative instruments modifies the Firm’s exposure to the contractual interest rates disclosed in the table above. Including the effects of the hedge accounting derivatives, the range of modified rates in effect at December 31, 2020, for total long-term debt was (0.40)% to 7.28%, versus the contractual range of 0.17% to 8.75% presented in the table above. The interest rate ranges shown exclude structured notes accounted for at fair value. (b) Included long-term debt of $17.2 billion and $32.0 billion secured by assets totaling $166.4 billion and $186.1 billion at December 31, 2020 and 2019, respectively. The amount of long-term debt secured by assets does not include amounts related to hybrid instruments. (c) Included $76.8 billion and $75.7 billion of long-term debt accounted for at fair value at December 31, 2020 and 2019, respectively. (d) Included $16.1 billion and $14.0 billion of outstanding zero-coupon notes at December 31, 2020 and 2019, respectively. The aggregate principal amount of these notes at their respective maturities is $45.3 billion and $39.7 billion, respectively. The aggregate principal amount reflects the contractual principal payment at maturity, which may exceed the contractual principal payment at the Firm’s next call date, if applicable. (e) Included on the Consolidated balance sheets in beneficial interests issued by consolidated VIEs. Also included $41 million and $36 million accounted for at fair value at December 31, 2020 and 2019, respectively. Excluded short-term commercial paper and other short-term beneficial interests of $12.4 billion and $11.1 billion at December 31, 2020 and 2019, respectively. (f) At December 31, 2020, long-term debt in the aggregate of $151.3 billion was redeemable at the option of JPMorgan Chase, in whole or in part, prior to maturity, based on the terms specified in the respective instruments. (g) The aggregate carrying values of debt that matures in each of the five years subsequent to 2020 is $26.9 billion in 2021, $18.4 billion in 2022, $32.2 billion in 2023, $29.6 billion in 2024 and $17.1 billion in 2025. (h) Prior-period amounts have been revised to conform with the current presentation. |
Preferred Stock (Tables)
Preferred Stock (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2020 and 2019. Shares (a) Carrying value Issue date Contractual rate Earliest redemption date (b) Floating annualized rate of three-month LIBOR/Term SOFR plus: Dividend declared per share (c) December 31, December 31, Year ended December 31, 2020 2019 2020 2019 2020 2019 2018 Fixed-rate: Series P — — $ — $ — 2/5/2013 — % 3/1/2018 NA $— $545.00 $545.00 Series T — — — — 1/30/2014 — 3/1/2019 NA — 167.50 670.00 Series W — — — — 6/23/2014 — 9/1/2019 NA — 472.50 630.00 Series Y — 143,000 — 1,430 2/12/2015 — 3/1/2020 NA 153.13 612.52 612.52 Series AA 142,500 142,500 1,425 1,425 6/4/2015 6.100 9/1/2020 NA 610.00 610.00 610.00 Series BB 115,000 115,000 1,150 1,150 7/29/2015 6.150 9/1/2020 NA 615.00 615.00 615.00 Series DD 169,625 169,625 1,696 1,696 9/21/2018 5.750 12/1/2023 NA 575.00 575.00 111.81 (d) Series EE 185,000 185,000 1,850 1,850 1/24/2019 6.000 3/1/2024 NA 600.00 511.67 NA (e) Series GG 90,000 90,000 900 900 11/7/2019 4.750 12/1/2024 NA 506.67 NA NA (f) 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% $428.03 $593.23 $646.38 (g) Series Q 150,000 150,000 1,500 1,500 4/23/2013 5.150 5/1/2023 LIBOR + 3.25 515.00 515.00 515.00 Series R 150,000 150,000 1,500 1,500 7/29/2013 6.000 8/1/2023 LIBOR + 3.30 600.00 600.00 600.00 Series S 200,000 200,000 2,000 2,000 1/22/2014 6.750 2/1/2024 LIBOR + 3.78 675.00 675.00 675.00 Series U 100,000 100,000 1,000 1,000 3/10/2014 6.125 4/30/2024 LIBOR + 3.33 612.50 612.50 612.50 Series V 250,000 250,000 2,500 2,500 6/9/2014 LIBOR + 3.32% 7/1/2019 LIBOR + 3.32 436.85 534.09 500.00 (h) Series X 160,000 160,000 1,600 1,600 9/23/2014 6.100 10/1/2024 LIBOR + 3.33 610.00 610.00 610.00 Series Z 200,000 200,000 2,000 2,000 4/21/2015 LIBOR + 3.80% 5/1/2020 LIBOR + 3.80 453.52 530.00 530.00 (i) Series CC 125,750 125,750 1,258 1,258 10/20/2017 4.625 11/1/2022 LIBOR + 2.58 462.50 462.50 462.50 Series FF 225,000 225,000 2,250 2,250 7/31/2019 5.000 8/1/2024 SOFR + 3.38 500.00 251.39 NA (j) Series HH 300,000 — 3,000 — 1/23/2020 4.600 2/1/2025 SOFR + 3.125 470.22 NA NA (k) Series II 150,000 — 1,500 — 2/24/2020 4.000 4/1/2025 SOFR + 2.745 341.11 NA NA (l) Total preferred stock 3,006,250 2,699,250 $ 30,063 $ 26,993 (a) Represented by depositary shares. (b) Fixed-to-floating rate notes convert to a floating rate at the earliest redemption date. (c) Dividends are declared quarterly. Dividends are payable quarterly on fixed-rate preferred stock. Dividends are payable semiannually on fixed-to-floating-rate preferred stock while at a fixed rate, and payable quarterly after converting to a floating rate. (d) Dividends in the amount of $111.81 per share were declared on December 1, 2018 and include dividends from the original issue date of September 21, 2018 through November 30, 2018. (e) Dividends in the amount of $211.67 per share were declared on April 12,2019 and include dividends from the original issue date of January 24, 2019 through May 31, 2019. Dividends in the amount of $150.00 per share were declared thereafter on July 10, 2019 and October 9, 2019. (f) No dividends were declared for Series GG from the original issue date of November 7, 2019 through December 31, 2019. (g) The dividend rate for Series I preferred stock became floating and payable quarterly starting on April 30, 2018; prior to which the dividend rate was fixed at 7.90% or $395.00 per share payable semi annually. (h) The dividend rate for Series V preferred stock became floating and payable quarterly starting on July 1, 2019; prior to which the dividend rate was fixed at 5% or $250.00 per share payable semi annually. The Firm declared a dividend of $144.11 and $139.98 per share on outstanding Series V preferred stock on August 15, 2019 and November 15, 2019, respectively. (i) Prior to May 1, 2020, the dividend rate was fixed at 5.3%. (j) Dividends in the amount of $126.39 per share were declared on September 9, 2019 and include dividends from the original issue date of July 31, 2019 through October 31, 2019. Dividends in the amount of $125.00 per share were declared thereafter on December 10, 2019. (k) Dividends in the amount of $125.22 per share were declared on March 13, 2020 and include dividends from the original issue date of January 23, 2020 through April 30, 2020. Dividends in the amount of $115.00 per share were declared quarterly thereafter. (l) Dividends in the amount of $141.11 per share were declared on May 15, 2020 and include dividends from the original issue date of February 24, 2020 through June 30, 2020. Dividends in the amount of $100.00 per share were declared quarterly thereafter. Common shares issued (reissuances from treasury) by JPMorgan Chase during the years ended December 31, 2020, 2019 and 2018 were as follows. Year ended December 31, 2020 2019 2018 Total issued – balance at January 1 4,104.9 4,104.9 4,104.9 Treasury – balance at January 1 (1,020.9) (829.1) (679.6) Repurchase (50.0) (213.0) (181.5) Reissuance: Employee benefits and compensation plans 14.2 20.4 21.7 Warrant exercise — — 9.4 Employee stock purchase plans 1.2 0.8 0.9 Total reissuance 15.4 21.2 32.0 Total treasury – balance at December 31 (1,055.5) (1,020.9) (829.1) Outstanding at December 31 3,049.4 3,084.0 3,275.8 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2020 and 2019. Shares (a) Carrying value Issue date Contractual rate Earliest redemption date (b) Floating annualized rate of three-month LIBOR/Term SOFR plus: Dividend declared per share (c) December 31, December 31, Year ended December 31, 2020 2019 2020 2019 2020 2019 2018 Fixed-rate: Series P — — $ — $ — 2/5/2013 — % 3/1/2018 NA $— $545.00 $545.00 Series T — — — — 1/30/2014 — 3/1/2019 NA — 167.50 670.00 Series W — — — — 6/23/2014 — 9/1/2019 NA — 472.50 630.00 Series Y — 143,000 — 1,430 2/12/2015 — 3/1/2020 NA 153.13 612.52 612.52 Series AA 142,500 142,500 1,425 1,425 6/4/2015 6.100 9/1/2020 NA 610.00 610.00 610.00 Series BB 115,000 115,000 1,150 1,150 7/29/2015 6.150 9/1/2020 NA 615.00 615.00 615.00 Series DD 169,625 169,625 1,696 1,696 9/21/2018 5.750 12/1/2023 NA 575.00 575.00 111.81 (d) Series EE 185,000 185,000 1,850 1,850 1/24/2019 6.000 3/1/2024 NA 600.00 511.67 NA (e) Series GG 90,000 90,000 900 900 11/7/2019 4.750 12/1/2024 NA 506.67 NA NA (f) 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% $428.03 $593.23 $646.38 (g) Series Q 150,000 150,000 1,500 1,500 4/23/2013 5.150 5/1/2023 LIBOR + 3.25 515.00 515.00 515.00 Series R 150,000 150,000 1,500 1,500 7/29/2013 6.000 8/1/2023 LIBOR + 3.30 600.00 600.00 600.00 Series S 200,000 200,000 2,000 2,000 1/22/2014 6.750 2/1/2024 LIBOR + 3.78 675.00 675.00 675.00 Series U 100,000 100,000 1,000 1,000 3/10/2014 6.125 4/30/2024 LIBOR + 3.33 612.50 612.50 612.50 Series V 250,000 250,000 2,500 2,500 6/9/2014 LIBOR + 3.32% 7/1/2019 LIBOR + 3.32 436.85 534.09 500.00 (h) Series X 160,000 160,000 1,600 1,600 9/23/2014 6.100 10/1/2024 LIBOR + 3.33 610.00 610.00 610.00 Series Z 200,000 200,000 2,000 2,000 4/21/2015 LIBOR + 3.80% 5/1/2020 LIBOR + 3.80 453.52 530.00 530.00 (i) Series CC 125,750 125,750 1,258 1,258 10/20/2017 4.625 11/1/2022 LIBOR + 2.58 462.50 462.50 462.50 Series FF 225,000 225,000 2,250 2,250 7/31/2019 5.000 8/1/2024 SOFR + 3.38 500.00 251.39 NA (j) Series HH 300,000 — 3,000 — 1/23/2020 4.600 2/1/2025 SOFR + 3.125 470.22 NA NA (k) Series II 150,000 — 1,500 — 2/24/2020 4.000 4/1/2025 SOFR + 2.745 341.11 NA NA (l) Total preferred stock 3,006,250 2,699,250 $ 30,063 $ 26,993 (a) Represented by depositary shares. (b) Fixed-to-floating rate notes convert to a floating rate at the earliest redemption date. (c) Dividends are declared quarterly. Dividends are payable quarterly on fixed-rate preferred stock. Dividends are payable semiannually on fixed-to-floating-rate preferred stock while at a fixed rate, and payable quarterly after converting to a floating rate. (d) Dividends in the amount of $111.81 per share were declared on December 1, 2018 and include dividends from the original issue date of September 21, 2018 through November 30, 2018. (e) Dividends in the amount of $211.67 per share were declared on April 12,2019 and include dividends from the original issue date of January 24, 2019 through May 31, 2019. Dividends in the amount of $150.00 per share were declared thereafter on July 10, 2019 and October 9, 2019. (f) No dividends were declared for Series GG from the original issue date of November 7, 2019 through December 31, 2019. (g) The dividend rate for Series I preferred stock became floating and payable quarterly starting on April 30, 2018; prior to which the dividend rate was fixed at 7.90% or $395.00 per share payable semi annually. (h) The dividend rate for Series V preferred stock became floating and payable quarterly starting on July 1, 2019; prior to which the dividend rate was fixed at 5% or $250.00 per share payable semi annually. The Firm declared a dividend of $144.11 and $139.98 per share on outstanding Series V preferred stock on August 15, 2019 and November 15, 2019, respectively. (i) Prior to May 1, 2020, the dividend rate was fixed at 5.3%. (j) Dividends in the amount of $126.39 per share were declared on September 9, 2019 and include dividends from the original issue date of July 31, 2019 through October 31, 2019. Dividends in the amount of $125.00 per share were declared thereafter on December 10, 2019. (k) Dividends in the amount of $125.22 per share were declared on March 13, 2020 and include dividends from the original issue date of January 23, 2020 through April 30, 2020. Dividends in the amount of $115.00 per share were declared quarterly thereafter. (l) Dividends in the amount of $141.11 per share were declared on May 15, 2020 and include dividends from the original issue date of February 24, 2020 through June 30, 2020. Dividends in the amount of $100.00 per share were declared quarterly thereafter. Common shares issued (reissuances from treasury) by JPMorgan Chase during the years ended December 31, 2020, 2019 and 2018 were as follows. Year ended December 31, 2020 2019 2018 Total issued – balance at January 1 4,104.9 4,104.9 4,104.9 Treasury – balance at January 1 (1,020.9) (829.1) (679.6) Repurchase (50.0) (213.0) (181.5) Reissuance: Employee benefits and compensation plans 14.2 20.4 21.7 Warrant exercise — — 9.4 Employee stock purchase plans 1.2 0.8 0.9 Total reissuance 15.4 21.2 32.0 Total treasury – balance at December 31 (1,055.5) (1,020.9) (829.1) Outstanding at December 31 3,049.4 3,084.0 3,275.8 |
Schedule of common equity repurchases | The following table sets forth the Firm’s repurchases of common stock for the years ended December 31, 2020, 2019 and 2018. There were no Warrants repurchased during 2018. Year ended December 31, (in millions) 2020 2019 2018 Total number of shares of common stock repurchased 50.0 213.0 181.5 Aggregate purchase price of common stock repurchases $ 6,397 $ 24,121 $ 19,983 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share basic and diluted | The following table presents the calculation of net income applicable to common stockholders and basic and diluted EPS for the years ended December 31, 2020, 2019 and 2018. Year ended December 31, 2020 2019 2018 Basic earnings per share Net income $ 29,131 $ 36,431 $ 32,474 Less: Preferred stock dividends 1,583 1,587 1,551 Net income applicable to common equity 27,548 34,844 30,923 Less: Dividends and undistributed earnings allocated to participating securities 138 202 214 Net income applicable to common stockholders $ 27,410 $ 34,642 $ 30,709 Total weighted-average basic shares outstanding 3,082.4 3,221.5 3,396.4 Net income per share $ 8.89 $ 10.75 $ 9.04 Diluted earnings per share Net income applicable to common stockholders $ 27,410 $ 34,642 $ 30,709 Total weighted-average basic shares outstanding 3,082.4 3,221.5 3,396.4 Add: Dilutive impact of SARs and employee stock options, unvested PSUs and nondividend-earning RSUs, and warrants 5.0 8.9 17.6 Total weighted-average diluted shares outstanding 3,087.4 3,230.4 3,414.0 Net income per share $ 8.88 $ 10.72 $ 9.00 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income/(Loss) (Tables) | 12 Months Ended |
Dec. 31, 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). Year ended December 31, Unrealized Translation adjustments, net of hedges Fair value Cash flow hedges Defined benefit pension and OPEB plans DVA on fair value option elected liabilities Accumulated other comprehensive income/(loss) Balance at December 31, 2017 $ 2,164 $ (470) $ — $ 76 $ (1,521) $ (368) $ (119) Cumulative effect of changes in accounting principles (a) 896 (277) (54) 16 (414) (79) 88 Net change (1,858) 20 (107) (201) (373) 1,043 (1,476) Balance at December 31, 2018 $ 1,202 $ (727) $ (161) $ (109) $ (2,308) $ 596 $ (1,507) Net change 2,855 20 30 172 964 (965) 3,076 Balance at December 31, 2019 $ 4,057 $ (707) $ (131) $ 63 $ (1,344) $ (369) $ 1,569 Net change 4,123 234 19 2,320 212 (491) 6,417 Balance at December 31, 2020 $ 8,180 (b) $ (473) $ (112) $ 2,383 $ (1,132) $ (860) $ 7,986 (a) Represents the adjustment to AOCI as a result of the accounting standards adopted in the first quarter of 2018. Refer to Note 1 for additional information. (b) Includes after-tax net unamortized unrealized gains of $3.3 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 2018 Year ended December 31, (in millions) Pre-tax Tax effect After-tax Pre-tax Tax effect After-tax Pre-tax Tax effect After-tax Unrealized gains/(losses) on investment securities: Net unrealized gains/(losses) arising during the period $ 6,228 $ (1,495) $ 4,733 $ 4,025 $ (974) $ 3,051 $ (2,825) $ 665 $ (2,160) Reclassification adjustment for realized (gains)/losses included in net income (a) (802) 192 (610) (258) 62 (196) 395 (93) 302 Net change 5,426 (1,303) 4,123 3,767 (912) 2,855 (2,430) 572 (1,858) Translation adjustments (b) : Translation 1,407 (103) 1,304 (49) 33 (16) (1,078) 156 (922) Hedges (1,411) 341 (1,070) 46 (10) 36 1,236 (294) 942 Net change (4) 238 234 (3) 23 20 158 (138) 20 Fair value hedges, net change (c) : 25 (6) 19 39 (9) 30 (140) 33 (107) Cash flow hedges: Net unrealized gains/(losses) arising during the period 3,623 (870) 2,753 122 (28) 94 (245) 58 (187) Reclassification adjustment for realized (gains)/losses included in net income (d) (570) 137 (433) 103 (25) 78 (18) 4 (14) Net change 3,053 (733) 2,320 225 (53) 172 (263) 62 (201) Defined benefit pension and OPEB plans, net change: 214 (2) 212 1,157 (193) 964 (450) 77 (373) DVA on fair value option elected liabilities, net change: $ (648) $ 157 $ (491) $ (1,264) $ 299 $ (965) $ 1,364 $ (321) $ 1,043 Total other comprehensive income/(loss) $ 8,066 $ (1,649) $ 6,417 $ 3,921 $ (845) $ 3,076 $ (1,761) $ 285 $ (1,476) (a) The pre-tax amount is reported in Investment securities gains/(losses) in the Consolidated statements of income. (b) Reclassifications of pre-tax realized gains/(losses) on translation adjustments and related hedges are reported in other income/expense in the Consolidated statements of income. During the year ended December 31, 2020, the Firm reclassified a net pre-tax gain of $6 million to other income related to the liquidation of legal entities, $3 million related to net investment hedge gains and $3 million related to cumulative translation adjustments. During the year ended December 31, 2019, the Firm reclassified net pre-tax gains of $7 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 $18 million related to net investment hedge gains and $10 million related to cumulative translation adjustments. During the year ended December 31, 2018, the Firm reclassified a net pre-tax loss of $168 million to other expense related to the liquidation of certain legal entities, $17 million related to net investment hedge losses and $151 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. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of the applicable statutory U.S. income tax rate to the effective tax rate the effective tax rate | The following table presents a reconciliation of the applicable statutory U.S. federal income tax rate to the effective tax rate. Effective tax rate Year ended December 31, 2020 2019 2018 Statutory U.S. federal tax rate 21.0 % 21.0 % 21.0 % Increase/(decrease) in tax rate resulting from: U.S. state and local income taxes, net of U.S. federal income tax benefit 2.5 3.5 4.0 Tax-exempt income (1.6) (1.4) (1.5) Non-U.S. earnings 1.4 1.8 0.6 Business tax credits (6.3) (4.4) (3.5) Tax audit resolutions — (2.3) (0.1) Impact of the TCJA (a) — — (0.7) Other, net 0.7 — 0.5 Effective tax rate 17.7 % 18.2 % 20.3 % (a) Represents changes in the estimates related to the remeasurement of certain deferred taxes and the deemed repatriation tax on non-U.S. earnings under SEC Staff Accounting Bulletin No. 118 which was completed in 2018. |
Components of income tax expense/(benefit) included in the Consolidated Statements of Income | The following table reflects the components of income tax expense/(benefit) included in the Consolidated statements of income. Income tax expense/(benefit) Year ended December 31, 2020 2019 2018 Current income tax expense/(benefit) U.S. federal $ 5,759 $ 3,284 $ 2,854 Non-U.S. 2,705 2,103 2,077 U.S. state and local 1,793 1,778 1,638 Total current income tax expense/(benefit) 10,257 7,165 6,569 Deferred income tax expense/(benefit) U.S. federal (3,184) 709 1,359 Non-U.S. (126) 20 (93) U.S. state and local (671) 220 455 Total deferred income tax (3,981) 949 1,721 Total income tax expense $ 6,276 $ 8,114 $ 8,290 |
U.S. and non-U.S. components of income before income tax expense/(benefit) | The following table presents the U.S. and non-U.S. components of income before income tax expense. Year ended December 31, 2020 2019 2018 U.S. $ 26,904 $ 36,670 $ 33,052 Non-U.S. (a) 8,503 7,875 7,712 Income before income tax expense $ 35,407 $ 44,545 $ 40,764 (a) For purposes of this table, non-U.S. income is defined as income generated from operations located outside the U.S. |
Significant components of deferred tax assets and liabilities | The significant components of deferred tax assets and liabilities are reflected in the following table. December 31, (in millions) 2020 2019 Deferred tax assets Allowance for loan losses $ 7,270 $ 3,400 Employee benefits 1,104 1,039 Accrued expenses and other 3,332 2,767 Non-U.S. operations 849 949 Tax attribute carryforwards 757 605 Gross deferred tax assets 13,312 8,760 Valuation allowance (560) (557) Deferred tax assets, net of valuation allowance $ 12,752 $ 8,203 Deferred tax liabilities Depreciation and amortization $ 3,329 $ 2,852 Mortgage servicing rights, net of hedges 2,184 2,354 Leasing transactions 5,124 5,598 Other, net 6,025 4,683 Gross deferred tax liabilities 16,662 15,487 Net deferred tax (liabilities)/assets $ (3,910) $ (7,284) |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | The following table presents a reconciliation of the beginning and ending amount of unrecognized tax benefits. Year ended December 31, 2020 2019 2018 Balance at January 1, $ 4,024 $ 4,861 $ 4,747 Increases based on tax positions related to the current period 685 871 980 Increases based on tax positions related to prior periods 362 10 649 Decreases based on tax positions related to prior periods (705) (706) (1,249) Decreases related to cash settlements with taxing authorities (116) (1,012) (266) Balance at December 31, $ 4,250 $ 4,024 $ 4,861 |
Tax examination status | JPMorgan Chase is continually under examination by the Internal Revenue Service, by taxing authorities throughout the world, and by many state and local jurisdictions throughout the U.S. The following table summarizes the status of significant income tax examinations of JPMorgan Chase and its consolidated subsidiaries as of December 31, 2020. Periods under examination Status JPMorgan Chase – U.S. 2009 – 2013 Field examination of amended returns JPMorgan Chase – U.S. 2014 - 2016 Field Examination JPMorgan Chase – New York State 2012 - 2014 Field Examination JPMorgan Chase – New York City 2012 - 2014 Field Examination JPMorgan Chase – California 2011 – 2012 Field Examination JPMorgan Chase – U.K. 2006 – 2018 Field examination of certain select entities |
Restricted Cash, Other Restri_2
Restricted Cash, Other Restricted Assets and Intercompany Funds Transfers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Components of restricted cash | The following table presents the components of the Firm’s restricted cash: December 31, (in billions) 2020 2019 Cash reserves – Federal Reserve Banks (a) $ — $ 26.6 Segregated for the benefit of securities and cleared derivative customers 19.3 16.0 Cash reserves at non-U.S. central banks and held for other general purposes 5.1 3.9 Total restricted cash (b) $ 24.4 $ 46.5 (a) Effective March 26, 2020, the Federal Reserve eliminated reserve requirements for depository institutions (b) Comprises $22.7 billion and $45.3 billion in deposits with banks, and $1.7 billion and $1.2 billion in cash and due from banks on the Consolidated balance sheets as of December 31, 2020 and 2019, respectively. |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2020 and 2019. Standardized Minimum capital ratios Advanced Minimum capital ratios Well-capitalized ratios BHC (a)(b)(c) IDI (c)(d) BHC (a)(c) IDI (c)(d) BHC (e) IDI (f) Capital ratios CET1 capital 11.3 % 7.0 % 10.5 % 7.0 % NA 6.5 % Tier 1 capital 12.8 8.5 12.0 8.5 6.0 8.0 Total capital 14.8 10.5 14.0 10.5 10.0 10.0 Tier 1 leverage 4.0 4.0 4.0 4.0 NA 5.0 SLR NA NA 5.0 6.0 NA 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. The CET1, Tier 1 and Total capital minimum capital ratios each include a respective minimum requirement plus a GSIB surcharge of 3.5% as calculated under Method 2; plus a 3.3% SCB for Basel III Standardized ratios and a fixed 2.5% capital conservation buffer for Basel III Advanced ratios. The countercyclical buffer is currently set to 0% by the federal banking agencies. (b) For the period ended December 31, 2019, the CET1, Tier 1, Total, Tier 1 leverage and SLR minimum capital ratios under Basel III Standardized applicable to the Firm were 10.5%, 12.0%, 14.0%, 4.0%, and 5.0%, respectively. (c) 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. (d) Represents requirements for JPMorgan Chase’s IDI subsidiaries. The CET1, Tier 1 and Total capital minimum capital ratios include a fixed capital conservation buffer requirement of 2.5% that is applicable to the IDI subsidiaries. The IDI subsidiaries are not subject to the GSIB surcharge. (e) Represents requirements for bank holding companies pursuant to regulations issued by the Federal Reserve. (f) 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 December 31, 2020, the capital metrics are presented applying the CECL capital transition provisions. As of December 31, 2020 and 2019, JPMorgan Chase and JPMorgan Chase Bank, N.A. were well-capitalized and met all capital requirements to which each was subject. December 31, 2020 Basel III Standardized Basel III Advanced JPMorgan Chase & Co. (c) JPMorgan Chase Bank, N.A. (c) JPMorgan Chase & Co. (c) JPMorgan Chase Bank, N.A. (c) Risk-based capital metrics: CET1 capital $ 205,078 $ 234,235 $ 205,078 $ 234,235 Tier 1 capital 234,844 234,237 234,844 234,237 Total capital 269,923 252,045 257,228 239,673 Risk-weighted assets 1,560,609 1,492,138 1,484,431 1,343,185 CET1 capital ratio 13.1 % 15.7 % 13.8 % 17.4 % Tier 1 capital ratio 15.0 15.7 15.8 17.4 Total capital ratio 17.3 16.9 17.3 17.8 Leverage-based capital metrics: Adjusted average assets (a) $ 3,353,319 $ 2,970,285 $ 3,353,319 $ 2,970,285 Tier 1 leverage ratio 7.0 % 7.9 % 7.0 % 7.9 % Total leverage exposure (b) NA NA $ 3,401,542 $ 3,688,797 SLR (b) NA NA 6.9 % 6.3 % December 31, 2019 Basel III Standardized Basel III Advanced JPMorgan JPMorgan Chase Bank, N.A. JPMorgan JPMorgan Chase Bank, N.A. Risk-based capital metrics: 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 (a) $ 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) 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. (b) As of December 31, 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 December 31, 2020, JPMorgan Chase Bank, N.A. has not elected to apply this exclusion . (c) As of December 31, 2020, the capital metrics for the Firm reflect the exclusion of assets purchased from money market mutual fund clients pursuant to nonrecourse advances provided under the MMLF. Additionally, loans originated under the PPP for the Firm and JPMorgan Chase Bank, N.A. receive a zero percent risk weight. |
Off-balance Sheet Lending-rel_2
Off-balance Sheet Lending-related Financial Instruments, Guarantees, and Other Commitments (Tables) | 12 Months Ended |
Dec. 31, 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 Contractual amount Carrying value (j) 2020 2019 2020 2019 By remaining maturity at December 31, Expires in 1 year or less Expires after Expires after Expires after 5 years Total Total Lending-related Consumer, excluding credit card: Residential Real Estate (a) $ 26,788 $ 1,597 $ 3,962 $ 13,700 $ 46,047 $ 30,217 148 12 Auto and other 10,471 1 8 792 11,272 9,952 — — Total consumer, excluding credit card 37,259 1,598 3,970 14,492 57,319 40,169 148 12 Credit card (b) 658,506 — — — 658,506 650,720 — — Total consumer (b)(c) 695,765 1,598 3,970 14,492 715,825 690,889 148 12 Wholesale: Other unfunded commitments to extend credit (d)(e) 96,490 174,335 128,736 16,267 415,828 380,307 2,148 952 Standby letters of credit and other financial guarantees (d) 17,478 7,986 4,051 1,467 30,982 34,242 443 618 Other letters of credit (d) 2,982 45 26 — 3,053 2,961 14 4 Total wholesale (c) 116,950 182,366 132,813 17,734 449,863 417,510 2,605 1,574 Total lending-related $ 812,715 $ 183,964 $ 136,783 $ 32,226 $ 1,165,688 $ 1,108,399 $ 2,753 $ 1,586 Other guarantees and commitments Securities lending indemnification agreements and guarantees (f) $ 250,418 $ — $ — $ — $ 250,418 $ 204,827 $ — $ — Derivatives qualifying as guarantees 2,489 541 12,182 39,203 54,415 53,089 322 159 Unsettled resale and securities borrowed agreements 95,084 1,764 — — 96,848 117,951 2 — Unsettled repurchase and securities loaned agreements 104,289 612 — — 104,901 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 889 944 23 27 Exchange & clearing house guarantees and commitments (g) 142,003 — — — 142,003 206,432 — — Other guarantees and commitments (e)(h) 2,457 574 758 2,541 6,330 6,334 (i) 52 (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 December 31, 2020 and 2019, reflected the contractual amount net of risk participations totaling $72 million and $76 million, respectively, for other unfunded commitments to extend credit; $8.5 billion and $9.8 billion, respectively, for standby letters of credit and other financial guarantees; and $357 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 December 31, 2020 and 2019, collateral held by the Firm in support of securities lending indemnification agreements was $264.3 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 December 31, 2020 and 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 December 31, 2020 and 2019, primarily includes letters of credit hedged by derivative transactions and managed on a market risk basis, and unfunded commitments 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. |
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 December 31, 2020 and 2019. Standby letters of credit, other financial guarantees and other letters of credit 2020 2019 December 31, Standby letters of credit and Other letters Standby letters of credit and Other letters Investment-grade (a) $ 22,850 $ 2,263 $ 26,880 $ 2,137 Noninvestment-grade (a) 8,132 790 7,362 824 Total contractual amount $ 30,982 $ 3,053 $ 34,242 $ 2,961 Allowance for lending-related commitments $ 80 $ 14 $ 216 $ 4 Guarantee liability 363 — 402 — Total carrying value $ 443 $ 14 $ 618 $ 4 Commitments with collateral $ 17,238 $ 498 $ 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. |
Schedule of derivatives qualifying as guarantees | The following table summarizes the derivatives qualifying as guarantees as of December 31, 2020 and 2019. (in millions) December 31, 2020 December 31, 2019 Notional amounts Derivative guarantees $ 54,415 $ 53,089 Stable value contracts with contractually limited exposure 27,752 28,877 Maximum exposure of stable value contracts with contractually limited exposure 2,803 2,967 Fair value Derivative payables 322 159 |
Pledged Assets and Collateral (
Pledged Assets and Collateral (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of pledged assets | The following table presents the Firm’s pledged assets. December 31, (in billions) 2020 2019 Assets that may be sold or repledged or otherwise used by secured parties $ 166.6 $ 125.2 Assets that may not be sold or repledged or otherwise used by secured parties 113.9 80.2 Assets pledged at Federal Reserve banks and FHLBs 455.3 478.9 Total pledged assets $ 735.8 $ 684.3 December 31, (in billions) 2020 2019 Investment securities $ 80.2 $ 35.9 Loans 420.5 460.4 Trading assets and other 235.1 188.0 Total pledged assets $ 735.8 $ 684.3 |
Schedule of collateral received | The following table presents the fair value of collateral accepted. December 31, (in billions) 2020 2019 Collateral permitted to be sold or repledged, delivered, or otherwise used $ 1,451.7 $ 1,282.5 Collateral sold, repledged, delivered or otherwise used 1,038.9 1,000.5 (a) (a) Includes collateral repledged to the Federal Reserve under the Federal Reserve’s open market operations. |
International Operations (Table
International Operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segments, Geographical Areas [Abstract] | |
Schedule of revenue from external customers attributed to foreign countries by geographic area | The following table presents income statement and balance sheet-related information for JPMorgan Chase by major international geographic area. The Firm defines international activities for purposes of this footnote presentation as business transactions that involve clients residing outside of the U.S., and the information presented below is based predominantly on the domicile of the client, the location from which the client relationship is managed, booking location or the location of the trading desk. However, many of the Firm’s U.S. operations serve international businesses. As the Firm’s operations are highly integrated, estimates and subjective assumptions have been made to apportion revenue and expense between U.S. and international operations. These estimates and assumptions are consistent with the allocations used for the Firm’s segment reporting as set forth in Note 32. The Firm’s long-lived assets for the periods presented are not considered by management to be significant in relation to total assets. The majority of the Firm’s long-lived assets are located in the U.S. As of or for the year ended December 31, Revenue (c) Expense (d) Income before income tax Net income Total assets 2020 Europe/Middle East/Africa $ 16,566 $ 10,987 $ 5,579 $ 3,868 $ 530,687 (e) Asia-Pacific 9,289 5,558 3,731 2,630 252,553 Latin America/Caribbean 2,740 1,590 1,150 837 61,980 Total international 28,595 18,135 10,460 7,335 845,220 North America (a) 90,948 66,001 24,947 21,796 2,540,851 Total $ 119,543 $ 84,136 $ 35,407 $ 29,131 $ 3,386,071 2019 (b) Europe/Middle East/Africa $ 15,887 $ 9,860 $ 6,027 $ 4,158 $ 391,369 (e) Asia-Pacific 7,254 5,060 2,194 1,467 183,023 Latin America/Caribbean 2,405 1,561 844 609 47,820 Total international 25,546 16,481 9,065 6,234 622,212 North America (a) 89,853 54,373 35,480 30,197 2,065,167 Total $ 115,399 $ 70,854 $ 44,545 $ 36,431 $ 2,687,379 2018 (b) Europe/Middle East/Africa $ 16,459 $ 10,032 $ 6,427 $ 4,569 $ 424,935 (e) Asia-Pacific 6,991 4,884 2,107 1,481 171,547 Latin America/Caribbean 2,365 1,301 1,064 744 43,871 Total international 25,815 16,217 9,598 6,794 640,353 North America (a) 82,968 51,802 31,166 25,680 1,982,179 Total $ 108,783 $ 68,019 $ 40,764 $ 32,474 $ 2,622,532 (a) Substantially reflects the U.S. (b) Prior-period amounts have been revised to conform with the current presentation. (c) Revenue is composed of net interest income and noninterest revenue. (d) Expense is composed of noninterest expense and the provision for credit losses. (e) Total assets for the U.K. were approximately $353 billion, $309 billion and $299 billion at December 31, 2020, 2019 and 2018, respectively. |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment results and reconciliation | The following table provides a summary of the Firm’s segment results as of or for the years ended December 31, 2020, 2019 and 2018, on a managed basis. The Firm’s definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm (and each of the reportable business segments) on an FTE basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. This allows management to assess the comparability of revenue from year-to-year arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense/(benefit). These adjustments have no impact on net income as reported by the Firm as a whole or by the LOBs. Business segment capital allocation Each business segment is allocated capital by taking into consideration a variety of factors including capital levels of similarly rated peers and applicable regulatory capital requirements. ROE is measured and internal targets for expected returns are established as key measures of a business segment’s performance. The Firm’s allocation methodology incorporates Basel III Standardized RWA, Basel III Advanced RWA, the GSIB surcharge, and a simulation of capital in a severe stress environment. The assumptions and methodologies used to allocate capital are periodically assessed and as a result, the capital allocated to the LOBs may change from time to time. Business segment changes In the fourth quarter of 2020, the Firm transferred certain assets, liabilities, revenue, expense and headcount associated with certain wealth management clients from AWM to the J.P. Morgan Wealth Management business unit within CCB. Prior-period amounts have been revised to conform with the current presentation, including the transfer of approximately 1,650 technology and support staff during the second and third quarters of 2020. Ultra-high-net-worth and certain high-net-worth client relationships remained in AWM. 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. In the fourth quarter of 2020, payment processing-only clients along with the associated revenue and expenses were realigned to CIB’s Wholesale Payments business from CCB and CB. Payment processing-only clients are those that only use payment services offered by Merchant Services, and in general do not currently utilize other services offered by the Firm. Prior-period amounts have been revised to reflect this realignment and revised allocation methodology. Segment results and reconciliation (a) (Table continued on next page) As of or for the year ended Consumer & Community Banking (b) Corporate & Investment Bank Commercial Banking Asset & Wealth Management 2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018 Noninterest revenue $ 17,740 $ 17,796 $ 15,338 $ 35,120 $ 30,060 $ 27,854 $ 3,067 $ 2,710 $ 2,620 $ 10,822 $ 10,236 $ 10,052 Net interest income 33,528 37,337 35,933 14,164 9,205 9,528 6,246 6,554 6,716 3,418 3,355 3,375 Total net revenue 51,268 55,133 51,271 49,284 39,265 37,382 9,313 9,264 9,336 14,240 13,591 13,427 Provision for credit losses 12,312 4,954 4,754 2,726 277 (60) 2,113 296 129 263 59 52 Noninterest expense 27,990 28,276 27,168 23,538 22,444 21,876 3,798 3,735 3,627 9,957 9,747 9,575 Income/(loss) before income tax expense/(benefit) 10,966 21,903 19,349 23,020 16,544 15,566 3,402 5,233 5,580 4,020 3,785 3,800 Income tax expense/(benefit) 2,749 5,362 4,642 5,926 4,590 3,767 824 1,275 1,316 1,028 918 855 Net income/(loss) $ 8,217 $ 16,541 $ 14,707 $ 17,094 $ 11,954 $ 11,799 $ 2,578 $ 3,958 $ 4,264 $ 2,992 $ 2,867 $ 2,945 Average equity $ 52,000 $ 52,000 $ 51,000 $ 80,000 $ 80,000 $ 70,000 $ 22,000 $ 22,000 $ 20,000 $ 10,500 $ 10,500 $ 9,000 Total assets 496,705 541,367 560,177 1,097,219 914,705 909,292 228,932 220,514 220,229 203,384 173,175 161,047 Return on equity 15 % 31 % 28 % 20 % 14 % 16 % 11 % 17 % 20 % 28 % 26 % 32 % Overhead ratio 55 51 53 48 57 59 41 40 39 70 72 71 (Table continued from previous page) As of or for the year ended Corporate Reconciling Items (a) Total (b) 2020 2019 2018 2020 2019 2018 2020 2019 2018 Noninterest revenue $ 1,199 $ (114) $ (263) $ (2,968) $ (2,534) $ (1,877) $ 64,980 $ 58,154 $ 53,724 Net interest income (2,375) 1,325 135 (418) (531) (628) 54,563 57,245 55,059 Total net revenue (1,176) 1,211 (128) (3,386) (3,065) (2,505) 119,543 115,399 108,783 Provision for credit losses 66 (1) (4) — — — 17,480 5,585 4,871 Noninterest expense 1,373 1,067 902 — — — 66,656 65,269 63,148 Income/(loss) before income tax expense/(benefit) (2,615) 145 (1,026) (3,386) (3,065) (2,505) 35,407 44,545 40,764 Income tax expense/(benefit) (865) (966) 215 (3,386) (3,065) (2,505) 6,276 8,114 8,290 Net income/(loss) $ (1,750) $ 1,111 $ (1,241) $ — $ — $ — $ 29,131 $ 36,431 $ 32,474 Average equity $ 72,365 $ 68,407 $ 79,222 $ — $ — $ — $ 236,865 $ 232,907 $ 229,222 Total assets 1,359,831 837,618 771,787 NA NA NA 3,386,071 2,687,379 2,622,532 Return on equity NM NM NM NM NM NM 12 % 15 % 13 % Overhead ratio NM NM NM NM NM NM 56 57 58 (a) Segment results on a managed basis reflect revenue on a FTE basis with the corresponding income tax impact recorded within income tax expense/(benefit). These adjustments are eliminated in reconciling items to arrive at the Firm’s reported U.S. GAAP results. (b) 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. |
Parent Company (Tables)
Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of condensed financial information of Parent Company-only | The following tables present Parent Company-only financial statements. Statements of income and comprehensive income Year ended December 31, 2020 2019 2018 Income Dividends from subsidiaries and affiliates: Bank and bank holding company $ 6,000 $ 26,000 $ 32,501 Non-bank (a) — — 2 Interest income from subsidiaries 63 223 216 Other income from subsidiaries: Bank and bank holding company 2,019 2,738 515 Non-bank (569) 197 (444) Other income 205 (1,731) 888 Total income 7,718 27,427 33,678 Expense Interest expense/(income) to subsidiaries and affiliates (a) (8,830) (5,303) 2,291 Other interest expense 14,150 13,246 4,581 Noninterest expense 2,222 1,992 1,793 Total expense 7,542 9,935 8,665 Income before income tax benefit and undistributed net income of subsidiaries 176 17,492 25,013 Income tax benefit 1,324 2,033 1,838 Equity in undistributed net income of subsidiaries 27,631 16,906 5,623 Net income $ 29,131 $ 36,431 $ 32,474 Other comprehensive income, net 6,417 3,076 (1,476) Comprehensive income $ 35,548 $ 39,507 $ 30,998 Balance sheets December 31, (in millions) 2020 2019 Assets Cash and due from banks $ 54 $ 32 Deposits with banking subsidiaries 6,811 5,309 Trading assets 1,775 3,011 Advances to, and receivables from, subsidiaries: Bank and bank holding company 27 2,358 Non-bank 86 84 Investments (at equity) in subsidiaries and affiliates: Bank and bank holding company 508,602 471,207 Non-bank 1,011 1,044 Other assets 10,058 10,699 Total assets $ 528,424 $ 493,744 Liabilities and stockholders’ equity Borrowings from, and payables to, subsidiaries and affiliates (a) $ 25,150 $ 23,410 Short-term borrowings 924 2,616 Other liabilities 9,612 9,288 Long-term debt (b)(c) 213,384 197,100 Total liabilities (c) 249,070 232,414 Total stockholders’ equity 279,354 261,330 Total liabilities and stockholders’ equity $ 528,424 $ 493,744 Statements of cash flows Year ended December 31, 2020 2019 2018 Operating activities Net income $ 29,131 $ 36,431 $ 32,474 Less: Net income of subsidiaries and affiliates (a) 33,631 42,906 38,125 Parent company net loss (4,500) (6,475) (5,651) Cash dividends from subsidiaries and affiliates (a) 6,000 26,000 32,501 Other operating adjustments 15,357 9,862 (4,400) Net cash provided by/(used in) operating activities 16,857 29,387 22,450 Investing activities Net change in: Advances to and investments in subsidiaries and affiliates, net (2,663) (6) (e) 8,036 All other investing activities, net 24 71 63 Net cash provided by/(used in) investing activities (2,639) 65 8,099 Financing activities Net change in: Borrowings from subsidiaries and affiliates (a) 1,425 2,941 (2,273) Short-term borrowings (20) (56) (678) Proceeds from long-term borrowings 37,312 25,569 25,845 Payments of long-term borrowings (34,194) (21,226) (21,956) Proceeds from issuance of preferred stock 4,500 5,000 1,696 Redemption of preferred stock (1,430) (4,075) (1,696) Treasury stock repurchased (6,517) (24,001) (19,983) Dividends paid (12,690) (12,343) (10,109) All other financing activities, net (1,080) (1,290) (1,526) Net cash used in financing activities (12,694) (29,481) (30,680) Net decrease in cash and due from banks and deposits with banking subsidiaries 1,524 (29) (131) Cash and due from banks and deposits with banking subsidiaries at the beginning of the year 5,341 5,370 5,501 Cash and due from banks and deposits with banking subsidiaries at the end of the year $ 6,865 $ 5,341 $ 5,370 Cash interest paid $ 5,445 $ 7,957 $ 6,911 Cash income taxes paid, net (d) 5,366 3,910 1,782 (a) Affiliates include trusts that issued guaranteed capital debt securities (“issuer trusts”). (b) At December 31, 2020, long-term debt that contractually matures in 2021 through 2025 totaled $10.8 billion, $10.0 billion, $19.1 billion, $21.8 billion, and $13.5 billion, respectively. (c) Refer to Notes 20 and 28 for information regarding the Parent Company’s guarantees of its subsidiaries’ obligations. (d) Represents payments, net of refunds, made by the Parent Company to various taxing authorities and includes taxes paid on behalf of certain of its subsidiaries that are subsequently reimbursed. The reimbursements were $8.3 billion, $6.4 billion, and $1.2 billion for the years ended December 31, 2020, 2019, and 2018, respectively. (e) As a result of the merger of Chase Bank USA, N.A. with and into JPMorgan Chase Bank, N.A., JPMorgan Chase Bank, N.A. distributed $13.5 billion to the Parent company as a return of capital, which the Parent company contributed to the IHC. |
Basis of Presentation - Financi
Basis of Presentation - Financial Instruments - Credit Losses, Adoption Impacts (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses | $ 30,737 | $ 14,314 | $ 14,500 | ||
Allowance for credit losses reclassified | 28,328 | 13,123 | 13,445 | $ 13,604 | |
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 | 3,823 | 2,550 | 3,446 | ||
Allowance for credit losses reclassified | 3,636 | 2,538 | 3,434 | 3,892 | |
Consumer, excluding credit card | Revisions | |||||
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 | Revisions | |||||
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 | 9,114 | 6,081 | 5,870 | ||
Allowance for credit losses reclassified | $ 6,892 | 4,902 | $ 4,827 | $ 4,828 | |
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 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Cumulative effect of change in accounting principles | $ 279,354 | $ 261,330 | $ 256,515 | ||||
Fair value gains as a result of measurement alternative | 167 | 243 | |||||
Cumulative effect of change in accounting principles | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Decrease to retained earnings due to CECL adoption | $ 2,700 | ||||||
Other assets | Nonrecurring | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair value gains as a result of measurement alternative | $ 505 | 201 | 149 | ||||
Retained earnings | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Cumulative effect of change in accounting principles | 236,990 | 223,211 | 199,202 | $ (183) | $ 177,676 | ||
Retained earnings | Cumulative effect of change in accounting principles | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Cumulative effect of change in accounting principles | (2,650) | 62 | (183) | ||||
AOCI | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Cumulative effect of change in accounting principles | $ 7,986 | $ 1,569 | $ (1,507) | $ 88 | (119) | ||
AOCI | Cumulative effect of change in accounting principles | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Cumulative effect of change in accounting principles | $ 88 |
Fair Value Measurement - Recurr
Fair Value Measurement - Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Derivative receivables, gross | $ 707,554 | $ 529,626 | |||
Derivative netting adjustments | (627,924) | (479,860) | |||
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 79,630 | 49,766 | |||
Trading assets | [1] | 503,126 | 369,687 | ||
Available-for-sale securities | 388,178 | 350,699 | |||
Loans | 44,474 | 44,955 | |||
Mortgage servicing rights | 3,276 | 4,699 | $ 6,130 | $ 6,030 | |
Derivative payables, gross | 688,887 | 512,128 | |||
Derivative netting adjustments | (618,264) | (468,420) | |||
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 70,623 | 43,708 | |||
Interest rate | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Derivative receivables, gross | 391,490 | 313,294 | |||
Derivative netting adjustments | (355,765) | (285,873) | |||
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 35,725 | 27,421 | |||
Derivative payables, gross | 353,627 | 279,273 | |||
Derivative netting adjustments | (340,615) | (270,670) | |||
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 13,012 | 8,603 | |||
Credit | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Derivative receivables, gross | 13,503 | 14,876 | |||
Derivative netting adjustments | (12,823) | (14,175) | |||
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 680 | 701 | |||
Derivative payables, gross | 15,192 | 15,121 | |||
Derivative netting adjustments | (13,197) | (13,469) | |||
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 1,995 | 1,652 | |||
Foreign exchange | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Derivative receivables, gross | 206,260 | 138,487 | |||
Derivative netting adjustments | (190,479) | (129,482) | |||
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 15,781 | 9,005 | |||
Derivative payables, gross | 215,926 | 145,108 | |||
Derivative netting adjustments | (194,493) | (131,950) | |||
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 21,433 | 13,158 | |||
Equity | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Derivative receivables, gross | 74,798 | 45,727 | |||
Derivative netting adjustments | (54,125) | (39,250) | |||
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 20,673 | 6,477 | |||
Derivative payables, gross | 81,413 | 52,741 | |||
Derivative netting adjustments | (55,515) | (40,204) | |||
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 25,898 | 12,537 | |||
Commodity | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Derivative receivables, gross | 21,503 | 17,242 | |||
Derivative netting adjustments | (14,732) | (11,080) | |||
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 6,771 | 6,162 | |||
Derivative payables, gross | 22,729 | 19,885 | |||
Derivative netting adjustments | (14,444) | (12,127) | |||
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 8,285 | 7,758 | |||
Total mortgage-backed securities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Available-for-sale securities | 126,390 | 128,295 | |||
Mortgage-backed securities, Commercial - nonagency | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Available-for-sale securities | 2,856 | 5,188 | |||
U.S. Treasury, GSEs and government agencies | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Available-for-sale securities | 201,951 | 139,436 | |||
Obligations of U.S. states and municipalities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 7,200 | 6,500 | |||
Available-for-sale securities | 20,396 | 29,810 | |||
Certificates of deposit | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Available-for-sale securities | 0 | 77 | |||
Non-U.S. government debt securities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Available-for-sale securities | 22,928 | 21,787 | |||
Corporate debt securities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Available-for-sale securities | 216 | 845 | |||
Asset-backed securities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Available-for-sale securities | 16,297 | ||||
Asset-backed securities, collateralized loan obligations | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Available-for-sale securities | 10,048 | 24,991 | |||
US GSE obligations | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Available-for-sale securities | 65,800 | 78,500 | |||
Fair Value Measured at Net Asset Value Per Share | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets | 52 | 54 | |||
Fair value assets and liabilities measured on recurring basis - supplemental data | |||||
Alternative investments, net asset value, fair value | 670 | 684 | |||
Other assets | 618 | 630 | |||
Recurring | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Federal funds sold and securities purchased under resale agreements | 238,015 | 14,561 | |||
Securities borrowed | 52,983 | 6,237 | |||
Trading assets, debt and equity instruments | 423,444 | 319,867 | |||
Derivative netting adjustments | (627,924) | (479,860) | |||
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 79,630 | 49,766 | |||
Trading assets | 503,074 | 369,633 | |||
Available-for-sale securities | 388,178 | 350,699 | |||
Loans | 44,474 | 44,955 | |||
Mortgage servicing rights | 3,276 | 4,699 | |||
Total assets measured at fair value on a recurring basis | 1,243,209 | 802,830 | |||
Deposits | 14,484 | 28,589 | |||
Federal funds purchased and securities loaned or sold under repurchase agreements | 155,735 | 549 | |||
Short-term borrowings | 16,893 | 5,920 | |||
Trading liabilities, Debt and equity instruments | 99,558 | 75,569 | |||
Derivative netting adjustments | (618,264) | (468,420) | |||
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 70,623 | 43,708 | |||
Trading liabilities | 170,181 | 119,277 | |||
Accounts payable and other liabilities | 3,476 | 3,728 | |||
Beneficial interests issued by consolidated VIEs | 41 | 36 | |||
Long-term debt | 76,817 | 75,745 | |||
Total liabilities measured at fair value on a recurring basis | 437,627 | 233,844 | |||
Recurring | Other assets | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Other assets | 13,209 | 12,046 | |||
Fair value assets and liabilities measured on recurring basis - supplemental data | |||||
Other assets | 13,827 | 12,676 | |||
Recurring | Interest rate | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Derivative netting adjustments | (355,765) | (285,873) | |||
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 35,725 | 27,421 | |||
Derivative netting adjustments | (340,615) | (270,670) | |||
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 13,012 | 8,603 | |||
Recurring | Credit | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Derivative netting adjustments | (12,823) | (14,175) | |||
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 680 | 701 | |||
Derivative netting adjustments | (13,197) | (13,469) | |||
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 1,995 | 1,652 | |||
Recurring | Foreign exchange | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Derivative netting adjustments | (190,479) | (129,482) | |||
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 15,781 | 9,005 | |||
Derivative netting adjustments | (194,493) | (131,950) | |||
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 21,433 | 13,158 | |||
Recurring | Equity | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Derivative netting adjustments | (54,125) | (39,250) | |||
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 20,673 | 6,477 | |||
Derivative netting adjustments | (55,515) | (40,204) | |||
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 25,898 | 12,537 | |||
Recurring | Commodity | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Derivative netting adjustments | (14,732) | (11,080) | |||
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 6,771 | 6,162 | |||
Derivative netting adjustments | (14,444) | (12,127) | |||
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 8,285 | 7,758 | |||
Recurring | Total debt instruments | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 294,496 | 226,192 | |||
Recurring | Total mortgage-backed securities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 72,340 | 48,797 | |||
Available-for-sale securities | 126,390 | 128,295 | |||
Recurring | Mortgage-backed securities, U.S. GSEs and government agencies | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 68,844 | 45,307 | |||
Available-for-sale securities | 113,301 | 110,117 | |||
Recurring | Mortgage-backed securities, Residential - nonagency | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 2,166 | 2,000 | |||
Available-for-sale securities | 10,233 | 12,990 | |||
Recurring | Mortgage-backed securities, Commercial - nonagency | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 1,330 | 1,490 | |||
Available-for-sale securities | 2,856 | 5,188 | |||
Recurring | U.S. Treasury, GSEs and government agencies | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 115,259 | 88,584 | |||
Available-for-sale securities | 201,951 | 139,436 | |||
Recurring | Obligations of U.S. states and municipalities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 7,192 | 6,478 | |||
Available-for-sale securities | 20,396 | 29,810 | |||
Recurring | Certificates of deposit, bankers’ acceptances and commercial paper | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 1,230 | 252 | |||
Recurring | Certificates of deposit | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Available-for-sale securities | 0 | 77 | |||
Recurring | Non-U.S. government debt securities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 67,625 | 53,924 | |||
Available-for-sale securities | 22,928 | 21,787 | |||
Recurring | Corporate debt securities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 21,524 | 18,514 | |||
Available-for-sale securities | 216 | 845 | |||
Recurring | Loans | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 6,994 | 7,013 | |||
Recurring | Asset-backed securities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 2,332 | 2,630 | |||
Recurring | Asset-backed securities, collateralized loan obligations | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Available-for-sale securities | 10,048 | 24,991 | |||
Recurring | Asset-backed securities, other | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Available-for-sale securities | 6,249 | 5,458 | |||
Recurring | Equity securities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 99,866 | 72,330 | |||
Recurring | Physical commodities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 11,571 | 7,217 | |||
Recurring | Other | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 17,511 | 14,128 | |||
Recurring | US GSE obligations | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 117,600 | 104,500 | |||
Recurring | Residential mortgage | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Loans | 15,100 | 19,800 | |||
Recurring | Commercial mortgage | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Loans | 6,300 | 8,200 | |||
Recurring | Residential conforming mortgage intended for sale to government agency | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Loans | 8,400 | 13,600 | |||
Recurring | Level 1 | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Federal funds sold and securities purchased under resale agreements | 0 | 0 | |||
Securities borrowed | 0 | 0 | |||
Trading assets, debt and equity instruments | 234,452 | 180,417 | |||
Derivative receivables, gross | 2,464 | 838 | |||
Trading assets | 236,916 | 181,255 | |||
Available-for-sale securities | 236,104 | 152,402 | |||
Loans | 0 | 0 | |||
Mortgage servicing rights | 0 | 0 | |||
Total assets measured at fair value on a recurring basis | 481,130 | 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 | 82,669 | 59,047 | |||
Derivative payables, gross | 2,628 | 904 | |||
Trading liabilities | 85,297 | 59,951 | |||
Accounts payable and other liabilities | 2,895 | 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 | 88,192 | 63,182 | |||
Recurring | Level 1 | Other assets | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Other assets | 8,110 | 7,305 | |||
Recurring | Level 1 | Interest rate | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Derivative receivables, gross | 2,318 | 721 | |||
Derivative payables, gross | 2,496 | 795 | |||
Recurring | Level 1 | Credit | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Derivative receivables, gross | 0 | 0 | |||
Derivative payables, gross | 0 | 0 | |||
Recurring | Level 1 | Foreign exchange | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Derivative receivables, gross | 146 | 117 | |||
Derivative payables, gross | 132 | 109 | |||
Recurring | Level 1 | Equity | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Derivative receivables, gross | 0 | 0 | |||
Derivative payables, gross | 0 | 0 | |||
Recurring | Level 1 | Commodity | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Derivative receivables, gross | 0 | 0 | |||
Derivative payables, gross | 0 | 0 | |||
Recurring | Level 1 | Total debt instruments | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 131,035 | 104,889 | |||
Recurring | Level 1 | Total mortgage-backed securities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 0 | 0 | |||
Available-for-sale securities | 21,018 | 0 | |||
Recurring | Level 1 | Mortgage-backed securities, U.S. GSEs and government agencies | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 0 | 0 | |||
Available-for-sale securities | 21,018 | 0 | |||
Recurring | Level 1 | Mortgage-backed securities, Residential - nonagency | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
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 [Abstract] | |||||
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 [Abstract] | |||||
Trading assets, debt and equity instruments | 104,263 | 78,289 | |||
Available-for-sale securities | 201,951 | 139,436 | |||
Recurring | Level 1 | Obligations of U.S. states and municipalities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
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 [Abstract] | |||||
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 [Abstract] | |||||
Available-for-sale securities | 0 | 0 | |||
Recurring | Level 1 | Non-U.S. government debt securities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 26,772 | 26,600 | |||
Available-for-sale securities | 13,135 | 12,966 | |||
Recurring | Level 1 | Corporate debt securities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
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 [Abstract] | |||||
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 [Abstract] | |||||
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 [Abstract] | |||||
Available-for-sale securities | 0 | 0 | |||
Recurring | Level 1 | Asset-backed securities, other | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Available-for-sale securities | 0 | 0 | |||
Recurring | Level 1 | Equity securities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 97,035 | 71,890 | |||
Recurring | Level 1 | Physical commodities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 6,382 | 3,638 | |||
Recurring | Level 1 | Other | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 0 | 0 | |||
Recurring | Level 2 | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Federal funds sold and securities purchased under resale agreements | 238,015 | 14,561 | |||
Securities borrowed | 52,983 | 6,237 | |||
Trading assets, debt and equity instruments | 186,369 | 136,765 | |||
Derivative receivables, gross | 697,422 | 524,063 | |||
Trading assets | 883,791 | 660,828 | |||
Available-for-sale securities | 152,074 | 198,296 | |||
Loans | 42,169 | 44,439 | |||
Mortgage servicing rights | 0 | 0 | |||
Total assets measured at fair value on a recurring basis | 1,373,593 | 928,185 | |||
Deposits | 11,571 | 25,229 | |||
Federal funds purchased and securities loaned or sold under repurchase agreements | 155,735 | 549 | |||
Short-term borrowings | 14,473 | 4,246 | |||
Trading liabilities, Debt and equity instruments | 16,838 | 16,481 | |||
Derivative payables, gross | 673,598 | 502,010 | |||
Trading liabilities | 690,436 | 518,491 | |||
Accounts payable and other liabilities | 513 | 452 | |||
Beneficial interests issued by consolidated VIEs | 41 | 36 | |||
Long-term debt | 53,420 | 52,406 | |||
Total liabilities measured at fair value on a recurring basis | 926,189 | 601,409 | |||
Recurring | Level 2 | Other assets | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Other assets | 4,561 | 3,824 | |||
Recurring | Level 2 | Interest rate | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Derivative receivables, gross | 386,865 | 311,173 | |||
Derivative payables, gross | 349,082 | 276,746 | |||
Recurring | Level 2 | Credit | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Derivative receivables, gross | 12,879 | 14,252 | |||
Derivative payables, gross | 14,344 | 14,358 | |||
Recurring | Level 2 | Foreign exchange | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Derivative receivables, gross | 205,127 | 137,938 | |||
Derivative payables, gross | 214,373 | 143,960 | |||
Recurring | Level 2 | Equity | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Derivative receivables, gross | 71,279 | 43,642 | |||
Derivative payables, gross | 74,032 | 47,261 | |||
Recurring | Level 2 | Commodity | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Derivative receivables, gross | 21,272 | 17,058 | |||
Derivative payables, gross | 21,767 | 19,685 | |||
Recurring | Level 2 | Total debt instruments | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 161,363 | 119,046 | |||
Recurring | Level 2 | Total mortgage-backed securities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 71,860 | 47,973 | |||
Available-for-sale securities | 105,372 | 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 [Abstract] | |||||
Trading assets, debt and equity instruments | 68,395 | 44,510 | |||
Available-for-sale securities | 92,283 | 110,117 | |||
Recurring | Level 2 | Mortgage-backed securities, Residential - nonagency | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 2,138 | 1,977 | |||
Available-for-sale securities | 10,233 | 12,989 | |||
Recurring | Level 2 | Mortgage-backed securities, Commercial - nonagency | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 1,327 | 1,486 | |||
Available-for-sale securities | 2,856 | 5,188 | |||
Recurring | Level 2 | U.S. Treasury, GSEs and government agencies | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 10,996 | 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 [Abstract] | |||||
Trading assets, debt and equity instruments | 7,184 | 6,468 | |||
Available-for-sale securities | 20,396 | 29,810 | |||
Recurring | Level 2 | Certificates of deposit, bankers’ acceptances and commercial paper | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 1,230 | 252 | |||
Recurring | Level 2 | Certificates of deposit | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
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 [Abstract] | |||||
Trading assets, debt and equity instruments | 40,671 | 27,169 | |||
Available-for-sale securities | 9,793 | 8,821 | |||
Recurring | Level 2 | Corporate debt securities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 21,017 | 17,956 | |||
Available-for-sale securities | 216 | 845 | |||
Recurring | Level 2 | Loans | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 6,101 | 6,340 | |||
Recurring | Level 2 | Asset-backed securities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 2,304 | 2,593 | |||
Recurring | Level 2 | Asset-backed securities, collateralized loan obligations | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Available-for-sale securities | 10,048 | 24,991 | |||
Recurring | Level 2 | Asset-backed securities, other | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Available-for-sale securities | 6,249 | 5,458 | |||
Recurring | Level 2 | Equity securities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 2,652 | 244 | |||
Recurring | Level 2 | Physical commodities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 5,189 | 3,579 | |||
Recurring | Level 2 | Other | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 17,165 | 13,896 | |||
Recurring | Level 3 | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Federal funds sold and securities purchased under resale agreements | 0 | 0 | |||
Securities borrowed | 0 | 0 | |||
Trading assets, debt and equity instruments | 2,623 | 2,685 | |||
Derivative receivables, gross | 7,668 | 4,725 | |||
Trading assets | 10,291 | 7,410 | |||
Available-for-sale securities | 0 | 1 | |||
Loans | 2,305 | 516 | |||
Mortgage servicing rights | 3,276 | 4,699 | |||
Total assets measured at fair value on a recurring basis | 16,410 | 13,543 | |||
Deposits | 2,913 | 3,360 | |||
Federal funds purchased and securities loaned or sold under repurchase agreements | 0 | 0 | |||
Short-term borrowings | 2,420 | 1,674 | |||
Trading liabilities, Debt and equity instruments | 51 | 41 | |||
Derivative payables, gross | 12,661 | 9,214 | |||
Trading liabilities | 12,712 | 9,255 | |||
Accounts payable and other liabilities | 68 | 45 | |||
Beneficial interests issued by consolidated VIEs | 0 | 0 | |||
Long-term debt | 23,397 | 23,339 | |||
Total liabilities measured at fair value on a recurring basis | 41,510 | 37,673 | |||
Recurring | Level 3 | Other assets | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Other assets | 538 | 917 | |||
Recurring | Level 3 | Interest rate | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Derivative receivables, gross | 2,307 | 1,400 | |||
Derivative payables, gross | 2,049 | 1,732 | |||
Recurring | Level 3 | Credit | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Derivative receivables, gross | 624 | 624 | |||
Derivative payables, gross | 848 | 763 | |||
Recurring | Level 3 | Foreign exchange | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Derivative receivables, gross | 987 | 432 | |||
Derivative payables, gross | 1,421 | 1,039 | |||
Recurring | Level 3 | Equity | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Derivative receivables, gross | 3,519 | 2,085 | |||
Derivative payables, gross | 7,381 | 5,480 | |||
Recurring | Level 3 | Commodity | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Derivative receivables, gross | 231 | 184 | |||
Derivative payables, gross | 962 | 200 | |||
Recurring | Level 3 | Total debt instruments | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 2,098 | 2,257 | |||
Recurring | Level 3 | Total mortgage-backed securities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 480 | 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 [Abstract] | |||||
Trading assets, debt and equity instruments | 449 | 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 [Abstract] | |||||
Trading assets, debt and equity instruments | 28 | 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 [Abstract] | |||||
Trading assets, debt and equity instruments | 3 | 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 [Abstract] | |||||
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 [Abstract] | |||||
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 [Abstract] | |||||
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 [Abstract] | |||||
Available-for-sale securities | 0 | 0 | |||
Recurring | Level 3 | Non-U.S. government debt securities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 182 | 155 | |||
Available-for-sale securities | 0 | 0 | |||
Recurring | Level 3 | Corporate debt securities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 507 | 558 | |||
Available-for-sale securities | 0 | 0 | |||
Recurring | Level 3 | Loans | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 893 | 673 | |||
Recurring | Level 3 | Asset-backed securities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 28 | 37 | |||
Recurring | Level 3 | Asset-backed securities, collateralized loan obligations | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Available-for-sale securities | 0 | 0 | |||
Recurring | Level 3 | Asset-backed securities, other | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Available-for-sale securities | 0 | 0 | |||
Recurring | Level 3 | Equity securities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 179 | 196 | |||
Recurring | Level 3 | Physical commodities | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | 0 | 0 | |||
Recurring | Level 3 | Other | |||||
Assets and liabilities measured at fair value on a recurring basis [Abstract] | |||||
Trading assets, debt and equity instruments | $ 346 | $ 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 | Dec. 31, 2020USD ($)$ / shares$ / MT$ / MWh | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Loans | $ 44,474 | $ 44,955 | ||
MSRs | $ 3,276 | 4,699 | $ 6,130 | $ 6,030 |
Assumed par value for price input (in dollars per share) | $ / shares | $ 100 | |||
Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Loans | $ 44,474 | 44,955 | ||
MSRs | 3,276 | 4,699 | ||
Long-term debt, short-term borrowings, and deposits | 437,627 | 233,844 | ||
Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Loans | 2,305 | 516 | ||
MSRs | 3,276 | 4,699 | ||
Long-term debt, short-term borrowings, and deposits | 41,510 | $ 37,673 | ||
Other level 3 assets and liabilities, net | 250 | |||
Discounted cash flows | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
MSRs | 3,276 | |||
Other assets | 299 | |||
Long-term debt, short-term borrowings, and deposits | 818 | |||
Discounted cash flows | Recurring | Level 3 | Residential mortgage-backed securities and loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities and loans | 1,282 | |||
Discounted cash flows | Recurring | Level 3 | Nontrading loans | Residential mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities and loans | 805 | |||
Discounted cash flows | Recurring | Level 3 | Net interest rate derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability) | 20 | |||
Discounted cash flows | Recurring | Level 3 | Net credit derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability) | (260) | |||
Discounted cash flows | Recurring | Level 3 | Net foreign exchange derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability) | (136) | |||
Discounted cash flows | Recurring | Level 3 | Mortgage-backed securities, U.S. GSEs and government agencies | Residential mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities and loans | 449 | |||
Discounted cash flows | Recurring | Level 3 | Residential mortgage-backed securities | Residential mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities and loans | 28 | |||
Market comparables | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Other assets | 585 | |||
Market comparables | Recurring | Level 3 | Commercial mortgage-backed securities and loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities and loans | 466 | |||
Market comparables | Recurring | Level 3 | Corporate debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities, trading | 507 | |||
Market comparables | Recurring | Level 3 | Loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Loans | 1,930 | |||
Market comparables | Recurring | Level 3 | Trading loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Loans | 850 | |||
Market comparables | Recurring | Level 3 | Trading loans | Commercial | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities and loans | 43 | |||
Market comparables | Recurring | Level 3 | Nontrading loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Loans | 1,100 | |||
Market comparables | Recurring | Level 3 | Nontrading loans | Commercial | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities and loans | 420 | |||
Market comparables | Recurring | Level 3 | Asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities, trading | 28 | |||
Market comparables | Recurring | Level 3 | Net credit derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability) | 36 | |||
Market comparables | Recurring | Level 3 | Commercial | Commercial | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities and loans | 3 | |||
Option pricing | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Long-term debt, short-term borrowings, and deposits | 27,912 | |||
Option pricing | Recurring | Level 3 | Net interest rate derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability) | 238 | |||
Option pricing | Recurring | Level 3 | Net foreign exchange derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability) | (298) | |||
Option pricing | Recurring | Level 3 | Net equity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability) | (3,862) | |||
Option pricing | Recurring | Level 3 | Net commodity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability) | $ (731) | |||
Yield | Discounted cash flows | Level 3 | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Other assets, measurement inputs | 0.04 | |||
Yield | Discounted cash flows | Level 3 | Minimum | Residential mortgage-backed securities and loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities and loans, measurement input | 0 | |||
Yield | Discounted cash flows | Level 3 | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Other assets, measurement inputs | 0.30 | |||
Yield | Discounted cash flows | Level 3 | Maximum | Residential mortgage-backed securities and loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities and loans, measurement input | 0.18 | |||
Yield | Discounted cash flows | Level 3 | Average | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Other assets, measurement inputs | 0.07 | |||
Yield | Discounted cash flows | Level 3 | Average | Residential mortgage-backed securities and loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities and loans, measurement input | 0.06 | |||
Prepayment speed | Discounted cash flows | Level 3 | Minimum | Residential mortgage-backed securities and loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities and loans, measurement input | 0 | |||
Prepayment speed | Discounted cash flows | Level 3 | Minimum | Net interest rate derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0 | |||
Prepayment speed | Discounted cash flows | Level 3 | Minimum | Net foreign exchange derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.09 | |||
Prepayment speed | Discounted cash flows | Level 3 | Maximum | Residential mortgage-backed securities and loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities and loans, measurement input | 0.46 | |||
Prepayment speed | Discounted cash flows | Level 3 | Maximum | Net interest rate derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.30 | |||
Prepayment speed | Discounted cash flows | Level 3 | Maximum | Net foreign exchange derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.09 | |||
Prepayment speed | Discounted cash flows | Level 3 | Average | Residential mortgage-backed securities and loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities and loans, measurement input | 0.10 | |||
Prepayment speed | Discounted cash flows | Level 3 | Average | Net interest rate derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.08 | |||
Prepayment speed | Discounted cash flows | Level 3 | Average | Net foreign exchange derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.09 | |||
Conditional default rate | Discounted cash flows | Level 3 | Minimum | Residential mortgage-backed securities and loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities and loans, measurement input | 0 | |||
Conditional default rate | Discounted cash flows | Level 3 | Minimum | Net credit derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.02 | |||
Conditional default rate | Discounted cash flows | Level 3 | Maximum | Residential mortgage-backed securities and loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities and loans, measurement input | 0.30 | |||
Conditional default rate | Discounted cash flows | Level 3 | Maximum | Net credit derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 1 | |||
Conditional default rate | Discounted cash flows | Level 3 | Average | Residential mortgage-backed securities and loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities and loans, measurement input | 0.14 | |||
Conditional default rate | Discounted cash flows | Level 3 | Average | Net credit derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.58 | |||
Loss severity | Discounted cash flows | Level 3 | Minimum | Residential mortgage-backed securities and loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities and loans, measurement input | 0 | |||
Loss severity | Discounted cash flows | Level 3 | Minimum | Net credit derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 1 | |||
Loss severity | Discounted cash flows | Level 3 | Maximum | Residential mortgage-backed securities and loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities and loans, measurement input | 1.07 | |||
Loss severity | Discounted cash flows | Level 3 | Maximum | Net credit derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 1 | |||
Loss severity | Discounted cash flows | Level 3 | Average | Residential mortgage-backed securities and loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities and loans, measurement input | 0.07 | |||
Loss severity | Discounted cash flows | Level 3 | Average | Net credit derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 1 | |||
Price | Market comparables | Level 3 | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Other assets, measurement inputs | $ / shares | 29 | |||
Price | Market comparables | Level 3 | Minimum | Commercial mortgage-backed securities and loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities and loans, measurement input | $ / shares | 0 | |||
Price | Market comparables | Level 3 | Minimum | Corporate debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities, trading, measurement input | $ / shares | 2 | |||
Price | Market comparables | Level 3 | Minimum | Loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Loans, measurement input | $ / shares | 10 | |||
Price | Market comparables | Level 3 | Minimum | Asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities, trading, measurement input | $ / shares | 1 | |||
Price | Market comparables | Level 3 | Minimum | Net credit derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 1 | |||
Price | Market comparables | Level 3 | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Other assets, measurement inputs | $ / shares | 29 | |||
Price | Market comparables | Level 3 | Maximum | Commercial mortgage-backed securities and loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities and loans, measurement input | $ / shares | 101 | |||
Price | Market comparables | Level 3 | Maximum | Corporate debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities, trading, measurement input | $ / shares | 116 | |||
Price | Market comparables | Level 3 | Maximum | Loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Loans, measurement input | $ / shares | 104 | |||
Price | Market comparables | Level 3 | Maximum | Asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities, trading, measurement input | $ / shares | 97 | |||
Price | Market comparables | Level 3 | Maximum | Net credit derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 115 | |||
Price | Market comparables | Level 3 | Average | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Other assets, measurement inputs | $ / shares | 29 | |||
Price | Market comparables | Level 3 | Average | Commercial mortgage-backed securities and loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities and loans, measurement input | $ / shares | 84 | |||
Price | Market comparables | Level 3 | Average | Corporate debt securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities, trading, measurement input | $ / shares | 85 | |||
Price | Market comparables | Level 3 | Average | Loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Loans, measurement input | $ / shares | 72 | |||
Price | Market comparables | Level 3 | Average | Asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Debt securities, trading, measurement input | $ / shares | 57 | |||
Price | Market comparables | Level 3 | Average | Net credit derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 71 | |||
Interest rate volatility | Option pricing | Level 3 | 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 | 0.0007 | |||
Interest rate volatility | Option pricing | Level 3 | Minimum | Net interest rate derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.0007 | |||
Interest rate volatility | Option pricing | Level 3 | 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 | 0.0513 | |||
Interest rate volatility | Option pricing | Level 3 | Maximum | Net interest rate derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.0513 | |||
Interest rate volatility | Option pricing | Level 3 | 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 | 0.0101 | |||
Interest rate volatility | Option pricing | Level 3 | Average | Net interest rate derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.0101 | |||
Interest rate spread volatility | Option pricing | Level 3 | Minimum | Net interest rate derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.0011 | |||
Interest rate spread volatility | Option pricing | Level 3 | Maximum | Net interest rate derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.0023 | |||
Interest rate spread volatility | Option pricing | Level 3 | Average | Net interest rate derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.0015 | |||
Interest rate correlation | Option pricing | Level 3 | 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) | |||
Interest rate correlation | Option pricing | Level 3 | Minimum | Net interest rate derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | (0.65) | |||
Interest rate correlation | Option pricing | Level 3 | 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 | 0.99 | |||
Interest rate correlation | Option pricing | Level 3 | Maximum | Net interest rate derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.99 | |||
Interest rate correlation | Option pricing | Level 3 | 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 | 0.35 | |||
Interest rate correlation | Option pricing | Level 3 | Average | Net interest rate derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.35 | |||
IR-FX correlation | Option pricing | Level 3 | 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) | |||
IR-FX correlation | Option pricing | Level 3 | Minimum | Net interest rate derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | (0.35) | |||
IR-FX correlation | Option pricing | Level 3 | Minimum | Net foreign exchange derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | (0.40) | |||
IR-FX correlation | Option pricing | Level 3 | 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 | |||
IR-FX correlation | Option pricing | Level 3 | Maximum | Net interest rate derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.50 | |||
IR-FX correlation | Option pricing | Level 3 | Maximum | Net foreign exchange derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.65 | |||
IR-FX correlation | Option pricing | Level 3 | 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 | |||
IR-FX correlation | Option pricing | Level 3 | Average | Net interest rate derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0 | |||
IR-FX correlation | Option pricing | Level 3 | Average | Net foreign exchange derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.18 | |||
Credit correlation | Discounted cash flows | Level 3 | 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 | 0.34 | |||
Credit correlation | Discounted cash flows | Level 3 | Minimum | Net credit derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.34 | |||
Credit correlation | Discounted cash flows | Level 3 | 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 | 0.65 | |||
Credit correlation | Discounted cash flows | Level 3 | Maximum | Net credit derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.65 | |||
Credit correlation | Discounted cash flows | Level 3 | 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 | 0.48 | |||
Credit correlation | Discounted cash flows | Level 3 | Average | Net credit derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.48 | |||
Credit spread | Discounted cash flows | Level 3 | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Other assets, measurement inputs | 0.0045 | |||
Credit spread | Discounted cash flows | Level 3 | Minimum | Net credit derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.0003 | |||
Credit spread | Discounted cash flows | Level 3 | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Other assets, measurement inputs | 0.0045 | |||
Credit spread | Discounted cash flows | Level 3 | Maximum | Net credit derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.1302 | |||
Credit spread | Discounted cash flows | Level 3 | Average | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Other assets, measurement inputs | 0.0045 | |||
Credit spread | Discounted cash flows | Level 3 | Average | Net credit derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.0441 | |||
Recovery rate | Discounted cash flows | Level 3 | Minimum | Net credit derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0 | |||
Recovery rate | Discounted cash flows | Level 3 | Maximum | Net credit derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.67 | |||
Recovery rate | Discounted cash flows | Level 3 | Average | Net credit derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.46 | |||
Forward equity price | Option pricing | Level 3 | Minimum | Net equity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.61 | |||
Forward equity price | Option pricing | Level 3 | Maximum | Net equity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 1.06 | |||
Forward equity price | Option pricing | Level 3 | Average | Net equity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.99 | |||
Equity volatility | Option pricing | Level 3 | Minimum | Net equity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.05 | |||
Equity volatility | Option pricing | Level 3 | Maximum | Net equity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 1.38 | |||
Equity volatility | Option pricing | Level 3 | Average | Net equity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.35 | |||
Equity correlation | Option pricing | Level 3 | 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 | 0.18 | |||
Equity correlation | Option pricing | Level 3 | Minimum | Net equity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.18 | |||
Equity correlation | Option pricing | Level 3 | 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 | 0.99 | |||
Equity correlation | Option pricing | Level 3 | Maximum | Net equity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.99 | |||
Equity correlation | Option pricing | Level 3 | 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 | 0.60 | |||
Equity correlation | Option pricing | Level 3 | Average | Net equity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.60 | |||
Equity-FX correlation | Option pricing | Level 3 | 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 | (0.79) | |||
Equity-FX correlation | Option pricing | Level 3 | Minimum | Net equity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | (0.79) | |||
Equity-FX correlation | Option pricing | Level 3 | 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 | |||
Equity-FX correlation | Option pricing | Level 3 | Maximum | Net equity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.55 | |||
Equity-FX correlation | Option pricing | Level 3 | 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 | (0.27) | |||
Equity-FX correlation | Option pricing | Level 3 | Average | Net equity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | (0.27) | |||
Equity-IR correlation | Option pricing | Level 3 | 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 | |||
Equity-IR correlation | Option pricing | Level 3 | Minimum | Net equity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.20 | |||
Equity-IR correlation | Option pricing | Level 3 | 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 | |||
Equity-IR correlation | Option pricing | Level 3 | Maximum | Net equity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.50 | |||
Equity-IR correlation | Option pricing | Level 3 | 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 | 0.28 | |||
Equity-IR correlation | Option pricing | Level 3 | Average | Net equity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.28 | |||
Oil Commodity Forward | Option pricing | Level 3 | Minimum | Net commodity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | $ / MT | 600 | |||
Oil Commodity Forward | Option pricing | Level 3 | Maximum | Net commodity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | $ / MT | 609 | |||
Oil Commodity Forward | Option pricing | Level 3 | Average | Net commodity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | $ / MT | 605 | |||
Forward power price | Option pricing | Level 3 | Minimum | Net commodity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | $ / MWh | 12 | |||
Forward power price | Option pricing | Level 3 | Maximum | Net commodity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | $ / MWh | 55 | |||
Forward power price | Option pricing | Level 3 | Average | Net commodity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | $ / MWh | 34 | |||
Commodity volatility | Option pricing | Level 3 | Minimum | Net commodity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.01 | |||
Commodity volatility | Option pricing | Level 3 | Maximum | Net commodity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.58 | |||
Commodity volatility | Option pricing | Level 3 | Average | Net commodity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.29 | |||
Commodity correlation | Option pricing | Level 3 | Minimum | Net commodity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | (0.49) | |||
Commodity correlation | Option pricing | Level 3 | Maximum | Net commodity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.95 | |||
Commodity correlation | Option pricing | Level 3 | Average | Net commodity derivatives | ||||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Net derivative asset (liability), measurement inputs | 0.23 |
Fair Value Measurement - Change
Fair Value Measurement - Changes in Level 3 Recurring Measurements (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net derivative receivables: | |||
Beginning balance | $ (4,489,000,000) | $ (3,796,000,000) | $ (4,250,000,000) |
Total realized/unrealized gains/(losses) | 1,908,000,000 | (794,000,000) | 338,000,000 |
Purchases | 2,121,000,000 | 579,000,000 | 1,841,000,000 |
Sales | (2,884,000,000) | (1,122,000,000) | (2,440,000,000) |
Settlements | (446,000,000) | (89,000,000) | 1,047,000,000 |
Transfers into level 3 | (1,505,000,000) | (411,000,000) | (729,000,000) |
Transfers (out of) level 3 | 302,000,000 | 1,144,000,000 | 397,000,000 |
Ending balance | (4,993,000,000) | (4,489,000,000) | (3,796,000,000) |
Change in unrealized gains/(losses) related to financial instruments held | $ 42,000,000 | $ (2,584,000,000) | $ 803,000,000 |
Level 3 Rollforward Supplemental Data [Abstract] | |||
Level 3 assets as a percentage of total firm assets at fair value | 1.00% | 2.00% | 3.00% |
Level 3 liabilities as a percentage of total firm liabilities at fair value | 9.00% | 16.00% | 15.00% |
Deposits | |||
Liabilities: | |||
Beginning balance | $ 3,360,000,000 | $ 4,169,000,000 | $ 4,142,000,000 |
Total realized/unrealized (gains)/losses | 165,000,000 | 278,000,000 | (136,000,000) |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | 671,000,000 | 916,000,000 | 1,437,000,000 |
Settlements | (605,000,000) | (806,000,000) | (736,000,000) |
Transfers into level 3 | 265,000,000 | 12,000,000 | 2,000,000 |
Transfers (out of) level 3 | (943,000,000) | (1,209,000,000) | (540,000,000) |
Ending balance | 2,913,000,000 | 3,360,000,000 | 4,169,000,000 |
Change in unrealized (gains)/losses related to financials instruments held | 455,000,000 | 307,000,000 | (204,000,000) |
Short-term borrowings | |||
Liabilities: | |||
Beginning balance | 1,674,000,000 | 1,523,000,000 | 1,665,000,000 |
Total realized/unrealized (gains)/losses | (338,000,000) | 229,000,000 | (329,000,000) |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | 5,140,000,000 | 3,441,000,000 | 3,455,000,000 |
Settlements | (4,115,000,000) | (3,356,000,000) | (3,388,000,000) |
Transfers into level 3 | 105,000,000 | 85,000,000 | 272,000,000 |
Transfers (out of) level 3 | (46,000,000) | (248,000,000) | (152,000,000) |
Ending balance | 2,420,000,000 | 1,674,000,000 | 1,523,000,000 |
Change in unrealized (gains)/losses related to financials instruments held | 143,000,000 | 155,000,000 | (131,000,000) |
Total debt and equity instruments | |||
Liabilities: | |||
Beginning balance | 41,000,000 | 50,000,000 | 39,000,000 |
Total realized/unrealized (gains)/losses | (2,000,000) | 2,000,000 | 19,000,000 |
Purchases | (126,000,000) | (22,000,000) | (99,000,000) |
Sales | 14,000,000 | 41,000,000 | 114,000,000 |
Issuances | 0 | 0 | 0 |
Settlements | (4,000,000) | 1,000,000 | (1,000,000) |
Transfers into level 3 | 136,000,000 | 16,000,000 | 14,000,000 |
Transfers (out of) level 3 | (8,000,000) | (47,000,000) | (36,000,000) |
Ending balance | 51,000,000 | 41,000,000 | 50,000,000 |
Change in unrealized (gains)/losses related to financials instruments held | (1,000,000) | 3,000,000 | 16,000,000 |
Accounts payable and other liabilities | |||
Liabilities: | |||
Beginning balance | 45,000,000 | 10,000,000 | 13,000,000 |
Total realized/unrealized (gains)/losses | 33,000,000 | (2,000,000) | 0 |
Purchases | (87,000,000) | (84,000,000) | (12,000,000) |
Sales | 37,000,000 | 115,000,000 | 5,000,000 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Transfers into level 3 | 47,000,000 | 6,000,000 | 4,000,000 |
Transfers (out of) level 3 | (7,000,000) | 0 | 0 |
Ending balance | 68,000,000 | 45,000,000 | 10,000,000 |
Change in unrealized (gains)/losses related to financials instruments held | 28,000,000 | 29,000,000 | 0 |
Beneficial interests issued by consolidated VIEs | |||
Liabilities: | |||
Beginning balance | 0 | 1,000,000 | 39,000,000 |
Total realized/unrealized (gains)/losses | 0 | (1,000,000) | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 1,000,000 |
Issuances | 0 | 0 | 0 |
Settlements | 0 | 0 | (39,000,000) |
Transfers into level 3 | 0 | 0 | 0 |
Transfers (out of) level 3 | 0 | 0 | 0 |
Ending balance | 0 | 0 | 1,000,000 |
Change in unrealized (gains)/losses related to financials instruments held | 0 | 0 | 0 |
Long-term debt | |||
Liabilities: | |||
Beginning balance | 23,339,000,000 | 19,418,000,000 | 16,125,000,000 |
Total realized/unrealized (gains)/losses | 40,000,000 | 2,815,000,000 | (1,169,000,000) |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Issuances | 9,883,000,000 | 10,441,000,000 | 11,919,000,000 |
Settlements | (9,833,000,000) | (8,538,000,000) | (7,769,000,000) |
Transfers into level 3 | 1,250,000,000 | 651,000,000 | 1,143,000,000 |
Transfers (out of) level 3 | (1,282,000,000) | (1,448,000,000) | (831,000,000) |
Ending balance | 23,397,000,000 | 23,339,000,000 | 19,418,000,000 |
Change in unrealized (gains)/losses related to financials instruments held | 1,920,000,000 | 2,822,000,000 | (1,385,000,000) |
DVA for fair value option elected liabilities | |||
Level 3 Rollforward Supplemental Data [Abstract] | |||
Unrealized (gains)/losses on liabilities recorded in OCI | 221,000,000 | 319,000,000 | (277,000,000) |
Interest rate | |||
Net derivative receivables: | |||
Beginning balance | (332,000,000) | (38,000,000) | 264,000,000 |
Total realized/unrealized gains/(losses) | 2,682,000,000 | (394,000,000) | 150,000,000 |
Purchases | 308,000,000 | 109,000,000 | 107,000,000 |
Sales | (148,000,000) | (125,000,000) | (133,000,000) |
Settlements | (2,228,000,000) | 5,000,000 | (430,000,000) |
Transfers into level 3 | (332,000,000) | (7,000,000) | (15,000,000) |
Transfers (out of) level 3 | 308,000,000 | 118,000,000 | 19,000,000 |
Ending balance | 258,000,000 | (332,000,000) | (38,000,000) |
Change in unrealized gains/(losses) related to financial instruments held | 325,000,000 | (599,000,000) | 187,000,000 |
Credit | |||
Net derivative receivables: | |||
Beginning balance | (139,000,000) | (107,000,000) | (35,000,000) |
Total realized/unrealized gains/(losses) | (212,000,000) | (36,000,000) | (40,000,000) |
Purchases | 73,000,000 | 20,000,000 | 5,000,000 |
Sales | (154,000,000) | (9,000,000) | (7,000,000) |
Settlements | 181,000,000 | 8,000,000 | (57,000,000) |
Transfers into level 3 | 59,000,000 | 29,000,000 | 4,000,000 |
Transfers (out of) level 3 | (32,000,000) | (44,000,000) | 23,000,000 |
Ending balance | (224,000,000) | (139,000,000) | (107,000,000) |
Change in unrealized gains/(losses) related to financial instruments held | (110,000,000) | (127,000,000) | (28,000,000) |
Foreign exchange | |||
Net derivative receivables: | |||
Beginning balance | (607,000,000) | (297,000,000) | (396,000,000) |
Total realized/unrealized gains/(losses) | 49,000,000 | (551,000,000) | 103,000,000 |
Purchases | 49,000,000 | 17,000,000 | 52,000,000 |
Sales | (24,000,000) | (67,000,000) | (20,000,000) |
Settlements | 83,000,000 | 312,000,000 | 30,000,000 |
Transfers into level 3 | 13,000,000 | (22,000,000) | (108,000,000) |
Transfers (out of) level 3 | 3,000,000 | 1,000,000 | 42,000,000 |
Ending balance | (434,000,000) | (607,000,000) | (297,000,000) |
Change in unrealized gains/(losses) related to financial instruments held | 116,000,000 | (380,000,000) | (63,000,000) |
Equity | |||
Net derivative receivables: | |||
Beginning balance | (3,395,000,000) | (2,225,000,000) | (3,409,000,000) |
Total realized/unrealized gains/(losses) | (65,000,000) | (310,000,000) | 198,000,000 |
Purchases | 1,664,000,000 | 397,000,000 | 1,676,000,000 |
Sales | (2,317,000,000) | (573,000,000) | (2,208,000,000) |
Settlements | 1,162,000,000 | (503,000,000) | 1,805,000,000 |
Transfers into level 3 | (935,000,000) | (405,000,000) | (617,000,000) |
Transfers (out of) level 3 | 24,000,000 | 224,000,000 | 330,000,000 |
Ending balance | (3,862,000,000) | (3,395,000,000) | (2,225,000,000) |
Change in unrealized gains/(losses) related to financial instruments held | (556,000,000) | (1,608,000,000) | 561,000,000 |
Commodity | |||
Net derivative receivables: | |||
Beginning balance | (16,000,000) | (1,129,000,000) | (674,000,000) |
Total realized/unrealized gains/(losses) | (546,000,000) | 497,000,000 | (73,000,000) |
Purchases | 27,000,000 | 36,000,000 | 1,000,000 |
Sales | (241,000,000) | (348,000,000) | (72,000,000) |
Settlements | 356,000,000 | 89,000,000 | (301,000,000) |
Transfers into level 3 | (310,000,000) | (6,000,000) | 7,000,000 |
Transfers (out of) level 3 | (1,000,000) | 845,000,000 | (17,000,000) |
Ending balance | (731,000,000) | (16,000,000) | (1,129,000,000) |
Change in unrealized gains/(losses) related to financial instruments held | 267,000,000 | 130,000,000 | 146,000,000 |
Mortgage-backed securities | |||
Assets: | |||
Fair value, beginning balance | 824,000,000 | 624,000,000 | 378,000,000 |
Total realized/unrealized gains/(losses) | (170,000,000) | (35,000,000) | (23,000,000) |
Purchases | 150,000,000 | 876,000,000 | 574,000,000 |
Sales | (154,000,000) | (422,000,000) | (232,000,000) |
Settlements | (166,000,000) | (168,000,000) | (97,000,000) |
Transfers into level 3 | 2,000,000 | 31,000,000 | 189,000,000 |
Transfers (out of) level 3 | (6,000,000) | (82,000,000) | (165,000,000) |
Fair value, ending balance | 480,000,000 | 824,000,000 | 624,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | (151,000,000) | (55,000,000) | (22,000,000) |
Mortgage-backed securities, U.S. GSEs and government agencies | |||
Assets: | |||
Fair value, beginning balance | 797,000,000 | 549,000,000 | 307,000,000 |
Total realized/unrealized gains/(losses) | (172,000,000) | (62,000,000) | (23,000,000) |
Purchases | 134,000,000 | 773,000,000 | 478,000,000 |
Sales | (149,000,000) | (310,000,000) | (164,000,000) |
Settlements | (161,000,000) | (134,000,000) | (73,000,000) |
Transfers into level 3 | 0 | 1,000,000 | 94,000,000 |
Transfers (out of) level 3 | 0 | (20,000,000) | (70,000,000) |
Fair value, ending balance | 449,000,000 | 797,000,000 | 549,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | (150,000,000) | (58,000,000) | (21,000,000) |
Mortgage-backed securities, Residential - nonagency | |||
Assets: | |||
Fair value, beginning balance | 23,000,000 | 64,000,000 | 60,000,000 |
Total realized/unrealized gains/(losses) | 2,000,000 | 25,000,000 | (2,000,000) |
Purchases | 15,000,000 | 83,000,000 | 78,000,000 |
Sales | (5,000,000) | (86,000,000) | (50,000,000) |
Settlements | (4,000,000) | (20,000,000) | (7,000,000) |
Transfers into level 3 | 0 | 15,000,000 | 59,000,000 |
Transfers (out of) level 3 | (3,000,000) | (58,000,000) | (74,000,000) |
Fair value, ending balance | 28,000,000 | 23,000,000 | 64,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | (1,000,000) | 2,000,000 | 1,000,000 |
Mortgage-backed securities, Commercial - nonagency | |||
Assets: | |||
Fair value, beginning balance | 4,000,000 | 11,000,000 | 11,000,000 |
Total realized/unrealized gains/(losses) | 0 | 2,000,000 | 2,000,000 |
Purchases | 1,000,000 | 20,000,000 | 18,000,000 |
Sales | 0 | (26,000,000) | (18,000,000) |
Settlements | (1,000,000) | (14,000,000) | (17,000,000) |
Transfers into level 3 | 2,000,000 | 15,000,000 | 36,000,000 |
Transfers (out of) level 3 | (3,000,000) | (4,000,000) | (21,000,000) |
Fair value, ending balance | 3,000,000 | 4,000,000 | 11,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | 0 | 1,000,000 | (2,000,000) |
Total debt and equity instruments | |||
Assets: | |||
Fair value, beginning balance | 2,685,000,000 | 3,200,000,000 | 3,263,000,000 |
Total realized/unrealized gains/(losses) | (52,000,000) | (22,000,000) | (376,000,000) |
Purchases | 2,467,000,000 | 2,289,000,000 | 2,721,000,000 |
Sales | (1,514,000,000) | (1,856,000,000) | (1,625,000,000) |
Settlements | (756,000,000) | (426,000,000) | (630,000,000) |
Transfers into level 3 | 1,754,000,000 | 805,000,000 | 1,248,000,000 |
Transfers (out of) level 3 | (1,961,000,000) | (1,305,000,000) | (1,401,000,000) |
Fair value, ending balance | 2,623,000,000 | 2,685,000,000 | 3,200,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | (23,000,000) | 85,000,000 | (332,000,000) |
Total debt instruments | |||
Assets: | |||
Fair value, beginning balance | 2,257,000,000 | 2,667,000,000 | 2,278,000,000 |
Total realized/unrealized gains/(losses) | (248,000,000) | 55,000,000 | (51,000,000) |
Purchases | 2,169,000,000 | 2,181,000,000 | 2,548,000,000 |
Sales | (1,129,000,000) | (1,727,000,000) | (1,465,000,000) |
Settlements | (601,000,000) | (350,000,000) | (511,000,000) |
Transfers into level 3 | 1,213,000,000 | 622,000,000 | 1,138,000,000 |
Transfers (out of) level 3 | (1,563,000,000) | (1,191,000,000) | (1,270,000,000) |
Fair value, ending balance | 2,098,000,000 | 2,257,000,000 | 2,667,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | (209,000,000) | 12,000,000 | (40,000,000) |
U.S. Treasury, GSEs and government agencies | |||
Assets: | |||
Fair value, beginning balance | 0 | 0 | 1,000,000 |
Total realized/unrealized gains/(losses) | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 |
Transfers (out of) level 3 | 0 | 0 | (1,000,000) |
Fair value, ending balance | 0 | 0 | 0 |
Change in unrealized gains/(losses) related to financial instruments held | 0 | 0 | 0 |
Obligations of U.S. states and municipalities | |||
Assets: | |||
Fair value, beginning balance | 10,000,000 | 689,000,000 | 744,000,000 |
Total realized/unrealized gains/(losses) | 0 | 13,000,000 | (17,000,000) |
Purchases | 0 | 85,000,000 | 112,000,000 |
Sales | (1,000,000) | (159,000,000) | (70,000,000) |
Settlements | (1,000,000) | (8,000,000) | (80,000,000) |
Transfers into level 3 | 0 | 0 | 0 |
Transfers (out of) level 3 | 0 | (610,000,000) | 0 |
Fair value, ending balance | 8,000,000 | 10,000,000 | 689,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | 0 | 13,000,000 | (17,000,000) |
Non-U.S. government debt securities | |||
Assets: | |||
Fair value, beginning balance | 155,000,000 | 155,000,000 | 78,000,000 |
Total realized/unrealized gains/(losses) | 21,000,000 | 1,000,000 | (22,000,000) |
Purchases | 281,000,000 | 290,000,000 | 459,000,000 |
Sales | (245,000,000) | (287,000,000) | (277,000,000) |
Settlements | (7,000,000) | 0 | (12,000,000) |
Transfers into level 3 | 0 | 14,000,000 | 23,000,000 |
Transfers (out of) level 3 | (23,000,000) | (18,000,000) | (94,000,000) |
Fair value, ending balance | 182,000,000 | 155,000,000 | 155,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | 11,000,000 | 4,000,000 | (9,000,000) |
Corporate debt securities | |||
Assets: | |||
Fair value, beginning balance | 558,000,000 | 334,000,000 | 312,000,000 |
Total realized/unrealized gains/(losses) | (23,000,000) | 47,000,000 | (18,000,000) |
Purchases | 582,000,000 | 437,000,000 | 364,000,000 |
Sales | (205,000,000) | (247,000,000) | (309,000,000) |
Settlements | (236,000,000) | (52,000,000) | (48,000,000) |
Transfers into level 3 | 411,000,000 | 112,000,000 | 262,000,000 |
Transfers (out of) level 3 | (580,000,000) | (73,000,000) | (229,000,000) |
Fair value, ending balance | 507,000,000 | 558,000,000 | 334,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | (25,000,000) | 40,000,000 | (1,000,000) |
Loans | |||
Assets: | |||
Fair value, beginning balance | 673,000,000 | 738,000,000 | 612,000,000 |
Total realized/unrealized gains/(losses) | (73,000,000) | 29,000,000 | 1,000,000 |
Purchases | 1,112,000,000 | 456,000,000 | 941,000,000 |
Sales | (484,000,000) | (519,000,000) | (536,000,000) |
Settlements | (182,000,000) | (82,000,000) | (219,000,000) |
Transfers into level 3 | 791,000,000 | 437,000,000 | 619,000,000 |
Transfers (out of) level 3 | (944,000,000) | (386,000,000) | (680,000,000) |
Fair value, ending balance | 893,000,000 | 673,000,000 | 738,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | (40,000,000) | 13,000,000 | (13,000,000) |
Asset-backed securities | |||
Assets: | |||
Fair value, beginning balance | 37,000,000 | 127,000,000 | 153,000,000 |
Total realized/unrealized gains/(losses) | (3,000,000) | 0 | 28,000,000 |
Purchases | 44,000,000 | 37,000,000 | 98,000,000 |
Sales | (40,000,000) | (93,000,000) | (41,000,000) |
Settlements | (9,000,000) | (40,000,000) | (55,000,000) |
Transfers into level 3 | 9,000,000 | 28,000,000 | 45,000,000 |
Transfers (out of) level 3 | (10,000,000) | (22,000,000) | (101,000,000) |
Fair value, ending balance | 28,000,000 | 37,000,000 | 127,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | (4,000,000) | (3,000,000) | 22,000,000 |
Equity securities | |||
Assets: | |||
Fair value, beginning balance | 196,000,000 | 232,000,000 | 295,000,000 |
Total realized/unrealized gains/(losses) | (75,000,000) | (41,000,000) | (40,000,000) |
Purchases | 53,000,000 | 58,000,000 | 118,000,000 |
Sales | (376,000,000) | (103,000,000) | (120,000,000) |
Settlements | (1,000,000) | (22,000,000) | (1,000,000) |
Transfers into level 3 | 535,000,000 | 181,000,000 | 107,000,000 |
Transfers (out of) level 3 | (153,000,000) | (109,000,000) | (127,000,000) |
Fair value, ending balance | 179,000,000 | 196,000,000 | 232,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | (20,000,000) | (18,000,000) | 9,000,000 |
Other | |||
Assets: | |||
Fair value, beginning balance | 232,000,000 | 301,000,000 | 690,000,000 |
Total realized/unrealized gains/(losses) | 271,000,000 | (36,000,000) | (285,000,000) |
Purchases | 245,000,000 | 50,000,000 | 55,000,000 |
Sales | (9,000,000) | (26,000,000) | (40,000,000) |
Settlements | (154,000,000) | (54,000,000) | (118,000,000) |
Transfers into level 3 | 6,000,000 | 2,000,000 | 3,000,000 |
Transfers (out of) level 3 | (245,000,000) | (5,000,000) | (4,000,000) |
Fair value, ending balance | 346,000,000 | 232,000,000 | 301,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | 206,000,000 | 91,000,000 | (301,000,000) |
Total available-for-sale securities | |||
Assets: | |||
Fair value, beginning balance | 1,000,000 | 1,000,000 | 277,000,000 |
Total realized/unrealized gains/(losses) | 0 | 0 | 1,000,000 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Settlements | (1,000,000) | 0 | (277,000,000) |
Transfers into level 3 | 0 | 0 | 0 |
Transfers (out of) level 3 | 0 | 0 | 0 |
Fair value, ending balance | 0 | 1,000,000 | 1,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | 0 | 0 | 0 |
Level 3 Rollforward Supplemental Data [Abstract] | |||
Realized gains/(losses) on assets recorded in income | 0 | 0 | 1,000,000 |
Unrealized gains/(losses) on assets recorded in OCI | 0 | 0 | 0 |
Available-for-sale securities, Mortgage-backed securities | |||
Assets: | |||
Fair value, beginning balance | 1,000,000 | 1,000,000 | 1,000,000 |
Total realized/unrealized gains/(losses) | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Settlements | (1,000,000) | 0 | 0 |
Transfers into level 3 | 0 | 0 | 0 |
Transfers (out of) level 3 | 0 | 0 | 0 |
Fair value, ending balance | 0 | 1,000,000 | 1,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | 0 | 0 | 0 |
Available-for-sale securities, Asset-backed securities | |||
Assets: | |||
Fair value, beginning balance | 0 | 0 | 276,000,000 |
Total realized/unrealized gains/(losses) | 0 | 0 | 1,000,000 |
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Settlements | 0 | 0 | (277,000,000) |
Transfers into level 3 | 0 | 0 | 0 |
Transfers (out of) level 3 | 0 | 0 | 0 |
Fair value, ending balance | 0 | 0 | 0 |
Change in unrealized gains/(losses) related to financial instruments held | 0 | 0 | 0 |
Loans | |||
Assets: | |||
Fair value, beginning balance | 516,000,000 | 856,000,000 | 2,152,000,000 |
Total realized/unrealized gains/(losses) | (243,000,000) | 59,000,000 | 9,000,000 |
Purchases | 962,000,000 | 236,000,000 | 412,000,000 |
Sales | (84,000,000) | (188,000,000) | (1,256,000,000) |
Settlements | (733,000,000) | (482,000,000) | (496,000,000) |
Transfers into level 3 | 2,571,000,000 | 188,000,000 | 194,000,000 |
Transfers (out of) level 3 | (684,000,000) | (153,000,000) | (159,000,000) |
Fair value, ending balance | 2,305,000,000 | 516,000,000 | 856,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | (18,000,000) | 38,000,000 | (4,000,000) |
Mortgage servicing rights | |||
Assets: | |||
Fair value, beginning balance | 4,699,000,000 | 6,130,000,000 | 6,030,000,000 |
Total realized/unrealized gains/(losses) | (1,540,000,000) | (1,180,000,000) | 230,000,000 |
Purchases | 1,192,000,000 | 1,489,000,000 | 1,246,000,000 |
Sales | (176,000,000) | (789,000,000) | (636,000,000) |
Settlements | (899,000,000) | (951,000,000) | (740,000,000) |
Transfers into level 3 | 0 | 0 | 0 |
Transfers (out of) level 3 | 0 | 0 | 0 |
Fair value, ending balance | 3,276,000,000 | 4,699,000,000 | 6,130,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | (1,540,000,000) | (1,180,000,000) | 230,000,000 |
Other assets | |||
Assets: | |||
Fair value, beginning balance | 917,000,000 | 1,161,000,000 | 1,496,000,000 |
Total realized/unrealized gains/(losses) | (63,000,000) | (150,000,000) | (319,000,000) |
Purchases | 75,000,000 | 229,000,000 | 195,000,000 |
Sales | (104,000,000) | (166,000,000) | (38,000,000) |
Settlements | (320,000,000) | (156,000,000) | (176,000,000) |
Transfers into level 3 | 40,000,000 | 6,000,000 | 4,000,000 |
Transfers (out of) level 3 | (7,000,000) | (7,000,000) | (1,000,000) |
Fair value, ending balance | 538,000,000 | 917,000,000 | 1,161,000,000 |
Change in unrealized gains/(losses) related to financial instruments held | $ (3,000,000) | $ (180,000,000) | $ (331,000,000) |
Fair Value Measurement - Leve_2
Fair Value Measurement - Level 3 Analysis (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Level 3 Analysis - Supplemental Data [Abstract] | ||
Percentage of level 3 assets in total Firm assets | 0.50% | |
Recurring | ||
Level 3 Analysis - Supplemental Data [Abstract] | ||
Assets fair value | $ 1,243,209 | $ 802,830 |
Recurring | Level 3 | ||
Level 3 Analysis - Supplemental Data [Abstract] | ||
Assets fair value | 16,410 | $ 13,543 |
Increase (decrease) in level 3 assets | 2,900 | |
Recurring | Level 3 | Derivative receivables | Interest rate | ||
Level 3 Analysis - Supplemental Data [Abstract] | ||
Increase (decrease) in level 3 assets | 907 | |
Recurring | Level 3 | Derivative receivables | Equity | ||
Level 3 Analysis - Supplemental Data [Abstract] | ||
Increase (decrease) in level 3 assets | 1,400 | |
Recurring | Level 3 | Nontrading loans | ||
Level 3 Analysis - Supplemental Data [Abstract] | ||
Increase (decrease) in level 3 assets | 1,800 | |
Recurring | Level 3 | MSRs | ||
Level 3 Analysis - Supplemental Data [Abstract] | ||
Increase (decrease) in level 3 assets | $ (1,400) |
Fair Value Measurement - Transf
Fair Value Measurement - Transfers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Nontrading loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers from level 2 into level 3, assets | $ 2,571 | $ 188 | $ 194 |
Transfers from Level 3 into level 2, assets | 684 | 153 | 159 |
Total debt and equity instruments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers from level 2 into level 3, liabilities | 136 | 16 | 14 |
Transfers from level 3 into level 2, liabilities | 8 | 47 | 36 |
Deposits | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers from level 2 into level 3, liabilities | 265 | 12 | 2 |
Transfers from level 3 into level 2, liabilities | 943 | 1,209 | 540 |
Long-term debt | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers from level 2 into level 3, liabilities | 1,250 | 651 | 1,143 |
Transfers from level 3 into level 2, liabilities | 1,282 | 1,448 | 831 |
Recurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Realized/unrealized gains (losses), assets | 10 | (2,100) | |
Realized/unrealized gains (losses), liabilities | 102 | (3,300) | 1,600 |
Recurring | Derivative receivables | Equity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers from level 2 into level 3, assets | 2,600 | 1,000 | |
Transfers from Level 3 into level 2, assets | 2,400 | 1,100 | 1,200 |
Recurring | Nontrading loans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers from level 2 into level 3, assets | 2,600 | ||
Recurring | Total debt and equity instruments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers from level 2 into level 3, liabilities | 1,800 | 993 | 1,400 |
Transfers from level 3 into level 2, liabilities | 2,000 | 1,500 | 1,500 |
Recurring | Derivative payables | Equity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers from level 2 into level 3, liabilities | 3,500 | 904 | 1,600 |
Transfers from level 3 into level 2, liabilities | 2,400 | 1,300 | 1,500 |
Recurring | Derivative payables | Commodity contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers from level 3 into level 2, liabilities | 962 | ||
Recurring | Derivative payables | Interest rate contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers from level 2 into level 3, liabilities | 880 | ||
Recurring | Deposits | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers from level 3 into level 2, liabilities | 943 | 1,200 | |
Recurring | Long-term debt | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers from level 2 into level 3, liabilities | 1,200 | $ 1,100 | |
Transfers from level 3 into level 2, liabilities | $ 1,300 | $ 1,400 |
Fair Value Measurement - Impact
Fair Value Measurement - Impact of Credit Adjustments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Credit and funding adjustments: | |||
Derivatives CVA | $ (337) | $ 241 | $ 193 |
Derivatives FVA | $ (64) | $ 199 | $ (74) |
Fair Value Measurement - Nonrec
Fair Value Measurement - Nonrecurring Basis (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Equity securities without readily determinable fair values | $ 2,368,000,000 | $ 2,441,000,000 | ||
Net losses as a result of measurement alternative | (301,000,000) | (42,000,000) | ||
Net gains as a result of measurement alternative | $ 167,000,000 | 243,000,000 | ||
Residential mortgage | Broker price opinion | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value inputs, liquidation value discount | 13.00% | |||
Residential mortgage | Broker price opinion | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value inputs, liquidation value discount | 46.00% | |||
Residential mortgage | Broker price opinion | Weighted average | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value inputs, liquidation value discount | 27.00% | |||
Nonrecurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured at fair value on a nonrecurring basis | $ 3,567,000,000 | 4,788,000,000 | ||
Total liabilities measured at fair value on a nonrecurring basis | 12,000,000 | 0 | ||
Total nonrecurring fair value gains/(losses) | (933,000,000) | (92,000,000) | $ 64,000,000 | |
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 | 12,000,000 | |||
Total nonrecurring fair value gains/(losses) | (11,000,000) | 0 | 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 | 2,583,000,000 | 3,731,000,000 | ||
Total nonrecurring fair value gains/(losses) | (393,000,000) | (274,000,000) | (68,000,000) | |
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 | 984,000,000 | 1,057,000,000 | ||
Total nonrecurring fair value gains/(losses) | (529,000,000) | 182,000,000 | 132,000,000 | |
Net losses as a result of measurement alternative | (134,000,000) | |||
Net gains as a result of measurement alternative | $ 505,000,000 | 201,000,000 | $ 149,000,000 | |
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 | ||
Total liabilities measured at fair value on a nonrecurring basis | 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 | |||
Nonrecurring | Level 1 | Loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 | ||
Nonrecurring | Level 1 | Other assets | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured at fair value on a nonrecurring basis | 0 | 0 | ||
Nonrecurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Total assets measured at fair value on a nonrecurring basis | 1,616,000,000 | 3,476,000,000 | ||
Total liabilities measured at fair value on a nonrecurring basis | 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 | |||
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 | 1,611,000,000 | 3,462,000,000 | ||
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 | 5,000,000 | 14,000,000 | ||
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 | 1,951,000,000 | 1,312,000,000 | ||
Total liabilities measured at fair value on a nonrecurring basis | 12,000,000 | |||
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 | 12,000,000 | |||
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 | 972,000,000 | 269,000,000 | ||
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 | 602,000,000 | |||
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 | 979,000,000 | $ 1,043,000,000 | ||
Equity securities without readily determinable fair values | $ 535,000,000 |
Fair Value Measurement - Equity
Fair Value Measurement - Equity Securities Without Readily Determinable Fair Values (Details) shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | |
Fair Value Disclosures [Abstract] | ||
Carrying value | $ 2,368 | $ 2,441 |
Upward carrying value changes | 167 | 243 |
Downward carrying value changes/impairment | (301) | $ (42) |
Cumulative upward carrying value changes | 708 | |
Cumulative downward carrying value changes/impairment | $ (430) | |
VISA | Common stock | Class B | ||
Investment Holdings [Line Items] | ||
Interest owned, included in other assets (in shares) | shares | 40 | |
Conversion rate | 1.6228 |
Fair Value Measurement - Carryi
Fair Value Measurement - Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial assets | ||
Cash and due from banks | $ 24,874 | $ 21,704 |
Deposits with banks | 502,735 | 241,927 |
Federal funds sold and securities purchased under resale agreements | 296,284 | 249,157 |
Investment securities, held-to-maturity | 205,472 | 48,941 |
Loans, net of allowance for loan losses | 44,474 | 44,955 |
Financial liabilities | ||
Beneficial interests issued by consolidated VIEs | 17,578 | 17,841 |
Carrying value | ||
Financial assets | ||
Cash and due from banks | 24,900 | 21,700 |
Deposits with banks | 502,700 | 241,900 |
Accrued interest and accounts receivable | 89,400 | 71,300 |
Federal funds sold and securities purchased under resale agreements | 58,300 | 234,600 |
Securities borrowed | 107,700 | 133,500 |
Investment securities, held-to-maturity | 201,800 | 47,500 |
Loans, net of allowance for loan losses | 940,100 | 939,500 |
Other | 81,800 | 61,300 |
Financial liabilities | ||
Deposits | 2,129,800 | 1,533,800 |
Federal funds purchased and securities loaned or sold under repurchase agreements | 59,500 | 183,100 |
Short-term borrowings | 28,300 | 35,000 |
Accounts payable and other liabilities | 186,600 | 164,000 |
Beneficial interests issued by consolidated VIEs | 17,500 | 17,800 |
Long-term debt | 204,800 | 215,500 |
Wholesale lending-related commitments | 2,200 | 1,200 |
Fair value | ||
Financial assets | ||
Cash and due from banks | 24,900 | 21,700 |
Deposits with banks | 502,700 | 241,900 |
Accrued interest and accounts receivable | 89,400 | 71,300 |
Federal funds sold and securities purchased under resale agreements | 58,300 | 234,600 |
Securities borrowed | 107,700 | 133,500 |
Investment securities, held-to-maturity | 205,500 | 48,900 |
Loans, net of allowance for loan losses | 966,500 | 949,000 |
Other | 81,900 | 61,400 |
Financial liabilities | ||
Deposits | 2,128,900 | 1,534,100 |
Federal funds purchased and securities loaned or sold under repurchase agreements | 59,500 | 183,100 |
Short-term borrowings | 28,300 | 35,000 |
Accounts payable and other liabilities | 186,200 | 163,600 |
Beneficial interests issued by consolidated VIEs | 17,600 | 17,900 |
Long-term debt | 212,400 | 221,800 |
Wholesale lending-related commitments | 2,100 | 1,900 |
Fair value | Level 1 | ||
Financial assets | ||
Cash and due from banks | 24,900 | 21,700 |
Deposits with banks | 502,700 | 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 | 53,200 | 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 |
Fair value | Level 2 | ||
Financial assets | ||
Cash and due from banks | 0 | 0 |
Deposits with banks | 0 | 0 |
Accrued interest and accounts receivable | 89,300 | 71,200 |
Federal funds sold and securities purchased under resale agreements | 58,300 | 234,600 |
Securities borrowed | 107,700 | 133,500 |
Investment securities, held-to-maturity | 152,300 | 48,800 |
Loans, net of allowance for loan losses | 210,900 | 214,100 |
Other | 80,000 | 60,600 |
Financial liabilities | ||
Deposits | 2,128,900 | 1,534,100 |
Federal funds purchased and securities loaned or sold under repurchase agreements | 59,500 | 183,100 |
Short-term borrowings | 28,300 | 35,000 |
Accounts payable and other liabilities | 181,900 | 160,000 |
Beneficial interests issued by consolidated VIEs | 17,600 | 17,900 |
Long-term debt | 209,200 | 218,300 |
Wholesale lending-related commitments | 0 | 0 |
Fair value | Level 3 | ||
Financial assets | ||
Cash and due from banks | 0 | 0 |
Deposits with banks | 0 | 0 |
Accrued interest and accounts receivable | 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 | 755,600 | 734,900 |
Other | 1,900 | 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 | 4,300 | 3,500 |
Beneficial interests issued by consolidated VIEs | 0 | 0 |
Long-term debt | 3,200 | 3,500 |
Wholesale lending-related commitments | $ 2,100 | $ 1,900 |
Fair Value Option - Changes in
Fair Value Option - Changes in fair value under the fair value option (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Federal funds sold and securities purchased under resale agreements | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | $ 12 | $ (36) | $ (35) |
Federal funds sold and securities purchased under resale agreements | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 12 | (36) | (35) |
Federal funds sold and securities purchased under resale agreements | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 0 | 0 | 0 |
Securities borrowed | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 143 | 133 | 22 |
Securities borrowed | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 143 | 133 | 22 |
Securities borrowed | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 0 | 0 | 0 |
Debt and equity instruments, excluding loans | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 1,545 | 2,481 | (1,679) |
Debt and equity instruments, excluding loans | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 1,546 | 2,482 | (1,680) |
Debt and equity instruments, excluding loans | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (1) | (1) | 1 |
Loans reported as trading assets: Changes in instrument-specific credit risk | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 135 | 248 | 15 |
Loans reported as trading assets: Changes in instrument-specific credit risk | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 135 | 248 | 15 |
Loans reported as trading assets: Changes in instrument-specific credit risk | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 0 | 0 | 0 |
Loans reported as trading assets: Other changes in fair value | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (19) | (1) | 28 |
Loans reported as trading assets: Other changes in fair value | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (19) | (1) | 28 |
Loans reported as trading assets: Other changes in fair value | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 0 | 0 | 0 |
Loans: Changes in instrument-specific credit risk | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 197 | 477 | 386 |
Loans: Changes in instrument-specific credit risk | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 190 | 475 | 385 |
Loans: Changes in instrument-specific credit risk | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 7 | 2 | 1 |
Loans: Other changes in fair value | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 3,709 | 1,491 | 323 |
Loans: Other changes in fair value | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 470 | 267 | 138 |
Loans: Other changes in fair value | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 3,239 | 1,224 | 185 |
Other assets | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 38 | 14 | (34) |
Other assets | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 103 | 8 | 11 |
Other assets | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (65) | 6 | (45) |
Deposits | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (726) | (1,730) | 181 |
Deposits | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (726) | (1,730) | 181 |
Realized gains/(losses) due to instrument-specific credit risk | 20 | 0 | 0 |
Deposits | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 0 | 0 | 0 |
Federal funds purchased and securities loaned or sold under repurchase agreements | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (6) | (8) | 11 |
Federal funds purchased and securities loaned or sold under repurchase agreements | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (6) | (8) | 11 |
Federal funds purchased and securities loaned or sold under repurchase agreements | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 0 | 0 | 0 |
Short-term borrowings | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 294 | (693) | 862 |
Short-term borrowings | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 294 | (693) | 862 |
Short-term borrowings | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 0 | 0 | 0 |
Trading liabilities | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 2 | 6 | 1 |
Trading liabilities | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 2 | 6 | 1 |
Trading liabilities | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 0 | 0 | 0 |
Other liabilities | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (94) | (16) | 0 |
Other liabilities | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (94) | (16) | 0 |
Other liabilities | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | 0 | 0 | 0 |
Long-term debt | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (2,121) | (6,172) | 2,695 |
Long-term debt | Principal transactions | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | (2,120) | (6,173) | 2,695 |
Long-term debt | All other income | |||
Changes in fair value under the fair value option election | |||
Fair value option, changes in fair value gain (loss) | $ (1) | $ 1 | $ 0 |
Fair Value Option - Aggregate D
Fair Value Option - Aggregate Differences (Details) - USD ($) | Dec. 31, 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 | 18,100,000,000 | 8,600,000,000 |
Other guarantees and commitments, Carrying value | (39,000,000) | (120,000,000) |
Contractual principal outstanding | ||
Loans | ||
Nonaccrual loans | 5,253,000,000 | 3,527,000,000 |
90 or more days past due and government guaranteed | 328,000,000 | 138,000,000 |
All other performing loans | 49,939,000,000 | 52,243,000,000 |
Total loans | 55,520,000,000 | 55,908,000,000 |
Contractual principal outstanding | Principal-protected debt | ||
Long-term debt | ||
Total long-term debt | 40,560,000,000 | 40,124,000,000 |
Contractual principal outstanding | Loans reported as trading assets | ||
Loans | ||
Nonaccrual loans | 3,386,000,000 | 2,563,000,000 |
90 or more days past due and government guaranteed | 0 | 0 |
All other performing loans | 7,917,000,000 | 8,288,000,000 |
Contractual principal outstanding | Loans | ||
Loans | ||
Nonaccrual loans | 1,867,000,000 | 964,000,000 |
90 or more days past due and government guaranteed | 328,000,000 | 138,000,000 |
All other performing loans | 42,022,000,000 | 43,955,000,000 |
Fair value | ||
Loans | ||
Nonaccrual loans | 2,062,000,000 | 930,000,000 |
90 or more days past due and government guaranteed | 317,000,000 | 129,000,000 |
All other performing loans | 49,089,000,000 | 50,909,000,000 |
Total loans | 51,468,000,000 | 51,968,000,000 |
Long-term debt | ||
Total long-term debt | 76,817,000,000 | 75,745,000,000 |
Long-term beneficial interests | ||
Total long-term beneficial interests | 41,000,000 | 36,000,000 |
Fair value | Principal-protected debt | ||
Long-term debt | ||
Total long-term debt | 40,526,000,000 | 39,246,000,000 |
Fair value | Nonprincipal-protected debt | ||
Long-term debt | ||
Total long-term debt | 36,291,000,000 | 36,499,000,000 |
Long-term beneficial interests | ||
Total long-term beneficial interests | 41,000,000 | 36,000,000 |
Fair value | Loans reported as trading assets | ||
Loans | ||
Nonaccrual loans | 555,000,000 | 234,000,000 |
90 or more days past due and government guaranteed | 0 | 0 |
All other performing loans | 6,439,000,000 | 6,779,000,000 |
Fair value | Loans | ||
Loans | ||
Nonaccrual loans | 1,507,000,000 | 696,000,000 |
90 or more days past due and government guaranteed | 317,000,000 | 129,000,000 |
All other performing loans | 42,650,000,000 | 44,130,000,000 |
Fair value over/(under) contractual principal outstanding | ||
Loans | ||
Nonaccrual loans, Fair value over/(under) contractual principal outstanding | (3,191,000,000) | (2,597,000,000) |
90 or more days past due and government guaranteed, Fair value over/(under) contractual principal outstanding | (11,000,000) | (9,000,000) |
All other performing loans | (850,000,000) | (1,334,000,000) |
Total loans | (4,052,000,000) | (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 | (34,000,000) | (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 | (2,831,000,000) | (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 | (1,478,000,000) | (1,509,000,000) |
Fair value over/(under) contractual principal outstanding | Loans | ||
Loans | ||
Nonaccrual loans, Fair value over/(under) contractual principal outstanding | (360,000,000) | (268,000,000) |
90 or more days past due and government guaranteed, Fair value over/(under) contractual principal outstanding | (11,000,000) | (9,000,000) |
All other performing loans | $ 628,000,000 | $ 175,000,000 |
Fair Value Option - Structured
Fair Value Option - Structured note products by balance sheet classification and risk component (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | $ 93,739 | $ 106,982 |
Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 43,251 | 52,196 |
Credit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 7,431 | 6,590 |
Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 3,705 | 3,915 |
Equity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 38,857 | 42,323 |
Commodity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 495 | 1,958 |
Long-term debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 75,344 | 74,813 |
Long-term debt | Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 38,129 | 35,470 |
Long-term debt | Credit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 6,409 | 5,715 |
Long-term debt | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 3,613 | 3,862 |
Long-term debt | Equity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 26,943 | 29,294 |
Long-term debt | Commodity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 250 | 472 |
Short-term borrowings | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 6,213 | 5,841 |
Short-term borrowings | Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 65 | 34 |
Short-term borrowings | Credit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 1,022 | 875 |
Short-term borrowings | Foreign exchange | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 92 | 48 |
Short-term borrowings | Equity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 5,021 | 4,852 |
Short-term borrowings | Commodity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 13 | 32 |
Deposits | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 12,182 | 26,328 |
Deposits | Interest rate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | 5,057 | 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 | 6,893 | 8,177 |
Deposits | Commodity | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total structured notes | $ 232 | $ 1,454 |
Credit Risk Concentrations (Det
Credit Risk Concentrations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Concentration Risk [Line Items] | |||
Credit exposure | $ 2,305,881 | $ 2,189,491 | |
On-balance sheet, Loans | [1] | 1,012,853 | 997,620 |
On-balance sheet, Derivatives | 79,630 | 49,766 | |
Off-balance sheet | 1,165,688 | 1,108,399 | |
Available-for-sale securities | 388,178 | 350,699 | |
Held-to-maturity securities | 201,821 | 47,540 | |
Cash placed with banks | 516,900 | 254,000 | |
Obligations of U.S. states and municipalities | |||
Concentration Risk [Line Items] | |||
Trading assets | 7,200 | 6,500 | |
Available-for-sale securities | 20,396 | 29,810 | |
Held-to-maturity securities | 12,751 | 4,797 | |
Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 79,630 | 49,766 | |
Consumer | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 1,178,620 | 1,177,630 | |
On-balance sheet, Loans | 462,795 | 486,741 | |
Off-balance sheet | 715,825 | 690,889 | |
Consumer, excluding credit card | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Loans | 318,579 | 317,817 | |
Consumer, excluding credit card | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 375,898 | 357,986 | |
On-balance sheet, Loans | 318,579 | 317,817 | |
Off-balance sheet | 57,319 | 40,169 | |
Consumer, excluding credit card | Credit Concentration Risk | Paycheck Protection Program (PPP) | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Loans | 19,200 | ||
Credit card | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Loans | 144,216 | 168,924 | |
Credit card | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 802,722 | 819,644 | |
On-balance sheet, Loans | 144,216 | 168,924 | |
Off-balance sheet | 658,506 | 650,720 | |
Wholesale | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Loans | 550,058 | 510,879 | |
Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 1,127,261 | 1,011,861 | |
On-balance sheet, Loans | 550,058 | 510,879 | |
Off-balance sheet | 449,863 | 417,510 | |
Wholesale-related | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 79,630 | 49,766 | |
Wholesale-related | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 1,044,440 | 948,954 | |
On-balance sheet, Loans | 514,947 | 481,678 | |
Off-balance sheet | 449,863 | 417,510 | |
Real Estate | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 1,385 | 619 | |
Real Estate | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 148,498 | 150,919 | |
On-balance sheet, Loans | 118,299 | 117,709 | |
Off-balance sheet | 28,814 | 32,591 | |
Individuals and Individual Entities | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 1,750 | 694 | |
Individuals and Individual Entities | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 122,870 | 105,027 | |
On-balance sheet, Loans | 109,746 | 94,616 | |
Off-balance sheet | 11,374 | 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 | 108,437 | 106,986 | |
On-balance sheet, Loans | 39,013 | 36,985 | |
Off-balance sheet | 66,622 | 68,577 | |
Technology, Media & Telecommunications | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 4,252 | 2,766 | |
Technology, Media & Telecommunications | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 72,150 | 60,033 | |
On-balance sheet, Loans | 14,687 | 15,322 | |
Off-balance sheet | 53,211 | 41,945 | |
Asset Managers | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 9,277 | 7,160 | |
Asset Managers | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 66,573 | 54,304 | |
On-balance sheet, Loans | 31,059 | 24,008 | |
Off-balance sheet | 26,237 | 23,136 | |
Industrials | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 1,851 | 878 | |
Industrials | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 66,470 | 62,483 | |
On-balance sheet, Loans | 21,143 | 22,063 | |
Off-balance sheet | 43,476 | 39,542 | |
Healthcare | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 3,252 | 2,078 | |
Healthcare | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 60,118 | 50,824 | |
On-balance sheet, Loans | 19,405 | 17,607 | |
Off-balance sheet | 37,461 | 31,139 | |
Banks & Finance Cos | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 8,044 | 5,165 | |
Banks & Finance Cos | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 54,032 | 50,786 | |
On-balance sheet, Loans | 31,004 | 31,191 | |
Off-balance sheet | 14,984 | 14,430 | |
Automotive | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 5,995 | 368 | |
Automotive | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 43,331 | 35,118 | |
On-balance sheet, Loans | 17,128 | 18,844 | |
Off-balance sheet | 20,208 | 15,906 | |
Oil & Gas | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 1,643 | 852 | |
Oil & Gas | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 39,159 | 41,641 | |
On-balance sheet, Loans | 11,267 | 13,101 | |
Off-balance sheet | 26,249 | 27,688 | |
State & Municipal Govt | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 2,347 | 2,000 | |
State & Municipal Govt | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 38,286 | 30,095 | |
On-balance sheet, Loans | 18,054 | 13,271 | |
Off-balance sheet | 17,885 | 14,824 | |
Utilities | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 3,340 | 2,573 | |
Utilities | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 30,124 | 34,843 | |
On-balance sheet, Loans | 4,874 | 5,157 | |
Off-balance sheet | 21,910 | 27,113 | |
Chemicals & Plastics | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 856 | 459 | |
Chemicals & Plastics | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 17,176 | 17,499 | |
On-balance sheet, Loans | 4,884 | 4,864 | |
Off-balance sheet | 11,436 | 12,176 | |
Central Govt | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 12,313 | 10,477 | |
Central Govt | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 17,025 | 14,865 | |
On-balance sheet, Loans | 3,396 | 2,840 | |
Off-balance sheet | 1,316 | 1,548 | |
Transportation | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 1,495 | 715 | |
Transportation | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 16,232 | 14,497 | |
On-balance sheet, Loans | 6,566 | 5,253 | |
Off-balance sheet | 8,171 | 8,529 | |
Metals & Mining | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 882 | 402 | |
Metals & Mining | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 15,542 | 15,586 | |
On-balance sheet, Loans | 4,854 | 5,364 | |
Off-balance sheet | 9,806 | 9,820 | |
Insurance | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 2,527 | 2,282 | |
Insurance | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 13,141 | 12,348 | |
On-balance sheet, Loans | 1,042 | 1,356 | |
Off-balance sheet | 9,572 | 8,710 | |
Securities Firms | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 4,838 | 4,507 | |
Securities Firms | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 8,048 | 7,381 | |
On-balance sheet, Loans | 469 | 757 | |
Off-balance sheet | 2,741 | 2,117 | |
Financial Markets Infrastructure | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 3,757 | 2,482 | |
Financial Markets Infrastructure | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 6,515 | 4,121 | |
On-balance sheet, Loans | 19 | 13 | |
Off-balance sheet | 2,739 | 1,626 | |
All other | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
On-balance sheet, Derivatives | 7,024 | 1,865 | |
All other | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | 100,713 | 79,598 | |
On-balance sheet, Loans | 58,038 | 51,357 | |
Off-balance sheet | $ 35,651 | $ 26,376 | |
All other | Wholesale | Credit Concentration Risk | SPEs and Private education | |||
Concentration Risk [Line Items] | |||
Percentage of exposure secured | 92.00% | 90.00% | |
All other | Wholesale | Credit Concentration Risk | Civic organizations | |||
Concentration Risk [Line Items] | |||
Percentage of exposure secured | 8.00% | 10.00% | |
Loans held-for-sale and loans at fair value | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | $ 35,111 | $ 29,201 | |
On-balance sheet, Loans | 35,111 | 29,201 | |
Receivables from customers | Wholesale | Credit Concentration Risk | |||
Concentration Risk [Line Items] | |||
Credit exposure | $ 47,710 | $ 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 | Dec. 31, 2020 | Dec. 31, 2019 |
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | $ 47,194 | $ 46,942 |
Interest rate contracts | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 31,093 | 32,679 |
Swaps | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 20,986 | 21,228 |
Futures and forwards | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 3,057 | 3,152 |
Options | Written options | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 3,375 | 3,938 |
Options | Purchased options | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 3,675 | 4,361 |
Net credit derivatives | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 1,201 | 1,242 |
Foreign exchange contracts | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 12,450 | 10,599 |
Cross-currency swaps | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 3,924 | 3,604 |
Spot, futures and forwards | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 6,871 | 5,577 |
Options | Written options | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 830 | 700 |
Options | Purchased options | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 825 | 718 |
Equity contracts | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 1,885 | 1,805 |
Swaps | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 448 | 406 |
Futures and forwards | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 140 | 142 |
Options | Written options | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 676 | 646 |
Options | Purchased options | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 621 | 611 |
Commodity contracts | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 565 | 617 |
Swaps | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 138 | 147 |
Spot, futures and forwards | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 198 | 211 |
Options | Written options | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | 124 | 135 |
Options | Purchased options | ||
Notional amount of derivative contracts outstanding [Abstract] | ||
Derivative notional amounts | $ 105 | $ 124 |
Derivative Instruments - Impact
Derivative Instruments - Impact on Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | $ 707,554 | $ 529,626 |
Net derivative receivables | 79,630 | 49,766 |
Gross derivative payables | 688,887 | 512,128 |
Net derivative payables | 70,623 | 43,708 |
Interest rate | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 391,490 | 313,294 |
Net derivative receivables | 35,725 | 27,421 |
Gross derivative payables | 353,627 | 279,273 |
Net derivative payables | 13,012 | 8,603 |
Credit | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 13,503 | 14,876 |
Net derivative receivables | 680 | 701 |
Gross derivative payables | 15,192 | 15,121 |
Net derivative payables | 1,995 | 1,652 |
Foreign exchange | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 206,260 | 138,487 |
Net derivative receivables | 15,781 | 9,005 |
Gross derivative payables | 215,926 | 145,108 |
Net derivative payables | 21,433 | 13,158 |
Equity | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 74,798 | 45,727 |
Net derivative receivables | 20,673 | 6,477 |
Gross derivative payables | 81,413 | 52,741 |
Net derivative payables | 25,898 | 12,537 |
Commodity | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 21,503 | 17,242 |
Net derivative receivables | 6,771 | 6,162 |
Gross derivative payables | 22,729 | 19,885 |
Net derivative payables | 8,285 | 7,758 |
Not designated as hedges | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 704,898 | 528,147 |
Gross derivative payables | 685,295 | 510,995 |
Not designated as hedges | Interest rate | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 390,659 | 312,451 |
Gross derivative payables | 353,627 | 279,272 |
Not designated as hedges | Credit | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 13,503 | 14,876 |
Gross derivative payables | 15,192 | 15,121 |
Not designated as hedges | Foreign exchange | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 205,359 | 138,179 |
Gross derivative payables | 214,229 | 144,125 |
Not designated as hedges | Equity | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 74,798 | 45,727 |
Gross derivative payables | 81,413 | 52,741 |
Not designated as hedges | Commodity | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 20,579 | 16,914 |
Gross derivative payables | 20,834 | 19,736 |
Designated as hedges | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 2,656 | 1,479 |
Gross derivative payables | 3,592 | 1,133 |
Designated as hedges | Interest rate | ||
Derivatives, Fair Value [Line Items] | ||
Gross derivative receivables | 831 | 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 | 901 | 308 |
Gross derivative payables | 1,697 | 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 | 924 | 328 |
Gross derivative payables | $ 1,895 | $ 149 |
Derivative Instruments - Deriva
Derivative Instruments - Derivatives Netting (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | $ 681,647 | $ 516,083 |
Amounts netted on the Consolidated balance sheets | (627,924) | (479,860) |
Net derivative receivables | 53,723 | 36,223 |
Derivative receivables where an appropriate legal opinion has not been either sought or obtained | 25,907 | 13,543 |
Total derivative receivables recognized on the Consolidated balance sheets, Gross derivate receivables | 707,554 | 529,626 |
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 79,630 | 49,766 |
Collateral not nettable on the Consolidated balance sheets, Net derivative receivables | (14,806) | (13,052) |
Net amounts, Net derivative receivables | 64,824 | 36,714 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 665,950 | 497,977 |
Amounts netted on the Consolidated balance sheets | (618,264) | (468,420) |
Net derivative payables | 47,686 | 29,557 |
Derivative payables where an appropriate legal opinion has not been either sought or obtained | 22,937 | 14,151 |
Total derivative payables recognized on the Consolidated balance sheets, Gross derivative payables | 688,887 | 512,128 |
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 70,623 | 43,708 |
Collateral not nettable on the Consolidated balance sheets, Net derivative payables | (11,964) | (6,960) |
Net amounts, Net derivative payables | 58,659 | 36,748 |
Net cash collateral receivables | 88,000 | 65,900 |
Netted cash collateral payables | 78,400 | 54,400 |
Interest rate contracts | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 385,950 | 308,994 |
Amounts netted on the Consolidated balance sheets | (355,765) | (285,873) |
Net derivative receivables | 30,185 | 23,121 |
Total derivative receivables recognized on the Consolidated balance sheets, Gross derivate receivables | 391,490 | 313,294 |
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 35,725 | 27,421 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 351,922 | 277,893 |
Amounts netted on the Consolidated balance sheets | (340,615) | (270,670) |
Net derivative payables | 11,307 | 7,223 |
Total derivative payables recognized on the Consolidated balance sheets, Gross derivative payables | 353,627 | 279,273 |
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 13,012 | 8,603 |
Interest rate contracts | OTC | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 367,056 | 299,205 |
Amounts netted on the Consolidated balance sheets | (337,451) | (276,255) |
Net derivative receivables | 29,605 | 22,950 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 331,854 | 267,311 |
Amounts netted on the Consolidated balance sheets | (320,780) | (260,229) |
Net derivative payables | 11,074 | 7,082 |
Interest rate contracts | OTC–cleared | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 18,340 | 9,442 |
Amounts netted on the Consolidated balance sheets | (17,919) | (9,360) |
Net derivative receivables | 421 | 82 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 19,710 | 10,217 |
Amounts netted on the Consolidated balance sheets | (19,494) | (10,138) |
Net derivative payables | 216 | 79 |
Interest rate contracts | Exchange-traded | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 554 | 347 |
Amounts netted on the Consolidated balance sheets | (395) | (258) |
Net derivative receivables | 159 | 89 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 358 | 365 |
Amounts netted on the Consolidated balance sheets | (341) | (303) |
Net derivative payables | 17 | 62 |
Credit contracts | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 13,378 | 14,607 |
Amounts netted on the Consolidated balance sheets | (12,823) | (14,175) |
Net derivative receivables | 555 | 432 |
Total derivative receivables recognized on the Consolidated balance sheets, Gross derivate receivables | 13,503 | 14,876 |
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 680 | 701 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 14,746 | 14,960 |
Amounts netted on the Consolidated balance sheets | (13,197) | (13,469) |
Net derivative payables | 1,549 | 1,491 |
Total derivative payables recognized on the Consolidated balance sheets, Gross derivative payables | 15,192 | 15,121 |
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 1,995 | 1,652 |
Credit contracts | OTC | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 9,052 | 10,743 |
Amounts netted on the Consolidated balance sheets | (8,514) | (10,317) |
Net derivative receivables | 538 | 426 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 10,671 | 11,570 |
Amounts netted on the Consolidated balance sheets | (9,141) | (10,080) |
Net derivative payables | 1,530 | 1,490 |
Credit contracts | OTC–cleared | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 4,326 | 3,864 |
Amounts netted on the Consolidated balance sheets | (4,309) | (3,858) |
Net derivative receivables | 17 | 6 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 4,075 | 3,390 |
Amounts netted on the Consolidated balance sheets | (4,056) | (3,389) |
Net derivative payables | 19 | 1 |
Foreign exchange contracts | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 202,218 | 136,447 |
Amounts netted on the Consolidated balance sheets | (190,479) | (129,482) |
Net derivative receivables | 11,739 | 6,965 |
Total derivative receivables recognized on the Consolidated balance sheets, Gross derivate receivables | 206,260 | 138,487 |
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 15,781 | 9,005 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 211,673 | 142,558 |
Amounts netted on the Consolidated balance sheets | (194,493) | (131,950) |
Net derivative payables | 17,180 | 10,608 |
Total derivative payables recognized on the Consolidated balance sheets, Gross derivative payables | 215,926 | 145,108 |
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 21,433 | 13,158 |
Foreign exchange contracts | OTC | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 201,349 | 136,252 |
Amounts netted on the Consolidated balance sheets | (189,655) | (129,324) |
Net derivative receivables | 11,694 | 6,928 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 210,803 | 142,360 |
Amounts netted on the Consolidated balance sheets | (193,672) | (131,792) |
Net derivative payables | 17,131 | 10,568 |
Foreign exchange contracts | OTC–cleared | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 834 | 185 |
Amounts netted on the Consolidated balance sheets | (819) | (152) |
Net derivative receivables | 15 | 33 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 836 | 186 |
Amounts netted on the Consolidated balance sheets | (819) | (152) |
Net derivative payables | 17 | 34 |
Foreign exchange contracts | Exchange-traded | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 35 | 10 |
Amounts netted on the Consolidated balance sheets | (5) | (6) |
Net derivative receivables | 30 | 4 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 34 | 12 |
Amounts netted on the Consolidated balance sheets | (2) | (6) |
Net derivative payables | 32 | 6 |
Equity contracts | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 62,324 | 42,760 |
Amounts netted on the Consolidated balance sheets | (54,125) | (39,250) |
Net derivative receivables | 8,199 | 3,510 |
Total derivative receivables recognized on the Consolidated balance sheets, Gross derivate receivables | 74,798 | 45,727 |
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 20,673 | 6,477 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 69,821 | 47,810 |
Amounts netted on the Consolidated balance sheets | (55,515) | (40,204) |
Net derivative payables | 14,306 | 7,606 |
Total derivative payables recognized on the Consolidated balance sheets, Gross derivative payables | 81,413 | 52,741 |
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 25,898 | 12,537 |
Equity contracts | OTC | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 34,030 | 23,106 |
Amounts netted on the Consolidated balance sheets | (27,374) | (20,820) |
Net derivative receivables | 6,656 | 2,286 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 35,330 | 27,594 |
Amounts netted on the Consolidated balance sheets | (28,763) | (21,778) |
Net derivative payables | 6,567 | 5,816 |
Equity contracts | Exchange-traded | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 28,294 | 19,654 |
Amounts netted on the Consolidated balance sheets | (26,751) | (18,430) |
Net derivative receivables | 1,543 | 1,224 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 34,491 | 20,216 |
Amounts netted on the Consolidated balance sheets | (26,752) | (18,426) |
Net derivative payables | 7,739 | 1,790 |
Commodity contracts | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 17,777 | 13,275 |
Amounts netted on the Consolidated balance sheets | (14,732) | (11,080) |
Net derivative receivables | 3,045 | 2,195 |
Total derivative receivables recognized on the Consolidated balance sheets, Gross derivate receivables | 21,503 | 17,242 |
Total derivative receivables recognized on the Consolidated balance sheets, Net derivative receivables | 6,771 | 6,162 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 17,788 | 14,756 |
Amounts netted on the Consolidated balance sheets | (14,444) | (12,127) |
Net derivative payables | 3,344 | 2,629 |
Total derivative payables recognized on the Consolidated balance sheets, Gross derivative payables | 22,729 | 19,885 |
Total derivative payables recognized on the Consolidated balance sheets, Net derivative payables | 8,285 | 7,758 |
Commodity contracts | OTC | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 10,924 | 7,093 |
Amounts netted on the Consolidated balance sheets | (7,901) | (5,149) |
Net derivative receivables | 3,023 | 1,944 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 10,365 | 8,714 |
Amounts netted on the Consolidated balance sheets | (7,544) | (6,235) |
Net derivative payables | 2,821 | 2,479 |
Commodity contracts | OTC–cleared | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 20 | 28 |
Amounts netted on the Consolidated balance sheets | (20) | (28) |
Net derivative receivables | 0 | 0 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 32 | 30 |
Amounts netted on the Consolidated balance sheets | (32) | (30) |
Net derivative payables | 0 | 0 |
Commodity contracts | Exchange-traded | ||
Gross and Net Derivative Receivables by Contract and Settlement Type: | ||
Gross derivative receivables | 6,833 | 6,154 |
Amounts netted on the Consolidated balance sheets | (6,811) | (5,903) |
Net derivative receivables | 22 | 251 |
Gross and Net Derivative Payables by Contract and Settlement Type: | ||
Gross derivative payables | 7,391 | 6,012 |
Amounts netted on the Consolidated balance sheets | (6,868) | (5,862) |
Net derivative payables | $ 523 | $ 150 |
Derivative Instruments - Liquid
Derivative Instruments - Liquidity Risk and Credit-Related Contingent Features (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
OTC and OTC-cleared derivative payables containing downgrade triggers | ||
Aggregate fair value of net derivative payables | $ 27,712 | $ 14,819 |
Collateral posted | 26,289 | 13,329 |
Single-notch downgrade | ||
Liquidity impact of downgrade triggers on OTC and OTC-cleared derivatives | ||
Amount of additional collateral to be posted upon downgrade | 119 | 189 |
Amount required to settle contracts with termination triggers upon downgrade | 153 | 104 |
Two-notch downgrade | ||
Liquidity impact of downgrade triggers on OTC and OTC-cleared derivatives | ||
Amount of additional collateral to be posted upon downgrade | 1,243 | 1,467 |
Amount required to settle contracts with termination triggers upon downgrade | $ 2,449 | $ 1,398 |
Derivative Instruments - Impa_2
Derivative Instruments - Impact on Statements of Income, Fair Value Hedges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Gains/(losses) recorded in income | |||
Derivatives | $ 1,248 | $ 3,281 | $ 736 |
Hedged items | 142 | (1,897) | 412 |
Income statement impact | 1,390 | 1,384 | 1,148 |
Income statement impact of excluded components | |||
Amortization approach | (457) | (866) | (566) |
Changes in fair value | 1,404 | 1,373 | 1,125 |
OCI impact | |||
Derivatives - Gains/(losses) recorded in OCI | 25 | 39 | (140) |
Interest rate | |||
Gains/(losses) recorded in income | |||
Derivatives | 2,962 | 3,204 | (1,145) |
Hedged items | (1,889) | (2,373) | 1,782 |
Income statement impact | 1,073 | 831 | 637 |
Income statement impact of excluded components | |||
Amortization approach | 0 | 0 | 0 |
Changes in fair value | 1,093 | 828 | 623 |
OCI impact | |||
Derivatives - Gains/(losses) recorded in OCI | 0 | 0 | 0 |
Foreign exchange | |||
Gains/(losses) recorded in income | |||
Derivatives | 793 | 154 | 1,092 |
Hedged items | (619) | 328 | (616) |
Income statement impact | 174 | 482 | 476 |
Income statement impact of excluded components | |||
Amortization approach | (457) | (866) | (566) |
Changes in fair value | 174 | 482 | 476 |
OCI impact | |||
Derivatives - Gains/(losses) recorded in OCI | 25 | 39 | (140) |
Commodity | |||
Gains/(losses) recorded in income | |||
Derivatives | (2,507) | (77) | 789 |
Hedged items | 2,650 | 148 | (754) |
Income statement impact | 143 | 71 | 35 |
Income statement impact of excluded components | |||
Amortization approach | 0 | 0 | 0 |
Changes in fair value | 137 | 63 | 26 |
OCI impact | |||
Derivatives - Gains/(losses) recorded in OCI | $ 0 | $ 0 | $ 0 |
Derivative Instruments - Cumula
Derivative Instruments - Cumulative Fair Value Hedging Adjustments (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Commodity | ||
Assets | ||
Carrying amount of the hedged items | $ 11,500 | $ 6,500 |
Long-term debt | ||
Liabilities | ||
Carrying amount of the hedged items | 177,611 | 157,545 |
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items: | ||
Active hedging relationships | 3,194 | 6,719 |
Discontinued hedging relationships | 11,473 | 161 |
Total | 14,667 | 6,880 |
Long-term debt | Not designated as hedges | ||
Liabilities | ||
Carrying amount of the hedged items | 6,600 | 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 | 139,684 | 125,860 |
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items: | ||
Active hedging relationships | 3,572 | 2,110 |
Discontinued hedging relationships | 847 | 278 |
Total | 4,419 | 2,388 |
Investment securities - AFS | Not designated as hedges | ||
Assets | ||
Carrying amount of the hedged items | $ 14,500 | $ 14,900 |
Derivative Instruments - Impa_3
Derivative Instruments - Impact on Statements of Income, Cash Flow Hedges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives gains/(losses) recorded in income and other comprehensive income/(loss) | |||
Recognition of net gains related to cash flow hedges in Income | $ 818 | ||
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 | $ 570 | $ (103) | $ 18 |
Amounts recorded in OCI | 3,623 | 122 | (245) |
Total change in OCI for period | 3,053 | 225 | (263) |
Cash Flow Hedging | Interest rate | |||
Derivatives gains/(losses) recorded in income and other comprehensive income/(loss) | |||
Amounts reclassified from AOCI to income | 570 | (28) | 44 |
Amounts recorded in OCI | 3,582 | (3) | (44) |
Total change in OCI for period | 3,012 | 25 | (88) |
Cash Flow Hedging | Foreign exchange | |||
Derivatives gains/(losses) recorded in income and other comprehensive income/(loss) | |||
Amounts reclassified from AOCI to income | 0 | (75) | (26) |
Amounts recorded in OCI | 41 | 125 | (201) |
Total change in OCI for period | $ 41 | $ 200 | $ (175) |
Derivative Instruments - Impa_4
Derivative Instruments - Impact on Statements of Income, Net Investment Hedges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Unrealized gains/(losses) on investment securities | |||
Gains/(losses) recorded in income and other comprehensive income/(loss) | |||
Net pre-tax gain (loss) reclassified related to liquidation of legal entity | $ 18 | ||
Unrealized gains/(losses) on investment securities | Other Income | |||
Gains/(losses) recorded in income and other comprehensive income/(loss) | |||
Net pre-tax gain (loss) reclassified related to liquidation of legal entity | $ 3 | 18 | |
Unrealized gains/(losses) on investment securities | Other Expense | |||
Gains/(losses) recorded in income and other comprehensive income/(loss) | |||
Net pre-tax gain (loss) reclassified related to liquidation of legal entity | $ (17) | ||
Net Investment Hedging | Foreign exchange contracts | |||
Gains/(losses) recorded in income and other comprehensive income/(loss) | |||
Amounts recorded in income | (122) | 72 | 11 |
Amounts recorded in OCI | $ (1,408) | $ 64 | $ 1,219 |
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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Gain (Loss) on Derivative Instruments, Net, Pretax [Abstract] | |||
Derivatives gains/(losses) recorded in income | $ 2,861 | $ 1,456 | $ 175 |
Interest rate | |||
Gain (Loss) on Derivative Instruments, Net, Pretax [Abstract] | |||
Derivatives gains/(losses) recorded in income | 2,994 | 1,491 | 79 |
Credit | |||
Gain (Loss) on Derivative Instruments, Net, Pretax [Abstract] | |||
Derivatives gains/(losses) recorded in income | (176) | (30) | (21) |
Foreign exchange | |||
Gain (Loss) on Derivative Instruments, Net, Pretax [Abstract] | |||
Derivatives gains/(losses) recorded in income | $ 43 | $ (5) | $ 117 |
Derivative Instruments - Credit
Derivative Instruments - Credit Derivatives (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Credit Derivatives - supplemental information | ||
Tranche credit default swap realized credit loss protection | $ 1,000,000 | |
Tranche credit default swap portfolio of exposure | 10,000,000 | |
Total credit derivatives and credit-related notes | ||
Protection sold | (575,178,000,000) | $ (612,733,000,000) |
Protection purchased with identical underlyings | 611,909,000,000 | 618,433,000,000 |
Net protection (sold)/purchased | 36,731,000,000 | 5,700,000,000 |
Other protection purchased | 23,664,000,000 | 20,906,000,000 |
Total credit derivatives | ||
Total credit derivatives and credit-related notes | ||
Protection sold | (575,178,000,000) | (612,733,000,000) |
Protection purchased with identical underlyings | 611,909,000,000 | 618,433,000,000 |
Net protection (sold)/purchased | 36,731,000,000 | 5,700,000,000 |
Other protection purchased | 13,416,000,000 | 11,300,000,000 |
Credit default swaps | ||
Total credit derivatives and credit-related notes | ||
Protection sold | (535,094,000,000) | (562,338,000,000) |
Protection purchased with identical underlyings | 554,565,000,000 | 571,892,000,000 |
Net protection (sold)/purchased | 19,471,000,000 | 9,554,000,000 |
Other protection purchased | 4,001,000,000 | 3,936,000,000 |
Other credit derivatives | ||
Total credit derivatives and credit-related notes | ||
Protection sold | (40,084,000,000) | (50,395,000,000) |
Protection purchased with identical underlyings | 57,344,000,000 | 46,541,000,000 |
Net protection (sold)/purchased | 17,260,000,000 | (3,854,000,000) |
Other protection purchased | 9,415,000,000 | 7,364,000,000 |
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 | $ 10,248,000,000 | $ 9,606,000,000 |
Derivative Instruments - Cred_2
Derivative Instruments - Credit Derivatives, Protection Sold, Notional and Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Protection sold credit derivatives and credit related notes ratings/maturity profile | ||
Less than 1 year | $ (125,714) | $ (161,587) |
From 1-5 years | (404,985) | (399,176) |
More than 5 years | (44,479) | (51,970) |
Total notional amount | (575,178) | (612,733) |
Fair value of receivables | 9,474 | 10,455 |
Fair value of payables | (3,377) | (3,718) |
Net fair value | 6,097 | 6,737 |
Investment-grade | ||
Protection sold credit derivatives and credit related notes ratings/maturity profile | ||
Less than 1 year | (93,905) | (119,788) |
From 1-5 years | (307,648) | (311,407) |
More than 5 years | (35,326) | (42,129) |
Total notional amount | (436,879) | (473,324) |
Fair value of receivables | 5,521 | 6,168 |
Fair value of payables | (835) | (901) |
Net fair value | 4,686 | 5,267 |
Noninvestment-grade | ||
Protection sold credit derivatives and credit related notes ratings/maturity profile | ||
Less than 1 year | (31,809) | (41,799) |
From 1-5 years | (97,337) | (87,769) |
More than 5 years | (9,153) | (9,841) |
Total notional amount | (138,299) | (139,409) |
Fair value of receivables | 3,953 | 4,287 |
Fair value of payables | (2,542) | (2,817) |
Net fair value | $ 1,411 | $ 1,470 |
Noninterest Revenue and Nonin_3
Noninterest Revenue and Noninterest Expense - Investment Banking Fees (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Non interest Revenue [Line Items] | |||
Underwriting | $ 7,121 | $ 5,161 | $ 5,031 |
Advisory | 2,365 | 2,340 | 2,519 |
Total investment banking fees | 9,486 | 7,501 | 7,550 |
Equity | |||
Schedule of Non interest Revenue [Line Items] | |||
Underwriting | 2,759 | 1,648 | 1,684 |
Debt | |||
Schedule of Non interest Revenue [Line Items] | |||
Underwriting | $ 4,362 | $ 3,513 | $ 3,347 |
Noninterest Revenue and Nonin_4
Noninterest Revenue and Noninterest Expense - Principal Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Non interest Revenue [Line Items] | |||
Total trading revenue | $ 17,840 | $ 14,268 | $ 12,408 |
Private equity gains/ (losses) | 181 | (250) | (349) |
Principal transactions | 18,021 | 14,018 | 12,059 |
Interest rate | |||
Schedule of Non interest Revenue [Line Items] | |||
Total trading revenue | 2,575 | 2,739 | 1,844 |
Credit | |||
Schedule of Non interest Revenue [Line Items] | |||
Total trading revenue | 2,753 | 1,628 | 1,625 |
Foreign exchange | |||
Schedule of Non interest Revenue [Line Items] | |||
Total trading revenue | 4,253 | 3,179 | 3,222 |
Equity | |||
Schedule of Non interest Revenue [Line Items] | |||
Total trading revenue | 6,171 | 5,589 | 4,822 |
Commodity | |||
Schedule of Non interest Revenue [Line Items] | |||
Total trading revenue | $ 2,088 | $ 1,133 | $ 895 |
Noninterest Revenue and Nonin_5
Noninterest Revenue and Noninterest Expense - Lending and Deposit-Related Fees (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Noninterest Income (Expense) [Abstract] | ||||
Lending-related fees | $ 1,271 | $ 1,184 | $ 1,117 | |
Deposit-related fees | 5,240 | 5,442 | 5,260 | |
Total lending- and deposit-related fees | [1] | $ 6,511 | $ 6,626 | $ 6,377 |
[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 | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Asset management fees | ||||
Investment management fees | $ 11,694 | $ 10,865 | $ 10,768 | |
All other asset management fees | 338 | 315 | 270 | |
Total asset management fees | 12,032 | 11,180 | 11,038 | |
Total administration fees | 2,249 | 2,197 | 2,179 | |
Commissions and other fees | ||||
Brokerage commissions | 2,959 | 2,439 | 2,505 | |
All other commissions and fees | 937 | 1,092 | 1,071 | |
Total commissions and fees | 3,896 | 3,531 | 3,576 | |
Total asset management, administration and commissions | [1] | $ 18,177 | $ 16,908 | $ 16,793 |
[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 | 12 Months Ended | |||
Jun. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Schedule of Non interest Revenue [Line Items] | |||||
Credit cost amortization period | 12 months | ||||
Direct loan origination costs amortization period | 12 months | ||||
Total card income | [1] | $ 4,435 | $ 5,076 | $ 4,743 | |
Interchange and merchant processing income | |||||
Schedule of Non interest Revenue [Line Items] | |||||
Total card income | 18,563 | 20,370 | 18,808 | ||
Reward costs and partner payments(a) | |||||
Schedule of Non interest Revenue [Line Items] | |||||
Total card income | (13,637) | (14,540) | (13,320) | ||
Adjustment to credit card rewards liability | $ 330 | ||||
Other card income | |||||
Schedule of Non interest Revenue [Line Items] | |||||
Total card income | $ (491) | $ (754) | $ (745) | ||
Deferred revenues, recognition period | 12 months | ||||
Minimum | |||||
Schedule of Non interest Revenue [Line Items] | |||||
Credit card revenue sharing agreement terms | 5 years | ||||
Maximum | |||||
Schedule of Non interest Revenue [Line Items] | |||||
Credit card revenue sharing agreement terms | 10 years | ||||
[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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Noninterest Income (Expense) [Abstract] | |||
Legal expense/(benefit) | $ 1,115 | $ 239 | $ 72 |
FDIC-related expense | $ 717 | $ 457 | $ 1,239 |
Interest Income and Interest _3
Interest Income and Interest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest income | |||
Loans | $ 43,758 | $ 51,855 | $ 49,032 |
Taxable securities | 7,843 | 7,962 | 5,653 |
Non-taxable securities | 1,184 | 1,329 | 1,595 |
Total investment securities | 9,027 | 9,291 | 7,248 |
Trading assets - debt instruments | 7,832 | 9,141 | 7,146 |
Federal funds sold and securities purchased under resale agreements | 2,436 | 6,146 | 3,819 |
Securities borrowed | (302) | 1,574 | 913 |
Deposits with banks | 749 | 3,887 | 5,907 |
All other interest-earning assets | 1,023 | 2,146 | 2,035 |
Total interest income | 64,523 | 84,040 | 76,100 |
Interest expense | |||
Interest bearing deposits | 2,357 | 8,957 | 5,973 |
Federal funds purchased and securities loaned or sold under repurchase agreements | 1,058 | 4,630 | 3,066 |
Short-term borrowings | 372 | 1,248 | 1,144 |
Trading liabilities – debt and all other interest-bearing liabilities | 195 | 2,585 | 2,387 |
Long-term debt | 5,764 | 8,807 | 7,978 |
Beneficial interest issued by consolidated VIEs | 214 | 568 | 493 |
Total interest expense | 9,960 | 26,795 | 21,041 |
Net interest income | 54,563 | 57,245 | 55,059 |
Provision for credit losses | 17,480 | 5,585 | 4,871 |
Net interest income after provision for credit losses | $ 37,083 | $ 51,660 | $ 50,188 |
Pension and Other Postretirem_3
Pension and Other Postretirement Employee Benefit Plans - Defined Benefit Pension Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in projected and accumulated benefit obligations | |||
Benefit obligation, beginning of year | $ (17,705,000,000) | ||
Benefit obligation, end of year | (19,137,000,000) | $ (17,705,000,000) | |
Change in plan assets | |||
Fair value of plan assets, beginning of year | 23,366,000,000 | ||
Fair value of plan assets, end of year | 25,417,000,000 | 23,366,000,000 | |
Net funded status | 6,280,000,000 | 5,661,000,000 | |
Amounts recorded in accumulated other comprehensive income/(loss) | |||
Accumulated other comprehensive income/(loss) | (1,586,000,000) | (1,816,000,000) | |
Defined benefit pension plans | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit pension plan, estimated future employer contributions in next fiscal year | 0 | ||
Change in projected and accumulated benefit obligations | |||
Benefit obligation, beginning of year | (13,277,000,000) | (12,173,000,000) | |
Benefits earned during the year | (2,000,000) | (327,000,000) | $ (323,000,000) |
Interest cost on benefit obligations | (422,000,000) | (518,000,000) | (478,000,000) |
Plan amendments | 0 | (5,000,000) | |
Net gain/(loss) | (1,086,000,000) | (944,000,000) | |
Benefits paid | 640,000,000 | 690,000,000 | |
Benefit obligation, end of year | (14,147,000,000) | (13,277,000,000) | (12,173,000,000) |
Change in plan assets | |||
Fair value of plan assets, beginning of year | 16,329,000,000 | 14,521,000,000 | |
Actual return on plan assets | 1,901,000,000 | 2,465,000,000 | |
Firm contributions | 29,000,000 | 33,000,000 | |
Benefits paid | (640,000,000) | (690,000,000) | |
Fair value of plan assets, end of year | 17,619,000,000 | 16,329,000,000 | $ 14,521,000,000 |
Net funded status | 3,472,000,000 | 3,052,000,000 | |
Amounts recorded in accumulated other comprehensive income/(loss) | |||
Net gain/(loss) | (1,558,000,000) | (1,745,000,000) | |
Prior service credit/(cost) | (4,000,000) | (5,000,000) | |
Accumulated other comprehensive income/(loss) | $ (1,562,000,000) | $ (1,750,000,000) | |
Weighted-average actuarial assumptions used to value benefit obligations | |||
Discount rate | 2.50% | 3.30% | |
Interest crediting rate | 4.65% | 4.65% | |
Defined benefit pension plans | Non-U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit pension plan, estimated future employer contributions in next fiscal year | $ 50,000,000 | ||
Defined benefit plan, contractually required future employer contributions in next fiscal year | 35,000,000 | ||
OPEB plans | |||
Change in projected and accumulated benefit obligations | |||
Benefit obligation, beginning of year | (4,428,000,000) | ||
Benefit obligation, end of year | (4,990,000,000) | $ (4,428,000,000) | |
Change in plan assets | |||
Fair value of plan assets, beginning of year | 7,037,000,000 | ||
Fair value of plan assets, end of year | 7,798,000,000 | 7,037,000,000 | |
Net funded status | 2,808,000,000 | 2,609,000,000 | |
Amounts recorded in accumulated other comprehensive income/(loss) | |||
Accumulated other comprehensive income/(loss) | $ (24,000,000) | $ (66,000,000) |
Pension and Other Postretirem_4
Pension and Other Postretirement Employee Benefit Plans - Gains and Losses (Details) - Defined benefit pension plans | 12 Months Ended |
Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |
Percent above which amortization of net gains and losses is included in annual net periodic benefit cost | 10.00% |
U.S. | |
Defined Benefit Plan Disclosure [Line Items] | |
Average expected lifetime of plan participants | 37 years |
Pension and Other Postretirem_5
Pension and Other Postretirement Employee Benefit Plans - Net Periodic Benefit Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Amortization: | |||
Other defined benefit pension and OPEB plans | $ (81) | $ (72) | $ (72) |
Total net periodic defined benefit plan cost/(credit) | (285) | 144 | (27) |
Total defined contribution plans | 1,332 | 952 | 872 |
Total pension and OPEB cost included in noninterest expense | 1,047 | 1,096 | 845 |
Changes recognized in other comprehensive income | |||
Total recognized in other comprehensive income | (214) | (1,157) | 450 |
Total recognized in net periodic defined benefit plan cost/(credit) and other comprehensive income | (499) | (1,013) | 423 |
Pension plans | U.S. | |||
Components of net periodic benefit cost, U.S. defined benefit pension plans | |||
Benefits earned during the year | 2 | 327 | 323 |
Interest cost on benefit obligations | 422 | 518 | 478 |
Expected return on plan assets | (634) | (776) | (836) |
Amortization: | |||
Net (gain)/loss | 6 | 147 | 80 |
Prior service (credit)/cost | 0 | 0 | (21) |
Curtailment (gain)/loss | 0 | 0 | 21 |
Net periodic defined benefit plan cost/(credit), U.S. defined benefit pension plans | (204) | 216 | 45 |
Changes recognized in other comprehensive income | |||
Prior service (credit)/cost arising during the year | 0 | 5 | 0 |
Net (gain)/loss arising during the year | (181) | (745) | 453 |
Amortization of net (loss)/gain | (6) | (147) | (80) |
Amortization of prior service (cost)/credit | 0 | 0 | 21 |
Curtailment (loss)/gain | 0 | 0 | (21) |
Total recognized in other comprehensive income | $ (187) | $ (887) | $ 373 |
Weighted-average assumptions used to determine net periodic benefit costs | |||
Discount rate | 3.30% | 4.30% | |
Expected long-term rate of return on plan assets | 4.00% | 5.50% | 5.50% |
Rate of compensation increase | 2.30% | 2.30% | |
Interest crediting rate | 4.65% | 4.90% | 4.90% |
Pension plans | Minimum | U.S. | |||
Weighted-average assumptions used to determine net periodic benefit costs | |||
Discount rate | 3.70% | ||
Pension plans | Maximum | U.S. | |||
Weighted-average assumptions used to determine net periodic benefit costs | |||
Discount rate | 4.50% | ||
OPEB plans | |||
Changes recognized in other comprehensive income | |||
Total recognized in other comprehensive income | $ (27) | $ (270) | $ 77 |
Pension and Other Postretirem_6
Pension and Other Postretirement Employee Benefit Plans - Plan Assumptions (Details) - U.S. - Defined benefit pension plans $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Projected decrease in expense due to decreased discount rates | $ 64 |
Expected long-term rate of return on plan assets, next fiscal year | 3.00% |
Pension and Other Postretirem_7
Pension and Other Postretirement Employee Benefit Plans - Twenty-Five Basis Point Decrease Effects (Details) - Defined benefit pension plans - U.S. $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected long-term rate of return on plan assets, next fiscal year | 3.00% |
Discount rate, next fiscal year | 2.50% |
Pension expense | |
Expected long-term rate of return | $ 43 |
Discount rate | (20) |
Benefit obligation | |
Discount rate | $ 404 |
Pension and Other Postretirem_8
Pension and Other Postretirement Employee Benefit Plans - Investment Strategy and Weighted Average Asset Allocation (Details) - USD ($) $ in Billions | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | ||
Investments sponsored or managed by affiliates | $ 2.7 | $ 3.1 |
Defined benefit pension plans | U.S. | ||
Asset class | ||
Asset Allocation | 100.00% | |
% of plan assets | 100.00% | 100.00% |
Defined benefit pension plans | Debt securities | U.S. | ||
Asset class | ||
% of plan assets | 77.00% | 74.00% |
Defined benefit pension plans | Debt securities | Minimum | U.S. | ||
Asset class | ||
Asset Allocation | 42.00% | |
Defined benefit pension plans | Debt securities | Maximum | U.S. | ||
Asset class | ||
Asset Allocation | 100.00% | |
Defined benefit pension plans | Equity securities | U.S. | ||
Asset class | ||
% of plan assets | 15.00% | 16.00% |
Defined benefit pension plans | Equity securities | Minimum | U.S. | ||
Asset class | ||
Asset Allocation | 0.00% | |
Defined benefit pension plans | Equity securities | Maximum | U.S. | ||
Asset class | ||
Asset Allocation | 40.00% | |
Defined benefit pension plans | Real estate | U.S. | ||
Asset class | ||
% of plan assets | 1.00% | 1.00% |
Defined benefit pension plans | Real estate | Minimum | U.S. | ||
Asset class | ||
Asset Allocation | 0.00% | |
Defined benefit pension plans | Real estate | Maximum | U.S. | ||
Asset class | ||
Asset Allocation | 4.00% | |
Defined benefit pension plans | Alternatives | U.S. | ||
Asset class | ||
% of plan assets | 7.00% | 9.00% |
Defined benefit pension plans | Alternatives | Minimum | U.S. | ||
Asset class | ||
Asset Allocation | 0.00% | |
Defined benefit pension plans | Alternatives | Maximum | U.S. | ||
Asset class | ||
Asset Allocation | 15.00% | |
OPEB plans | Debt securities | U.S. | ||
Asset class | ||
% of plan assets | 59.00% | 60.00% |
OPEB plans | Equity securities | U.S. | ||
Asset class | ||
% of plan assets | 41.00% | 40.00% |
Pension and Other Postretirem_9
Pension and Other Postretirement Employee Benefit Plans - Plan Assets and Liabilities Measured At Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | $ 25,417 | $ 23,366 | |
Total fair value | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 22,367 | 19,343 | |
Level 1 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 7,031 | 6,739 | |
Level 2 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 12,384 | 9,915 | |
Level 3 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 2,952 | 2,689 | $ 2,400 |
Defined benefit pension plans | U.S. | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 17,619 | 16,329 | $ 14,521 |
Pension and OPEB plan assets and liabilities - supplemental information | |||
Excluded amount of payables for investments sold and purchased | 606 | 343 | |
Defined benefit pension plans | U.S. | Total fair value | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 15,061 | 12,771 | |
Defined benefit pension plans | U.S. | Level 1 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 4,997 | 4,905 | |
Defined benefit pension plans | U.S. | Level 2 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 9,819 | 7,608 | |
Defined benefit pension plans | U.S. | Level 3 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 245 | 258 | |
Defined benefit pension plans | U.S. | Certain investments measured at fair value using net asset value per share as practical expedient | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 3,200 | 3,900 | |
Defined benefit pension plans | U.S. | Equity securities | Total fair value | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 2,355 | 2,264 | |
Defined benefit pension plans | U.S. | Equity securities | Level 1 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 2,353 | 2,259 | |
Defined benefit pension plans | U.S. | Equity securities | Level 2 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 0 | 3 | |
Defined benefit pension plans | U.S. | Equity securities | Level 3 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 2 | 2 | |
Defined benefit pension plans | U.S. | Corporate debt securities | Total fair value | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 7,425 | 6,476 | |
Defined benefit pension plans | U.S. | Corporate debt securities | Level 1 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 0 | 0 | |
Defined benefit pension plans | U.S. | Corporate debt securities | Level 2 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 7,414 | 6,474 | |
Defined benefit pension plans | U.S. | Corporate debt securities | Level 3 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 11 | 2 | |
Defined benefit pension plans | U.S. | U.S. federal, state, local and non-U.S. government debt securities | Total fair value | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 1,755 | 2,017 | |
Defined benefit pension plans | U.S. | U.S. federal, state, local and non-U.S. government debt securities | Level 1 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 1,395 | 1,616 | |
Defined benefit pension plans | U.S. | U.S. federal, state, local and non-U.S. government debt securities | Level 2 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 360 | 401 | |
Defined benefit pension plans | U.S. | U.S. federal, state, local and non-U.S. government debt securities | Level 3 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 0 | 0 | |
Defined benefit pension plans | U.S. | Mortgage-backed securities | Total fair value | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 1,676 | 997 | |
Defined benefit pension plans | U.S. | Mortgage-backed securities | Level 1 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 461 | 312 | |
Defined benefit pension plans | U.S. | Mortgage-backed securities | Level 2 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 1,184 | 681 | |
Defined benefit pension plans | U.S. | Mortgage-backed securities | Level 3 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 31 | 4 | |
Defined benefit pension plans | U.S. | Other | Total fair value | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 1,850 | 1,017 | |
Defined benefit pension plans | U.S. | Other | Level 1 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 788 | 718 | |
Defined benefit pension plans | U.S. | Other | Level 2 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 861 | 49 | |
Defined benefit pension plans | U.S. | Other | Level 3 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 201 | 250 | |
Defined benefit pension plans | U.S. | Participating Annuity Contracts | Level 3 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 199 | 250 | |
OPEB plans | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 7,798 | 7,037 | |
OPEB plans | Total fair value | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 7,306 | 6,572 | |
OPEB plans | Level 1 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 2,034 | 1,834 | |
OPEB plans | Level 2 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 2,565 | 2,307 | |
OPEB plans | Level 3 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 2,707 | 2,431 | |
OPEB plans | Certain investments measured at fair value using net asset value per share as practical expedient | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | 487 | 465 | |
OPEB plans | COLI Policies | Level 3 | |||
Pension and OPEB plan assets and liabilities measured at fair value | |||
Total assets measured at fair value | $ 2,700 | $ 2,400 |
Pension and Other Postretire_10
Pension and Other Postretirement Employee Benefit Plans - Changes In Level 3 Fair Value Measurements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Increase in investments classified in level 3 of the valuation hierarchy | $ 263 | $ 307 | |
Investments classified in level 3 of the valuation hierarchy | 25,417 | 23,366 | |
Unrealized gains | 343 | 401 | |
Offset for settlements | 113 | 85 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investments classified in level 3 of the valuation hierarchy | 2,952 | $ 2,689 | $ 2,400 |
Transfers related to principal-only mortgage backed securities | $ 33 |
Pension and Other Postretire_11
Pension and Other Postretirement Employee Benefit Plans - Estimated Future Benefit Payments (Details) - Defined benefit pension plans - U.S. $ in Millions | Dec. 31, 2020USD ($) |
U.S. defined benefit pension plans | |
2021 | $ 912 |
2022 | 918 |
2023 | 897 |
2024 | 847 |
2025 | 829 |
Years 2026–2030 | $ 3,843 |
Employee Share-Based Incentiv_3
Employee Share-Based Incentives - Employee Share-Based Awards (Details) shares in Millions | 12 Months Ended |
Dec. 31, 2020shares | |
Long-Term Incentive Plan | |
Employee stock-based awards general disclosures | |
Shares of common stock available for issuance (in shares) | 67 |
PSUs | |
Employee stock-based awards general disclosures | |
Award vesting period | 3 years |
Holding period | 2 years |
PSUs | Minimum | |
Employee stock-based awards general disclosures | |
Award vesting percentage | 0.00% |
Combined vesting and holding period | 5 years |
PSUs | Maximum | |
Employee stock-based awards general disclosures | |
Award vesting percentage | 150.00% |
Combined vesting and holding period | 8 years |
Stock Appreciation Rights (SARs) | |
Employee stock-based awards general disclosures | |
Award expiration period | 10 years |
1st 50% | RSUs | |
Employee stock-based awards general disclosures | |
Award vesting percentage | 50.00% |
Award vesting period | 2 years |
2nd 50% | RSUs | |
Employee stock-based awards general disclosures | |
Award vesting percentage | 50.00% |
Award vesting period | 3 years |
Employee Share-Based Incentiv_4
Employee Share-Based Incentives - RSUs, PSUs, SARS and Stock Options Activities (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
RSUs/PSUs | |||
RSUs/PSUs Number of Units: | |||
Outstanding, January 1 (in shares) | 52,239 | ||
Granted (in shares) | 17,891 | ||
Exercised or vested (in shares) | (21,502) | ||
Forfeited (in shares) | (1,118) | ||
Outstanding, December 31 (in shares) | 47,510 | 52,239 | |
RSUs/PSUs Weighted-Average Grant Date Fair Value: | |||
Outstanding, January 1 (in dollars per share) | $ 99.62 | ||
Granted (in dollars per share) | 132.17 | ||
Exercised or vested (in dollars per share) | 96.64 | ||
Forfeited (in dollars per share) | 111.59 | ||
Outstanding, December 31 (in dollars per share) | $ 112.85 | $ 99.62 | |
SARs/Options | |||
Options/SARs Number of Awards: | |||
Outstanding, January 1 (in shares) | 5,527 | ||
Granted (in shares) | 1 | ||
Exercised or vested (in shares) | (2,389) | ||
Forfeited (in shares) | (4) | ||
Canceled (in shares) | (11) | ||
Outstanding, December 31 (in shares) | 3,124 | 5,527 | |
Exercisable, December 31 (in shares) | 3,124 | ||
Options/SARs Weighted-Average Exercise Price: | |||
Outstanding, January 1 (in dollars per share) | $ 41.36 | ||
Granted (in dollars per share) | 137.80 | ||
Exercised or vested (in dollars per share) | 41.40 | ||
Forfeited (in dollars per share) | 122.59 | ||
Canceled (in dollars per share) | 39.33 | ||
Outstanding, December 31 (in dollars per share) | 41.25 | $ 41.36 | |
Exercisable, December 31 (in dollars per share) | $ 41.25 | ||
Weighted-average remaining contractual life, Outstanding | 1 year 4 months 24 days | ||
Weighted-average remaining contractual life, Exercisable | 1 year 4 months 24 days | ||
Aggregate intrinsic value, Outstanding | $ 265,059 | ||
Aggregate intrinsic value, Exercisable | 265,059 | ||
RSUs | |||
Options/SARs Weighted-Average Exercise Price: | |||
Total fair value of RSUs that vested | 2,800,000 | $ 2,900,000 | $ 3,600,000 |
Stock options | |||
Options/SARs Weighted-Average Exercise Price: | |||
Total intrinsic value of options exercised | $ 182,000 | $ 503,000 | $ 370,000 |
Employee Share-Based Incentiv_5
Employee Share-Based Incentives - Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Noncash compensation expense related to employee stock-based incentive plans | |||
Cost of prior grants of RSUs, PSUs, SARs and stock options that are amortized over their applicable vesting periods | $ 1,101 | $ 1,141 | $ 1,241 |
Accrual of estimated costs of share-based awards to be granted in future periods including those to full-career eligible employees | 1,350 | 1,115 | 1,081 |
Total noncash compensation expense related to employee share-based incentive plans | 2,451 | $ 2,256 | $ 2,322 |
Compensation cost related to unvested awards not charged to net income | $ 664 | ||
Weighted-average period for cost expected to be amortized into compensation expense | 1 year 7 months 6 days |
Employee Share-Based Incentiv_6
Employee Share-Based Incentives - Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Tax benefit from compensation expense | $ 837 | $ 895 | $ 1,100 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Jan. 01, 2020 | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amount of collateralized loan obligations transferred from AFS to HTM for capital management purposes | $ 164,200 | |
HTM securities, allowance for credit losses | $ 78 | |
Approximate percentage rated at least AA+ | 98.00% | |
Provision for credit losses | $ 68 | |
Cumulative effect of change in accounting principles | ||
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 | $ 5,000 |
Investment Securities - Amortiz
Investment Securities - Amortized Costs, Fair Value (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Available-for-sale securities | |||
Amortized cost | $ 381,729,000,000 | $ 345,306,000,000 | |
Gross unrealized gains | 6,705,000,000 | 5,771,000,000 | |
Gross unrealized losses | 256,000,000 | 378,000,000 | |
Fair value | 388,178,000,000 | 350,699,000,000 | |
Held-to-maturity securities | |||
Amortized cost | 201,821,000,000 | 47,540,000,000 | |
Gross unrealized gains | 3,712,000,000 | 1,464,000,000 | |
Gross unrealized losses | 61,000,000 | 63,000,000 | |
Fair value | 205,472,000,000 | 48,941,000,000 | |
Total investment securities, net of allowance for credit losses | |||
Amortized cost | 583,550,000,000 | 392,846,000,000 | |
Gross unrealized gains | 10,417,000,000 | 7,235,000,000 | |
Gross unrealized losses | 317,000,000 | 441,000,000 | |
Fair value | 593,650,000,000 | 399,640,000,000 | |
Allowance for credit losses on AFS securities | 0 | ||
HTM securities purchased | 12,400,000,000 | 13,400,000,000 | $ 9,400,000,000 |
Held-to-maturity securities, allowance for credit losses | 78,000,000 | ||
Accrued interest receivables on HTM securities | 2,100,000,000 | 1,900,000,000 | |
Accrued interest receivables reversed through interest income | 0 | 0 | |
Total mortgage-backed securities | |||
Available-for-sale securities | |||
Amortized cost | 123,795,000,000 | 125,648,000,000 | |
Gross unrealized gains | 2,687,000,000 | 2,756,000,000 | |
Gross unrealized losses | 92,000,000 | 109,000,000 | |
Fair value | 126,390,000,000 | 128,295,000,000 | |
Held-to-maturity securities | |||
Amortized cost | 114,836,000,000 | 36,523,000,000 | |
Gross unrealized gains | 3,053,000,000 | 1,165,000,000 | |
Gross unrealized losses | 59,000,000 | 62,000,000 | |
Fair value | 117,830,000,000 | 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 | 95,700,000,000 | ||
Securities exceeding 10% of total stockholders' equity, Fair value | 98,800,000,000 | ||
Total mortgage-backed securities | Freddie Mac | |||
Total investment securities, net of allowance for credit losses | |||
Securities exceeding 10% of total stockholders' equity, Amortized cost | 54,700,000,000 | ||
Securities exceeding 10% of total stockholders' equity, Fair value | 55,800,000,000 | ||
U.S. GSEs and government agencies | |||
Available-for-sale securities | |||
Amortized cost | 110,979,000,000 | 107,811,000,000 | |
Gross unrealized gains | 2,372,000,000 | 2,395,000,000 | |
Gross unrealized losses | 50,000,000 | 89,000,000 | |
Fair value | 113,301,000,000 | 110,117,000,000 | |
Held-to-maturity securities | |||
Amortized cost | 107,889,000,000 | 36,523,000,000 | |
Gross unrealized gains | 2,968,000,000 | 1,165,000,000 | |
Gross unrealized losses | 29,000,000 | 62,000,000 | |
Fair value | 110,828,000,000 | 37,626,000,000 | |
Residential: U.S. | |||
Available-for-sale securities | |||
Amortized cost | 6,246,000,000 | 10,223,000,000 | |
Gross unrealized gains | 224,000,000 | 233,000,000 | |
Gross unrealized losses | 3,000,000 | 6,000,000 | |
Fair value | 6,467,000,000 | 10,450,000,000 | |
Held-to-maturity securities | |||
Amortized cost | 4,345,000,000 | 0 | |
Gross unrealized gains | 8,000,000 | 0 | |
Gross unrealized losses | 30,000,000 | 0 | |
Fair value | 4,323,000,000 | 0 | |
Residential: Non-U.S. | |||
Available-for-sale securities | |||
Amortized cost | 3,751,000,000 | 2,477,000,000 | |
Gross unrealized gains | 20,000,000 | 64,000,000 | |
Gross unrealized losses | 5,000,000 | 1,000,000 | |
Fair value | 3,766,000,000 | 2,540,000,000 | |
Commercial | |||
Available-for-sale securities | |||
Amortized cost | 2,819,000,000 | 5,137,000,000 | |
Gross unrealized gains | 71,000,000 | 64,000,000 | |
Gross unrealized losses | 34,000,000 | 13,000,000 | |
Fair value | 2,856,000,000 | 5,188,000,000 | |
Held-to-maturity securities | |||
Amortized cost | 2,602,000,000 | 0 | |
Gross unrealized gains | 77,000,000 | 0 | |
Gross unrealized losses | 0 | 0 | |
Fair value | 2,679,000,000 | 0 | |
U.S. Treasury and government agencies | |||
Available-for-sale securities | |||
Amortized cost | 199,910,000,000 | 139,162,000,000 | |
Gross unrealized gains | 2,141,000,000 | 449,000,000 | |
Gross unrealized losses | 100,000,000 | 175,000,000 | |
Fair value | 201,951,000,000 | 139,436,000,000 | |
Held-to-maturity securities | |||
Amortized cost | 53,184,000,000 | 51,000,000 | |
Gross unrealized gains | 50,000,000 | 0 | |
Gross unrealized losses | 0 | 1,000,000 | |
Fair value | 53,234,000,000 | 50,000,000 | |
Obligations of U.S. states and municipalities | |||
Available-for-sale securities | |||
Amortized cost | 18,993,000,000 | 27,693,000,000 | |
Gross unrealized gains | 1,404,000,000 | 2,118,000,000 | |
Gross unrealized losses | 1,000,000 | 1,000,000 | |
Fair value | 20,396,000,000 | 29,810,000,000 | |
Held-to-maturity securities | |||
Amortized cost | 12,751,000,000 | 4,797,000,000 | |
Gross unrealized gains | 519,000,000 | 299,000,000 | |
Gross unrealized losses | 0 | 0 | |
Fair value | 13,270,000,000 | 5,096,000,000 | |
Certificates of deposit | |||
Available-for-sale securities | |||
Amortized cost | 0 | 77,000,000 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Fair value | 0 | 77,000,000 | |
Non-U.S. government debt securities | |||
Available-for-sale securities | |||
Amortized cost | 22,587,000,000 | 21,427,000,000 | |
Gross unrealized gains | 354,000,000 | 377,000,000 | |
Gross unrealized losses | 13,000,000 | 17,000,000 | |
Fair value | 22,928,000,000 | 21,787,000,000 | |
Corporate debt securities | |||
Available-for-sale securities | |||
Amortized cost | 215,000,000 | 823,000,000 | |
Gross unrealized gains | 4,000,000 | 22,000,000 | |
Gross unrealized losses | 3,000,000 | 0 | |
Fair value | 216,000,000 | 845,000,000 | |
Asset-backed securities: Collateralized loan obligations | |||
Available-for-sale securities | |||
Amortized cost | 10,055,000,000 | 25,038,000,000 | |
Gross unrealized gains | 24,000,000 | 9,000,000 | |
Gross unrealized losses | 31,000,000 | 56,000,000 | |
Fair value | 10,048,000,000 | 24,991,000,000 | |
Held-to-maturity securities | |||
Amortized cost | 21,050,000,000 | 6,169,000,000 | |
Gross unrealized gains | 90,000,000 | 0 | |
Gross unrealized losses | 2,000,000 | 0 | |
Fair value | 21,138,000,000 | 6,169,000,000 | |
Asset-backed securities: Other | |||
Available-for-sale securities | |||
Amortized cost | 6,174,000,000 | 5,438,000,000 | |
Gross unrealized gains | 91,000,000 | 40,000,000 | |
Gross unrealized losses | 16,000,000 | 20,000,000 | |
Fair value | 6,249,000,000 | 5,458,000,000 | |
US GSE obligations | |||
Available-for-sale securities | |||
Fair value | 65,800,000,000 | 78,500,000,000 | |
Held-to-maturity securities | |||
Amortized cost | $ 86,300,000,000 | $ 31,600,000,000 |
Investment Securities - Continu
Investment Securities - Continuous Unrealized Loss Position (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Available-for-sale securities | ||
Less than 12 months, Fair value | $ 12,133 | $ 18,608 |
Less than 12 months, Gross unrealized losses | 57 | 49 |
12 months or more, Fair value | 4,694 | 10,957 |
12 months or more, Gross unrealized losses | 49 | 65 |
Total fair value | 16,827 | 29,565 |
Total gross unrealized losses | 106 | 114 |
Total mortgage-backed securities | ||
Available-for-sale securities | ||
Less than 12 months, Fair value | 3,768 | 2,372 |
Less than 12 months, Gross unrealized losses | 25 | 15 |
12 months or more, Fair value | 391 | 1,042 |
12 months or more, Gross unrealized losses | 17 | 5 |
Total fair value | 4,159 | 3,414 |
Total gross unrealized losses | 42 | 20 |
U.S. GSEs and government agencies | ||
Available-for-sale securities | ||
Total fair value | 150 | 264 |
Residential: U.S. | ||
Available-for-sale securities | ||
Less than 12 months, Fair value | 562 | 1,072 |
Less than 12 months, Gross unrealized losses | 3 | 3 |
12 months or more, Fair value | 32 | 423 |
12 months or more, Gross unrealized losses | 0 | 3 |
Total fair value | 594 | 1,495 |
Total gross unrealized losses | 3 | 6 |
Residential: Non-U.S. | ||
Available-for-sale securities | ||
Less than 12 months, Fair value | 2,507 | 13 |
Less than 12 months, Gross unrealized losses | 4 | 0 |
12 months or more, Fair value | 235 | 420 |
12 months or more, Gross unrealized losses | 1 | 1 |
Total fair value | 2,742 | 433 |
Total gross unrealized losses | 5 | 1 |
Commercial | ||
Available-for-sale securities | ||
Less than 12 months, Fair value | 699 | 1,287 |
Less than 12 months, Gross unrealized losses | 18 | 12 |
12 months or more, Fair value | 124 | 199 |
12 months or more, Gross unrealized losses | 16 | 1 |
Total fair value | 823 | 1,486 |
Total gross unrealized losses | 34 | 13 |
Obligations of U.S. states and municipalities | ||
Available-for-sale securities | ||
Less than 12 months, Fair value | 49 | 186 |
Less than 12 months, Gross unrealized losses | 1 | 1 |
12 months or more, Fair value | 0 | 0 |
12 months or more, Gross unrealized losses | 0 | 0 |
Total fair value | 49 | 186 |
Total gross unrealized losses | 1 | 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 | 2,709 | 3,970 |
Less than 12 months, Gross unrealized losses | 9 | 13 |
12 months or more, Fair value | 968 | 1,406 |
12 months or more, Gross unrealized losses | 4 | 4 |
Total fair value | 3,677 | 5,376 |
Total gross unrealized losses | 13 | 17 |
Corporate debt securities | ||
Available-for-sale securities | ||
Less than 12 months, Fair value | 91 | 0 |
Less than 12 months, Gross unrealized losses | 3 | 0 |
12 months or more, Fair value | 5 | 0 |
12 months or more, Gross unrealized losses | 0 | 0 |
Total fair value | 96 | 0 |
Total gross unrealized losses | 3 | 0 |
Asset-backed securities: Collateralized loan obligations | ||
Available-for-sale securities | ||
Less than 12 months, Fair value | 5,248 | 10,364 |
Less than 12 months, Gross unrealized losses | 18 | 11 |
12 months or more, Fair value | 2,645 | 7,756 |
12 months or more, Gross unrealized losses | 13 | 45 |
Total fair value | 7,893 | 18,120 |
Total gross unrealized losses | 31 | 56 |
Asset-backed securities: Other | ||
Available-for-sale securities | ||
Less than 12 months, Fair value | 268 | 1,639 |
Less than 12 months, Gross unrealized losses | 1 | 9 |
12 months or more, Fair value | 685 | 753 |
12 months or more, Gross unrealized losses | 15 | 11 |
Total fair value | 953 | 2,392 |
Total gross unrealized losses | $ 16 | $ 20 |
Investment Securities - Realize
Investment Securities - Realized Gain (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Securities gains and losses | |||
Realized gains | $ 3,080 | $ 650 | $ 211 |
Realized losses | (2,278) | (392) | (606) |
Net investment securities gains/(losses) | 802 | $ 258 | $ (395) |
Provision for credit losses | $ 68 |
Investment Securities - Amort_2
Investment Securities - Amortized Cost, Fair Value, by Contract Maturity (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Available-for-sale securities, Amortized Cost: | ||
Due in one year or less | $ 42,502 | |
Due after one year through five years | 121,698 | |
Due after five years through 10 years | 67,347 | |
Due after 10 years | 150,182 | |
Amortized cost | 381,729 | $ 345,306 |
Available-for-sale securities, Fair value | ||
Due in one year or less | 42,562 | |
Due after one year through five years | 122,936 | |
Due after five years through 10 years | 68,718 | |
Due after 10 years | 153,962 | |
Fair value | $ 388,178 | 350,699 |
Available-for-sale securities, Average yield | ||
Due in one year or less | 0.59% | |
Due after one year through five years | 0.65% | |
Due after five years through 10 years | 1.00% | |
Due after 10 years | 2.64% | |
Average yield | 1.49% | |
Held-to-maturity securities, Amortized cost | ||
Due in one year or less | $ 501 | |
Due after one year through five years | 42,700 | |
Due after five years through 10 years | 34,263 | |
Due after 10 years | 124,435 | |
Amortized cost | 201,899 | |
Held-to-maturity securities, Fair value | ||
Due in one year or less | 501 | |
Due after one year through five years | 42,738 | |
Due after five years through 10 years | 35,152 | |
Due after 10 years | 127,081 | |
Fair value | $ 205,472 | 48,941 |
Held-to-maturity securities, Average yield | ||
Due in one year or less | 1.86% | |
Due after one year through five years | 0.60% | |
Due after five years through 10 years | 1.65% | |
Due after 10 years | 2.88% | |
Average yield | 2.19% | |
Supplemental information | ||
US government agencies and US government sponsored enterprises residential mortgage-backed securities estimated duration | 5 years | |
US government agencies and US government sponsored enterprises residential collateralized mortgage obligations estimated duration | 4 years | |
Non-agency residential collateralized mortgage obligations estimated duration | 3 years | |
Minimum | ||
Supplemental information | ||
Due period of mortgage-backed securities and collateralized mortgage obligations | 10 years | |
Mortgage-backed securities | ||
Available-for-sale securities, Amortized Cost: | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 741 | |
Due after five years through 10 years | 7,797 | |
Due after 10 years | 115,257 | |
Amortized cost | 123,795 | 125,648 |
Available-for-sale securities, Fair value | ||
Due in one year or less | 0 | |
Due after one year through five years | 756 | |
Due after five years through 10 years | 8,139 | |
Due after 10 years | 117,495 | |
Fair value | $ 126,390 | 128,295 |
Available-for-sale securities, Average yield | ||
Due in one year or less | 0.00% | |
Due after one year through five years | 1.66% | |
Due after five years through 10 years | 1.67% | |
Due after 10 years | 2.57% | |
Average yield | 2.51% | |
Held-to-maturity securities, Amortized cost | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 158 | |
Due after five years through 10 years | 11,908 | |
Due after 10 years | 102,791 | |
Amortized cost | 114,857 | |
Held-to-maturity securities, Fair value | ||
Due in one year or less | 0 | |
Due after one year through five years | 160 | |
Due after five years through 10 years | 12,707 | |
Due after 10 years | 104,963 | |
Fair value | $ 117,830 | 37,626 |
Held-to-maturity securities, Average yield | ||
Due in one year or less | 0.00% | |
Due after one year through five years | 1.56% | |
Due after five years through 10 years | 2.42% | |
Due after 10 years | 2.94% | |
Average yield | 2.88% | |
U.S. Treasury and government agencies | ||
Available-for-sale securities, Amortized Cost: | ||
Due in one year or less | $ 33,633 | |
Due after one year through five years | 110,033 | |
Due after five years through 10 years | 46,827 | |
Due after 10 years | 9,417 | |
Amortized cost | 199,910 | 139,162 |
Available-for-sale securities, Fair value | ||
Due in one year or less | 33,678 | |
Due after one year through five years | 111,014 | |
Due after five years through 10 years | 47,675 | |
Due after 10 years | 9,584 | |
Fair value | $ 201,951 | 139,436 |
Available-for-sale securities, Average yield | ||
Due in one year or less | 0.42% | |
Due after one year through five years | 0.53% | |
Due after five years through 10 years | 0.79% | |
Due after 10 years | 0.48% | |
Average yield | 0.57% | |
Held-to-maturity securities, Amortized cost | ||
Due in one year or less | $ 501 | |
Due after one year through five years | 42,477 | |
Due after five years through 10 years | 10,206 | |
Due after 10 years | 0 | |
Amortized cost | 53,184 | |
Held-to-maturity securities, Fair value | ||
Due in one year or less | 501 | |
Due after one year through five years | 42,511 | |
Due after five years through 10 years | 10,222 | |
Due after 10 years | 0 | |
Fair value | $ 53,234 | 50 |
Held-to-maturity securities, Average yield | ||
Due in one year or less | 1.86% | |
Due after one year through five years | 0.60% | |
Due after five years through 10 years | 0.94% | |
Due after 10 years | 0.00% | |
Average yield | 0.67% | |
Obligations of U.S. states and municipalities | ||
Available-for-sale securities, Amortized Cost: | ||
Due in one year or less | $ 33 | |
Due after one year through five years | 203 | |
Due after five years through 10 years | 1,047 | |
Due after 10 years | 17,710 | |
Amortized cost | 18,993 | 27,693 |
Available-for-sale securities, Fair value | ||
Due in one year or less | 33 | |
Due after one year through five years | 211 | |
Due after five years through 10 years | 1,111 | |
Due after 10 years | 19,041 | |
Fair value | $ 20,396 | 29,810 |
Available-for-sale securities, Average yield | ||
Due in one year or less | 4.11% | |
Due after one year through five years | 4.59% | |
Due after five years through 10 years | 4.84% | |
Due after 10 years | 4.80% | |
Average yield | 4.80% | |
Held-to-maturity securities, Amortized cost | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 65 | |
Due after five years through 10 years | 532 | |
Due after 10 years | 12,211 | |
Amortized cost | 12,808 | |
Held-to-maturity securities, Fair value | ||
Due in one year or less | 0 | |
Due after one year through five years | 67 | |
Due after five years through 10 years | 565 | |
Due after 10 years | 12,638 | |
Fair value | $ 13,270 | 5,096 |
Held-to-maturity securities, Average yield | ||
Due in one year or less | 0.00% | |
Due after one year through five years | 3.09% | |
Due after five years through 10 years | 3.57% | |
Due after 10 years | 3.62% | |
Average yield | 3.62% | |
Non-U.S. government debt securities | ||
Available-for-sale securities, Amortized Cost: | ||
Due in one year or less | $ 8,282 | |
Due after one year through five years | 8,011 | |
Due after five years through 10 years | 5,615 | |
Due after 10 years | 679 | |
Amortized cost | 22,587 | 21,427 |
Available-for-sale securities, Fair value | ||
Due in one year or less | 8,297 | |
Due after one year through five years | 8,225 | |
Due after five years through 10 years | 5,726 | |
Due after 10 years | 680 | |
Fair value | $ 22,928 | 21,787 |
Available-for-sale securities, Average yield | ||
Due in one year or less | 1.25% | |
Due after one year through five years | 1.70% | |
Due after five years through 10 years | 0.68% | |
Due after 10 years | 0.17% | |
Average yield | 1.24% | |
Corporate debt securities | ||
Available-for-sale securities, Amortized Cost: | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 141 | |
Due after five years through 10 years | 74 | |
Due after 10 years | 0 | |
Amortized cost | 215 | 823 |
Available-for-sale securities, Fair value | ||
Due in one year or less | 0 | |
Due after one year through five years | 139 | |
Due after five years through 10 years | 77 | |
Due after 10 years | 0 | |
Fair value | $ 216 | $ 845 |
Available-for-sale securities, Average yield | ||
Due in one year or less | 0.00% | |
Due after one year through five years | 1.21% | |
Due after five years through 10 years | 1.92% | |
Due after 10 years | 0.00% | |
Average yield | 1.45% | |
Asset-backed securities | ||
Available-for-sale securities, Amortized Cost: | ||
Due in one year or less | $ 554 | |
Due after one year through five years | 2,569 | |
Due after five years through 10 years | 5,987 | |
Due after 10 years | 7,119 | |
Amortized cost | 16,229 | |
Available-for-sale securities, Fair value | ||
Due in one year or less | 554 | |
Due after one year through five years | 2,591 | |
Due after five years through 10 years | 5,990 | |
Due after 10 years | 7,162 | |
Fair value | $ 16,297 | |
Available-for-sale securities, Average yield | ||
Due in one year or less | 1.31% | |
Due after one year through five years | 2.00% | |
Due after five years through 10 years | 1.33% | |
Due after 10 years | 1.48% | |
Average yield | 1.50% | |
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 | 11,617 | |
Due after 10 years | 9,433 | |
Amortized cost | 21,050 | |
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 | 11,658 | |
Due after 10 years | 9,480 | |
Fair value | $ 21,138 | |
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 | 1.40% | |
Due after 10 years | 1.33% | |
Average yield | 1.37% |
Securities Financing Activiti_3
Securities Financing Activities - Schedule of Securities Purchased Under Resale Agreements, Netting & Securities Borrowed (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Securities purchased under resale agreements, Gross amounts | $ 666,467 | $ 628,609 |
Securities purchased under resale agreements, Amounts netted on the Consolidated balance sheets | (370,183) | (379,463) |
Securities purchased under resale agreements, Amounts presented on the Consolidated balance sheets | 296,284 | 249,146 |
Securities purchased under resale agreements, Amounts not nettable on the Consolidated balance sheets | (273,206) | (231,147) |
Securities purchased under resale agreements, Net amounts | 23,078 | 17,999 |
Securities borrowed, Gross amounts | 193,700 | 166,718 |
Securities borrowed, Amounts netted on the Consolidated balance sheets | (33,065) | (26,960) |
Securities borrowed, Amounts presented on the Consolidated balance sheets | 160,635 | 139,758 |
Securities borrowed, Amounts not nettable on the Consolidated balance sheets | (115,219) | (104,990) |
Securities borrowed, Net amounts | 45,416 | 34,768 |
Liabilities | ||
Securities sold under repurchase agreements, Gross amounts | 578,060 | 555,172 |
Securities sold under repurchase agreements, Amounts netted on the Consolidated balance sheets | (370,183) | (379,463) |
Securities sold under repurchase agreements, Amounts presented on the Consolidated balance sheets | 207,877 | 175,709 |
Securities sold under repurchase agreements, Amounts not nettable on the Consolidated balance sheets | (191,980) | (151,566) |
Securities sold under repurchase agreements, Net amounts | 15,897 | 24,143 |
Securities loaned and other, Gross amounts | 41,366 | 36,649 |
Securities loaned and other, Amounts netted on the Consolidated balance sheets | (33,065) | (26,960) |
Securities loaned and other, Amounts presented in the Consolidated balance sheets | 8,301 | 9,689 |
Securities loaned and other, Amounts not nettable on the Consolidated balance sheets | (8,257) | (9,654) |
Securities loaned and other, Net amounts | 44 | 35 |
Securities purchased under resale agreements where an appropriate legal opinion has not been either sought or obtained, Gross asset balance | 17,000 | 11,000 |
Securities borrowed where an appropriate legal opinion has not been either sought or obtained | 42,100 | 31,900 |
Securities sold under agreements to repurchase | 14,500 | 22,700 |
Securities loaned and other | 8 | 7 |
Securities-For-Securities | ||
Liabilities | ||
Securities loaned and other, Amounts presented in the Consolidated balance sheets | $ 3,400 | $ 3,700 |
Securities Financing Activiti_4
Securities Financing Activities - Schedule of Secured Financing Transactions by Assets Pledged & Remaining Maturity (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | $ 578,060 | $ 555,172 |
Securities loaned and other | 41,366 | 36,649 |
Overnight and continuous | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 238,667 | 225,134 |
Securities loaned and other | 37,887 | 32,028 |
Up to 30 days | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 230,980 | 195,816 |
Securities loaned and other | 1,647 | 1,706 |
30 – 90 days | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 70,777 | 56,020 |
Securities loaned and other | 500 | 937 |
Greater than 90 days | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 37,636 | 78,202 |
Securities loaned and other | 1,332 | 1,978 |
Mortgage-backed securities, U.S. GSEs and government agencies | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 56,744 | 34,119 |
Securities loaned and other | 0 | 0 |
Mortgage-backed securities, Residential - nonagency | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 1,016 | 1,239 |
Securities loaned and other | 0 | 0 |
Mortgage-backed securities, Commercial - nonagency | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 855 | 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 | 315,834 | 334,398 |
Securities loaned and other | 143 | 29 |
Obligations of U.S. states and municipalities | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 1,525 | 1,181 |
Securities loaned and other | 2 | 0 |
Non-U.S. government debt | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 157,563 | 145,548 |
Securities loaned and other | 1,730 | 1,528 |
Corporate debt securities | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 22,849 | 13,826 |
Securities loaned and other | 1,864 | 1,580 |
Asset-backed securities | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 694 | 1,794 |
Securities loaned and other | 0 | 0 |
Equity securities | ||
Securities Financing Transaction [Line Items] | ||
Securities sold under repurchase agreements | 20,980 | 21,455 |
Securities loaned and other | $ 37,627 | $ 33,512 |
Securities Financing Activiti_5
Securities Financing Activities - Schedule of Transfers Not Qualifying for Sale Accounting (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Securities Financing Transactions Disclosures [Abstract] | ||
Transfers not qualifying for sale accounting | $ 598 | $ 743 |
Loans - Narrative (Details)
Loans - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)loan_segmentloan_payment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Number of portfolio segments | loan_segment | 3 | ||
Net gains (losses) on sales of loans and lending-related commitments | $ (43) | ||
Net gains (losses) on sales of loans | $ (36) | $ 394 | $ 0 |
Residential real estate | Maximum | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Number of months before updating exterior opinion on home valuation | 12 months | ||
Commercial real estate | Minimum | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Number of months before updating collateral values on commercial real estate loans | 6 months | ||
Commercial real estate | Maximum | |||
Loans and Leases Receivable Disclosure [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, unmodified credit card loans, and business banking loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans, charge-off criteria, period past due | 180 days | ||
120 or more days past due | Scored auto and modified credit card loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans, charge-off criteria, period past due | 120 days | ||
Less than 60 days until charge-off | Residential real estate and auto loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Period past due, credit analysis factors, charge off criteria | 60 days | ||
Consumer, excluding credit card | Minimum | |||
Loans and Leases Receivable Disclosure [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 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Period past due, credit analysis factors, charge off criteria | 90 days | ||
Consumer, excluding credit card | 30 or more days past due | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Period past due, credit analysis factors, charge off criteria | 30 days |
Loans - By Portfolio Segment (D
Loans - By Portfolio Segment (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Loan balances by portfolio segment: | ||||
Retained loans | $ 960,506 | $ 945,601 | $ 969,415 | |
Held-for-sale | 7,873 | 7,064 | ||
At fair value | 44,474 | 44,955 | ||
Total | [1] | 1,012,853 | 997,620 | |
Accrued interest receivables | 2,900 | 2,900 | ||
Accrued interest receivables written off | 121 | 50 | ||
Consumer, excluding credit card | ||||
Loan balances by portfolio segment: | ||||
Retained loans | 302,127 | 294,999 | 335,776 | |
Held-for-sale | 1,305 | 3,002 | ||
At fair value | 15,147 | 19,816 | ||
Total | 318,579 | 317,817 | ||
Credit card | ||||
Loan balances by portfolio segment: | ||||
Retained loans | 143,432 | 168,924 | ||
Held-for-sale | 784 | 0 | ||
At fair value | 0 | 0 | ||
Total | 144,216 | 168,924 | ||
Wholesale | ||||
Loan balances by portfolio segment: | ||||
Retained loans | 514,947 | 481,678 | $ 477,023 | |
Held-for-sale | 5,784 | 4,062 | ||
At fair value | 29,327 | 25,139 | ||
Total | $ 550,058 | $ 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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Purchases | $ 4,633 | $ 2,573 | $ 4,897 |
Sales | 18,268 | 53,919 | 26,725 |
Retained loans reclassified to held-for-sale | 4,451 | 11,559 | 2,312 |
Consumer, excluding credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Purchases | 3,474 | 1,282 | 2,543 |
Sales | 352 | 30,474 | 9,984 |
Retained loans reclassified to held-for-sale | 2,084 | 9,188 | 36 |
Excluded retained loans purchased from correspondents that were originated in accordance with the Firm's underwriting standards | 15,300 | 16,600 | 18,600 |
Credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Purchases | 0 | 0 | 0 |
Sales | 0 | 0 | 0 |
Retained loans reclassified to held-for-sale | 787 | 0 | 0 |
Wholesale | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Purchases | 1,159 | 1,291 | 2,354 |
Sales | 17,916 | 23,445 | 16,741 |
Retained loans reclassified to held-for-sale | $ 1,580 | $ 2,371 | $ 2,276 |
Loans - Consumer, Excluding Cre
Loans - Consumer, Excluding Credit Card Loan Portfolio (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | $ 960,506 | $ 945,601 | $ 969,415 |
Consumer, excluding credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 302,127 | 294,999 | $ 335,776 |
Consumer, excluding credit card | Residential real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 225,302 | 243,317 | |
Consumer, excluding credit card | Auto and other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 76,825 | $ 51,682 | |
Consumer, excluding credit card | Auto and other | Paycheck Protection Program (PPP) | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | $ 19,200 |
Loans - Consumer, Excluding C_2
Loans - Consumer, Excluding Credit Card Loan Portfolio, Residential Real Estate (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | $ 960,506 | $ 945,601 | $ 969,415 |
Consumer, excluding credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 302,127 | 294,999 | $ 335,776 |
Consumer, excluding credit card | 30 or more days past due | U.S. government-guaranteed | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 40 | 46 | |
Consumer, excluding credit card | Residential real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Term loans originated in 2020 | 55,574 | ||
Term loans originated in 2019 | 31,859 | ||
Term loans originated in 2018 | 13,930 | ||
Term loans originated in 2017 | 20,450 | ||
Term loans originated in 2016 | 28,025 | ||
Term loans originated prior to 2016 | 51,750 | ||
Revolving loans within the revolving period | 7,413 | ||
Revolving loans converted to term loans | 16,301 | ||
Total retained loans | $ 225,302 | $ 243,317 | |
% of 30 plus days past due to total retained loans, Term loans originated in 2020 | 0.02% | ||
% of 30 plus days past due to total retained loans, Term loans originated in 2019 | 0.12% | ||
% of 30 plus days past due to total retained loans, Term loans originated in 2018 | 0.22% | ||
% of 30 plus days past due to total retained loans, Term loans originated in 2017 | 0.20% | ||
% of 30 plus days past due to total retained loans, Term loans originated in 2016 | 0.17% | ||
% of 30 plus days past due to total retained loans, Term loans originated prior to 2016 | 2.86% | ||
% of 30 plus days past due to total retained loans, Revolving loans within the revolving period | 0.58% | ||
% of 30 plus days past due to total retained loans, Revolving loans converted to term loans | 3.12% | ||
% of 30 plus days past due to total retained loans | 0.98% | 1.35% | |
Consumer, excluding credit card | Residential real estate | Senior lien | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Percentage of total revolving loans that are senior lien loans | 35.00% | ||
Consumer, excluding credit card | Residential real estate | U.S. government-guaranteed | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | $ 76 | $ 63 | |
Consumer, excluding credit card | Residential real estate | Current | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Term loans originated in 2020 | 55,562 | ||
Term loans originated in 2019 | 31,820 | ||
Term loans originated in 2018 | 13,900 | ||
Term loans originated in 2017 | 20,410 | ||
Term loans originated in 2016 | 27,978 | ||
Term loans originated prior to 2016 | 50,232 | ||
Revolving loans within the revolving period | 7,370 | ||
Revolving loans converted to term loans | 15,792 | ||
Total retained loans | 223,064 | 239,979 | |
Consumer, excluding credit card | Residential real estate | Current | U.S. government-guaranteed | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 36 | 17 | |
Consumer, excluding credit card | Residential real estate | 30–149 days past due | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Term loans originated in 2020 | 9 | ||
Term loans originated in 2019 | 25 | ||
Term loans originated in 2018 | 20 | ||
Term loans originated in 2017 | 22 | ||
Term loans originated in 2016 | 29 | ||
Term loans originated prior to 2016 | 674 | ||
Revolving loans within the revolving period | 21 | ||
Revolving loans converted to term loans | 245 | ||
Total retained loans | 1,045 | 1,910 | |
Consumer, excluding credit card | Residential real estate | 30–149 days past due | U.S. government-guaranteed | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 16 | 20 | |
Consumer, excluding credit card | Residential real estate | 150 or more days past due | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Term loans originated in 2020 | 3 | ||
Term loans originated in 2019 | 14 | ||
Term loans originated in 2018 | 10 | ||
Term loans originated in 2017 | 18 | ||
Term loans originated in 2016 | 18 | ||
Term loans originated prior to 2016 | 844 | ||
Revolving loans within the revolving period | 22 | ||
Revolving loans converted to term loans | 264 | ||
Total retained loans | 1,193 | 1,428 | |
Consumer, excluding credit card | Residential real estate | 150 or more days past due | U.S. government-guaranteed | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | $ 24 | $ 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 ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | $ 960,506,000,000 | $ 945,601,000,000 | $ 969,415,000,000 |
Consumer, excluding credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 302,127,000,000 | 294,999,000,000 | $ 335,776,000,000 |
Consumer, excluding credit card | Residential real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Nonaccrual loans | 5,313,000,000 | 2,780,000,000 | |
Retained loans | $ 225,302,000,000 | $ 243,317,000,000 | |
Weighted average LTV ratio | 54.00% | 55.00% | |
Weighted average FICO | $ 763 | $ 758 | |
Approximate percentage of Chapter 7 loans 30 days or more past due | 7.00% | ||
Interest income on nonaccrual loans recognized on a cash basis | $ 161,000,000 | 166,000,000 | |
Consumer, excluding credit card | Residential real estate | U.S. government-guaranteed | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
90 or more days past due and still accruing | 33,000,000 | 38,000,000 | |
Retained loans | 76,000,000 | 63,000,000 | |
Consumer, excluding credit card | Residential real estate | Residential real estate – PCD | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Nonaccrual loans | 1,600,000,000 | ||
Consumer, excluding credit card | Residential real estate | 90 or more days past due | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 0 | 0 | |
Consumer, excluding credit card | Residential real estate | 90 or more days past due | U.S. government-guaranteed | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Nonaccrual loans | 33,000,000 | 34,000,000 | |
Consumer, excluding credit card | Residential real estate | California | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 73,444,000,000 | 82,147,000,000 | |
Consumer, excluding credit card | Residential real estate | New York | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 32,287,000,000 | 31,996,000,000 | |
Consumer, excluding credit card | Residential real estate | Florida | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 13,981,000,000 | 13,668,000,000 | |
Consumer, excluding credit card | Residential real estate | Texas | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 13,773,000,000 | 14,474,000,000 | |
Consumer, excluding credit card | Residential real estate | Illinois | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 13,130,000,000 | 15,587,000,000 | |
Consumer, excluding credit card | Residential real estate | Colorado | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 8,235,000,000 | 8,447,000,000 | |
Consumer, excluding credit card | Residential real estate | Washington | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 7,917,000,000 | 8,990,000,000 | |
Consumer, excluding credit card | Residential real estate | New Jersey | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 7,227,000,000 | 7,752,000,000 | |
Consumer, excluding credit card | Residential real estate | Massachusetts | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 5,784,000,000 | 6,210,000,000 | |
Consumer, excluding credit card | Residential real estate | Connecticut | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 5,024,000,000 | 4,954,000,000 | |
Consumer, excluding credit card | Residential real estate | All other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 44,500,000,000 | 49,092,000,000 | |
Consumer, excluding credit card | Residential real estate | All other | U.S. government-guaranteed | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 76,000,000 | 63,000,000 | |
Consumer, excluding credit card | Residential real estate | No FICO/LTV available | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 1,732,000,000 | 2,052,000,000 | |
Consumer, excluding credit card | Residential real estate | Greater than 125% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 10,000,000 | 31,000,000 | |
Consumer, excluding credit card | Residential real estate | Greater than 125% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 18,000,000 | 38,000,000 | |
Consumer, excluding credit card | Residential real estate | 101% to 125% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 72,000,000 | 134,000,000 | |
Consumer, excluding credit card | Residential real estate | 101% to 125% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 65,000,000 | 132,000,000 | |
Consumer, excluding credit card | Residential real estate | 80% to 100% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 2,365,000,000 | 5,953,000,000 | |
Consumer, excluding credit card | Residential real estate | 80% to 100% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 435,000,000 | 764,000,000 | |
Consumer, excluding credit card | Residential real estate | Lower than 80% and refreshed FICO scores | Equal to or greater than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 208,457,000,000 | 219,469,000,000 | |
Consumer, excluding credit card | Residential real estate | Lower than 80% and refreshed FICO scores | Less than 660 | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | $ 12,072,000,000 | $ 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 | 12 Months Ended | ||
Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Financing Receivable, Impaired [Line Items] | |||
New TDRs | $ | $ 819 | $ 490 | $ 736 |
Percentage, sum of items by type, may exceed | 100.00% | ||
Trial Modification | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loans modified | 5,522 | 5,872 | 7,175 |
Permanent Modification | |||
Financing Receivable, Impaired [Line Items] | |||
Number of loans modified | 6,850 | 4,918 | 7,853 |
Interest rate reduction | |||
Financing Receivable, Impaired [Line Items] | |||
Concession granted | 50.00% | 77.00% | 54.00% |
Term or payment extension | |||
Financing Receivable, Impaired [Line Items] | |||
Concession granted | 49.00% | 71.00% | 62.00% |
Principal and/or interest deferred | |||
Financing Receivable, Impaired [Line Items] | |||
Concession granted | 14.00% | 13.00% | 29.00% |
Principal forgiveness | |||
Financing Receivable, Impaired [Line Items] | |||
Concession granted | 2.00% | 5.00% | 7.00% |
Other | |||
Financing Receivable, Impaired [Line Items] | |||
Concession granted | 66.00% | 63.00% | 51.00% |
Loans - Consumer, Excluding C_5
Loans - Consumer, Excluding Credit Card Loan Portfolio, Financial Effects of Modifications and Redefaults (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)loan_payment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Financing Receivable, Impaired [Line Items] | |||
Carrying value | $ 960,506 | $ 945,601 | $ 969,415 |
Consumer, excluding credit card | |||
Financing Receivable, Impaired [Line Items] | |||
Carrying value | $ 302,127 | 294,999 | $ 335,776 |
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 | $ 225,302 | 243,317 | |
Consumer, excluding credit card | Residential real estate | In Process of Active or Suspended Foreclosure | |||
Financing Receivable, Impaired [Line Items] | |||
Carrying value | $ 846 | $ 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 | 5.09% | 5.68% | 5.50% |
Weighted-average interest rate of loans with interest rate reductions – after TDR | 3.28% | 3.81% | 3.60% |
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR | 22 years | 20 years | 21 years |
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR | 39 years | 39 years | 38 years |
Charge-offs recognized upon permanent modification | $ 5 | $ 1 | $ 2 |
Principal deferred | 16 | 19 | 30 |
Principal forgiven | 5 | 7 | 17 |
Balance of loans that redefaulted within one year of permanent modification | $ 199 | $ 166 | $ 161 |
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 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | $ 960,506 | $ 945,601 | $ 969,415 |
Consumer, excluding credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 302,127 | 294,999 | $ 335,776 |
Consumer, excluding credit card | Auto and other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Term loans originated in 2020 | 46,266 | ||
Term loans originated in 2019 | 12,936 | ||
Term loans originated in 2018 | 7,444 | ||
Term loans originated in 2017 | 4,575 | ||
Term loans originated in 2016 | 2,100 | ||
Term loans originated prior to 2016 | 766 | ||
Revolving loans within the revolving period | 2,555 | ||
Revolving loans converted to term loans | 183 | ||
Total retained loans | $ 76,825 | $ 51,682 | |
% of 30 plus days past due to total retained loans, Term loans originated in 2020 | 0.21% | ||
% of 30 plus days past due to total retained loans, Term loans originated in 2019 | 0.83% | ||
% of 30 plus days past due to total retained loans, Term loans originated in 2018 | 1.03% | ||
% of 30 plus days past due to total retained loans, Term loans originated in 2017 | 1.18% | ||
% of 30 plus days past due to total retained loans, Term loans originated in 2016 | 2.00% | ||
% of 30 plus days past due to total retained loans, Term loans originated prior to 2016 | 3.13% | ||
% 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 | 13.66% | ||
% of 30 plus days past due to total retained loans | 0.60% | 1.31% | |
Consumer, excluding credit card | Auto and other | Paycheck Protection Program (PPP) | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | $ 19,200 | ||
Current | Consumer, excluding credit card | Auto and other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Term loans originated in 2020 | 46,169 | ||
Term loans originated in 2019 | 12,829 | ||
Term loans originated in 2018 | 7,367 | ||
Term loans originated in 2017 | 4,521 | ||
Term loans originated in 2016 | 2,058 | ||
Term loans originated prior to 2016 | 742 | ||
Revolving loans within the revolving period | 2,517 | ||
Revolving loans converted to term loans | 158 | ||
Total retained loans | 76,361 | $ 51,005 | |
Current | Consumer, excluding credit card | Auto and other | Paycheck Protection Program (PPP) | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Term loans originated in 2020 | 19,200 | ||
30–119 days past due | Consumer, excluding credit card | Auto and other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Term loans originated in 2020 | 97 | ||
Term loans originated in 2019 | 107 | ||
Term loans originated in 2018 | 77 | ||
Term loans originated in 2017 | 53 | ||
Term loans originated in 2016 | 42 | ||
Term loans originated prior to 2016 | 23 | ||
Revolving loans within the revolving period | 30 | ||
Revolving loans converted to term loans | 17 | ||
Total retained loans | 446 | 667 | |
120 or more days past due | Consumer, excluding credit card | Auto and other | |||
Loans and Leases Receivable Disclosure [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 | 1 | ||
Term loans originated in 2016 | 0 | ||
Term loans originated prior to 2016 | 1 | ||
Revolving loans within the revolving period | 8 | ||
Revolving loans converted to term loans | 8 | ||
Total retained loans | $ 18 | $ 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 ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Retained loans | $ 960,506,000,000 | $ 945,601,000,000 | $ 969,415,000,000 |
Consumer, excluding credit card | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Retained loans | 302,127,000,000 | 294,999,000,000 | $ 335,776,000,000 |
Consumer, excluding credit card | Auto and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Nonaccrual loans | 151,000,000 | 146,000,000 | |
Retained loans | 76,825,000,000 | 51,682,000,000 | |
90 or more days past due and still accruing | 0 | 0 | |
California | Consumer, excluding credit card | Auto and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Retained loans | 12,302,000,000 | 7,795,000,000 | |
New York | Consumer, excluding credit card | Auto and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Retained loans | 8,824,000,000 | 3,706,000,000 | |
Texas | Consumer, excluding credit card | Auto and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Retained loans | 8,235,000,000 | 5,457,000,000 | |
Florida | Consumer, excluding credit card | Auto and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Retained loans | 4,668,000,000 | 3,025,000,000 | |
Illinois | Consumer, excluding credit card | Auto and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Retained loans | 3,768,000,000 | 2,443,000,000 | |
New Jersey | Consumer, excluding credit card | Auto and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Retained loans | 2,646,000,000 | 1,798,000,000 | |
Arizona | Consumer, excluding credit card | Auto and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Retained loans | 2,465,000,000 | 1,347,000,000 | |
Ohio | Consumer, excluding credit card | Auto and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Retained loans | 2,163,000,000 | 1,490,000,000 | |
Pennsylvania | Consumer, excluding credit card | Auto and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Retained loans | 1,924,000,000 | 1,721,000,000 | |
Colorado | Consumer, excluding credit card | Auto and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Retained loans | 1,910,000,000 | 1,247,000,000 | |
All other | Consumer, excluding credit card | Auto and other | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Retained loans | $ 27,920,000,000 | $ 21,653,000,000 |
Loans - Credit Card Loan Portfo
Loans - Credit Card Loan Portfolio, Delinquency Information (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | $ 960,506 | $ 945,601 | $ 969,415 |
Credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Revolving loans within the revolving period | 142,057 | ||
Revolving loans converted to term loans | 1,375 | ||
Total retained loans | $ 143,432 | $ 168,924 | |
% of 30 plus days past due to total retained loans, Revolving loans within the revolving period | 1.60% | ||
% of 30 plus days past due to total retained loans, Revolving loans converted to term loans | 9.89% | ||
% of 30 plus days past due to total retained loans | 1.68% | 1.87% | |
% of 90 plus days past due to total retained loans, Revolving loans within the revolving period | 0.90% | ||
% of 90 plus days past due to total retained loans, Revolving loans converted to term loans | 3.05% | ||
% of 90 plus days past due to total retained loans | 0.92% | 0.95% | |
Current and less than 30 days past due and still accruing | Credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Revolving loans within the revolving period | $ 139,783 | ||
Revolving loans converted to term loans | 1,239 | ||
Total retained loans | 141,022 | $ 165,767 | |
30–89 days past due and still accruing | Credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Revolving loans within the revolving period | 997 | ||
Revolving loans converted to term loans | 94 | ||
Total retained loans | 1,091 | 1,550 | |
90 or more days past due and still accruing | Credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Revolving loans within the revolving period | 1,277 | ||
Revolving loans converted to term loans | 42 | ||
Total retained loans | $ 1,319 | $ 1,607 |
Loans - Credit Card Loan Port_2
Loans - Credit Card Loan Portfolio, Other Credit Quality Indicators (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | $ 960,506 | $ 945,601 | $ 969,415 |
Credit card | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | $ 143,432 | $ 168,924 | |
Percentage of portfolio based on carrying value with estimated refreshed FICO scores, Equal to or greater than 660 | 85.90% | 84.00% | |
Percentage of portfolio based on carrying value with estimated refreshed FICO scores, Less than 660 | 13.90% | 15.40% | |
Percentage of portfolio based on carrying value with estimated refreshed FICO scores, No FICO available | 0.20% | 0.60% | |
Credit card | California | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | $ 20,921 | $ 25,783 | |
Credit card | Texas | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 14,544 | 16,728 | |
Credit card | New York | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 11,919 | 14,544 | |
Credit card | Florida | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 9,562 | 10,830 | |
Credit card | Illinois | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 8,006 | 9,579 | |
Credit card | New Jersey | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 5,927 | 7,165 | |
Credit card | Ohio | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 4,673 | 5,406 | |
Credit card | Pennsylvania | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 4,476 | 5,245 | |
Credit card | Colorado | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 4,092 | 4,763 | |
Credit card | Michigan | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 3,553 | 4,164 | |
Credit card | All other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | $ 55,759 | $ 64,717 |
Loans - Credit Card Portfolio,
Loans - Credit Card Portfolio, Loan Modifications (Details) - Credit card $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)loan_payment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Financing Receivable, Impaired [Line Items] | |||
Fixed payment plan period | 60 months | ||
New enrollments, percent of total retained credit card loans (less than) | 1.00% | 1.00% | 1.00% |
Balance of new TDRs | $ 818 | $ 961 | $ 866 |
Weighted-average interest rate of loans – before TDR | 18.04% | 19.07% | 17.98% |
Weighted-average interest rate of loans – after TDR | 4.64% | 4.70% | 5.16% |
Loans that redefaulted within one year of modification | $ 110 | $ 148 | $ 116 |
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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | $ 960,506 | $ 945,601 | $ 969,415 |
Wholesale | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | $ 514,947 | $ 481,678 | $ 477,023 |
% of investment-grade to total retained loans | 73.65% | 75.45% | |
% of total criticized to total retained loans | 3.62% | 1.60% | |
% of criticized nonaccrual to total retained loans | 0.64% | 0.22% | |
Net charge-offs/(recoveries) | $ 799 | $ 415 | |
% of net charge-offs/(recoveries) to end-of-period retained loans | 0.16% | 0.09% | |
Wholesale | Current and less than 30 days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | $ 508,707 | $ 479,599 | |
Wholesale | 30–89 days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 2,865 | 979 | |
Wholesale | 90 or more days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 57 | 43 | |
Wholesale | Investment-grade | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 379,273 | 363,444 | |
Wholesale | Investment-grade | Paycheck Protection Program (PPP) | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Term loans originated in 2020 | 8,000 | ||
Wholesale | Total noninvestment- grade | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 135,674 | 118,234 | |
Wholesale | Noncriticized | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 117,052 | 110,521 | |
Wholesale | Criticized performing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 15,304 | 6,656 | |
Wholesale | Criticized nonaccrual | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 3,318 | 1,057 | |
Wholesale | U.S. | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 406,846 | 380,302 | |
Wholesale | Non-U.S. | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 108,101 | 101,376 | |
Wholesale | Secured by real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | $ 119,993 | $ 120,418 | |
% of investment-grade to total retained loans | 75.13% | 80.23% | |
% of total criticized to total retained loans | 3.10% | 1.09% | |
% of criticized nonaccrual to total retained loans | 0.40% | 0.15% | |
Term loans originated in 2020 | $ 19,887 | ||
Term loans originated in 2019 | 23,914 | ||
Term loans originated in 2018 | 16,397 | ||
Term loans originated in 2017 | 13,933 | ||
Term loans originated in 2016 | 16,014 | ||
Term loans originated prior to 2016 | 28,260 | ||
Revolving loans within the revolving period | 1,587 | ||
Revolving loans converted to term loans | 1 | ||
Net charge-offs/(recoveries) | $ 10 | $ 44 | |
% of net charge-offs/(recoveries) to end-of-period retained loans | 0.01% | 0.04% | |
Wholesale | Secured by real estate | Current and less than 30 days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | $ 118,894 | $ 120,119 | |
Wholesale | Secured by real estate | 30–89 days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 601 | 115 | |
Wholesale | Secured by real estate | 90 or more days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 15 | 1 | |
Wholesale | Secured by real estate | Investment-grade | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 90,147 | 96,611 | |
Term loans originated in 2020 | 16,560 | ||
Term loans originated in 2019 | 19,575 | ||
Term loans originated in 2018 | 12,192 | ||
Term loans originated in 2017 | 11,017 | ||
Term loans originated in 2016 | 13,439 | ||
Term loans originated prior to 2016 | 16,266 | ||
Revolving loans within the revolving period | 1,098 | ||
Revolving loans converted to term loans | 0 | ||
Wholesale | Secured by real estate | Total noninvestment- grade | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 29,846 | 23,807 | |
Term loans originated in 2020 | 3,327 | ||
Term loans originated in 2019 | 4,339 | ||
Term loans originated in 2018 | 4,205 | ||
Term loans originated in 2017 | 2,916 | ||
Term loans originated in 2016 | 2,575 | ||
Term loans originated prior to 2016 | 11,994 | ||
Revolving loans within the revolving period | 489 | ||
Revolving loans converted to term loans | 1 | ||
Wholesale | Secured by real estate | Noncriticized | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 26,129 | 22,493 | |
Wholesale | Secured by real estate | Criticized performing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 3,234 | 1,131 | |
Wholesale | Secured by real estate | Criticized nonaccrual | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | $ 483 | $ 183 | |
% of criticized nonaccrual to total retained loans | 0.40% | 0.15% | |
Wholesale | Secured by real estate | U.S. | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | $ 116,990 | $ 117,836 | |
Wholesale | Secured by real estate | Non-U.S. | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 3,003 | 2,582 | |
Wholesale | Commercial and industrial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | $ 142,709 | $ 146,169 | |
% of investment-grade to total retained loans | 50.39% | 55.07% | |
% of total criticized to total retained loans | 9.05% | 3.59% | |
% of criticized nonaccrual to total retained loans | 1.35% | 0.58% | |
Term loans originated in 2020 | $ 36,271 | ||
Term loans originated in 2019 | 15,940 | ||
Term loans originated in 2018 | 8,065 | ||
Term loans originated in 2017 | 3,852 | ||
Term loans originated in 2016 | 1,529 | ||
Term loans originated prior to 2016 | 3,702 | ||
Revolving loans within the revolving period | 73,276 | ||
Revolving loans converted to term loans | 74 | ||
Net charge-offs/(recoveries) | $ 737 | $ 335 | |
% of net charge-offs/(recoveries) to end-of-period retained loans | 0.52% | 0.23% | |
Wholesale | Commercial and industrial | Current and less than 30 days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | $ 140,100 | $ 144,839 | |
Wholesale | Commercial and industrial | 30–89 days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 658 | 449 | |
Wholesale | Commercial and industrial | 90 or more days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 20 | 37 | |
Wholesale | Commercial and industrial | Investment-grade | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 71,917 | 80,489 | |
Term loans originated in 2020 | 21,211 | ||
Term loans originated in 2019 | 7,304 | ||
Term loans originated in 2018 | 2,934 | ||
Term loans originated in 2017 | 1,748 | ||
Term loans originated in 2016 | 1,032 | ||
Term loans originated prior to 2016 | 1,263 | ||
Revolving loans within the revolving period | 36,424 | ||
Revolving loans converted to term loans | 1 | ||
Wholesale | Commercial and industrial | Investment-grade | Paycheck Protection Program (PPP) | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Term loans originated in 2020 | 7,400 | ||
Wholesale | Commercial and industrial | Total noninvestment- grade | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 70,792 | 65,680 | |
Term loans originated in 2020 | 15,060 | ||
Term loans originated in 2019 | 8,636 | ||
Term loans originated in 2018 | 5,131 | ||
Term loans originated in 2017 | 2,104 | ||
Term loans originated in 2016 | 497 | ||
Term loans originated prior to 2016 | 2,439 | ||
Revolving loans within the revolving period | 36,852 | ||
Revolving loans converted to term loans | 73 | ||
Wholesale | Commercial and industrial | Noncriticized | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 57,870 | 60,437 | |
Wholesale | Commercial and industrial | Criticized performing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 10,991 | 4,399 | |
Wholesale | Commercial and industrial | Criticized nonaccrual | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 1,931 | 844 | |
Wholesale | Commercial and industrial | U.S. | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 109,273 | 111,954 | |
Wholesale | Commercial and industrial | Non-U.S. | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 33,436 | 34,215 | |
Wholesale | Other | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | $ 252,245 | $ 215,091 | |
% of investment-grade to total retained loans | 86.11% | 86.63% | |
% of total criticized to total retained loans | 0.79% | 0.54% | |
% of criticized nonaccrual to total retained loans | 0.36% | 0.01% | |
Term loans originated in 2020 | $ 36,398 | ||
Term loans originated in 2019 | 12,389 | ||
Term loans originated in 2018 | 8,635 | ||
Term loans originated in 2017 | 6,756 | ||
Term loans originated in 2016 | 3,699 | ||
Term loans originated prior to 2016 | 13,231 | ||
Revolving loans within the revolving period | 170,234 | ||
Revolving loans converted to term loans | 903 | ||
Net charge-offs/(recoveries) | $ 52 | $ 36 | |
% of net charge-offs/(recoveries) to end-of-period retained loans | 0.02% | 0.02% | |
Wholesale | Other | Current and less than 30 days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | $ 249,713 | $ 214,641 | |
Wholesale | Other | 30–89 days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 1,606 | 415 | |
Wholesale | Other | 90 or more days past due and still accruing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 22 | 5 | |
Wholesale | Other | Investment-grade | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 217,209 | 186,344 | |
Term loans originated in 2020 | 31,389 | ||
Term loans originated in 2019 | 10,169 | ||
Term loans originated in 2018 | 6,994 | ||
Term loans originated in 2017 | 6,206 | ||
Term loans originated in 2016 | 3,553 | ||
Term loans originated prior to 2016 | 12,595 | ||
Revolving loans within the revolving period | 145,524 | ||
Revolving loans converted to term loans | 779 | ||
Wholesale | Other | Total noninvestment- grade | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 35,036 | 28,747 | |
Term loans originated in 2020 | 5,009 | ||
Term loans originated in 2019 | 2,220 | ||
Term loans originated in 2018 | 1,641 | ||
Term loans originated in 2017 | 550 | ||
Term loans originated in 2016 | 146 | ||
Term loans originated prior to 2016 | 636 | ||
Revolving loans within the revolving period | 24,710 | ||
Revolving loans converted to term loans | 124 | ||
Wholesale | Other | Noncriticized | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 33,053 | 27,591 | |
Wholesale | Other | Criticized performing | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 1,079 | 1,126 | |
Wholesale | Other | Criticized nonaccrual | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 904 | 30 | |
Wholesale | Other | U.S. | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | 180,583 | 150,512 | |
Wholesale | Other | Non-U.S. | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total retained loans | $ 71,662 | $ 64,579 |
Loans - Wholesale Loan Portfo_2
Loans - Wholesale Loan Portfolio, Real Estate Class of Loans (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | $ 960,506 | $ 945,601 | $ 969,415 |
Wholesale | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | $ 514,947 | $ 481,678 | $ 477,023 |
% of total criticized to total retained loans secured by real estate | 3.62% | 1.60% | |
% of criticized nonaccrual loans to total retained loans secured by real estate | 0.64% | 0.22% | |
Wholesale | Criticized nonaccrual | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | $ 3,318 | $ 1,057 | |
Wholesale | Secured by real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | $ 119,993 | $ 120,418 | |
% of total criticized to total retained loans secured by real estate | 3.10% | 1.09% | |
% of criticized nonaccrual loans to total retained loans secured by real estate | 0.40% | 0.15% | |
Wholesale | Secured by real estate | Commercial construction and development | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | $ 6,400 | $ 6,300 | |
Wholesale | Secured by real estate | Multifamily | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 73,078 | 73,840 | |
Wholesale | Secured by real estate | Other Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | 46,915 | 46,578 | |
Wholesale | Secured by real estate | Criticized | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | $ 3,717 | $ 1,314 | |
% of total criticized to total retained loans secured by real estate | 3.10% | 1.09% | |
Wholesale | Secured by real estate | Criticized | Multifamily | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | $ 1,144 | $ 340 | |
% of total criticized to total retained loans secured by real estate | 1.57% | 0.46% | |
Wholesale | Secured by real estate | Criticized | Other Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | $ 2,573 | $ 974 | |
% of total criticized to total retained loans secured by real estate | 5.48% | 2.09% | |
Wholesale | Secured by real estate | Criticized nonaccrual | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | $ 483 | $ 183 | |
% of criticized nonaccrual loans to total retained loans secured by real estate | 0.40% | 0.15% | |
Wholesale | Secured by real estate | Criticized nonaccrual | Multifamily | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | $ 56 | $ 28 | |
% of criticized nonaccrual loans to total retained loans secured by real estate | 0.08% | 0.04% | |
Wholesale | Secured by real estate | Criticized nonaccrual | Other Commercial | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Retained loans | $ 427 | $ 155 | |
% of criticized nonaccrual loans to total retained loans secured by real estate | 0.91% | 0.33% |
Loans - Wholesale Loan Portfo_3
Loans - Wholesale Loan Portfolio, Nonaccrual (Details) - Wholesale - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Nonaccrual [Line Items] | ||
With an allowance | $ 2,818 | $ 885 |
Without an allowance | 500 | 172 |
Total nonaccrual loans | 3,318 | 1,057 |
Secured by real estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
With an allowance | 351 | 169 |
Without an allowance | 132 | 14 |
Total nonaccrual loans | 483 | 183 |
Commercial and industrial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
With an allowance | 1,667 | 688 |
Without an allowance | 264 | 156 |
Total nonaccrual loans | 1,931 | 844 |
Other | ||
Financing Receivable, Nonaccrual [Line Items] | ||
With an allowance | 800 | 28 |
Without an allowance | 104 | 2 |
Total nonaccrual loans | $ 904 | $ 30 |
Loans - Wholesale Loan Portfo_4
Loans - Wholesale Loan Portfolio, Loan Modifications (Details) - Wholesale - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | |||
Loans modified in TDRs | $ 954 | $ 501 | |
New TDRs | $ 734 | $ 407 | $ 718 |
Allowance for Credit Losses (De
Allowance for Credit Losses (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for loan losses | |||||||
Beginning balance | $ 13,123 | $ 13,445 | $ 13,604 | ||||
Gross charge-offs/Write-offs of PCI loans | 6,836 | 6,810 | 6,349 | ||||
Gross recoveries collected | (1,577) | (1,181) | (1,493) | ||||
Net charge-offs | 5,259 | 5,629 | 4,856 | ||||
Provision for loan losses | 16,291 | 5,449 | 4,885 | ||||
Other | 1 | 9 | (1) | ||||
Ending balance | 28,328 | 13,123 | 13,445 | ||||
Allowance for lending-related commitments | |||||||
Beginning balance | 1,191 | 1,055 | 1,068 | ||||
Provision for lending-related commitments | 1,121 | 136 | (14) | ||||
Other | (1) | 0 | 1 | ||||
Ending balance | 2,409 | 1,191 | 1,055 | ||||
Total allowance for credit losses | $ 30,737 | $ 14,314 | $ 14,500 | ||||
Allowance for loan losses by impairment methodology | |||||||
Asset-specific | 1,308 | 847 | 933 | ||||
Portfolio-based | 27,020 | 11,289 | 10,724 | ||||
PCI | 987 | 1,788 | |||||
Total allowance for loan losses | 28,328 | 13,445 | 13,445 | 28,328 | 13,123 | 13,445 | |
Loans by impairment methodology | |||||||
Asset-specific | 21,629 | 8,536 | 9,443 | ||||
Portfolio-based | 938,877 | 916,702 | 935,935 | ||||
PCI | 20,363 | 24,037 | |||||
Total retained loans | 960,506 | 945,601 | 969,415 | ||||
Allowance for lending-related commitments by impairment methodology | |||||||
Asset-specific | 114 | 102 | 99 | ||||
Portfolio-based | 2,295 | 1,089 | 956 | ||||
Total allowance for lending-related commitments | 1,191 | 1,055 | 1,055 | 2,409 | 1,191 | 1,055 | |
Lending-related commitments by impairment methodology | |||||||
Asset-specific | 577 | 474 | 469 | ||||
Portfolio-based | 464,654 | 423,384 | 401,498 | ||||
Total lending-related commitments | 465,231 | 423,858 | 401,967 | ||||
HTM securities, allowance for credit losses | 78 | ||||||
HTM securities, provision for credit losses | 68 | ||||||
PCI loans | |||||||
Allowance for loan losses | |||||||
Gross charge-offs/Write-offs of PCI loans | 151 | 187 | |||||
Collateral-dependent loans | |||||||
Allowance for loan losses | |||||||
Net charge-offs | 209 | 82 | 45 | ||||
Collateral-dependent loans | |||||||
Loans measured at fair value of collateral less cost to sell | 5,144 | 2,140 | 2,282 | ||||
Cumulative effect of change in accounting principles | |||||||
Allowance for loan losses | |||||||
Beginning balance | 4,172 | ||||||
Ending balance | 4,172 | ||||||
Allowance for lending-related commitments | |||||||
Beginning balance | 98 | ||||||
Ending 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 | 4,172 | ||||
Allowance for lending-related commitments by impairment methodology | |||||||
Total allowance for lending-related commitments | 98 | 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 | 3,892 | ||||
Gross charge-offs/Write-offs of PCI loans | 805 | 902 | 977 | ||||
Gross recoveries collected | (631) | (536) | (827) | ||||
Net charge-offs | 174 | 366 | 150 | ||||
Provision for loan losses | 974 | (378) | (121) | ||||
Other | 1 | (1) | 0 | ||||
Ending balance | 3,636 | 2,538 | 3,434 | ||||
Allowance for lending-related commitments | |||||||
Beginning balance | 12 | 12 | 12 | ||||
Provision for lending-related commitments | 42 | 0 | 0 | ||||
Other | 0 | 0 | 0 | ||||
Ending balance | 187 | 12 | 12 | ||||
Total allowance for credit losses | 3,823 | 2,550 | 3,446 | ||||
Allowance for loan losses by impairment methodology | |||||||
Asset-specific | (7) | 75 | 143 | ||||
Portfolio-based | 3,643 | 1,476 | 1,503 | ||||
PCI | 987 | 1,788 | |||||
Total allowance for loan losses | 2,538 | 3,434 | 3,434 | 3,636 | 2,538 | 3,434 | |
Loans by impairment methodology | |||||||
Asset-specific | 16,648 | 5,961 | 6,665 | ||||
Portfolio-based | 285,479 | 268,675 | 305,077 | ||||
PCI | 20,363 | 24,034 | |||||
Total retained loans | 302,127 | 294,999 | 335,776 | ||||
Allowance for lending-related commitments by impairment methodology | |||||||
Asset-specific | 0 | 0 | 0 | ||||
Portfolio-based | 187 | 12 | 12 | ||||
Total allowance for lending-related commitments | 12 | 12 | 12 | 187 | 12 | 12 | |
Lending-related commitments by impairment methodology | |||||||
Asset-specific | 0 | 0 | 0 | ||||
Portfolio-based | 37,783 | 30,417 | 26,502 | ||||
Total lending-related commitments | 37,783 | 30,417 | 26,502 | ||||
Credit card lending-related commitments not permitted to have an allowance for credit losses | 19,500 | 9,800 | 8,700 | ||||
Consumer, excluding credit card | PCI loans | |||||||
Allowance for loan losses | |||||||
Gross charge-offs/Write-offs of PCI loans | 151 | 187 | |||||
Consumer, excluding credit card | Collateral-dependent loans | |||||||
Allowance for loan losses | |||||||
Net charge-offs | 133 | 46 | 16 | ||||
Collateral-dependent loans | |||||||
Loans measured at fair value of collateral less cost to sell | 4,956 | 2,053 | 2,076 | ||||
Consumer, excluding credit card | Cumulative effect of change in accounting principles | |||||||
Allowance for loan losses | |||||||
Beginning balance | 297 | ||||||
Ending balance | 297 | ||||||
Allowance for lending-related commitments | |||||||
Beginning balance | 133 | ||||||
Ending balance | 133 | ||||||
Total allowance for credit losses | 400 | ||||||
Allowance for loan losses by impairment methodology | |||||||
Total allowance for loan losses | 297 | 297 | 297 | ||||
Allowance for lending-related commitments by impairment methodology | |||||||
Total allowance for lending-related commitments | 133 | 133 | 133 | ||||
Credit card | |||||||
Allowance for loan losses | |||||||
Beginning balance | 5,683 | 5,184 | 4,884 | ||||
Gross charge-offs/Write-offs of PCI loans | 5,077 | 5,436 | 5,011 | ||||
Gross recoveries collected | (791) | (588) | (493) | ||||
Net charge-offs | 4,286 | 4,848 | 4,518 | ||||
Provision for loan losses | 10,886 | 5,348 | 4,818 | ||||
Other | 0 | (1) | 0 | ||||
Ending balance | 17,800 | 5,683 | 5,184 | ||||
Allowance for lending-related commitments | |||||||
Beginning balance | 0 | 0 | 0 | ||||
Provision for lending-related commitments | 0 | 0 | 0 | ||||
Other | 0 | 0 | 0 | ||||
Ending balance | 0 | 0 | 0 | ||||
Total allowance for credit losses | 17,800 | 5,683 | 5,184 | ||||
Allowance for loan losses by impairment methodology | |||||||
Asset-specific | 633 | 477 | 440 | ||||
Portfolio-based | 17,167 | 5,206 | 4,744 | ||||
PCI | 0 | 0 | |||||
Total allowance for loan losses | 17,800 | 5,184 | 4,884 | 17,800 | 5,683 | 5,184 | |
Loans by impairment methodology | |||||||
Asset-specific | 1,375 | 1,452 | 1,319 | ||||
Portfolio-based | 142,057 | 167,472 | 155,297 | ||||
PCI | 0 | 0 | |||||
Total retained loans | 143,432 | 168,924 | 156,616 | ||||
Allowance for lending-related commitments by impairment methodology | |||||||
Asset-specific | 0 | 0 | 0 | ||||
Portfolio-based | 0 | 0 | 0 | ||||
Total allowance for lending-related commitments | 0 | 0 | 0 | 0 | 0 | 0 | |
Lending-related commitments by impairment methodology | |||||||
Asset-specific | 0 | 0 | 0 | ||||
Portfolio-based | 0 | 0 | 0 | ||||
Total lending-related commitments | 0 | 0 | 0 | ||||
Credit card lending-related commitments not permitted to have an allowance for credit losses | 658,500 | 650,700 | 605,400 | ||||
Credit card | PCI loans | |||||||
Allowance for loan losses | |||||||
Gross charge-offs/Write-offs of PCI loans | 0 | 0 | |||||
Credit card | Collateral-dependent loans | |||||||
Allowance for loan losses | |||||||
Net charge-offs | 0 | 0 | 0 | ||||
Collateral-dependent loans | |||||||
Loans measured at fair value of collateral less cost to sell | 0 | 0 | 0 | ||||
Credit card | Cumulative effect of change in accounting principles | |||||||
Allowance for loan losses | |||||||
Beginning balance | 5,517 | ||||||
Ending balance | 5,517 | ||||||
Allowance for lending-related commitments | |||||||
Beginning balance | 0 | ||||||
Ending balance | 0 | ||||||
Allowance for loan losses by impairment methodology | |||||||
Total allowance for loan losses | 5,517 | 5,517 | 5,517 | ||||
Allowance for lending-related commitments by impairment methodology | |||||||
Total allowance for lending-related commitments | 0 | 0 | 0 | ||||
Wholesale | |||||||
Allowance for loan losses | |||||||
Beginning balance | 4,902 | 4,827 | 4,828 | ||||
Gross charge-offs/Write-offs of PCI loans | 954 | 472 | 361 | ||||
Gross recoveries collected | (155) | (57) | (173) | ||||
Net charge-offs | 799 | 415 | 188 | ||||
Provision for loan losses | 4,431 | 479 | 188 | ||||
Other | 0 | 11 | (1) | ||||
Ending balance | 6,892 | 4,902 | 4,827 | ||||
Allowance for lending-related commitments | |||||||
Beginning balance | 1,179 | 1,043 | 1,056 | ||||
Provision for lending-related commitments | 1,079 | 136 | (14) | ||||
Other | (1) | 0 | 1 | ||||
Ending balance | 2,222 | 1,179 | 1,043 | ||||
Total allowance for credit losses | 9,114 | 6,081 | 5,870 | ||||
Allowance for loan losses by impairment methodology | |||||||
Asset-specific | 682 | 295 | 350 | ||||
Portfolio-based | 6,210 | 4,607 | 4,477 | ||||
PCI | 0 | 0 | |||||
Total allowance for loan losses | 6,892 | 4,827 | 4,828 | 6,892 | 4,902 | 4,827 | |
Loans by impairment methodology | |||||||
Asset-specific | 3,606 | 1,123 | 1,459 | ||||
Portfolio-based | 511,341 | 480,555 | 475,561 | ||||
PCI | 0 | 3 | |||||
Total retained loans | 514,947 | 481,678 | 477,023 | ||||
Allowance for lending-related commitments by impairment methodology | |||||||
Asset-specific | 114 | 102 | 99 | ||||
Portfolio-based | 2,108 | 1,077 | 944 | ||||
Total allowance for lending-related commitments | 1,179 | 1,179 | 1,056 | 2,222 | 1,179 | 1,043 | |
Lending-related commitments by impairment methodology | |||||||
Asset-specific | 577 | 474 | 469 | ||||
Portfolio-based | 426,871 | 392,967 | 374,996 | ||||
Total lending-related commitments | 427,448 | 393,441 | 375,465 | ||||
Credit card lending-related commitments not permitted to have an allowance for credit losses | 22,400 | 24,100 | 24,800 | ||||
Wholesale | PCI loans | |||||||
Allowance for loan losses | |||||||
Gross charge-offs/Write-offs of PCI loans | 0 | 0 | |||||
Wholesale | Collateral-dependent loans | |||||||
Allowance for loan losses | |||||||
Net charge-offs | 76 | 36 | $ 29 | ||||
Collateral-dependent loans | |||||||
Loans measured at fair value of collateral less cost to sell | $ 188 | 87 | $ 206 | ||||
Wholesale | Cumulative effect of change in accounting principles | |||||||
Allowance for loan losses | |||||||
Beginning balance | (1,642) | ||||||
Ending balance | (1,642) | ||||||
Allowance for lending-related commitments | |||||||
Beginning balance | (35) | ||||||
Ending 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) | (1,642) | ||||
Allowance for lending-related commitments by impairment methodology | |||||||
Total allowance for lending-related commitments | $ (35) | $ (35) | $ (35) |
Variable Interest Entities - Cr
Variable Interest Entities - Credit Card Securitizations (Details) - Firm-sponsored credit card trusts - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | ||
Minimum undivided interest in credit card trusts | 39.00% | 50.00% |
Undivided interests in Firm-sponsored credit card securitization trusts | $ 5,400,000,000 | $ 5,300,000,000 |
Senior securities | ||
Variable Interest Entity [Line Items] | ||
Undivided interests in Firm-sponsored credit card securitization trusts | 0 | 0 |
Subordinated securities | ||
Variable Interest Entity [Line Items] | ||
Undivided interests in Firm-sponsored credit card securitization trusts | $ 1,500,000,000 | $ 3,000,000,000 |
Minimum | ||
Variable Interest Entity [Line Items] | ||
Minimum undivided interest in credit card trusts | 5.00% |
Variable Interest Entities - Fi
Variable Interest Entities - Firm Sponsored Variable Interest Entities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Firm-sponsored mortgage and other consumer securitization trusts | ||
Total assets held by securitization VIEs | $ 182,272 | $ 186,912 |
Retained securitization interests, risk-rated 'A' or better, at fair value | 73.00% | 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 | $ 105 | $ 106 |
Subordinated securities purchased in connection with CIB's secondary market-making activities | 40 | 94 |
Residential mortgage | Investment-grade | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Fair value of retained interests | 1,300 | 1,100 |
Residential mortgage | Noninvestment-grade | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Fair value of retained interests | 41 | 72 |
Residential mortgage | Prime/Alt-A and option ARMs | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Total assets held by securitization VIEs | 49,644 | 60,348 |
Residential mortgage | Subprime | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Total assets held by securitization VIEs | 12,896 | 14,661 |
Commercial and other | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Total assets held by securitization VIEs | 119,732 | 111,903 |
Commercial and other | Investment-grade | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Fair value of retained interests | 2,000 | 1,200 |
Commercial and other | Noninvestment-grade | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Fair value of retained interests | 753 | 575 |
VIEs consolidated by the Firm | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Assets held in consolidated securitization VIEs | 1,739 | 2,796 |
VIEs consolidated by the Firm | Residential mortgage | Prime/Alt-A and option ARMs | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Assets held in consolidated securitization VIEs | 1,693 | 2,796 |
VIEs consolidated by the Firm | Residential mortgage | Subprime | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Assets held in consolidated securitization VIEs | 46 | 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 entities | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Assets held in nonconsolidated securitization VIEs with continuing involvement | 145,770 | 143,102 |
Interest in securitized assets in nonconsolidated VIEs | 4,073 | 2,966 |
Nonconsolidated entities | Trading assets | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 1,538 | 1,327 |
Nonconsolidated entities | Investment securities | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 2,273 | 1,398 |
Nonconsolidated entities | Other financial assets | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 262 | 241 |
Nonconsolidated entities | Residential mortgage | Prime/Alt-A and option ARMs | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Assets held in nonconsolidated securitization VIEs with continuing involvement | 41,265 | 48,734 |
Interest in securitized assets in nonconsolidated VIEs | 1,298 | 1,160 |
Nonconsolidated entities | Residential mortgage | Subprime | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Assets held in nonconsolidated securitization VIEs with continuing involvement | 12,154 | 13,490 |
Interest in securitized assets in nonconsolidated VIEs | 9 | 7 |
Nonconsolidated entities | Residential mortgage | Trading assets | Prime/Alt-A and option ARMs | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 574 | 535 |
Nonconsolidated entities | Residential mortgage | Trading assets | Subprime | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 9 | 7 |
Nonconsolidated entities | Residential mortgage | Investment securities | Prime/Alt-A and option ARMs | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 724 | 625 |
Nonconsolidated entities | Residential mortgage | Investment securities | Subprime | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 0 | 0 |
Nonconsolidated entities | Residential mortgage | Other financial assets | Prime/Alt-A and option ARMs | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 0 | 0 |
Nonconsolidated entities | Residential mortgage | Other financial assets | Subprime | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 0 | 0 |
Nonconsolidated entities | Commercial and other | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Assets held in nonconsolidated securitization VIEs with continuing involvement | 92,351 | 80,878 |
Interest in securitized assets in nonconsolidated VIEs | 2,766 | 1,799 |
Nonconsolidated entities | Commercial and other | Trading assets | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 955 | 785 |
Nonconsolidated entities | Commercial and other | Investment securities | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | 1,549 | 773 |
Nonconsolidated entities | Commercial and other | Other financial assets | ||
Firm-sponsored mortgage and other consumer securitization trusts | ||
Interest in securitized assets in nonconsolidated VIEs | $ 262 | $ 241 |
Variable Interest Entities - Re
Variable Interest Entities - Re-securitizations (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Transfers of securities to VIEs | |||
U.S. GSEs and government agencies | $ 46,123,000,000 | $ 25,852,000,000 | $ 15,532,000,000 |
Private label securities transferred to re-securitization VIEs | 0 | 0 | $ 0 |
U.S. GSEs and government agencies | Nonconsolidated re-securitization VIEs | |||
Variable Interest Entity [Line Items] | |||
Interest in VIEs | $ 2,631,000,000 | $ 2,928,000,000 |
Variable Interest Entities - Mu
Variable Interest Entities - Multi-seller Conduits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Line Items] | ||
Off-balance sheet lending-related financial commitments, contractual amount | $ 1,165,688 | $ 1,108,399 |
Firm-administered multi-seller conduits | ||
Variable Interest Entity [Line Items] | ||
Commercial paper eliminated in consolidation | 13,500 | 16,300 |
Commercial and other | Firm-administered multi-seller conduits | ||
Variable Interest Entity [Line Items] | ||
Off-balance sheet lending-related financial commitments, contractual amount | $ 12,200 | $ 8,900 |
Maximum | ||
Variable Interest Entity [Line Items] | ||
Program-wide credit enhancement required amount | 10.00% |
Variable Interest Entities - Co
Variable Interest Entities - Consolidated VIE Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Trading assets | [1] | $ 503,126 | $ 369,687 | |||
Loans | 960,506 | 945,601 | $ 969,415 | |||
Other | [1] | 152,853 | 130,395 | |||
Total assets | 3,386,071 | [2] | 2,687,379 | [2] | $ 2,622,532 | |
Beneficial interests in VIE assets | 17,578 | 17,841 | ||||
Total liabilities | [2] | 3,106,717 | 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 | 1,934 | 2,633 | ||||
Loans | 37,619 | 42,931 | ||||
Other | 681 | 881 | ||||
Total assets | 40,234 | 46,445 | ||||
Beneficial interests in VIE assets | 17,578 | 17,841 | ||||
Other | 233 | 447 | ||||
Total liabilities | 17,811 | 18,288 | ||||
Beneficial interests in VIE assets, long term | 5,200 | 6,700 | ||||
Firm-sponsored credit card trusts | VIEs consolidated by the Firm | ||||||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Trading assets | 0 | 0 | ||||
Loans | 11,962 | 14,986 | ||||
Other | 148 | 266 | ||||
Total assets | 12,110 | 15,252 | ||||
Beneficial interests in VIE assets | 4,943 | 6,461 | ||||
Other | 3 | 6 | ||||
Total liabilities | 4,946 | 6,467 | ||||
Firm-administered multi-seller conduits | VIEs consolidated by the Firm | ||||||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Trading assets | 2 | 1 | ||||
Loans | 23,787 | 25,183 | ||||
Other | 188 | 355 | ||||
Total assets | 23,977 | 25,539 | ||||
Beneficial interests in VIE assets | 10,523 | 9,223 | ||||
Other | 33 | 36 | ||||
Total liabilities | 10,556 | 9,259 | ||||
Municipal bond vehicles | VIEs consolidated by the Firm | ||||||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Trading assets | 1,930 | 1,903 | ||||
Loans | 0 | 0 | ||||
Other | 2 | 4 | ||||
Total assets | 1,932 | 1,907 | ||||
Beneficial interests in VIE assets | 1,902 | 1,881 | ||||
Other | 0 | 3 | ||||
Total liabilities | 1,902 | 1,884 | ||||
Mortgage securitization entities | VIEs consolidated by the Firm | ||||||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Trading assets | 0 | 66 | ||||
Loans | 1,694 | 2,762 | ||||
Other | 94 | 64 | ||||
Total assets | 1,788 | 2,892 | ||||
Beneficial interests in VIE assets | 210 | 276 | ||||
Other | 108 | 130 | ||||
Total liabilities | 318 | 406 | ||||
Other | VIEs consolidated by the Firm | ||||||
Information on assets and liabilities related to VIEs that are consolidated by the Firm [Abstract] | ||||||
Trading assets | 2 | 663 | ||||
Loans | 176 | 0 | ||||
Other | 249 | 192 | ||||
Total assets | 427 | 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 December 31, 2020 and 2019. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests do not have recourse to the general credit of JPMorgan Chase. 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. December 31, (in millions) 2020 2019 Assets Trading assets $ 1,934 $ 2,633 Loans 37,619 42,931 All other assets 681 881 Total assets $ 40,234 $ 46,445 Liabilities Beneficial interests issued by consolidated VIEs $ 17,578 $ 17,841 All other liabilities 233 447 Total liabilities $ 17,811 $ 18,288 |
Variable Interest Entities - VI
Variable Interest Entities - VIEs Sponsored by Third Parties (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Variable Interest Entity [Line Items] | |||||
Fair value of assets held by VIE | $ 3,386,071 | [1] | $ 2,687,379 | [1] | $ 2,622,532 |
Tax credit vehicles | Nonconsolidated entities | |||||
Variable Interest Entity [Line Items] | |||||
Maximum exposure | 24,900 | 19,100 | |||
Unfunded commitments | 8,700 | 5,500 | |||
Municipal bond vehicles | Nonconsolidated entities | |||||
Variable Interest Entity [Line Items] | |||||
Maximum exposure | 6,700 | 5,500 | |||
Fair value of assets held by VIE | $ 10,500 | $ 8,600 | |||
[1] | The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at December 31, 2020 and 2019. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests do not have recourse to the general credit of JPMorgan Chase. 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. December 31, (in millions) 2020 2019 Assets Trading assets $ 1,934 $ 2,633 Loans 37,619 42,931 All other assets 681 881 Total assets $ 40,234 $ 46,445 Liabilities Beneficial interests issued by consolidated VIEs $ 17,578 $ 17,841 All other liabilities 233 447 Total liabilities $ 17,811 $ 18,288 |
Variable Interest Entities - Se
Variable Interest Entities - Securitization Activity (Details) - Nonconsolidated entities - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Residential mortgage | |||
Securitization activity [Abstract] | |||
Principal securitized | $ 7,103 | $ 9,957 | $ 6,431 |
All cash flows during the period: | |||
Proceeds received from loan sales as financial instruments | 7,321 | 10,238 | 6,449 |
Servicing fees collected | 211 | 287 | 319 |
Cash flows received on interests | $ 801 | $ 507 | $ 411 |
Weighted-average life (in years) | 4 years 8 months 12 days | 4 years 9 months 18 days | 7 years 7 months 6 days |
Weighted-average discount rate | 8.20% | 7.40% | 3.60% |
Commercial and other | |||
Securitization activity [Abstract] | |||
Principal securitized | $ 6,624 | $ 9,390 | $ 10,159 |
All cash flows during the period: | |||
Proceeds received from loan sales as financial instruments | 6,865 | 9,544 | 10,218 |
Servicing fees collected | 1 | 2 | 2 |
Cash flows received on interests | $ 239 | $ 237 | $ 301 |
Weighted-average life (in years) | 6 years 10 months 24 days | 6 years 4 months 24 days | 5 years 3 months 18 days |
Weighted-average discount rate | 3.00% | 4.10% | 4.00% |
Variable Interest Entities - Lo
Variable Interest Entities - Loans Sold to Third-Party Sponsored Securitization Entities (Details) - Nonconsolidated entities - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of loan sale activities [Abstract] | |||
Carrying value of loans sold | $ 81,153 | $ 92,349 | $ 44,609 |
Proceeds received from loan sales as cash | 45 | 73 | 9 |
Proceeds from loan sales as securities | 80,186 | 91,422 | 43,671 |
Total proceeds received from loan sales | 80,231 | 91,495 | 43,680 |
Gains/(losses) on loan sales | $ 6 | $ 499 | $ (93) |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of Loans Repurchased and Option to Repurchase Delinquent Loans (Details) - Nonconsolidated entities - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
Loans repurchased or option to repurchase | $ 1,413 | $ 2,941 |
Real estate acquired through foreclosure | 9 | 41 |
Residential mortgage | ||
Variable Interest Entity [Line Items] | ||
Real estate acquired through foreclosure | $ 64 | $ 198 |
Variable Interest Entities - _2
Variable Interest Entities - Loan Delinquencies and Net Charge-offs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | 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 | $ 13,352 | $ 4,449 |
Net liquidation losses | 421 | 1,556 |
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 | 5,958 | 187 |
Net liquidation losses | 30 | 445 |
Nonconsolidated entities | ||
Information about delinquencies, net charge-offs, and components of off-balance sheet securitized financial assets [Abstract] | ||
Securitized assets | 145,770 | 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 | 92,351 | 80,878 |
Prime/Alt-A and option ARMs | Securitized loans | Residential mortgage | ||
Information about delinquencies, net charge-offs, and components of off-balance sheet securitized financial assets [Abstract] | ||
90 days past due | 4,988 | 2,449 |
Net liquidation losses | 212 | 579 |
Prime/Alt-A and option ARMs | Nonconsolidated entities | Residential mortgage | ||
Information about delinquencies, net charge-offs, and components of off-balance sheet securitized financial assets [Abstract] | ||
Securitized assets | 41,265 | 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 | 2,406 | 1,813 |
Net liquidation losses | 179 | 532 |
Subprime | Nonconsolidated entities | Residential mortgage | ||
Information about delinquencies, net charge-offs, and components of off-balance sheet securitized financial assets [Abstract] | ||
Securitized assets | $ 12,154 | $ 13,490 |
Goodwill and Mortgage Servici_3
Goodwill and Mortgage Servicing Rights - by Business Segment (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill [Line Items] | |||||
Total goodwill | $ 49,248 | $ 47,823 | $ 47,471 | $ 47,507 | |
Consumer & Community Banking | |||||
Goodwill [Line Items] | |||||
Total goodwill | 31,311 | 30,133 | 30,084 | ||
Consumer & Community Banking | Revisions | |||||
Goodwill [Line Items] | |||||
Total goodwill | 51 | $ (959) | |||
Corporate & Investment Bank | |||||
Goodwill [Line Items] | |||||
Total goodwill | 7,913 | 7,901 | 7,721 | ||
Corporate & Investment Bank | Revisions | |||||
Goodwill [Line Items] | |||||
Total goodwill | $ 959 | ||||
Commercial Banking | |||||
Goodwill [Line Items] | |||||
Total goodwill | 2,985 | 2,982 | 2,860 | ||
Asset & Wealth Management | |||||
Goodwill [Line Items] | |||||
Total goodwill | 7,039 | $ 6,807 | $ 6,806 | ||
Asset & Wealth Management | Revisions | |||||
Goodwill [Line Items] | |||||
Total goodwill | $ (51) |
Goodwill and Mortgage Servici_4
Goodwill and Mortgage Servicing Rights - Changes During Period (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in the carrying amount of goodwill [Abstract] | |||
Balance at beginning of period | $ 47,823 | $ 47,471 | $ 47,507 |
Changes during the period from: | |||
Business combinations | 1,412 | 349 | 0 |
Other | 13 | 3 | (36) |
Balance at end of period | $ 49,248 | $ 47,823 | $ 47,471 |
Goodwill and Mortgage Servici_5
Goodwill and Mortgage Servicing Rights - Mortgage Servicing Rights (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Mortgage servicing rights activity | |||
Fair value at beginning of period | $ 4,699 | $ 6,130 | $ 6,030 |
MSR activity: | |||
Originations of MSRs | 944 | 1,384 | 931 |
Purchase of MSRs | 248 | 105 | 315 |
Disposition of MSRs | (176) | (789) | (636) |
Net additions/(Dispositions) | 1,016 | 700 | 610 |
Changes due to collection/realization of expected cash flows | (899) | (951) | (740) |
Changes in valuation due to inputs and assumptions: | |||
Changes due to market interest rates and other | (1,568) | (893) | 300 |
Changes in valuation due to other inputs and assumptions: | |||
Projected cash flows (e.g., cost to service) | (54) | (333) | 15 |
Discount rates | 199 | 153 | 24 |
Prepayment model changes and other | (117) | (107) | (109) |
Total changes in valuation due to other inputs and assumptions | 28 | (287) | (70) |
Total changes in valuation due to inputs and assumptions | (1,540) | (1,180) | 230 |
Fair value at December 31, | 3,276 | 4,699 | 6,130 |
Change in unrealized gains/(losses) included in income related to MSRs held at December 31, | (1,540) | (1,180) | 230 |
Contractual service fees, late fees and other ancillary fees included in income | 1,325 | 1,639 | 1,778 |
Third-party mortgage loans serviced at December 31, | 448,000 | 522,000 | 521,000 |
Servicer advances, net of an allowance for uncollectible amounts, at December 31, | $ 1,800 | $ 2,000 | $ 3,000 |
Goodwill and Mortgage Servici_6
Goodwill and Mortgage Servicing Rights - Mortgage Fees and Related Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Risk management: | |||
All other | $ 12 | $ 1 | $ 2 |
Mortgage fees and related income | 3,091 | 2,036 | 1,254 |
Consumer & Community Banking | |||
CCB mortgage fees and related income | |||
Net production revenue | 2,629 | 1,618 | 268 |
Operating revenue: | |||
Loan servicing revenue | 1,367 | 1,533 | 1,835 |
Changes in MSR asset fair value due to collection/realization of expected cash flows | (899) | (951) | (740) |
Total operating revenue | 468 | 582 | 1,095 |
Risk management: | |||
Changes in MSR asset fair value due to market interest rates and other | (1,568) | (893) | 300 |
Other changes in MSR asset fair value due to other inputs and assumptions in model | 28 | (287) | (70) |
Change in derivative fair value and other | 1,522 | 1,015 | (341) |
Total risk management | (18) | (165) | (111) |
Total net mortgage servicing revenue | 450 | 417 | 984 |
Mortgage fees and related income | $ 3,079 | $ 2,035 | $ 1,252 |
Goodwill and Mortgage Servici_7
Goodwill and Mortgage Servicing Rights - Key Economic Assumptions (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Weighted-average prepayment speed assumption (constant prepayment rate) | 14.90% | 11.67% |
Impact on fair value of 10% adverse change | $ (206) | $ (200) |
Impact on fair value of 20% adverse change | $ (392) | $ (384) |
Weighted-average option adjusted spread | 7.19% | 7.93% |
Impact on fair value of 100 basis points adverse change | $ (134) | $ (169) |
Impact on fair value of 200 basis points adverse change | $ (258) | $ (326) |
Deposits - Noninterest and Inte
Deposits - Noninterest and Interest-bearing (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
U.S. offices | ||
Noninterest-bearing (included $9,873 and $22,637 at fair value) | $ 572,711 | $ 395,667 |
Interest-bearing (included $2,567 and $2,534 at fair value) | 1,197,032 | 876,156 |
Total deposits in U.S. offices | 1,769,743 | 1,271,823 |
Non-U.S. offices | ||
Noninterest-bearing (included $1,486 and $1,980 at fair value) | 23,435 | 20,087 |
Interest-bearing (included $558 and $1,438 at fair value) | 351,079 | 270,521 |
Total deposits in non-U.S. offices | 374,514 | 290,608 |
Total deposits | 2,144,257 | 1,562,431 |
Fair value | ||
U.S. offices | ||
Noninterest-bearing (included $9,873 and $22,637 at fair value) | 9,873 | 22,637 |
Interest-bearing, fair value | 2,567 | 2,534 |
Non-U.S. offices | ||
Noninterest-bearing (included $1,486 and $1,980 at fair value) | 1,486 | 1,980 |
Interest-bearing, fair value | $ 558 | $ 1,438 |
Deposits - Time Deposits (Detai
Deposits - Time Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Time Deposits [Line Items] | ||
Total | $ 84,335 | $ 94,967 |
U.S. offices | ||
Time Deposits [Line Items] | ||
Total | 33,812 | 44,127 |
Non-U.S. offices | ||
Time Deposits [Line Items] | ||
Total | $ 50,523 | $ 50,840 |
Deposits - Maturities of Intere
Deposits - Maturities of Interest-Bearing Time Deposits (Details) $ in Millions | Dec. 31, 2020USD ($) |
Maturities of interest bearing time deposits | |
2021 | $ 92,927 |
2022 | 1,626 |
2023 | 266 |
2024 | 246 |
2025 | 830 |
After 5 years | 749 |
Total | 96,644 |
U.S. | |
Maturities of interest bearing time deposits | |
2021 | 44,785 |
2022 | 1,451 |
2023 | 259 |
2024 | 210 |
2025 | 197 |
After 5 years | 451 |
Total | 47,353 |
Non-U.S. | |
Maturities of interest bearing time deposits | |
2021 | 48,142 |
2022 | 175 |
2023 | 7 |
2024 | 36 |
2025 | 633 |
After 5 years | 298 |
Total | $ 49,291 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Billions | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
Operating lease, general lease terms (or less) | 20 years |
Additional future operating lease commitments not yet commenced | $ 1.2 |
Operating leases not yet commenced, lease terms (up to) | 25 years |
Leases - Information Related to
Leases - Information Related to Operating Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | us-gaap:PropertyPlantAndEquipmentNet |
Right-of-use assets | $ 8,006 | $ 8,190 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent |
Lease liabilities | $ 8,508 | $ 8,505 |
Weighted average remaining lease term (in years) | 8 years 8 months 12 days | 8 years 9 months 18 days |
Weighted average discount rate | 3.48% | 3.68% |
Supplemental cash flow information | ||
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows | $ 1,626 | $ 1,572 |
Supplemental non-cash information | ||
Right-of-use assets obtained in exchange for operating lease obligations | 1,350 | 1,413 |
Rental expense | ||
Gross rental expense | 2,094 | 2,057 |
Sublease rental income | (166) | (184) |
Net rental expense | $ 1,928 | $ 1,873 |
Leases - Future Payments Under
Leases - Future Payments Under Operating Leases (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
2021 | $ 1,606 | |
2022 | 1,435 | |
2023 | 1,270 | |
2024 | 1,123 | |
2025 | 947 | |
After 2025 | 3,602 | |
Total future minimum lease payments | 9,983 | |
Less: Imputed interest | (1,475) | |
Total | $ 8,508 | $ 8,505 |
Leases - Carrying Value of Asse
Leases - Carrying Value of Assets Subject to Operating Leases (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Lessee, Lease, Description [Line Items] | ||
Carrying value of assets subject to operating leases, net of accumulated depreciation | $ 27,109 | $ 25,813 |
Assets subject to operating leases | ||
Lessee, Lease, Description [Line Items] | ||
Carrying value of assets subject to operating leases, net of accumulated depreciation | 21,155 | 23,587 |
Accumulated depreciation | $ 6,388 | $ 6,121 |
Leases - Operating Lease Income
Leases - Operating Lease Income and Related Depreciation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Operating lease income | $ 5,539 | $ 5,455 | |
Operating lease income | $ 4,540 | ||
Lessee, Lease, Description [Line Items] | |||
Depreciation expense | $ 3,522 | ||
Assets subject to operating leases | |||
Lessee, Lease, Description [Line Items] | |||
Depreciation expense | $ 4,257 | $ 4,157 |
Leases - Future Receipts Under
Leases - Future Receipts Under Operating Leases (Details) $ in Millions | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 3,686 |
2022 | 2,084 |
2023 | 613 |
2024 | 52 |
2025 | 24 |
After 2025 | 34 |
Total future minimum lease receipts | $ 6,493 |
Accounts Payable and Other Li_3
Accounts Payable and Other Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Brokerage payables | $ 140,291 | $ 118,375 |
Other payables and liabilities | 92,308 | 92,032 |
Total accounts payable and other liabilities | 232,599 | 210,407 |
Credit card rewards liability | $ 7,700 | $ 6,400 |
Long-term Debt - Summary of Lon
Long-term Debt - Summary of Long-Term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Long-term debt carrying values by contractual maturity | ||
Under 1 year | $ 26,934 | |
1-5 years | 97,268 | |
After 5 years | 157,483 | |
Long-term debt | $ 281,685 | $ 291,498 |
Long Term Debt - Supplemental Information | ||
Interest rate modified for the effects of hedge accounting, Minimum | (0.40%) | |
Interest rate modified for the effects of hedge accounting, Maximum | 7.28% | |
Collateral used to secure Long-term debt | $ 166,400 | 186,100 |
Zero-coupon notes | 16,100 | 14,000 |
Zero-coupon notes - aggregate principal amount at maturity | 45,300 | $ 39,700 |
Redeemable long-term debt | 151,300 | |
Long term debt maturing in 2022 | 18,400 | |
Long term debt maturing in 2023 | 32,200 | |
Long term debt maturing in 2024 | 29,600 | |
Long term debt maturing in 2025 | $ 17,100 | |
Weighted-average contractual interest rates for long term debt | 2.89% | 3.13% |
Modified weighted-average interest rates total long-term debt | 1.58% | 3.19% |
Guarantee of Indebtedness of Others | ||
Long Term Debt - Supplemental Information | ||
Guarantee liability | $ 13,800 | $ 14,400 |
Recurring | ||
Long Term Debt - Supplemental Information | ||
Long-term debt accounted for at fair value | 76,817 | 75,745 |
Beneficial interest, fair value disclosures | 41 | 36 |
Long-term beneficial interests | ||
Long-term debt carrying values by contractual maturity | ||
Under 1 year | 2,549 | |
1-5 years | 2,394 | |
After 5 years | 210 | |
Long-term debt | $ 5,153 | 6,738 |
Under 1 year, Minimum | 0.36% | |
Under 1 year, Maximum | 2.77% | |
1-5 years, Minimum | 0.00% | |
1-5 years, Maximum | 2.39% | |
After 5 years, Minimum | 0.00% | |
After 5 years, maximum | 3.75% | |
Long Term Debt - Supplemental Information | ||
Commercial paper and other short-term beneficial interests | $ 12,400 | 11,100 |
Junior subordinated debt | ||
Long-term debt carrying values by contractual maturity | ||
Under 1 year | 0 | |
1-5 years | 0 | |
After 5 years | 2,035 | |
Long-term debt | $ 2,035 | 2,123 |
Under 1 year, Minimum | 0.00% | |
Under 1 year, Maximum | 0.00% | |
1-5 years, Minimum | 0.00% | |
1-5 years, Maximum | 0.00% | |
After 5 years, Minimum | 0.71% | |
After 5 years, maximum | 8.75% | |
Secured debt | ||
Long Term Debt - Supplemental Information | ||
Long-term debt | $ 17,200 | $ 32,000 |
Minimum | ||
Long-term debt carrying values by contractual maturity | ||
Interest rate | 0.17% | |
Minimum | Long-term beneficial interests | ||
Long-term debt carrying values by contractual maturity | ||
Interest rate | 0.00% | 0.00% |
Minimum | Junior subordinated debt | ||
Long-term debt carrying values by contractual maturity | ||
Interest rate | 0.71% | 2.41% |
Maximum | ||
Long-term debt carrying values by contractual maturity | ||
Interest rate | 8.75% | |
Maximum | Long-term beneficial interests | ||
Long-term debt carrying values by contractual maturity | ||
Interest rate | 3.75% | 4.06% |
Maximum | Junior subordinated debt | ||
Long-term debt carrying values by contractual maturity | ||
Interest rate | 8.75% | 8.75% |
Fixed rate | Long-term beneficial interests | ||
Long-term debt carrying values by contractual maturity | ||
Under 1 year | $ 625 | |
1-5 years | 1,744 | |
After 5 years | 0 | |
Long-term debt | 2,369 | $ 2,990 |
Fixed rate | Junior subordinated debt | ||
Long-term debt carrying values by contractual maturity | ||
Under 1 year | 0 | |
1-5 years | 0 | |
After 5 years | 738 | |
Long-term debt | 738 | 693 |
Variable rate | Long-term beneficial interests | ||
Long-term debt carrying values by contractual maturity | ||
Under 1 year | 1,924 | |
1-5 years | 650 | |
After 5 years | 210 | |
Long-term debt | 2,784 | 3,748 |
Variable rate | Junior subordinated debt | ||
Long-term debt carrying values by contractual maturity | ||
Under 1 year | 0 | |
1-5 years | 0 | |
After 5 years | 1,297 | |
Long-term debt | 1,297 | 1,430 |
Parent company | ||
Long-term debt carrying values by contractual maturity | ||
Under 1 year | 10,805 | |
1-5 years | 64,309 | |
After 5 years | 136,235 | |
Long-term debt | 211,349 | 194,977 |
Long Term Debt - Supplemental Information | ||
Long-term debt | 213,384 | $ 197,100 |
Long term debt maturing in 2022 | 10,000 | |
Long term debt maturing in 2023 | 19,100 | |
Long term debt maturing in 2024 | 21,800 | |
Long term debt maturing in 2025 | $ 13,500 | |
Parent company | Senior debt | ||
Long-term debt carrying values by contractual maturity | ||
Under 1 year, Minimum | 1.33% | |
Under 1 year, Maximum | 4.63% | |
1-5 years, Minimum | 0.50% | |
1-5 years, Maximum | 4.50% | |
After 5 years, Minimum | 0.17% | |
After 5 years, maximum | 6.40% | |
Parent company | Subordinated debt | ||
Long-term debt carrying values by contractual maturity | ||
Under 1 year, Minimum | 0.00% | |
Under 1 year, Maximum | 0.00% | |
1-5 years, Minimum | 3.38% | |
1-5 years, Maximum | 7.75% | |
After 5 years, Minimum | 2.96% | |
After 5 years, maximum | 8.00% | |
Parent company | Minimum | Senior debt | ||
Long-term debt carrying values by contractual maturity | ||
Interest rate | 0.17% | 0.15% |
Parent company | Minimum | Subordinated debt | ||
Long-term debt carrying values by contractual maturity | ||
Interest rate | 2.96% | 3.38% |
Parent company | Maximum | Senior debt | ||
Long-term debt carrying values by contractual maturity | ||
Interest rate | 6.40% | 6.40% |
Parent company | Maximum | Subordinated debt | ||
Long-term debt carrying values by contractual maturity | ||
Interest rate | 8.00% | 8.00% |
Parent company | Fixed rate | Senior debt | ||
Long-term debt carrying values by contractual maturity | ||
Under 1 year | $ 9,225 | |
1-5 years | 49,987 | |
After 5 years | 114,296 | |
Long-term debt | 173,508 | $ 161,198 |
Parent company | Fixed rate | Subordinated debt | ||
Long-term debt carrying values by contractual maturity | ||
Under 1 year | 0 | |
1-5 years | 5,678 | |
After 5 years | 13,577 | |
Long-term debt | 19,255 | 15,155 |
Parent company | Variable rate | Senior debt | ||
Long-term debt carrying values by contractual maturity | ||
Under 1 year | 1,580 | |
1-5 years | 8,644 | |
After 5 years | 8,353 | |
Long-term debt | 18,577 | 18,615 |
Parent company | Variable rate | Subordinated debt | ||
Long-term debt carrying values by contractual maturity | ||
Under 1 year | 0 | |
1-5 years | 0 | |
After 5 years | 9 | |
Long-term debt | 9 | 9 |
Subsidiaries | ||
Long-term debt carrying values by contractual maturity | ||
Under 1 year | 16,129 | |
1-5 years | 32,959 | |
After 5 years | 19,213 | |
Long-term debt | $ 68,301 | $ 94,398 |
Subsidiaries | Federal Home Loan Banks (“FHLB”) advances | ||
Long-term debt carrying values by contractual maturity | ||
Under 1 year, Minimum | 0.57% | |
Under 1 year, Maximum | 0.60% | |
1-5 years, Minimum | 0.19% | |
1-5 years, Maximum | 0.24% | |
After 5 years, Minimum | 4.66% | |
After 5 years, maximum | 7.73% | |
Subsidiaries | Senior debt | ||
Long-term debt carrying values by contractual maturity | ||
Under 1 year, Minimum | 0.00% | |
Under 1 year, Maximum | 0.00% | |
1-5 years, Minimum | 7.28% | |
1-5 years, Maximum | 7.28% | |
After 5 years, Minimum | 1.00% | |
After 5 years, maximum | 1.30% | |
Subsidiaries | Subordinated debt | ||
Long-term debt carrying values by contractual maturity | ||
Under 1 year, Minimum | 0.00% | |
Under 1 year, Maximum | 0.00% | |
1-5 years, Minimum | 8.25% | |
1-5 years, Maximum | 8.25% | |
After 5 years, Minimum | 0.00% | |
After 5 years, maximum | 0.00% | |
Subsidiaries | Minimum | Federal Home Loan Banks (“FHLB”) advances | ||
Long-term debt carrying values by contractual maturity | ||
Interest rate | 0.19% | 1.67% |
Subsidiaries | Minimum | Senior debt | ||
Long-term debt carrying values by contractual maturity | ||
Interest rate | 1.00% | 1.00% |
Subsidiaries | Minimum | Subordinated debt | ||
Long-term debt carrying values by contractual maturity | ||
Interest rate | 8.25% | 8.25% |
Subsidiaries | Maximum | Federal Home Loan Banks (“FHLB”) advances | ||
Long-term debt carrying values by contractual maturity | ||
Interest rate | 7.73% | 8.31% |
Subsidiaries | Maximum | Senior debt | ||
Long-term debt carrying values by contractual maturity | ||
Interest rate | 7.28% | 9.43% |
Subsidiaries | Maximum | Subordinated debt | ||
Long-term debt carrying values by contractual maturity | ||
Interest rate | 8.25% | 8.25% |
Subsidiaries | Fixed rate | Federal Home Loan Banks (“FHLB”) advances | ||
Long-term debt carrying values by contractual maturity | ||
Under 1 year | $ 7 | |
1-5 years | 45 | |
After 5 years | 71 | |
Long-term debt | 123 | $ 135 |
Subsidiaries | Fixed rate | Senior debt | ||
Long-term debt carrying values by contractual maturity | ||
Under 1 year | 1,067 | |
1-5 years | 3,157 | |
After 5 years | 11,534 | |
Long-term debt | 15,758 | 19,597 |
Subsidiaries | Fixed rate | Subordinated debt | ||
Long-term debt carrying values by contractual maturity | ||
Under 1 year | 0 | |
1-5 years | 309 | |
After 5 years | 0 | |
Long-term debt | 309 | 305 |
Subsidiaries | Variable rate | Federal Home Loan Banks (“FHLB”) advances | ||
Long-term debt carrying values by contractual maturity | ||
Under 1 year | 3,000 | |
1-5 years | 11,000 | |
After 5 years | 0 | |
Long-term debt | 14,000 | 28,500 |
Subsidiaries | Variable rate | Senior debt | ||
Long-term debt carrying values by contractual maturity | ||
Under 1 year | 12,055 | |
1-5 years | 18,448 | |
After 5 years | 7,608 | |
Long-term debt | 38,111 | 45,861 |
Subsidiaries | Variable rate | Subordinated debt | ||
Long-term debt carrying values by contractual maturity | ||
Under 1 year | 0 | |
1-5 years | 0 | |
After 5 years | 0 | |
Long-term debt | $ 0 | $ 0 |
Preferred Stock (Details)
Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions | May 15, 2020 | Apr. 30, 2020 | Mar. 13, 2020 | Mar. 01, 2020 | Dec. 10, 2019 | Dec. 01, 2019 | Nov. 15, 2019 | Oct. 30, 2019 | Oct. 09, 2019 | Sep. 09, 2019 | Sep. 01, 2019 | Aug. 15, 2019 | Jul. 10, 2019 | Jun. 30, 2019 | Apr. 12, 2019 | Mar. 01, 2019 | Dec. 01, 2018 | Apr. 29, 2018 | Dec. 31, 2019 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||||||||||||||||||||
Shares of preferred stock authorized to issue, in one or more series (in shares) | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | |||||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 | $ 1 | $ 1 | |||||||||||||||||||||
Shares (in shares) | 2,699,250 | 3,006,250 | 3,006,250 | 2,699,250 | |||||||||||||||||||||
Carrying value | $ 26,993 | $ 30,063 | $ 30,063 | $ 26,993 | |||||||||||||||||||||
Liquidation value and redemption price per share (in dollars per share) | $ 10,000 | $ 10,000 | |||||||||||||||||||||||
Aggregate liquidation value | $ 30,500 | $ 30,500 | |||||||||||||||||||||||
Series P | |||||||||||||||||||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||||||||||||||||||||
Shares (in shares) | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Carrying value | $ 0 | $ 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 | $ 545 | $ 545 | ||||||||||||||||||||||
Preferred stock, shares 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 | 0 | |||||||||||||||||||||
Carrying value | $ 0 | $ 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 | $ 167.50 | 670 | ||||||||||||||||||||||
Preferred stock, shares 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 | 0 | |||||||||||||||||||||
Carrying value | $ 0 | $ 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 | $ 472.50 | 630 | ||||||||||||||||||||||
Preferred stock, shares 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) | 143,000 | 0 | 0 | 143,000 | |||||||||||||||||||||
Carrying value | $ 1,430 | $ 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) | $ 153.13 | $ 612.52 | 612.52 | ||||||||||||||||||||||
Preferred stock, shares 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 | 142,500 | |||||||||||||||||||||
Carrying value | $ 1,425 | $ 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) | $ 610 | $ 610 | 610 | ||||||||||||||||||||||
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 | 115,000 | |||||||||||||||||||||
Carrying value | $ 1,150 | $ 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) | $ 615 | $ 615 | 615 | ||||||||||||||||||||||
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 | 169,625 | |||||||||||||||||||||
Carrying value | $ 1,696 | $ 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) | $ 111.81 | $ 575 | $ 575 | 111.81 | |||||||||||||||||||||
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 | 185,000 | |||||||||||||||||||||
Carrying value | $ 1,850 | $ 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 | $ 211.67 | $ 600 | $ 511.67 | ||||||||||||||||||||
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 | 90,000 | |||||||||||||||||||||
Carrying value | $ 900 | $ 900 | $ 900 | $ 900 | |||||||||||||||||||||
Issue date | Nov. 7, 2019 | ||||||||||||||||||||||||
Contractual rate in effect | 4.75% | ||||||||||||||||||||||||
Dividend declared per share (in dollars per share) | $ 0 | $ 506.67 | |||||||||||||||||||||||
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 | 293,375 | |||||||||||||||||||||
Carrying value | $ 2,934 | $ 2,934 | $ 2,934 | $ 2,934 | |||||||||||||||||||||
Issue date | Apr. 23, 2008 | ||||||||||||||||||||||||
Contractual rate in effect | 7.90% | ||||||||||||||||||||||||
Dividend declared per share (in dollars per share) | $ 395 | $ 428.03 | $ 593.23 | 646.38 | |||||||||||||||||||||
Preferred stock, shares 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 | 150,000 | |||||||||||||||||||||
Carrying value | $ 1,500 | $ 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) | $ 515 | $ 515 | 515 | ||||||||||||||||||||||
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 | 150,000 | |||||||||||||||||||||
Carrying value | $ 1,500 | $ 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) | $ 600 | $ 600 | 600 | ||||||||||||||||||||||
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 | 200,000 | |||||||||||||||||||||
Carrying value | $ 2,000 | $ 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) | $ 675 | $ 675 | 675 | ||||||||||||||||||||||
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 | 100,000 | |||||||||||||||||||||
Carrying value | $ 1,000 | $ 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) | $ 612.50 | $ 612.50 | 612.50 | ||||||||||||||||||||||
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 | 250,000 | |||||||||||||||||||||
Carrying value | $ 2,500 | $ 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) | $ 139.98 | $ 144.11 | $ 250 | $ 436.85 | $ 534.09 | 500 | |||||||||||||||||||
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 | 160,000 | |||||||||||||||||||||
Carrying value | $ 1,600 | $ 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) | $ 610 | $ 610 | 610 | ||||||||||||||||||||||
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 | 200,000 | |||||||||||||||||||||
Carrying value | $ 2,000 | $ 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) | $ 453.52 | $ 530 | 530 | ||||||||||||||||||||||
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 | 125,750 | |||||||||||||||||||||
Carrying value | $ 1,258 | $ 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) | $ 462.50 | $ 462.50 | $ 462.50 | ||||||||||||||||||||||
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 | 225,000 | |||||||||||||||||||||
Carrying value | $ 2,250 | $ 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 | $ 500 | $ 251.39 | |||||||||||||||||||||
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) | 0 | 300,000 | 300,000 | 0 | |||||||||||||||||||||
Carrying value | $ 0 | $ 3,000 | $ 3,000 | $ 0 | |||||||||||||||||||||
Issue date | Jan. 23, 2020 | ||||||||||||||||||||||||
Contractual rate in effect | 4.60% | ||||||||||||||||||||||||
Dividend declared per share (in dollars per share) | $ 125.22 | $ 115 | $ 115 | $ 115 | $ 470.22 | ||||||||||||||||||||
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) | 0 | 150,000 | 150,000 | 0 | |||||||||||||||||||||
Carrying value | $ 0 | $ 1,500 | $ 1,500 | $ 0 | |||||||||||||||||||||
Issue date | Feb. 24, 2020 | ||||||||||||||||||||||||
Contractual rate in effect | 4.00% | ||||||||||||||||||||||||
Dividend declared per share (in dollars per share) | $ 141.11 | $ 100 | $ 100 | $ 341.11 | |||||||||||||||||||||
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 |
Common Stock - Narrative (Detai
Common Stock - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 18, 2020 | Dec. 31, 2019 | |
Class of Stock [Line Items] | ||||
Common stock, shares authorized (in shares) | 9,000,000,000 | 9,000,000,000 | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 | ||
Stock repurchase program, authorized amount | $ 30,000,000,000 | |||
Warrant | ||||
Class of Stock [Line Items] | ||||
Warrants outstanding (in shares) | 0 | 0 | ||
Total warrants repurchased (in shares) | 0 | |||
Common stock | ||||
Class of Stock [Line Items] | ||||
Common stock capital shares reserved for future issuance (shares) | 62,100,000 |
Common Stock - Shares Issued (D
Common Stock - Shares Issued (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (Decrease) in Common Stock Shares | |||
Total issued - balance at January 1 (in shares) | 4,104,933,895 | 4,104,900,000 | 4,104,900,000 |
Outstanding (in shares) | 3,049,400,000 | 3,084,000,000 | 3,275,800,000 |
Increase (Decrease) in Treasury Stock Shares | |||
Treasury - balance at January 1 (in shares) | (1,020,912,567) | ||
Total treasury - balance at December 31 (in shares) | (1,055,499,435) | (1,020,912,567) | |
Treasury stock | |||
Increase (Decrease) in Treasury Stock Shares | |||
Treasury - balance at January 1 (in shares) | (1,020,900,000) | (829,100,000) | (679,600,000) |
Repurchase (in shares) | (50,000,000) | (213,000,000) | (181,500,000) |
Reissuance: Employee benefit and compensation plans (in shares) | 15,400,000 | 21,200,000 | 32,000,000 |
Reissuance: Warrant exercise (in shares) | 0 | 0 | 9,400,000 |
Reissuance: Employee stock purchase plans (in shares) | 1,200,000 | 800,000 | 900,000 |
Total treasury - balance at December 31 (in shares) | (1,055,500,000) | (1,020,900,000) | (829,100,000) |
Treasury stock | Employee benefits and compensation plans | |||
Increase (Decrease) in Treasury Stock Shares | |||
Reissuance: Employee benefit and compensation plans (in shares) | 14,200,000 | 20,400,000 | 21,700,000 |
Common Stock - Repurchases (Det
Common Stock - Repurchases (Details) - Common stock - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Class of Stock [Line Items] | |||
Total number of shares of common stock repurchased (in shares) | 50 | 213 | 181.5 |
Aggregate purchase price of common stock repurchases | $ 6,397 | $ 24,121 | $ 19,983 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Basic earnings per share | |||
Net income | $ 29,131 | $ 36,431 | $ 32,474 |
Less: Preferred stock dividends | 1,583 | 1,587 | 1,551 |
Net income applicable to common equity | 27,548 | 34,844 | 30,923 |
Less: Dividends and undistributed earnings allocated to participating securities | 138 | 202 | 214 |
Net income applicable to common stockholders | $ 27,410 | $ 34,642 | $ 30,709 |
Total weighted-average basic shares outstanding (in shares) | 3,082.4 | 3,221.5 | 3,396.4 |
Net income per share (in dollars per share) | $ 8.89 | $ 10.75 | $ 9.04 |
Diluted earnings per share | |||
Net income applicable to common stockholders | $ 27,410 | $ 34,642 | $ 30,709 |
Total weighted-average basic shares outstanding (in shares) | 3,082.4 | 3,221.5 | 3,396.4 |
Add: Dilutive impact of SARs and employee stock options, unvested PSUs and non-dividend-earning RSUs, and warrants (in shares) | 5 | 8.9 | 17.6 |
Total weighted-average diluted shares outstanding (in shares) | 3,087.4 | 3,230.4 | 3,414 |
Net income per share (in dollars per share) | $ 8.88 | $ 10.72 | $ 9 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income/(Loss) - Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | $ 261,330 | $ 256,515 | |
Net change | 6,417 | 3,076 | $ (1,476) |
Ending balance | 279,354 | 261,330 | 256,515 |
Accumulated other comprehensive income/(loss) | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 1,569 | (1,507) | (119) |
Net change | 6,417 | 3,076 | (1,476) |
Ending balance | 7,986 | 1,569 | (1,507) |
Accumulated other comprehensive income/(loss) | Cumulative effect of change in accounting principles | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 88 | ||
Unrealized gains/(losses) on investment securities | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 4,057 | 1,202 | 2,164 |
Net change | 4,123 | 2,855 | (1,858) |
Ending balance | 8,180 | 4,057 | 1,202 |
After-tax unamortized unrealized gains related to transfer of AFS securities to HTM | 3,300 | ||
Unrealized gains/(losses) on investment securities | Cumulative effect of change in accounting principles | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 896 | ||
Translation adjustments, net of hedges | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (707) | (727) | (470) |
Net change | 234 | 20 | 20 |
Ending balance | (473) | (707) | (727) |
Translation adjustments, net of hedges | Cumulative effect of change in accounting principles | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (277) | ||
Fair value hedges | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (131) | (161) | 0 |
Net change | 19 | 30 | (107) |
Ending balance | (112) | (131) | (161) |
Fair value hedges | Cumulative effect of change in accounting principles | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (54) | ||
Cash flow hedges | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 63 | (109) | 76 |
Net change | 2,320 | 172 | (201) |
Ending balance | 2,383 | 63 | (109) |
Cash flow hedges | Cumulative effect of change in accounting principles | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 16 | ||
Defined benefit pension and OPEB plans | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (1,344) | (2,308) | (1,521) |
Net change | 212 | 964 | (373) |
Ending balance | (1,132) | (1,344) | (2,308) |
Defined benefit pension and OPEB plans | Cumulative effect of change in accounting principles | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (414) | ||
DVA on fair value option elected liabilities | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (369) | 596 | (368) |
Net change | (491) | (965) | 1,043 |
Ending balance | $ (860) | $ (369) | 596 |
DVA on fair value option elected liabilities | Cumulative effect of change in accounting principles | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | $ (79) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income/(Loss) - Components of Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Unrealized gains/(losses) on AFS securities: | |||
Net change, Pre-tax | $ 8,066 | $ 3,921 | $ (1,761) |
Net change, Tax effect | (1,649) | (845) | 285 |
Total other comprehensive income/(loss), after–tax | 6,417 | 3,076 | (1,476) |
Accumulated other comprehensive income/(loss) | |||
Unrealized gains/(losses) on AFS securities: | |||
Total other comprehensive income/(loss), after–tax | 6,417 | 3,076 | (1,476) |
Accumulated other comprehensive income/(loss) | Other Income | |||
Unrealized gains/(losses) on AFS securities: | |||
Net pre-tax gain (loss) reclassified related to liquidation of legal entity | 6 | 7 | |
Accumulated other comprehensive income/(loss) | Other Expense | |||
Unrealized gains/(losses) on AFS securities: | |||
Net pre-tax gain (loss) reclassified related to liquidation of legal entity | 1 | (168) | |
Unrealized gains/(losses) on investment securities | |||
Unrealized gains/(losses) on AFS securities: | |||
Net unrealized gains/(losses) arising during the period/Translation, Pre-tax | 6,228 | 4,025 | (2,825) |
Net unrealized gains/(losses) arising during the period/Translation, Tax effect | (1,495) | (974) | 665 |
Net unrealized gains/(losses) arising during the period/Translation, After-tax | 4,733 | 3,051 | (2,160) |
Reclassification, Pre-tax | (802) | (258) | 395 |
Reclassification, Tax effect | 192 | 62 | (93) |
Reclassification, After-tax | (610) | (196) | 302 |
Net change, Pre-tax | 5,426 | 3,767 | (2,430) |
Net change, Tax effect | (1,303) | (912) | 572 |
Total other comprehensive income/(loss), after–tax | 4,123 | 2,855 | (1,858) |
Net pre-tax gain (loss) reclassified related to liquidation of legal entity | 18 | ||
Unrealized gains/(losses) on investment securities | Other Income | |||
Unrealized gains/(losses) on AFS securities: | |||
Net pre-tax gain (loss) reclassified related to liquidation of legal entity | 3 | 18 | |
Unrealized gains/(losses) on investment securities | Other Expense | |||
Unrealized gains/(losses) on AFS securities: | |||
Net pre-tax gain (loss) reclassified related to liquidation of legal entity | (17) | ||
Translation adjustments | |||
Unrealized gains/(losses) on AFS securities: | |||
Net unrealized gains/(losses) arising during the period/Translation, Pre-tax | 1,407 | (49) | (1,078) |
Net unrealized gains/(losses) arising during the period/Translation, Tax effect | (103) | 33 | 156 |
Net unrealized gains/(losses) arising during the period/Translation, After-tax | 1,304 | (16) | (922) |
Reclassification, Pre-tax | (1,411) | 46 | 1,236 |
Reclassification, Tax effect | 341 | (10) | (294) |
Reclassification, After-tax | (1,070) | 36 | 942 |
Net change, Pre-tax | (4) | (3) | 158 |
Net change, Tax effect | 238 | 23 | (138) |
Total other comprehensive income/(loss), after–tax | 234 | 20 | 20 |
Net pre-tax gain (loss) reclassified related to liquidation of legal entity | (10) | ||
Translation adjustments | Other Income | |||
Unrealized gains/(losses) on AFS securities: | |||
Net pre-tax gain (loss) reclassified related to liquidation of legal entity | 3 | ||
Translation adjustments | Other Expense | |||
Unrealized gains/(losses) on AFS securities: | |||
Net pre-tax gain (loss) reclassified related to liquidation of legal entity | (151) | ||
Fair value hedges, net of change | |||
Unrealized gains/(losses) on AFS securities: | |||
Net change, Pre-tax | 25 | 39 | (140) |
Net change, Tax effect | (6) | (9) | 33 |
Total other comprehensive income/(loss), after–tax | 19 | 30 | (107) |
Cash flow hedges | |||
Unrealized gains/(losses) on AFS securities: | |||
Net unrealized gains/(losses) arising during the period/Translation, Pre-tax | 3,623 | 122 | (245) |
Net unrealized gains/(losses) arising during the period/Translation, Tax effect | (870) | (28) | 58 |
Net unrealized gains/(losses) arising during the period/Translation, After-tax | 2,753 | 94 | (187) |
Reclassification, Pre-tax | (570) | 103 | (18) |
Reclassification, Tax effect | 137 | (25) | 4 |
Reclassification, After-tax | (433) | 78 | (14) |
Net change, Pre-tax | 3,053 | 225 | (263) |
Net change, Tax effect | (733) | (53) | 62 |
Total other comprehensive income/(loss), after–tax | 2,320 | 172 | (201) |
Defined benefit pension and OPEB plans | |||
Unrealized gains/(losses) on AFS securities: | |||
Net change, Pre-tax | 214 | 1,157 | (450) |
Net change, Tax effect | (2) | (193) | 77 |
Total other comprehensive income/(loss), after–tax | 212 | 964 | (373) |
DVA on fair value option elected liabilities, net change | |||
Unrealized gains/(losses) on AFS securities: | |||
Net change, Pre-tax | (648) | (1,264) | 1,364 |
Net change, Tax effect | 157 | 299 | (321) |
Total other comprehensive income/(loss), after–tax | $ (491) | $ (965) | $ 1,043 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of the applicable statutory U.S. income tax rate to the effective tax rate | |||
Statutory U.S. federal tax rate | 21.00% | 21.00% | 21.00% |
Increase/(decrease) in tax rate resulting from: | |||
U.S. state and local income taxes, net of U.S. federal income tax benefit | 2.50% | 3.50% | 4.00% |
Tax-exempt income | (1.60%) | (1.40%) | (1.50%) |
Non-U.S. earnings | 1.40% | 1.80% | 0.60% |
Business tax credits | (6.30%) | (4.40%) | (3.50%) |
Tax audit resolutions | 0.00% | (2.30%) | (0.10%) |
Impact of the TCJA | 0 | 0 | (0.007) |
Other, net | 0.70% | 0.00% | 0.50% |
Effective tax rate | 17.70% | 18.20% | 20.30% |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense/(Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current income tax expense/(benefit) | |||
U.S. federal | $ 5,759 | $ 3,284 | $ 2,854 |
Non-U.S. | 2,705 | 2,103 | 2,077 |
U.S. state and local | 1,793 | 1,778 | 1,638 |
Total current income tax expense/(benefit) | 10,257 | 7,165 | 6,569 |
Deferred income tax expense/(benefit) | |||
U.S. federal | (3,184) | 709 | 1,359 |
Non-U.S. | (126) | 20 | (93) |
U.S. state and local | (671) | 220 | 455 |
Total deferred income tax expense/(benefit) | (3,981) | 949 | 1,721 |
Total income tax expense | 6,276 | 8,114 | 8,290 |
Components of income tax expense/(benefit), supplemental information | |||
Tax benefits recorded as a result of tax audit resolutions | 72 | 1,100 | 54 |
Increase (decrease) to income tax allocated directly to equity | $ (827) | $ (862) | $ 172 |
Income Taxes - Results from Non
Income Taxes - Results from Non-U.S. Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 26,904 | $ 36,670 | $ 33,052 |
Non-U.S. | 8,503 | 7,875 | 7,712 |
Income before income tax expense | $ 35,407 | $ 44,545 | $ 40,764 |
Income Taxes - Affordable Housi
Income Taxes - Affordable Housing Tax Credits (Details) - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Tax credit and other tax benefits | $ 1.5 | $ 1.5 | $ 1.5 |
Amount of amortization reported in income tax expense | 1.2 | 1.1 | $ 1.2 |
Carrying value of investments, reported in other assets | 9.7 | 8.6 | |
Amount of commitments, reported in account payable and other liabilities | $ 3.8 | $ 2.8 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets | ||
Allowance for loan losses | $ 7,270 | $ 3,400 |
Employee benefits | 1,104 | 1,039 |
Accrued expenses and other | 3,332 | 2,767 |
Non-U.S. operations | 849 | 949 |
Tax attribute carryforwards | 757 | 605 |
Gross deferred tax assets | 13,312 | 8,760 |
Valuation allowance | (560) | (557) |
Deferred tax assets, net of valuation allowance | 12,752 | 8,203 |
Deferred tax liabilities | ||
Depreciation and amortization | 3,329 | 2,852 |
Mortgage servicing rights, net of hedges | 2,184 | 2,354 |
Leasing transactions | 5,124 | 5,598 |
Other, net | 6,025 | 4,683 |
Gross deferred tax liabilities | 16,662 | 15,487 |
Net deferred tax (liabilities)/assets | (3,910) | $ (7,284) |
FTC carryforwards | 444 | |
U.S. federal | ||
Deferred tax liabilities | ||
NOL carryforwards | 799 | |
Other tax attributes | 393 | |
Non-U.S. | ||
Deferred tax liabilities | ||
NOL carryforwards | 139 | |
State and local | ||
Deferred tax liabilities | ||
NOL carryforwards | $ 1,100 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits that would impact effective tax rate | $ 3,100 | $ 2,800 | $ 3,800 |
Amount of potential increase or decrease in gross balance of unrecognized tax benefits | 300 | ||
Reconciliation of the beginning and ending amount of unrecognized tax benefits | |||
Balance at January 1, | 4,024 | 4,861 | 4,747 |
Increases based on tax positions related to the current period | 685 | 871 | 980 |
Increases based on tax positions related to prior periods | 362 | 10 | 649 |
Decreases based on tax positions related to prior periods | (705) | (706) | (1,249) |
Decreases related to cash settlements with taxing authorities | (116) | (1,012) | (266) |
Balance at December 31, | 4,250 | 4,024 | 4,861 |
Income tax expense, penalties and interest expense | |||
Penalties and interest expense/(benefit) | 147 | (52) | $ 192 |
Penalties and interest accrued | $ 966 | $ 817 |
Restricted Cash, Other Restri_3
Restricted Cash, Other Restricted Assets and Intercompany Funds Transfers (Details) - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2020 | Jan. 01, 2021 | Dec. 31, 2019 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Total restricted cash | $ 24.4 | $ 46.5 | |
Cash and securities pledged with clearing organizations for benefit of customers | 37.2 | 24.7 | |
Fair value of securities restricted in relation to customer activity | $ 1.3 | 8.8 | |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |||
Percentage of total capital loans limited to | 10.00% | ||
Percentage of total capital (limited to) for aggregate covered transactions | 20.00% | ||
Deposits with banks | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Total restricted cash | $ 22.7 | 45.3 | |
Cash and due from banks | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Total restricted cash | 1.7 | 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 | 19.3 | 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 | $ 5.1 | $ 3.9 | |
Bank and Bank Holding Company Subsidiaries | Subsequent Event | |||
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |||
Aggregate dividends payable | $ 13 |
Regulatory Capital (Details)
Regulatory Capital (Details) - USD ($) $ in Millions | Jan. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
CECL adoption impact | |||
Adjustments to Capital for Deferred Tax Liabilities [Abstract] | |||
Decrease to retained earnings due to CECL adoption | $ 2,700 | ||
Amount excluded from capital measures of the Firm | $ 5,700 | ||
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 | 12,200 | ||
Basel III Standardized | JPMorgan Chase & Co. | |||
Risk-based capital metrics: | |||
CET1 capital | 205,078 | $ 187,753 | |
Tier 1 capital | 234,844 | 214,432 | |
Total capital | 269,923 | 242,589 | |
Risk-weighted assets | $ 1,560,609 | $ 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 | $ 3,353,319 | $ 2,730,239 | |
Tier 1 leverage ratio | 0.070 | 0.079 | |
Basel III Advanced | JPMorgan Chase & Co. | |||
Risk-based capital metrics: | |||
CET1 capital | $ 205,078 | $ 187,753 | |
Tier 1 capital | 234,844 | 214,432 | |
Total capital | 257,228 | 232,112 | |
Risk-weighted assets | $ 1,484,431 | $ 1,397,878 | |
CET1 capital ratio | 13.80% | 13.40% | |
Tier 1 capital ratio | 0.158 | 0.153 | |
Total capital ratio | 0.173 | 0.166 | |
Leverage-based capital metrics: | |||
Adjusted average assets | $ 3,353,319 | $ 2,730,239 | |
Tier 1 leverage ratio | 0.070 | 0.079 | |
Total leverage exposure | $ 3,401,542 | $ 3,423,431 | |
SLR | 0.069 | 0.063 | |
BHC | Basel III | |||
Well-capitalized ratios | |||
Tier 1 capital | 0.060 | ||
Total capital | 0.100 | ||
Adjustments to Capital for Deferred Tax Liabilities [Abstract] | |||
GSIB surcharge | 3.50% | ||
Countercyclical buffer | 0 | ||
SLR, minimum requirement | 3.00% | ||
SLR, supplementary leverage buffer | 2.00% | ||
BHC | Basel III Standardized | |||
Minimum capital ratios | |||
CET1 capital | 11.30% | 10.50% | |
Tier 1 capital | 0.128 | 0.120 | |
Total capital | 0.148 | 0.140 | |
Tier 1 leverage | 0.040 | 0.040 | |
SLR | 5.00% | ||
Adjustments to Capital for Deferred Tax Liabilities [Abstract] | |||
Stress capital buffer | 3.30% | ||
BHC | Basel III Advanced | |||
Minimum capital ratios | |||
CET1 capital | 10.50% | ||
Tier 1 capital | 0.120 | ||
Total capital | 0.140 | ||
Tier 1 leverage | 0.040 | ||
SLR | 5.00% | ||
Adjustments to Capital for Deferred Tax Liabilities [Abstract] | |||
Capital conservation buffer | 2.50% | ||
IDI | Basel III | |||
Well-capitalized ratios | |||
CET1 capital | 6.50% | ||
Tier 1 capital | 0.080 | ||
Total capital | 0.100 | ||
Tier 1 leverage | 0.050 | ||
SLR | 6.00% | ||
Adjustments to Capital for Deferred Tax Liabilities [Abstract] | |||
Capital conservation buffer | 2.50% | ||
SLR, minimum requirement | 3.00% | ||
SLR, supplementary leverage buffer | 3.00% | ||
IDI | Basel III Standardized | |||
Minimum capital ratios | |||
CET1 capital | 7.00% | ||
Tier 1 capital | 0.085 | ||
Total capital | 0.105 | ||
Tier 1 leverage | 0.040 | ||
IDI | Basel III Advanced | |||
Minimum capital ratios | |||
CET1 capital | 7.00% | ||
Tier 1 capital | 0.085 | ||
Total capital | 0.105 | ||
Tier 1 leverage | 0.040 | ||
SLR | 6.00% | ||
JPMorgan Chase Bank, N.A. | Basel III Standardized | |||
Risk-based capital metrics: | |||
CET1 capital | $ 234,235 | $ 206,848 | |
Tier 1 capital | 234,237 | 206,851 | |
Total capital | 252,045 | 224,390 | |
Risk-weighted assets | $ 1,492,138 | $ 1,457,689 | |
CET1 capital ratio | 15.70% | 14.20% | |
Tier 1 capital ratio | 0.157 | 0.142 | |
Total capital ratio | 0.169 | 0.154 | |
Leverage-based capital metrics: | |||
Adjusted average assets | $ 2,970,285 | $ 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 | $ 234,235 | $ 206,848 | |
Tier 1 capital | 234,237 | 206,851 | |
Total capital | 239,673 | 214,091 | |
Risk-weighted assets | $ 1,343,185 | $ 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 | $ 2,970,285 | $ 2,353,432 | |
Tier 1 leverage ratio | 0.079 | 0.088 | |
Total leverage exposure | $ 3,688,797 | $ 3,044,509 | |
SLR | 0.063 | 0.068 |
Off-balance Sheet Lending-rel_3
Off-balance Sheet Lending-related Financial Instruments, Guarantees, and Other Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total lending-related commitments | $ 1,165,688 | $ 1,108,399 |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 812,715 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 183,964 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 136,783 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 32,226 | |
Off-balance sheet lending-related financial commitments, Carrying value | 2,753 | 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 | 715,825 | 690,889 |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 695,765 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 1,598 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 3,970 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 14,492 | |
Off-balance sheet lending-related financial commitments, Carrying value | 148 | 12 |
Total consumer, excluding credit card | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total lending-related commitments | 57,319 | 40,169 |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 37,259 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 1,598 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 3,970 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 14,492 | |
Off-balance sheet lending-related financial commitments, Carrying value | 148 | 12 |
Residential real estate | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total lending-related commitments | 46,047 | 30,217 |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 26,788 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 1,597 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 3,962 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 13,700 | |
Off-balance sheet lending-related financial commitments, Carrying value | 148 | 12 |
Auto and other | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total lending-related commitments | 11,272 | 9,952 |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 10,471 | |
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 | 8 | |
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 | 658,506 | 650,720 |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 658,506 | |
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 | 449,863 | 417,510 |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 116,950 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 182,366 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 132,813 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 17,734 | |
Off-balance sheet lending-related financial commitments, Carrying value | 2,605 | 1,574 |
Other unfunded commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total lending-related commitments | 415,828 | 380,307 |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 96,490 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 174,335 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 128,736 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 16,267 | |
Off-balance sheet lending-related financial commitments, Carrying value | 2,148 | 952 |
Off balance sheet lending related financial instruments guarantees and other commitments - supplemental information [Abstract] | ||
Risk participations for other unfunded commitments to extend credit | 72 | 76 |
Standby letters of credit and other financial guarantees | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total lending-related commitments | 30,982 | 34,242 |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 17,478 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 7,986 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 4,051 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 1,467 | |
Off-balance sheet lending-related financial commitments, Carrying value | 443 | 618 |
Other guarantees and commitments, Carrying value | 363 | 402 |
Loan sale and securitization-related indemnifications, Mortgage repurchase liability, Carrying value | 80 | 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 | 8,500 | 9,800 |
Other letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total lending-related commitments | 3,053 | 2,961 |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring in 1 year or less | 2,982 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 1 year through 3 years | 45 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 3 years through 5 years | 26 | |
Off-balance sheet lending-related financial commitments, Contractual amount, Expiring after 5 years | 0 | |
Off-balance sheet lending-related financial commitments, Carrying value | 14 | 4 |
Other guarantees and commitments, Carrying value | 0 | 0 |
Loan sale and securitization-related indemnifications, Mortgage repurchase liability, Carrying value | 14 | 4 |
Off balance sheet lending related financial instruments guarantees and other commitments - supplemental information [Abstract] | ||
Risk participations for other letters of credit | 357 | 546 |
Securities lending indemnification agreements and guarantees | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other guarantees and commitments, Contractual amount | 250,418 | 204,827 |
Other guarantees and commitments, Contractual amount, Expiring in 1 year or less | 250,418 | |
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 | 264,300 | 216,200 |
Derivatives qualifying as guarantees | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other guarantees and commitments, Contractual amount | 54,415 | 53,089 |
Other guarantees and commitments, Contractual amount, Expiring in 1 year or less | 2,489 | |
Other guarantees and commitments, Contractual amount, Expiring after 1 year through 3 years | 541 | |
Other guarantees and commitments, Contractual amount, Expiring after 3 years through 5 years | 12,182 | |
Other guarantees and commitments, Contractual amount, Expiring after 5 years | 39,203 | |
Other guarantees and commitments, Carrying value | 322 | 159 |
Unsettled resale and securities borrowed agreements | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other guarantees and commitments, Contractual amount | 96,848 | 117,951 |
Other guarantees and commitments, Contractual amount, Expiring in 1 year or less | 95,084 | |
Other guarantees and commitments, Contractual amount, Expiring after 1 year through 3 years | 1,764 | |
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 | 2 | 0 |
Unsettled repurchase and securities loaned agreements | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other guarantees and commitments, Contractual amount | 104,901 | 73,351 |
Other guarantees and commitments, Contractual amount, Expiring in 1 year or less | 104,289 | |
Other guarantees and commitments, Contractual amount, Expiring after 1 year through 3 years | 612 | |
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 | 889 | 944 |
Loan sale and securitization-related indemnifications, Loans sold with recourse, Carrying value | 23 | 27 |
Exchange & clearing house guarantees and commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other guarantees and commitments, Contractual amount | 142,003 | 206,432 |
Other guarantees and commitments, Contractual amount, Expiring in 1 year or less | 142,003 | |
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 | 6,330 | 6,334 |
Other guarantees and commitments, Contractual amount, Expiring in 1 year or less | 2,457 | |
Other guarantees and commitments, Contractual amount, Expiring after 1 year through 3 years | 574 | |
Other guarantees and commitments, Contractual amount, Expiring after 3 years through 5 years | 758 | |
Other guarantees and commitments, Contractual amount, Expiring after 5 years | 2,541 | |
Other guarantees and commitments, Carrying value | $ 52 | $ (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, Other Financial Guarantees and Other Letters of Credit (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Standby letters of credit and other financial guarantees and other letters of credit [Abstract] | ||
Total lending-related commitments | $ 1,165,688 | $ 1,108,399 |
Total carrying value | 2,753 | 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 | 22,850 | 26,880 |
Noninvestment-grade | 8,132 | 7,362 |
Total lending-related commitments | 30,982 | 34,242 |
Allowance for lending-related commitments | 80 | 216 |
Guarantee liability | 363 | 402 |
Total carrying value | 443 | 618 |
Commitments with collateral | 17,238 | 17,853 |
Other letters of credit | ||
Standby letters of credit and other financial guarantees and other letters of credit [Abstract] | ||
Investment-grade | 2,263 | 2,137 |
Noninvestment-grade | 790 | 824 |
Total lending-related commitments | 3,053 | 2,961 |
Allowance for lending-related commitments | 14 | 4 |
Guarantee liability | 0 | 0 |
Total carrying value | 14 | 4 |
Commitments with collateral | $ 498 | $ 728 |
Off-balance Sheet Lending-rel_5
Off-balance Sheet Lending-related Financial Instruments, Guarantees, and Other Commitments - Securities Lending Indemnifications (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Off-Balance Sheet Lending-Related Financial Instruments, Guarantees and Other Commitments [Abstract] | |
Percentage exceeding value of securities for obtaining cash or other highly liquid collateral | 100.00% |
Percentage exceeding value of resale agreements for obtaining collateral | 100.00% |
Off-balance Sheet Lending-rel_6
Off-balance Sheet Lending-related Financial Instruments, Guarantees, and Other Commitments - Derivatives Qualifying as Guarantees (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Notional amounts | ||
Stable value contracts with contractually limited exposure | $ 47,194,000 | $ 46,942,000 |
Derivatives qualifying as guarantees | ||
Notional amounts | ||
Derivative guarantees | 54,415 | 53,089 |
Stable value contracts with contractually limited exposure | 27,752 | 28,877 |
Maximum exposure of stable value contracts with contractually limited exposure | 2,803 | 2,967 |
Fair value | ||
Derivative payables | $ 322 | $ 159 |
Maximum | Put option | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Term of written put option | 5 years |
Off-balance Sheet Lending-rel_7
Off-balance Sheet Lending-related Financial Instruments, Guarantees, and Other Commitments - Loan Sales- and Securitization-Related Indemnifications (Details) - Loans sold with recourse - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Loans sold with recourse | ||
Unpaid principal balance of loans sold with recourse | $ 889 | $ 944 |
Carrying value of related liability for recourse obligations | $ 23 | $ 27 |
Off-balance Sheet Lending-rel_8
Off-balance Sheet Lending-related Financial Instruments, Guarantees, and Other Commitments - Other Off-Balance Sheet Arrangements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
JPMorgan Chase Financial Company LLC | |||
Other off-balance sheet arrangements - supplemental information [Abstract] | |||
Direct-owned and consolidated finance subsidiary ownership | 100.00% | ||
Merchant Services | |||
Other off-balance sheet arrangements - supplemental information [Abstract] | |||
Carrying value of valuation allowance that covers payment or performance risk related to charge-backs | $ 12 | $ 11 | |
Aggregate volume processed by electronic payment services business | $ 1,597,300 | $ 1,511,500 | $ 1,366,100 |
Pledged Assets and Collateral -
Pledged Assets and Collateral - Pledged Assets and Collateral (Details) - USD ($) $ in Billions | Dec. 31, 2020 | Dec. 31, 2019 |
Significant components of assets pledged | ||
Assets that may be sold or repledged or otherwise used by secured parties | $ 166.6 | $ 125.2 |
Assets that may not be sold or repledged or otherwise used by secured parties | 113.9 | 80.2 |
Total pledged assets | 735.8 | 684.3 |
Collateral Received that Can be Resold or Repledged | ||
Collateral permitted to be sold or repledged, delivered, or otherwise used | 1,451.7 | 1,282.5 |
Collateral sold, repledged, delivered or otherwise used | 1,038.9 | 1,000.5 |
Investment securities | ||
Significant components of assets pledged | ||
Total pledged assets | 80.2 | 35.9 |
Loans | ||
Significant components of assets pledged | ||
Total pledged assets | 420.5 | 460.4 |
Trading assets and other | ||
Significant components of assets pledged | ||
Total pledged assets | 235.1 | 188 |
Assets pledged at Federal Reserve banks and FHLBs | ||
Significant components of assets pledged | ||
Total pledged assets | $ 455.3 | $ 478.9 |
Litigation (Details)
Litigation (Details) | 1 Months Ended | 12 Months Ended | 36 Months Ended | |||||||||
Nov. 30, 2020USD ($) | May 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2018USD ($) | Nov. 30, 2017USD ($) | Jan. 31, 2017 | Dec. 31, 2020USD ($)defendantclaimcount | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2012USD ($)action | Dec. 31, 2013USD ($) | Dec. 31, 2012fund | |
Loss Contingencies [Line Items] | ||||||||||||
Legal expense/(benefit) | $ 1,115,000,000 | $ 239,000,000 | $ 72,000,000 | |||||||||
Threatened or Pending Litigation | Minimum | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency range of possible loss | 0 | |||||||||||
Threatened or Pending Litigation | Maximum | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Loss contingency range of possible loss | 1,500,000,000 | |||||||||||
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] | ||||||||||||
Settlement amount | $ 10,000,000 | |||||||||||
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 | |||||||||||
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 | |||||||||||
Number of claims filed | claim | 2 | |||||||||||
Advisory And Other Litigation [Member] | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Settlement amount | $ 250,000,000 |
International Operations (Detai
International Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Entity-Wide Information by Geographic Areas | |||||
Revenue | $ 119,543 | $ 115,399 | $ 108,783 | ||
Expense | 84,136 | 70,854 | 68,019 | ||
Income before income tax expense | 35,407 | 44,545 | 40,764 | ||
Net income | 29,131 | 36,431 | 32,474 | ||
Total assets | 3,386,071 | [1] | 2,687,379 | [1] | 2,622,532 |
Total international | |||||
Entity-Wide Information by Geographic Areas | |||||
Revenue | 28,595 | 25,546 | 25,815 | ||
Expense | 18,135 | 16,481 | 16,217 | ||
Income before income tax expense | 10,460 | 9,065 | 9,598 | ||
Net income | 7,335 | 6,234 | 6,794 | ||
Total assets | 845,220 | 622,212 | 640,353 | ||
Europe/Middle East/Africa | |||||
Entity-Wide Information by Geographic Areas | |||||
Revenue | 16,566 | 15,887 | 16,459 | ||
Expense | 10,987 | 9,860 | 10,032 | ||
Income before income tax expense | 5,579 | 6,027 | 6,427 | ||
Net income | 3,868 | 4,158 | 4,569 | ||
Total assets | 530,687 | 391,369 | 424,935 | ||
U.K. | |||||
Entity-Wide Information by Geographic Areas | |||||
Total assets | 353,000 | 309,000 | 299,000 | ||
Asia-Pacific | |||||
Entity-Wide Information by Geographic Areas | |||||
Revenue | 9,289 | 7,254 | 6,991 | ||
Expense | 5,558 | 5,060 | 4,884 | ||
Income before income tax expense | 3,731 | 2,194 | 2,107 | ||
Net income | 2,630 | 1,467 | 1,481 | ||
Total assets | 252,553 | 183,023 | 171,547 | ||
Latin America/Caribbean | |||||
Entity-Wide Information by Geographic Areas | |||||
Revenue | 2,740 | 2,405 | 2,365 | ||
Expense | 1,590 | 1,561 | 1,301 | ||
Income before income tax expense | 1,150 | 844 | 1,064 | ||
Net income | 837 | 609 | 744 | ||
Total assets | 61,980 | 47,820 | 43,871 | ||
North America | |||||
Entity-Wide Information by Geographic Areas | |||||
Revenue | 90,948 | 89,853 | 82,968 | ||
Expense | 66,001 | 54,373 | 51,802 | ||
Income before income tax expense | 24,947 | 35,480 | 31,166 | ||
Net income | 21,796 | 30,197 | 25,680 | ||
Total assets | $ 2,540,851 | $ 2,065,167 | $ 1,982,179 | ||
[1] | The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at December 31, 2020 and 2019. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests do not have recourse to the general credit of JPMorgan Chase. 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. December 31, (in millions) 2020 2019 Assets Trading assets $ 1,934 $ 2,633 Loans 37,619 42,931 All other assets 681 881 Total assets $ 40,234 $ 46,445 Liabilities Beneficial interests issued by consolidated VIEs $ 17,578 $ 17,841 All other liabilities 233 447 Total liabilities $ 17,811 $ 18,288 |
Business Segments - Narrative (
Business Segments - Narrative (Details) $ in Trillions | 6 Months Ended | 12 Months Ended |
Sep. 30, 2020employee | Dec. 31, 2020USD ($)segment | |
Segment Reporting Information [Line Items] | ||
Number of major reportable business segments | segment | 4 | |
Commercial Banking | ||
Segment Reporting Information [Line Items] | ||
Number of primary client segments | segment | 3 | |
Asset & Wealth Management | ||
Segment Reporting Information [Line Items] | ||
AWM client assets | $ | $ 3.7 | |
Business Unit, Support Staff, Number Of Employees | employee | (1,650) | |
Consumer & Community Banking | ||
Segment Reporting Information [Line Items] | ||
Business Unit, Support Staff, Number Of Employees | employee | 1,650 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Segment results and reconciliation | |||||
Noninterest revenue | $ 64,980 | $ 58,154 | $ 53,724 | ||
Net interest income | 54,563 | 57,245 | 55,059 | ||
Total net revenue | 119,543 | 115,399 | 108,783 | ||
Provision for credit losses | 17,480 | 5,585 | 4,871 | ||
Noninterest expense | 66,656 | 65,269 | 63,148 | ||
Income before income tax expense | 35,407 | 44,545 | 40,764 | ||
Income tax expense/(benefit) | 6,276 | 8,114 | 8,290 | ||
Net income | 29,131 | 36,431 | 32,474 | ||
Average equity | 236,865 | 232,907 | 229,222 | ||
Total assets | $ 3,386,071 | [1] | $ 2,687,379 | [1] | $ 2,622,532 |
Return on equity | 12.00% | 15.00% | 13.00% | ||
Overhead ratio | 56.00% | 57.00% | 58.00% | ||
Operating Segments | Consumer & Community Banking | |||||
Segment results and reconciliation | |||||
Noninterest revenue | $ 17,740 | $ 17,796 | $ 15,338 | ||
Net interest income | 33,528 | 37,337 | 35,933 | ||
Total net revenue | 51,268 | 55,133 | 51,271 | ||
Provision for credit losses | 12,312 | 4,954 | 4,754 | ||
Noninterest expense | 27,990 | 28,276 | 27,168 | ||
Income before income tax expense | 10,966 | 21,903 | 19,349 | ||
Income tax expense/(benefit) | 2,749 | 5,362 | 4,642 | ||
Net income | 8,217 | 16,541 | 14,707 | ||
Average equity | 52,000 | 52,000 | 51,000 | ||
Total assets | $ 496,705 | $ 541,367 | $ 560,177 | ||
Return on equity | 15.00% | 31.00% | 28.00% | ||
Overhead ratio | 55.00% | 51.00% | 53.00% | ||
Operating Segments | Corporate & Investment Bank | |||||
Segment results and reconciliation | |||||
Noninterest revenue | $ 35,120 | $ 30,060 | $ 27,854 | ||
Net interest income | 14,164 | 9,205 | 9,528 | ||
Total net revenue | 49,284 | 39,265 | 37,382 | ||
Provision for credit losses | 2,726 | 277 | (60) | ||
Noninterest expense | 23,538 | 22,444 | 21,876 | ||
Income before income tax expense | 23,020 | 16,544 | 15,566 | ||
Income tax expense/(benefit) | 5,926 | 4,590 | 3,767 | ||
Net income | 17,094 | 11,954 | 11,799 | ||
Average equity | 80,000 | 80,000 | 70,000 | ||
Total assets | $ 1,097,219 | $ 914,705 | $ 909,292 | ||
Return on equity | 20.00% | 14.00% | 16.00% | ||
Overhead ratio | 48.00% | 57.00% | 59.00% | ||
Operating Segments | Commercial Banking | |||||
Segment results and reconciliation | |||||
Noninterest revenue | $ 3,067 | $ 2,710 | $ 2,620 | ||
Net interest income | 6,246 | 6,554 | 6,716 | ||
Total net revenue | 9,313 | 9,264 | 9,336 | ||
Provision for credit losses | 2,113 | 296 | 129 | ||
Noninterest expense | 3,798 | 3,735 | 3,627 | ||
Income before income tax expense | 3,402 | 5,233 | 5,580 | ||
Income tax expense/(benefit) | 824 | 1,275 | 1,316 | ||
Net income | 2,578 | 3,958 | 4,264 | ||
Average equity | 22,000 | 22,000 | 20,000 | ||
Total assets | $ 228,932 | $ 220,514 | $ 220,229 | ||
Return on equity | 11.00% | 17.00% | 20.00% | ||
Overhead ratio | 41.00% | 40.00% | 39.00% | ||
Operating Segments | Asset & Wealth Management | |||||
Segment results and reconciliation | |||||
Noninterest revenue | $ 10,822 | $ 10,236 | $ 10,052 | ||
Net interest income | 3,418 | 3,355 | 3,375 | ||
Total net revenue | 14,240 | 13,591 | 13,427 | ||
Provision for credit losses | 263 | 59 | 52 | ||
Noninterest expense | 9,957 | 9,747 | 9,575 | ||
Income before income tax expense | 4,020 | 3,785 | 3,800 | ||
Income tax expense/(benefit) | 1,028 | 918 | 855 | ||
Net income | 2,992 | 2,867 | 2,945 | ||
Average equity | 10,500 | 10,500 | 9,000 | ||
Total assets | $ 203,384 | $ 173,175 | $ 161,047 | ||
Return on equity | 28.00% | 26.00% | 32.00% | ||
Overhead ratio | 70.00% | 72.00% | 71.00% | ||
Corporate | |||||
Segment results and reconciliation | |||||
Noninterest revenue | $ 1,199 | $ (114) | $ (263) | ||
Net interest income | (2,375) | 1,325 | 135 | ||
Total net revenue | (1,176) | 1,211 | (128) | ||
Provision for credit losses | 66 | (1) | (4) | ||
Noninterest expense | 1,373 | 1,067 | 902 | ||
Income before income tax expense | (2,615) | 145 | (1,026) | ||
Income tax expense/(benefit) | (865) | (966) | 215 | ||
Net income | (1,750) | 1,111 | (1,241) | ||
Average equity | 72,365 | 68,407 | 79,222 | ||
Total assets | 1,359,831 | 837,618 | 771,787 | ||
Reconciling Items | |||||
Segment results and reconciliation | |||||
Noninterest revenue | (2,968) | (2,534) | (1,877) | ||
Net interest income | (418) | (531) | (628) | ||
Total net revenue | (3,386) | (3,065) | (2,505) | ||
Provision for credit losses | 0 | 0 | 0 | ||
Noninterest expense | 0 | 0 | 0 | ||
Income before income tax expense | (3,386) | (3,065) | (2,505) | ||
Income tax expense/(benefit) | (3,386) | (3,065) | (2,505) | ||
Net income | 0 | 0 | 0 | ||
Average equity | $ 0 | $ 0 | $ 0 | ||
[1] | The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at December 31, 2020 and 2019. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests do not have recourse to the general credit of JPMorgan Chase. 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. December 31, (in millions) 2020 2019 Assets Trading assets $ 1,934 $ 2,633 Loans 37,619 42,931 All other assets 681 881 Total assets $ 40,234 $ 46,445 Liabilities Beneficial interests issued by consolidated VIEs $ 17,578 $ 17,841 All other liabilities 233 447 Total liabilities $ 17,811 $ 18,288 |
Parent Company - Statements of
Parent Company - Statements of Income and Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income | |||
Other income | $ 64,980 | $ 58,154 | $ 53,724 |
Total income | 119,543 | 115,399 | 108,783 |
Expense | |||
Other interest expense | 9,960 | 26,795 | 21,041 |
Noninterest expense | 5,941 | 5,087 | 5,731 |
Income tax benefit | (6,276) | (8,114) | (8,290) |
Net income | 29,131 | 36,431 | 32,474 |
Comprehensive income | 35,548 | 39,507 | 30,998 |
JPMorgan Chase & Co. | |||
Income | |||
Interest income from subsidiaries | 63 | 223 | 216 |
Other income | 205 | (1,731) | 888 |
Total income | 7,718 | 27,427 | 33,678 |
Expense | |||
Interest expense/(income) to subsidiaries and affiliates | (8,830) | (5,303) | 2,291 |
Other interest expense | 14,150 | 13,246 | 4,581 |
Noninterest expense | 2,222 | 1,992 | 1,793 |
Total expense | 7,542 | 9,935 | 8,665 |
Income before income tax benefit and undistributed net income of subsidiaries | 176 | 17,492 | 25,013 |
Income tax benefit | 1,324 | 2,033 | 1,838 |
Equity in undistributed net income of subsidiaries | 27,631 | 16,906 | 5,623 |
Net income | 29,131 | 36,431 | 32,474 |
Other comprehensive income, net | 6,417 | 3,076 | (1,476) |
Comprehensive income | 35,548 | 39,507 | 30,998 |
Bank and bank holding company | JPMorgan Chase & Co. | |||
Income | |||
Dividends from subsidiaries and affiliates | 6,000 | 26,000 | 32,501 |
Other income from subsidiaries | 2,019 | 2,738 | 515 |
Non-bank | JPMorgan Chase & Co. | |||
Income | |||
Dividends from subsidiaries and affiliates | 0 | 0 | 2 |
Other income from subsidiaries | $ (569) | $ 197 | $ (444) |
Parent Company - Balance Sheets
Parent Company - Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Assets | ||||||
Cash and due from banks | $ 24,874 | $ 21,704 | ||||
Trading assets | [1] | 503,126 | 369,687 | |||
Other assets | [1] | 152,853 | 130,395 | |||
Total assets | 3,386,071 | [2] | 2,687,379 | [2] | $ 2,622,532 | |
Liabilities and stockholders’ equity | ||||||
Total liabilities | [2] | 3,106,717 | 2,426,049 | |||
Total stockholders’ equity | 279,354 | 261,330 | $ 256,515 | |||
Total liabilities and stockholders’ equity | 3,386,071 | 2,687,379 | ||||
JPMorgan Chase & Co. | ||||||
Assets | ||||||
Cash and due from banks | 54 | 32 | ||||
Deposits with banking subsidiaries | 6,811 | 5,309 | ||||
Trading assets | 1,775 | 3,011 | ||||
Other assets | 10,058 | 10,699 | ||||
Total assets | 528,424 | 493,744 | ||||
Liabilities and stockholders’ equity | ||||||
Borrowings from, and payables to, subsidiaries and affiliates | 25,150 | 23,410 | ||||
Short-term borrowings | 924 | 2,616 | ||||
Other liabilities | 9,612 | 9,288 | ||||
Long-term debt | 213,384 | 197,100 | ||||
Total liabilities | 249,070 | 232,414 | ||||
Total stockholders’ equity | 279,354 | 261,330 | ||||
Total liabilities and stockholders’ equity | 528,424 | 493,744 | ||||
Bank and bank holding company | JPMorgan Chase & Co. | ||||||
Assets | ||||||
Advances to, and receivables from, subsidiaries | 27 | 2,358 | ||||
Investments (at equity) in subsidiaries and affiliates | 508,602 | 471,207 | ||||
Non-bank | JPMorgan Chase & Co. | ||||||
Assets | ||||||
Advances to, and receivables from, subsidiaries | 86 | 84 | ||||
Investments (at equity) in subsidiaries and affiliates | $ 1,011 | $ 1,044 | ||||
[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 December 31, 2020 and 2019. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests do not have recourse to the general credit of JPMorgan Chase. 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. December 31, (in millions) 2020 2019 Assets Trading assets $ 1,934 $ 2,633 Loans 37,619 42,931 All other assets 681 881 Total assets $ 40,234 $ 46,445 Liabilities Beneficial interests issued by consolidated VIEs $ 17,578 $ 17,841 All other liabilities 233 447 Total liabilities $ 17,811 $ 18,288 |
Parent Company - Statements o_2
Parent Company - Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Operating activities | ||||
Net income | $ 29,131 | $ 36,431 | $ 32,474 | |
Other operating adjustments | [1] | 3,115 | 2,233 | (1,343) |
Net cash provided by/(used in) operating activities | (79,910) | 4,092 | 15,614 | |
Investing activities | ||||
All other investing activities, net | (7,341) | (5,035) | (4,986) | |
Net cash (used in) investing activities | (261,912) | (52,059) | (199,420) | |
Financing activities | ||||
Net change in: Short-term borrowings | (28,561) | |||
Proceeds from long-term borrowings | 78,686 | 61,085 | 71,662 | |
Payments of long-term borrowings | (105,055) | (69,610) | (76,313) | |
Proceeds from issuance of preferred stock | 4,500 | 5,000 | 1,696 | |
Redemption of preferred stock | (1,430) | (4,075) | (1,696) | |
Treasury stock repurchased | (6,517) | (24,001) | (19,983) | |
Dividends paid | (12,690) | (12,343) | (10,109) | |
All other financing activities, net | (927) | (1,146) | (1,430) | |
Net cash provided by financing activities | 596,645 | 32,987 | 34,158 | |
Net increase/(decrease) in cash and due from banks and deposits with banks | 263,978 | (15,162) | (152,511) | |
Cash and due from banks and deposits with banks at the beginning of the period | 263,631 | 278,793 | 431,304 | |
Cash and due from banks and deposits with banks at the end of the period | 527,609 | 263,631 | 278,793 | |
Cash interest paid | 13,077 | 29,918 | 21,152 | |
Cash income taxes paid, net | 7,661 | 5,624 | 3,542 | |
JPMorgan Chase & Co. | ||||
Operating activities | ||||
Net income | 29,131 | 36,431 | 32,474 | |
Less: Net income of subsidiaries and affiliates | 33,631 | 42,906 | 38,125 | |
Parent company net loss | (4,500) | (6,475) | (5,651) | |
Cash dividends from subsidiaries and affiliates | 6,000 | 26,000 | 32,501 | |
Other operating adjustments | 15,357 | 9,862 | (4,400) | |
Net cash provided by/(used in) operating activities | 16,857 | 29,387 | 22,450 | |
Investing activities | ||||
Net change in: Advances to and investments in subsidiaries and affiliates, net | (2,663) | (6) | 8,036 | |
All other investing activities, net | 24 | 71 | 63 | |
Net cash (used in) investing activities | (2,639) | 65 | 8,099 | |
Financing activities | ||||
Net change in: Borrowings from subsidiaries and affiliates | 1,425 | 2,941 | (2,273) | |
Net change in: Short-term borrowings | (20) | (56) | (678) | |
Proceeds from long-term borrowings | 37,312 | 25,569 | 25,845 | |
Payments of long-term borrowings | (34,194) | (21,226) | (21,956) | |
Proceeds from issuance of preferred stock | 4,500 | 5,000 | 1,696 | |
Redemption of preferred stock | (1,430) | (4,075) | (1,696) | |
Treasury stock repurchased | (6,517) | (24,001) | (19,983) | |
Dividends paid | (12,690) | (12,343) | (10,109) | |
All other financing activities, net | (1,080) | (1,290) | (1,526) | |
Net cash provided by financing activities | (12,694) | (29,481) | (30,680) | |
Net increase/(decrease) in cash and due from banks and deposits with banks | 1,524 | (29) | (131) | |
Cash and due from banks and deposits with banks at the beginning of the period | 5,341 | 5,370 | 5,501 | |
Cash and due from banks and deposits with banks at the end of the period | 6,865 | 5,341 | 5,370 | |
Cash interest paid | 5,445 | 7,957 | 6,911 | |
Cash income taxes paid, net | $ 5,366 | $ 3,910 | $ 1,782 | |
[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. |
Parent Company - Footnote Infor
Parent Company - Footnote Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
2021 | $ 26,934 | ||
2022 | 18,400 | ||
2023 | 32,200 | ||
2024 | 29,600 | ||
2025 | 17,100 | ||
Reimbursements from income taxes paid on behalf of certain subsidiaries | 8,300 | $ 6,400 | $ 1,200 |
JPMorgan Chase & Co. | |||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
2021 | 10,805 | ||
2022 | 10,000 | ||
2023 | 19,100 | ||
2024 | 21,800 | ||
2025 | 13,500 | ||
JPMorgan Chase & Co. | JPMorgan Chase Bank, N.A. | |||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||
Distributions received as return of capital | $ 13,500 |