Docoh
Loading...

JPM JPMorgan Chase & Co.

Filed: 3 May 21, 8:00pm
0000019617us-gaap:CreditRiskContractMemberus-gaap:ExchangeClearedMember2020-12-31


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly report pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the quarterly period endedCommission file
March 31, 2021number1-5805
JPMorgan Chase & Co.
(Exact name of registrant as specified in its charter)
Delaware13-2624428
(State or other jurisdiction of
incorporation or organization)
(I.R.S. employer
identification no.)
383 Madison Avenue,
New York,New York10179
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (212) 270-6000
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stockJPMThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 6.10% Non-Cumulative Preferred Stock, Series AAJPM PR GThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 6.15% Non-Cumulative Preferred Stock, Series BBJPM PR HThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 5.75% Non-Cumulative Preferred Stock, Series DDJPM PR DThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 6.00% Non-Cumulative Preferred Stock, Series EEJPM PR CThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.75% Non-Cumulative Preferred Stock, Series GGJPM PR JThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.55% Non-Cumulative Preferred Stock, Series JJJPM PR KThe New York Stock Exchange
Alerian MLP Index ETNs due May 24, 2024AMJNYSE Arca, Inc.
Guarantee of Callable Step-Up Fixed Rate Notes due April 26, 2028 of JPMorgan Chase Financial Company LLCJPM/28The New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
Number of shares of common stock outstanding as of March 31, 2021: 3,027,128,112



FORM 10-Q
TABLE OF CONTENTS
Page
Item 1.
79
80
81
82
83
84
161
162
163
Item 2.
3
4
5
9
12
15
16
18
35
36
42
48
53
65
66
71
72
73
74
77
78
Item 3.172
Item 4.172
Item 1.172
Item 1A.172
Item 2.173
Item 3.174
Item 4.174
Item 5.174
Item 6.174

2


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

1Q214Q203Q202Q201Q20
Selected income statement data
Total net revenue(a)
$32,266 $29,335 $29,255 $33,075 $28,286 
Total noninterest expense18,725 16,048 16,875 16,942 16,791 
Pre-provision profit(b)
13,541 13,287 12,380 16,133 11,495 
Provision for credit losses(4,156)(1,889)611 10,473 8,285 
Income before income tax expense17,697 15,176 11,769 5,660 3,210 
Income tax expense(a)
3,397 3,040 2,326 973 345 
Net income$14,300 $12,136 $9,443 $4,687 $2,865 
Earnings per share data
Net income:     Basic$4.51 $3.80 $2.93 $1.39 $0.79 
         Diluted4.50 3.79 2.92 1.38 0.78 
Average shares: Basic3,073.5 3,079.7 3,077.8 3,076.3 3,095.8 
         Diluted3,078.9 3,085.1 3,082.8 3,081.0 3,100.7 
Market and per common share data
Market capitalization460,820 387,492 293,451 286,658 274,323 
Common shares at period-end3,027.1 3,049.4 3,048.2 3,047.6 3,047.0 
Book value per share82.31 81.75 79.08 76.91 75.88 
Tangible book value per share (“TBVPS”)(b)
66.56 66.11 63.93 61.76 60.71 
Cash dividends declared per share0.90 0.90 0.90 0.90 0.90 
Selected ratios and metrics
Return on common equity (“ROE”)(c)
23 %19 %15 %%%
Return on tangible common equity (“ROTCE”)(b)(c)
29 24 19 
Return on assets(c)
1.61 1.42 1.14 0.58 0.40 
Overhead ratio58 55 58 51 59 (a)
Loans-to-deposits ratio44 47 49 52 57 
Firm Liquidity coverage ratio (“LCR”) (average)110 110 114 117 114 
JPMorgan Chase Bank, N.A. LCR (average)166 160 157 140 117 
Common equity Tier 1 (“CET1”) capital ratio(d)
13.1 13.1 13.1 12.4 11.5 
Tier 1 capital ratio(d)
15.0 15.0 15.0 14.3 13.3 
Total capital ratio(d)
17.2 17.3 17.3 16.7 15.5 
Tier 1 leverage ratio(d)
6.7 7.0 7.0 6.9 7.5 
Supplementary leverage ratio (“SLR”)(d)
6.7 6.9 7.0 6.8 6.0 
Selected balance sheet data (period-end)
Trading assets$544,052 $503,126 $505,822 $491,716 $510,923 
Investment securities, net of allowance for credit losses597,394 589,999 531,136 558,791 471,144 
Loans1,011,307 1,012,853 989,740 1,009,382 1,049,610 
Total assets(a)
3,689,336 3,384,757 3,245,061 3,212,643 3,138,530 
Deposits2,278,112 2,144,257 2,001,416 1,931,029 1,836,009 
Long-term debt279,427 281,685 279,175 317,003 299,344 
Common stockholders’ equity249,151 249,291 241,050 234,403 231,199 
Total stockholders’ equity280,714 279,354 271,113 264,466 261,262 
Headcount259,350 255,351 256,358 256,710 256,720 
Credit quality metrics
Allowances for loan losses and lending-related commitments$25,517 $30,737 $33,637 $34,301 $25,391 
Allowance for loan losses to total retained loans2.42 %2.95 %3.26 %3.27 %(e)2.32 %
Nonperforming assets$10,257 $10,906 $11,462 $9,715 $7,062 
Net charge-offs1,057 1,050 1,180 1,560 1,469 
Net charge-off rate0.45 %0.44 %0.49 %0.64 %0.62 %
(a)Prior-period amounts have been revised to conform with the current presentation. Refer to Note 1 for further information.
(b)Pre-provision profit, TBVPS and ROTCE are each non-GAAP financial measures. Tangible common equity (“TCE”) is also a non-GAAP financial measure. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 16-17 for a further discussion of these measures.
(c)Quarterly ratios are based upon annualized amounts.
(d)The capital metrics reflect the relief provided by the Federal Reserve Board in response to the COVID-19 pandemic, including the Current Expected Credit Losses ("CECL") capital transition provisions that became effective in the first quarter of 2020. The SLR reflects the temporary exclusions of U.S. Treasury securities and deposits at Federal Reserve Banks, which became effective April 1, 2020 and remained in effect through March 31, 2021. Refer to Capital Risk Management on pages 36-41 of this Form 10-Q and pages 91-101 of JPMorgan Chase’s 2020 Form 10-K for additional information.
(e)Prior-period amounts have been revised to conform with the current presentation.
3


INTRODUCTION
The following is Management’s discussion and analysis of the financial condition and results of operations (“MD&A”) of JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) for the first quarter of 2021.
This Quarterly Report on Form 10-Q for the first quarter of 2021 (“Form 10-Q”) should be read together with JPMorgan Chase’s Annual Report on Form 10-K for the year ended December 31, 2020 (“2020 Form 10-K”). Refer to the Glossary of terms and acronyms and line of business (“LOB”) metrics on pages 163-171 for definitions of terms and acronyms used throughout this Form 10-Q.
The MD&A contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the current beliefs and expectations of JPMorgan Chase’s management, speak only as of the date of this Form 10-Q and are subject to significant risks and uncertainties. Refer to Forward-looking Statements on page 78 of this Form 10-Q, Part II, Item 1A, Risk Factors on pages 172-173 of this Form 10-Q and Part I, Item 1A, Risk factors, on pages 8-32 of the 2020 Form 10-K for a discussion of certain of those risks and uncertainties and the factors that could cause JPMorgan Chase’s actual results to differ materially because of those risks and uncertainties.
JPMorgan Chase & Co. (NYSE: JPM), a financial holding company incorporated under Delaware law in 1968, is a leading financial services firm based in the United States of America (U.S.), with operations worldwide. JPMorgan Chase had $3.7 trillion in assets and $280.7 billion in stockholders’ equity as of March 31, 2021. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers in the U.S. and globally many of the world’s most prominent corporate, institutional and government clients.
JPMorgan Chase’s principal bank subsidiary is JPMorgan Chase Bank, National Association (“JPMorgan Chase Bank, N.A.”), a national banking association with U.S. branches in 38 states and Washington, D.C. as of March 31, 2021. JPMorgan Chase’s principal non-bank subsidiary is J.P. Morgan Securities LLC (“J.P. Morgan Securities”), a U.S. broker-dealer. The bank and non-bank subsidiaries of JPMorgan Chase operate nationally as well as through overseas branches and subsidiaries, representative offices and subsidiary foreign banks. The Firm’s principal operating subsidiary outside the U.S. is J.P. Morgan Securities plc, a U.K.-based subsidiary of JPMorgan Chase Bank, N.A.
For management reporting purposes, the Firm’s activities are organized into four major reportable business segments, as well as a Corporate segment. The Firm’s consumer business segment is Consumer & Community Banking (CCB). The Firm’s wholesale business segments are the Corporate & Investment Bank (CIB), Commercial Banking (CB), and Asset & Wealth Management (AWM). Refer to Note 25 of this Form 10-Q and Note 32 of JPMorgan Chase’s 2020 Form 10-K for a description of the Firm’s business segments and the products and services they provide to their respective client bases.
The Firm's website is www.jpmorganchase.com. JPMorgan Chase makes available on its website, free of charge, annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as soon as reasonably practicable after it electronically files or furnishes such material to the U.S. Securities and Exchange Commission (the “SEC”) at www.sec.gov. JPMorgan Chase makes important information about the Firm available on its website, including the Investor Relations section of its website at https://www.jpmorganchase.com/ir.

4


EXECUTIVE OVERVIEW
This executive overview of the MD&A highlights selected information and does not contain all of the information that is important to readers of this Form 10-Q. For a complete description of the trends and uncertainties, as well as the risks and critical accounting estimates affecting the Firm and its various LOBs, this Form 10-Q and the 2020 Form 10-K should be read together and in their entirety.
Financial performance of JPMorgan Chase
(unaudited)
As of or for the period ended,
(in millions, except per share data and ratios)
Three months ended March 31,
20212020Change
Selected income statement data
Total net revenue(a)
$32,266$28,28614 %
Total noninterest expense18,72516,79112 
Pre-provision profit13,54111,49518 
Provision for credit losses(4,156)8,285NM
Net income14,3002,865399 
Diluted earnings per share$4.50$0.78477 
Selected ratios and metrics
Return on common equity23%4%
Return on tangible common equity295
Book value per share$82.31$75.88
Tangible book value per share66.5660.7110 
Capital ratios(b)
CET113.1%11.5%
Tier 1 capital15.013.3
Total capital17.215.5
(a)Prior-period amount has been revised to conform with the current presentation. Refer to Note 1 for further information.
(b)The capital metrics reflect the relief provided by the Federal Reserve Board in response to the COVID-19 pandemic, including the CECL capital transition provisions that became effective in the first quarter of 2020. Refer to Capital Risk Management on pages 36-41 of this Form 10-Q and pages 91-101 of JPMorgan Chase’s 2020 Form 10-K for additional information.
Comparisons noted in the sections below are for the first quarter of 2021 versus the first quarter of 2020, unless otherwise specified.
Firmwide overview
JPMorgan Chase reported net income of $14.3 billion for the first quarter of 2021, or $4.50 per share, on net revenue of $32.3 billion. The Firm reported ROE of 23% and ROTCE of 29%. The Firm's results for the first quarter of 2021 included a reduction in the allowance for credit losses of $5.2 billion compared to an increase in the allowance for credit losses of $6.8 billion in the prior year, as well as a $550 million contribution to the Firm's Foundation.
Net income was $14.3 billion, up $11.4 billion.
Total net revenue was up 14%. Noninterest revenue was $19.4 billion, up 40%, predominantly driven by higher CIB Markets revenue, higher Investment Banking fees, and the absence of losses in Credit Adjustments and Other in CIB and markdowns on held-for-sale positions in the bridge financing portfolio in CIB and CB recorded in the prior year. Net interest income was $12.9 billion, down 11%, predominantly driven by the impact of lower rates partially offset by balance sheet growth.
Noninterest expense was $18.7 billion, up 12%, predominantly driven by higher volume- and revenue-related expense and continued investments in the businesses. The increase in expense also included a $550 million contribution to the Firm's Foundation.
The provision for credit losses was a net benefit of $4.2 billion driven by net reductions in the allowance for credit losses of $5.2 billion, compared to an expense of $8.3 billion in the prior year predominantly driven by net additions to the allowance for credit losses of $6.8 billion.
The total allowance for credit losses was $25.6 billion at March 31, 2021. The Firm had an allowance for loan losses to retained loans coverage ratio of 2.42%, compared with 2.95% in the fourth quarter of 2020, and 2.32% in the prior year; the decrease from the fourth quarter of 2020 was driven by net reductions in the allowance for loan losses.
The Firm’s nonperforming assets totaled $10.3 billion at March 31, 2021, an increase of $3.2 billion from the prior year, reflecting client credit deterioration across multiple industries, including Real Estate, in the wholesale portfolio; and in the consumer portfolio, loans placed on nonaccrual status related to the impact of the COVID-19 pandemic. In the first quarter of 2021, nonperforming assets decreased $649 million from December 31, 2020, driven by lower nonaccrual loans in the wholesale portfolio, reflecting the impact of net portfolio activity and select client upgrades in Oil & Gas and Individuals; and lower nonaccrual loans at fair value in the CIB consumer portfolio, due to sales.
Firmwide average loans of $1.0 trillion were up 1%, driven by higher loans in AWM and CIB, predominantly offset by lower loans in CCB and CB. The increase in loans also reflects loans originated under the Paycheck Protection Program (“PPP”) in CCB and CB.
Firmwide average deposits of $2.2 trillion were up 36%, reflecting significant inflows across the LOBs primarily driven by the effect of certain government actions in response to the COVID-19 pandemic.
As of March 31, 2021, the Firm had average eligible High Quality Liquid Assets (“HQLA”) of approximately $697 billion and unencumbered marketable securities with a fair value of approximately $841 billion, resulting in approximately $1.5 trillion of liquidity sources. Refer to Liquidity Risk Management on pages 42-46 for additional information.
5


Selected capital-related metrics
The Firm’s CET1 capital was $206 billion, and the Standardized and Advanced CET1 ratios were 13.1% and 13.7%, respectively.
The Firm’s SLR was 6.7%, and without the temporary exclusions of U.S. Treasury securities and deposits at Federal Reserve Banks, 5.5%.
The Firm grew TBVPS, ending the first quarter of 2021 at $66.56, up 10% versus the prior year.
Pre-provision profit, ROTCE and TBVPS are non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 16-17 for a further discussion of each of these measures.
Business segment highlights
Selected business metrics for each of the Firm’s four LOBs are presented below for the first quarter of 2021.
CCB
ROE
54%
Average deposits up 32%; client investment assets up 44%
Average loans down 7%; debit and credit card sales volume up 9%
Active mobile customers up 9%
CIB
ROE
27%
Global Investment Banking wallet share of 9.0% in 1Q21
Total Markets revenue of $9.1 billion, up 25%, with Fixed Income Markets up 15% and Equity Markets up 47%
CB
ROE
19%
Gross Investment Banking revenue of $1.1 billion, up 65%
Average loans down 2%; average deposits up 54%
AWM
ROE
 35%
Assets under management (AUM) of $2.8 trillion, up 28%
Average loans up 18%; average deposits up 43%
Refer to the Business Segment Results on pages 18-34 for a detailed discussion of results by business segment.
Credit provided and capital raised
JPMorgan Chase continues to support consumers, businesses and communities around the globe. The Firm provided new and renewed credit and raised capital for wholesale and consumer clients during the first three months of 2021, consisting of:
$804 billion
Total credit provided and capital raised (including loans and commitments)(a)
$69
billion
Credit for consumers
$4
billion
Credit for U.S. small businesses
$300 billionCredit for corporations
$417 billionCapital raised for corporate clients and non-U.S. government entities
$14
 billion
Credit and capital raised for nonprofit and U.S. government entities(b)
$10 billionLoans under the Small Business Administration’s Paycheck Protection
Program
(a)Excludes loans under the SBA’s PPP.
(b)Includes states, municipalities, hospitals and universities.

6


Recent events
On April 15, 2021, JPMorgan Chase announced that it aims to finance and facilitate more than $2.5 trillion to advance long-term solutions that address climate change and contribute to sustainable development beginning in 2021 through the end of 2030. The target includes $1 trillion for green initiatives, such as renewable energy and clean technologies.
Outlook
These current expectations are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs and expectations of JPMorgan Chase’s management, speak only as of the date of this Form 10-Q, and are subject to significant risks and uncertainties. Refer to Forward-Looking Statements on page 78 and Risk Factors on page 172 of this Form 10-Q and pages 8–32 of JPMorgan Chase’s 2020 Form 10-K for a further discussion of certain of those risks and uncertainties and the other factors that could cause JPMorgan Chase’s actual results to differ materially because of those risks and uncertainties. There is no assurance that actual results will be in line with the outlook set forth below, and the Firm does not undertake to update any forward-looking statements.
JPMorgan Chase’s current outlook for 2021 should be viewed against the backdrop of the global and U.S. economies, the COVID-19 pandemic, financial markets activity, the geopolitical environment, the competitive environment, client and customer activity levels, and regulatory and legislative developments in the U.S. and other countries where the Firm does business. Each of these factors will affect the performance of the Firm and its LOBs. The Firm will continue to make appropriate adjustments to its businesses and operations in response to ongoing developments in the business, economic, regulatory and legal environments in which it operates. The outlook information contained in this Form 10-Q supersedes all outlook information furnished by the Firm in its periodic reports filed with the SEC prior to the date of this Form 10-Q.
Full-year 2021
Management expects net interest income, on a managed basis, to be approximately $55 billion, market dependent.
Management expects adjusted expense to be approximately $70 billion, market dependent.
Management expects the net charge-off rate in Card to be approximately 2.5%.
Net interest income, on a managed basis, and adjusted expense are non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 16-17.
7


Business Developments
COVID-19 Pandemic
Throughout the COVID-19 pandemic, the Firm has remained focused on serving its clients, customers and communities, as well as the well-being of its employees.
The Firm has raised capital and provided credit to support its customers and clients. The Firm continues to participate in the Small Business Association’s (“SBA”) PPP and since inception of the Program has funded approximately $40 billion as of April 30, 2021. While the Firm’s temporary assistance measures for those impacted by the pandemic have steadily declined since early 2020, the Firm continues to assist those impacted, primarily in the form of payment deferrals.
Refer to Credit Portfolio on page 47 for further information on PPP; Consumer Credit portfolio on pages 48-52 and Wholesale Credit Portfolio on pages 53-62 for further information on retained loans under payment deferral. Refer to Credit Portfolio on page 113 of JPMorgan Chase's 2020 Form 10-K for further information on PPP; Consumer Credit Portfolio on page 116 and Wholesale Credit Portfolio on page 122 of JPMorgan Chase's 2020 Form 10-K for further information on retained loans under payment deferral.
The Firm remains focused on the well-being of its employees. While the vast majority of its global workforce continue to work from home, the Firm is actively monitoring the health and safety situations at local and regional levels, and will adapt its plans as these situations evolve.
Regulatory Developments Relating to the COVID-19 Pandemic
To address the economic impact of the COVID-19 pandemic, the U.S. government as well as central banks and banking authorities around the world have taken and continue to take actions to help individuals, households and businesses that have been adversely affected by the economic disruption caused by the pandemic. In the U.S., several stimulus packages were enacted including the CARES Act in March of 2020, the Consolidated Appropriations Act in December of 2020 and the American Rescue Plan Act in March of 2021, which provided funding to support loan facilities to assist consumers and businesses and stimulus payments to individuals.
Refer to Regulatory Developments Relating to the COVID-19 Pandemic on pages 52-53 of JPMorgan Chase’s 2020 Form 10-K for further discussion on U.S. government actions impacting the Firm and U.S. government facilities and programs in which the Firm has participated.
Post Brexit
Prior to December 31, 2020 the Firm substantially completed its Firmwide Brexit Implementation program which was intended to ensure the continuity of its business and operations with respect to EU clients. On March 26, 2021, the U.K. and the EU agreed on a Memorandum of Understanding that sets out a framework for regulatory cooperation in relation to cross-border financial services. The Firm will monitor developments and take any necessary actions to ensure business continuity with respect to the Firm's EU clients. Refer to Business Developments on page 50 of the 2020 Form 10-K for additional information.
Interbank Offered Rate (“IBOR”) transition
On March 5, 2021, the Financial Conduct Authority confirmed that the publication of the principal tenors of U.S. dollar LIBOR (i.e., overnight, one-month, three-month, six-month and 12-month LIBOR) will cease immediately following a final publication on June 30, 2023. The scheduled cessation date for U.K. sterling, Japanese yen, Swiss franc and Euro LIBOR, and the one-week and two-month tenors of U.S. dollar LIBOR, remains December 31, 2021, and the Firm is prioritizing those currencies and tenors of LIBOR for contract remediation in 2021.
The Firm continues to make progress on its initiatives to appropriately mitigate the risks associated with IBOR discontinuation, including contract remediation. The Firm also continues to monitor the transition relief being considered by the U.S. Treasury Department regarding the tax implications of reference rate reform. Refer to Business Developments on page 51 of the 2020 Form 10-K for a discussion of the Firm’s initiatives to address the expected discontinuation of the London Interbank Offered Rate (“LIBOR”) and other IBORs.

8


CONSOLIDATED RESULTS OF OPERATIONS
This section provides a comparative discussion of JPMorgan Chase’s Consolidated Results of Operations on a reported basis for the three months ended March 31, 2021 and 2020, unless otherwise specified. Factors that relate primarily to a single business segment are discussed in more detail within that business segment's results. Refer to pages 74-76 of this Form 10-Q and pages 152-155 of JPMorgan Chase’s 2020 Form 10-K for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Results of Operations.
Revenue
Three months ended March 31,
(in millions)20212020Change
Investment banking fees$2,970 $1,866 59 %
Principal transactions6,500 2,937 121 
Lending- and deposit-related fees1,687 1,706 (1)
Asset management, administration and commissions5,029 4,540 11 
Investment securities gains14 233 (94)
Mortgage fees and related income704 320 120 
Card income1,350 995 36 
Other income(a)(b)
1,123 1,250 (10)
Noninterest revenue19,377 13,847 40 
Net interest income12,889 14,439 (11)
Total net revenue$32,266 $28,286 14 %
(a) Included operating lease income of $1.3 billion and $1.4 billion for the three months ended March 31, 2021 and 2020.
(b) Prior-period amount has been revised to conform with the current presentation. Refer to Note 1 for further information.
Investment banking fees increased across products in CIB, reflecting:
higher equity underwriting fees largely driven by the IPO market due to increased industry-wide fees
higher advisory fees driven by a higher number of completed transactions, in part related to transactions announced in the second half of 2020, and
higher debt underwriting fees driven by high-yield bonds and leveraged loans due to increased industry-wide fees and wallet share gains.
Refer to CIB segment results on pages 23-27 and Note 5 for additional information.
Principal transactions revenue increased, in part due to the absence of two significant items in the prior year: a $951 million loss in CIB’s Credit Adjustments & Other; and an $896 million markdown on held-for-sale positions, in the bridge financing portfolio in CIB and CB.
Excluding these two items, principal transactions revenue increased in CIB driven by strong performance in:
Equity Markets across derivatives, Cash Equities, and prime brokerage, and
Fixed Income Markets particularly in Securitized Products and Credit, largely offset by lower revenue in Rates and Currencies & Emerging Markets compared to a strong prior year.

The increase in principal transactions revenue also reflected net gains on certain legacy private equity investments in Corporate, compared with net losses in the prior year.
Principal transactions revenue in CIB may in certain cases have offsets across other revenue lines, including net interest income. The Firm assesses the performance of its CIB Markets business on a total revenue basis.
Refer to CIB and Corporate segment results on pages 23-27 and pages 33-34, and Note 5 for additional information.
Lending- and deposit-related fees decreased reflecting:
lower deposit-related fees in CCB given the higher deposits held in existing and new accounts,
predominantly offset by
higher cash management fees in CIB and CB, and higher lending-related fees, particularly loan commitment fees in CIB.
Refer to CCB segment results on pages 20-22, CIB on pages 23-27 and CB on pages 28-29, respectively, and Note 5 for additional information.
Asset management, administration and commissions revenue increased driven by higher asset management fees as a result of:
strong cumulative net inflows into long-term and liquidity products and higher average market levels, net of liquidity fee waivers, in AWM, and to a lesser extent,
higher levels of investment assets on higher average market levels and net inflows in CCB.
Refer to CCB and AWM segment results on pages 20-22 and pages 30-32, respectively, and Note 5 for information on asset management, administration and commissions revenue.
Investment securities gains in both periods reflected the impact of repositioning the investment securities portfolio. Refer to Corporate segment results on pages 33-34 and Note 9 for information on investment securities gains.
Mortgage fees and related income increased predominantly due to higher mortgage production revenue reflecting higher production margins and volumes.
Refer to CCB segment results on pages 20-22, Note 5 and 14 for further information.
Card income increased driven by lower acquisition costs, and higher net interchange income in CCB, with debit and credit card sales volume returning to pre-pandemic levels. Refer to CCB segment results on pages 20-22 and Note 5 for further information.

9


Other income decreased reflecting:
Weather-related write-downs on certain renewable energy investments, as well as increased amortization on a higher level of alternative energy investments in the tax-oriented investment portfolio in CIB. The increased amortization was more than offset by lower income tax expense from the associated tax credits
lower gains on certain Corporate investments, and
lower operating lease income from a decline in auto operating lease volume in CCB,
partially offset by
net valuation gains on certain investments, compared with losses in the prior year, in AWM, and
the absence of losses on certain equity investments in CIB in the prior year.
Net interest income decreased predominantly driven by the impact of lower rates, partially offset by balance sheet growth.
The Firm’s average interest-earning assets were $3.1 trillion, up $661 billion, predominantly driven by higher deposits with banks and investment securities, and the yield was 1.87%, down 127 basis points (“bps”), primarily due to lower rates. The net yield on these assets, on an FTE basis, was 1.69%, a decrease of 68 bps. The net yield excluding CIB Markets was 1.93%, down 108 bps.
Net yield on an FTE basis, and net yield excluding CIB Markets are non-GAAP financial measures. Refer to the Consolidated average balance sheets, interest and rates schedule on page 162 for further details; and the Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 16-17 for a further discussion of Net interest yield excluding CIB Markets.
















Provision for credit losses
Three months ended March 31,
(in millions)20212020Change
Consumer, excluding credit card$(984)$619 NM
Credit card(2,517)5,063 NM
Total consumer(3,501)5,682 NM
Wholesale(671)2,594 NM
Investment securities16 78 %
Total provision for credit losses$(4,156)$8,285 NM
The provision for credit losses decreased driven by net reductions in both the consumer and wholesale allowance for credit losses.
The decrease in consumer was driven by:
a $4.5 billion reduction in the allowance for credit losses, including $3.5 billion in Card reflecting improvements in the Firm's macroeconomic scenarios, and $625 million in Home Lending primarily due to the continued improvement in home price index ("HPI") expectations and to a lesser extent portfolio run-off, and
lower net charge-offs predominantly in Card, reflecting lower charge-offs and higher recoveries primarily benefiting from payment assistance and government stimulus;
the prior year included a $4.4 billion addition to the allowance for credit losses.
The decrease in wholesale reflects a net reduction of $716 million in the allowance for credit losses across the LOBs reflecting improvements in the Firm's macroeconomic scenarios.
Refer to CCB segment results on pages 20-22, CIB on pages 23-27, CB on pages 28-29, AWM on pages 30-32, the Allowance for Credit Losses on pages 63–64, and Notes 9 and 12 for additional information on the credit portfolio and the allowance for credit losses.

10


Noninterest expense
(in millions)Three months ended March 31,
20212020Change
Compensation expense$10,601 $8,895 19 %
Noncompensation expense:
Occupancy1,115 1,066 
Technology, communications and equipment2,519 2,578 (2)
Professional and outside services2,203 2,028 
Marketing751 800 (6)
Other expense(a)(b)
1,536 1,424 
Total noncompensation expense8,124 7,896 
Total noninterest expense$18,725 $16,791 12 %
(a)Included Firmwide legal expense of $28 million and $197 million for the three months ended March 31, 2021 and 2020, respectively.
(b)Included FDIC-related expense of $201 million and $99 million for the three months ended March 31, 2021 and 2020, respectively.
Compensation expense increased predominantly driven by higher revenue-related expense in CIB, as well as the impact of investments in the businesses.
Noncompensation expense increased as a result of:
higher contribution expense, which included a $550 million donation of equity investments to the Firm's Foundation
higher investments in the businesses, including technology, and
higher FDIC-related expense largely driven by balance sheet growth,
partially offset by
lower legal expense, predominantly in CIB, and
lower other structural expense, including lower travel and entertainment across the businesses and lower operating losses.
Other volume- and revenue-related expense was relatively flat as the increase in brokerage expense in CIB and distribution expense in AWM was offset by lower depreciation from the decline in auto lease assets in CCB.





Income tax expense
(in millions)Three months ended March 31,
20212020Change
Income before income tax expense$17,697 $3,210 451 %
Income tax expense(a)
3,397 345 NM
Effective tax rate(a)
19.2 %10.7 %
(a)Prior-period amounts have been revised to conform with the current presentation. Refer to Note 1 for further information.

The effective tax rate increased driven by a higher level of pre-tax income that also reduced the relative impact of certain tax benefits, as well as the resolution of certain tax audits.

11


CONSOLIDATED BALANCE SHEETS AND CASH FLOWS ANALYSIS
Consolidated balance sheets analysis
The following is a discussion of the significant changes between March 31, 2021, and December 31, 2020.
Selected Consolidated balance sheets data
(in millions)March 31,
2021
December 31,
2020
Change
Assets
Cash and due from banks$25,397 $24,874 %
Deposits with banks685,675 502,735 36 
Federal funds sold and securities purchased under resale agreements272,481 296,284 (8)
Securities borrowed179,516 160,635 12 
Trading assets544,052 503,126 
Available-for-sale securities379,942 388,178 (2)
Held-to-maturity securities, net of allowance for credit losses217,452 201,821 
Investment securities, net of allowance for credit losses597,394 589,999 
Loans1,011,307 1,012,853 — 
Allowance for loan losses(23,001)(28,328)(19)
Loans, net of allowance for loan losses988,306 984,525 — 
Accrued interest and accounts receivable114,754 90,503 27 
Premises and equipment26,926 27,109 (1)
Goodwill, MSRs and other intangible assets54,588 53,428 
Other assets(a)
200,247 151,539 32 
Total assets$3,689,336 $3,384,757 %
(a) Prior-period amount has been revised to conform with the current presentation. Refer to Note 1 for further information.
Cash and due from banks and deposits with banks increased primarily as a result of the continued growth in deposits and lower opportunities in Treasury and CIO to deploy funds in securities purchased under resale agreements. Deposits with banks reflect the Firm’s placements of its excess cash with various central banks, including the Federal Reserve Banks.
Federal funds sold and securities purchased under resale agreements decreased driven by the lower deployment of funds in Treasury and CIO; and in CIB lower client-driven market-making activities, partially offset by higher demand for securities to cover short positions. Refer to Liquidity Risk Management on pages 42-46 and Note 10 for additional information.
Securities borrowed increased driven by client-driven activities in Fixed Income Financing and Equity Markets, and higher demand for securities to cover short positions in CIB. Refer to Liquidity Risk Management on pages 42-46 and Note 10 for additional information.
Trading assets increased due to strong client-driven market-making activities in equity instruments in CIB Markets, including prime brokerage. Refer to Notes 2 and 4 for additional information.
Investment securities increased, reflecting net purchases of U.S. Treasuries in the held-to-maturity (“HTM”) portfolio predominantly offset by a decrease in the available-for-sale ("AFS") portfolio. The decrease in AFS was due to paydowns and net valuation losses, partially offset by net purchases.

Refer to Corporate segment results on pages 33-34, Investment Portfolio Risk Management on page 65, and Notes 2 and 9 for additional information on Investment securities.
Loans were flat as:
the reduction in Card due to the impact of seasonality, and higher payment rates; lower loans in CB; and net paydowns in Home Lending
were offset by
the origination of PPP loans in CBB and CB; growth in CIB loans held-for-sale and loans at fair value, and in AWM securities-based and custom lending, as well as mortgages.
The allowance for loan losses decreased consisting of:
a $4.5 billion reduction in consumer, predominantly in the credit card portfolio, reflecting improvements in the Firm's macroeconomic scenarios, and in the residential real estate portfolio primarily due to the continued improvement in the HPI expectations and to a lesser extent portfolio run-off, and
an $875 million net reduction in wholesale, across the LOBs reflecting improvements in the Firm's macroeconomic scenarios.
There was a $107 million addition to the allowance for lending-related commitments, which is included in other liabilities on the consolidated balance sheets. The total net reduction to the allowance for credit losses was $5.2 billion, as of March 31, 2021.
12


Refer to Credit and Investment Risk Management on pages 47-65, and Notes 2, 3, 11 and 12 for a more detailed discussion of loans and the allowance for loan losses.
Accrued interest and accounts receivable increased largely due to higher client receivables related to client-driven activities in CIB prime brokerage.

Goodwill, MSRs and other intangibles increased driven by higher MSRs as a result of lower prepayment speeds on higher rates, as well as net additions to the MSRs. Refer to Note 14 for additional information.
Other assets increased predominantly due to the impact of securities financing transactions in CIB prime brokerage, as well as higher cash collateral placed with central counterparties ("CCPs"). Refer to Note 10 for additional information on securities lending transactions.
Selected Consolidated balance sheets data (continued)
(in millions)March 31,
2021
December 31,
2020
Change
Liabilities
Deposits$2,278,112 $2,144,257 %
Federal funds purchased and securities loaned or sold under repurchase agreements304,019 215,209 41 
Short-term borrowings54,978 45,208 22 
Trading liabilities191,349 170,181 12 
Accounts payable and other liabilities(a)
285,066 231,285 23 
Beneficial interests issued by consolidated variable interest entities (“VIEs”)15,671 17,578 (11)
Long-term debt279,427 281,685 (1)
Total liabilities3,408,622 3,105,403 10 
Stockholders’ equity280,714 279,354 — 
Total liabilities and stockholders’ equity$3,689,336 $3,384,757 %
(a) Prior-period amount has been revised to conform with the current presentation. Refer to Note 1 for further information.
Deposits increased across the LOBs primarily driven by the effect of certain government actions in response to the COVID 19 pandemic. In CCB, the increase was also driven by lower spending, as well as growth from existing and new accounts across both consumer and small business customers. Refer to Liquidity Risk Management on pages 42-46 and Notes 2 and 15 for additional information.
Federal funds purchased and securities loaned or sold under repurchase agreements increased reflecting:
higher secured financing of AFS investment securities in Treasury and CIO, as well as higher trading assets in CIB, and
the impact of client activities in CIB.
Refer to Liquidity Risk Management on pages 42-46 and Note 10 for additional information.
Short-term borrowings increased as a result of higher financing of prime brokerage activities, and net issuance of structured notes in CIB, as well as the issuance of commercial paper in Treasury and CIO. Refer to pages 42-46 for information on changes in Liquidity Risk Management.
Trading liabilities increased due to client-driven market-making activities in CIB Fixed Income Markets, which resulted in higher levels of short positions in debt instruments, partially offset by lower derivative payables as a result of market movements. Refer to Notes 2 and 4 for additional information.
Accounts payable and other liabilities increased largely due to the impact of securities financing transactions in CIB prime brokerage. Refer to Note 10 for additional information on securities lending transactions.
Beneficial interests issued by consolidated VIEs decreased driven by lower issuances as a result of lower loan balances in the Firm-administered multi-seller conduits. Refer to Off-Balance Sheet Arrangements on page 15 and Notes 13 and 22 for further information on Firm-sponsored VIEs and loan securitization trusts.
Long-term debt was relatively flat as maturities and fair value hedge accounting adjustments related to higher rates were offset by net issuances. Refer to Liquidity Risk Management on pages 42-46 for additional information.
Stockholders’ equity was relatively flat as net income was offset by the impact of capital actions and a decrease in accumulated other comprehensive income (“AOCI”). The decrease in AOCI was driven by the impact of higher rates on the AFS securities portfolio and cash flow hedges. Refer to page 82 for information on changes in stockholders’ equity, Capital actions on pages 39-40, and Note 19 for additional information on AOCI.

13


Consolidated cash flows analysis
The following is a discussion of cash flow activities during the three months ended March 31, 2021 and 2020.
(in millions)Three months ended March 31,
20212020
Net cash provided by/(used in)
Operating activities$(43,872)$(120,089)
Investing activities15,391 (135,833)
Financing activities218,911 362,305 
Effect of exchange rate changes on cash(6,967)(2,480)
Net increase in cash and due from banks and deposits with banks$183,463 $103,903 
Operating activities
In 2021, cash used resulted from higher trading assets, accrued interest and accounts receivable, and securities borrowed, partially offset by higher accounts payable and other liabilities and lower other assets.
In 2020, cash used resulted from higher trading assets, other assets, and accrued interest and accounts receivable, partially offset by higher trading liabilities and accounts payable and other liabilities.
Investing activities
In 2021, cash provided reflected lower securities purchased under resale agreements and net proceeds from sales and securitizations of loans held-for-investment, partially offset by net purchases of investment securities.
In 2020, cash used reflected net purchases of investment securities, net originations of loans, and purchases of assets from money market mutual fund clients pursuant to nonrecourse advances provided by the Federal Reserve Bank of Boston ("FRBB") under the Money Market Mutual Fund Liquidity Facility ("MMLF").

Financing activities
In 2021, cash provided reflected higher deposits and securities loaned or sold under repurchase agreements, and net proceeds from long- and short-term borrowings.
In 2020, cash provided reflected higher deposits and securities loaned or sold under repurchase agreements, and net proceeds from long- and short-term borrowings.
For both periods, cash was used for repurchases of common stock and cash dividends on common and preferred stock.
* * *
Refer to Consolidated Balance Sheets Analysis on pages 12-13, Capital Risk Management on pages 36-41, and Liquidity Risk Management on pages 42-46 of this Form 10-Q, and pages 102–108 of JPMorgan Chase’s 2020 Form 10-K for a further discussion of the activities affecting the Firm’s cash flows.
14


OFF-BALANCE SHEET ARRANGEMENTS
In the normal course of business, the Firm enters into various off-balance sheet arrangements and contractual obligations that may require future cash payments. Certain obligations are recognized on-balance sheet, while others are disclosed as off-balance sheet under accounting principles generally accepted in the U.S. (“U.S. GAAP”).
Special-purpose entities
The Firm has several types of off–balance sheet arrangements, including through nonconsolidated special-purpose entities (“SPEs”), which are a type of VIE, and through lending-related financial instruments (e.g., commitments and guarantees).
The Firm holds capital, as appropriate, against all SPE-related transactions and related exposures, such as derivative contracts and lending-related commitments and guarantees.
The Firm has no commitments to issue its own stock to support any SPE transaction, and its policies require that transactions with SPEs be conducted at arm’s length and reflect market pricing.
The table below provides an index of where in this Form 10-Q discussions of the Firm’s various off-balance sheet arrangements can be found. Refer to Note 1 for additional information about the Firm’s consolidation policies.
Type of off-balance sheet arrangementLocation of disclosurePage references
Special-purpose entities: variable interests and other obligations, including contingent obligations, arising from variable interests in nonconsolidated VIEsRefer to Note 13137-142
Off-balance sheet lending-related financial instruments, guarantees, and other commitmentsRefer to Note 22152-155


15


EXPLANATION AND RECONCILIATION OF THE FIRM’S USE OF NON-GAAP FINANCIAL MEASURES
The Firm prepares its Consolidated Financial Statements in accordance with U.S. GAAP and this presentation is referred to as “reported” basis; these financial statements appear on pages 79-83.
In addition to analyzing the Firm’s results on a reported basis, the Firm also reviews and uses certain non-GAAP financial measures at the Firmwide and segment level. These non-GAAP measures include:
Firmwide “managed” basis results, including the overhead ratio, which include certain reclassifications to present total net revenue from investments that receive tax credits and tax-exempt securities on a basis comparable to taxable investments and securities (“FTE” basis)
Pre-provision profit, which represents total net revenue less total noninterest expense
Net interest income and net yield excluding CIB Markets
TCE, ROTCE, and TBVPS
Allowance for loan losses to period-end loans retained, excluding trade finance and conduits.
Refer to Explanation and Reconciliation of the Firm’s Use Of Non-GAAP Financial Measures and Key Performance Measures on pages 62–64 of JPMorgan Chase’s 2020 Form 10-K for a further discussion of management’s use of non-GAAP financial measures.
The following summary table provides a reconciliation from the Firm’s reported U.S. GAAP results to managed basis.
Three months ended March 31,
20212020
(in millions, except ratios)Reported
Fully taxable-equivalent adjustments(b)
Managed
basis
Reported
Fully taxable-equivalent adjustments(b)
Managed
basis
Other income(a)
$1,123 $744 $1,867 $1,250 $614 $1,864 
Total noninterest revenue19,377 744 20,121 13,847 614 14,461 
Net interest income12,889 109 12,998 14,439 110 14,549 
Total net revenue32,266 853 33,119 28,286 724 29,010 
Total noninterest expense18,725 NA18,725 16,791 NA16,791 
Pre-provision profit13,541 853 14,394 11,495 724 12,219 
Provision for credit losses(4,156)NA(4,156)8,285 NA8,285 
Income before income tax expense17,697 853 18,550 3,210 724 3,934 
Income tax expense(a)
3,397 853 4,250 345 724 1,069 
Net income$14,300 NA$14,300 $2,865 NA$2,865 
Overhead ratio(a)
58 %NM57 %59 %NM58 %
(a)Prior-period amounts have been revised to conform with the current presentation. Refer to Note 1 for further information.
(b)Predominantly recognized in CIB, CB and Corporate.
The following table provides information on net interest income and net yield excluding CIB Markets.

(in millions, except rates)
Three months ended March 31,
20212020Change
Net interest income – reported$12,889 $14,439 (11)%
Fully taxable-equivalent adjustments109 110 (1)
Net interest income – managed basis(a)
$12,998 $14,549 (11)
Less: CIB Markets net interest income(b)
2,223 1,596 39 
Net interest income excluding CIB Markets(a)
$10,775 $12,953 (17)
Average interest-earning assets$3,126,569 $2,465,549 27 
Less: Average CIB Markets interest-earning assets(b)
866,591 735,852 18 
Average interest-earning assets excluding CIB Markets$2,259,978 $1,729,697 31 %
Net yield on average interest-earning assets – managed basis1.69 %2.37 %
Net yield on average CIB Markets interest-earning assets(b)
1.04 0.87 
Net yield on average interest-earning assets excluding CIB Markets1.93 %3.01 %
(a)Interest includes the effect of related hedges. Taxable-equivalent amounts are used where applicable.
(b)Refer to page 26 for further information on CIB Markets.


16


The following summary table provides a reconciliation from the Firm’s common stockholders’ equity to TCE.
Period-endAverage
(in millions, except per share and ratio data)Mar 31,
2021
Dec 31,
2020
Three months ended March 31,
20212020
Common stockholders’ equity$249,151 $249,291 $245,542 $234,530 
Less: Goodwill49,243 49,248 49,249 47,812 
Less: Other intangible assets875 904 891 812 
Add: Certain deferred tax liabilities(a)
2,457 2,453 2,455 2,385 
Tangible common equity$201,490 $201,592 $197,857 $188,291 
Return on tangible common equityNANA29 %%
Tangible book value per share$66.56 $66.11 NANA
(a)Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in nontaxable transactions, which are netted against goodwill and other intangibles when calculating TCE.
17


BUSINESS SEGMENT RESULTS
The Firm is managed on an LOB basis. There are four major reportable business segments – Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking and Asset & Wealth Management. In addition, there is a Corporate segment.
The business segments are determined based on the products and services provided, or the type of customer served, and they reflect the manner in which financial information is currently evaluated by the Firm’s Operating Committee. Segment results are presented on a managed basis. Refer to Explanation and Reconciliation of the Firm’s use of Non-GAAP Financial Measures on pages 16-17 for a definition of managed basis.
Description of business segment reporting methodology
Results of the business segments are intended to present each segment as if it were a stand-alone business. The management reporting process that derives business segment results includes the allocation of certain income and expense items. The Firm periodically assesses the assumptions, methodologies and reporting classifications used for segment reporting, and further refinements may be implemented in future periods. The Firm also assesses the level of capital required for each LOB on at least an annual basis. The Firm’s LOBs also provide various business metrics which are utilized by the Firm and its investors and analysts in assessing performance.
Revenue sharing
When business segments join efforts to sell products and services to the Firm’s clients, the participating business segments may agree to share revenue from those transactions. Revenue is generally recognized in the segment responsible for the related product or service, with allocations to the other segment(s) involved in the transaction. The segment results reflect these revenue-sharing agreements.
Capital allocation
The amount of capital assigned to each segment is referred to as equity. Periodically, the assumptions and methodologies used to allocate capital are assessed and as a result, the capital allocated to the LOBs may change. Refer to Line of business equity on page 39, and page 98 of JPMorgan Chase’s 2020 Form 10-K for additional information on capital allocation.
Refer to Business Segment Results – Description of business segment reporting methodology on pages 65–66 of JPMorgan Chase’s 2020 Form 10-K for a further discussion of those methodologies.

18


Segment results – managed basis
The following tables summarize the Firm’s results by segment for the periods indicated.
Three months ended March 31,Consumer & Community BankingCorporate & Investment BankCommercial Banking
(in millions, except ratios)20212020Change20212020Change20212020Change
Total net revenue$12,517 $13,287(6)%$14,605 $10,00346%$2,393 $2,16511%
Total noninterest expense7,202 7,269(1)7,104 5,95519969 986(2)
Pre-provision profit/(loss)5,315 6,018(12)7,501 4,048851,424 1,17921
Provision for credit losses(3,602)5,772NM(331)1,401NM(118)1,010NM
Net income/(loss)6,728 197NM5,740 1,9851891,168 139NM
Return on equity (“ROE”)54 %1%27 %9%19 %2%
Three months ended March 31,Asset & Wealth ManagementCorporateTotal
(in millions, except ratios)20212020Change20212020Change20212020Change
Total net revenue$4,077 $3,38920%$(473)$166NM$33,119 $29,01014%
Total noninterest expense2,574 2,4356876 14650018,725 16,79112
Pre-provision profit/(loss)1,503 95458(1,349)20NM14,394 12,21918
Provision for credit losses(121)94NM16 8100(4,156)8,285NM
Net income/(loss)1,244 66986(580)(125)(364)14,300 2,865399
ROE35 %25%NMNM23 %4%
The following sections provide a comparative discussion of the Firm’s results by segment as of or for the three months ended March 31, 2021 versus the corresponding periods in the prior year, unless otherwise specified.
19


CONSUMER & COMMUNITY BANKING
Refer to pages 67–70 of JPMorgan Chase's 2020 Form 10-K and Line of Business Metrics on page 169 for a further discussion of the business profile of CCB.
Selected income statement data
Three months ended March 31,
(in millions, except ratios)20212020Change
Revenue
Lending- and deposit-related fees$742 $972 (24)%
Asset management, administration and commissions805 708 14 
Mortgage fees and related income703 320 120 
Card income999 652 53 
All other income1,339 1,445 (7)
Noninterest revenue4,588 4,097 12 
Net interest income7,929 9,190 (14)
Total net revenue12,517 13,287 (6)
Provision for credit losses(3,602)5,772 NM
Noninterest expense
Compensation expense2,976 2,782 
Noncompensation expense(a)
4,226 4,487 (6)
Total noninterest expense7,202 7,269 (1)
Income before income tax expense8,917 246 NM
Income tax expense2,189 49 NM
Net income$6,728 $197 NM
Revenue by line of business
Consumer & Business Banking$5,635 $6,266 (10)
Home Lending1,458 1,161 26 
Card & Auto5,424 5,860 (7)
Mortgage fees and related income details:
Production revenue757 319 137 
Net mortgage servicing revenue(b)
(54)NM
Mortgage fees and related income$703 $320 120 %
Financial ratios
Return on equity54 %%
Overhead ratio5855
(a)Included depreciation expense on leased assets of $916 million and $1.1 billion for the three months ended March 31, 2021 and 2020, respectively.
(b)Included MSR risk management results of $(115) million and $(90) million for the three months ended March 31, 2021 and 2020, respectively.
Quarterly results
Net income was $6.7 billion, up $6.5 billion, driven by a decrease in the provision for credit losses.
Net revenue was $12.5 billion, a decrease of 6%.
Net interest income was $7.9 billion, down 14%, driven by:
the impact of deposit margin compression in CBB, lower loans in Card due to the cumulative impact of lower spend throughout 2020 and higher payment rates, and lower loans in Home Lending due to net paydowns,
partially offset by
growth in deposits in CBB.
Noninterest revenue was $4.6 billion, up 12%, driven by:
higher mortgage production revenue reflecting higher production margins and volumes, and
higher card income due to lower acquisition costs and higher net interchange income, with debit and credit card sales volume returning to pre-pandemic levels,
partially offset by
lower deposit-related fees given the higher deposits held in existing and new accounts, and
lower auto lease volume.
Refer to Note 14 for further information regarding changes in the value of the MSR asset and related hedges, and mortgage fees and related income.
Noninterest expense was $7.2 billion, relatively flat, reflecting:
higher investments in the business
offset by
lower structural expenses, and
lower volume- and revenue-related expense, including lower depreciation on auto lease assets.
The provision for credit losses was a net benefit of $3.6 billion, compared with an expense of $5.8 billion in the prior year, driven by:
a $4.6 billion reduction in the allowance for credit losses, primarily reflecting improvements in the Firm's macroeconomic scenarios, consisting of $3.5 billion in Card, $625 million in Home Lending, primarily due to the continued improvement in HPI expectations and to a lesser extent portfolio run-off, $350 million in CBB and $150 million in Auto, and
lower net charge-offs in Card, reflecting lower charge-offs and higher recoveries primarily benefiting from payment assistance and government stimulus.
The prior year included a $4.5 billion net addition to the allowance for credit losses.
Refer to Credit and Investment Risk Management on pages 47-65 and Allowance for Credit Losses on pages 63–64 for further discussions of the credit portfolios and the allowance for credit losses.
20


Selected metrics
As of or for the three months
ended March 31,
(in millions, except headcount)20212020Change
Selected balance sheet data (period-end)
Total assets$487,978 $513,352 (5)%
Loans:
Consumer & Business Banking52,654 (c)30,004 75 
Home Lending(a)
178,776 205,318 (13)
Card132,493 154,021 (14)
Auto67,662 61,468 10 
Total loans431,585 450,811 (4)
Deposits1,037,903 783,398 32 
Equity50,000 52,000 (4)
Selected balance sheet data (average)
Total assets$484,524 $525,695 (8)
Loans:
Consumer & Business Banking49,868 29,570 69 
Home Lending(b)
182,247 211,333 (14)
Card134,884 162,660 (17)
Auto66,960 60,893 10 
Total loans433,959 464,456 (7)
Deposits979,686 739,709 32 
Equity50,000 52,000 (4)
Headcount126,084 124,609 %
(a)At March 31, 2021 and 2020, Home Lending loans held-for-sale and loans at fair value were $13.2 billion and $10.8 billion, respectively.
(b)Average Home Lending loans held-for sale and loans at fair value were $12.5 billion and $15.8 billion for the three months ended March 31, 2021 and 2020, respectively.
(c)At March 31, 2021, included $23.4 billion of loans in Business Banking under the PPP. Refer to Credit Portfolio on page 47 for a further discussion of the PPP.
Selected metrics
As of or for the three months
ended March 31,
(in millions, except ratio data)20212020Change
Credit data and quality statistics
Nonaccrual loans(a)
$5,672 (c)$4,022 41 %
Net charge-offs/(recoveries)
Consumer & Business Banking65 74 (12)
Home Lending(51)(122)58 
Card983 1,313 (25)
Auto26 48 (46)
Total net charge-offs/(recoveries)$1,023 $1,313 (22)
Net charge-off/(recovery) rate
Consumer & Business Banking0.53 %(d)1.01 %
Home Lending(0.12)(0.25)
Card2.97 3.25
Auto0.16 0.32
Total net charge-off/(recovery) rate0.99 %1.18 %
30+ day delinquency rate
Home Lending(b)
1.07 %(e)1.48 %
Card1.40 (e)1.96 
Auto0.42 (e)0.89 
90+ day delinquency rate - Card0.80 %(e)1.02 %
Allowance for loan losses
Consumer & Business Banking$1,022 $884 16 
Home Lending1,238 2,137 (42)
Card14,300 14,950 (4)
Auto892 732 22 
Total allowance for loan losses$17,452 $18,703 (7)%
(a)At March 31, 2021 and 2020, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $458 million and $616 million, respectively. These amounts have been excluded based upon the government guarantee.
(b)At March 31, 2021 and 2020, excluded mortgage loans insured by U.S. government agencies of $557 million and $1.0 billion, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.
(c)Generally excludes loans that were under payment deferral programs offered in response to the COVID-19 pandemic. Refer to Consumer Credit Portfolio on pages 48-52 for further information on consumer payment assistance activity. The first quarter of 2021 includes loans to customers that have exited COVID-19 payment deferral programs and are 90 or more days past due, predominantly all of which are 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.
(d)At March 31, 2021, included $23.4 billion of loans in Business Banking under the PPP. Given that PPP loans are guaranteed by the SBA, the Firm does not expect to realize material credit losses on these loans. Refer to Credit Portfolio on page 47 for a further discussion of the PPP.
(e)At March 31, 2021, the principal balance of loans in Home Lending, Card and Auto under payment deferral programs offered in response to the COVID-19 pandemic were $8.1 billion, $105 million and $127 million, respectively. Loans that are performing according to their modified terms are generally not considered delinquent. Refer to Consumer Credit Portfolio on pages 48-52 for further information on consumer payment assistance activity.
21


Selected metrics
As of or for the three months
ended March 31,
(in billions, except ratios and where otherwise noted)20212020Change
Business Metrics
Number of branches4,872 4,967 (2)%
Active digital customers (in thousands)(a)
56,671 53,833 
Active mobile customers (in thousands)(b)
41,872 38,256 
Debit and credit card sales volume$290.3 $266.0 
Consumer & Business Banking
Average deposits$960.7 $725.0 33 
Deposit margin1.29 %2.05 %
Business banking origination volume$10.0 (f)$1.5 NM
Client investment assets(c)
637.0 442.6 44 
Number of client advisors4,5004,291
Home Lending
Mortgage origination volume by channel
Retail$23.0 $14.1 63 
Correspondent16.3 14.0 16 
Total mortgage origination volume(d)
$39.3 $28.1 40 
Third-party mortgage loans serviced (period-end)443.2 505.0 (12)
MSR carrying value (period-end)4.5 3.3 36 
Ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end)1.02 %0.65 %
MSR revenue multiple(e)
3.78 x2.10 x
Credit Card
Credit card sales volume, excluding Commercial Card$183.7 $179.1 
Net revenue rate11.53 %10.54 %
Auto
Loan and lease origination volume$11.2 $8.3 35 
Average auto operating lease assets20.3 23.1 (12)%
(a)Users of all web and/or mobile platforms who have logged in within the past 90 days.
(b)Users of all mobile platforms who have logged in within the past 90 days.
(c)Includes assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager. Refer to AWM segment results on pages 30-32 for additional information.
(d)Firmwide mortgage origination volume was $43.2 billion and $31.9 billion for the three months ended March 31, 2021 and 2020, respectively.
(e)Represents the ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end) divided by the ratio of annualized loan servicing-related revenue to third-party mortgage loans serviced (average).
(f)Included $9.3 billion of origination volume under the PPP for the three months ended March 31, 2021. Refer to Credit Portfolio on page 47 for a further discussion of the PPP.
22


CORPORATE & INVESTMENT BANK
Refer to pages 71–76 of JPMorgan Chase’s 2020 Form 10-K and Line of Business Metrics on page 169 for a further discussion of the business profile of CIB.
Selected income statement data
Three months ended March 31,
(in millions, except ratios)20212020Change
Revenue
Investment banking fees$2,988 $1,907 57 %
Principal transactions6,045 3,188 90 
Lending- and deposit-related fees593 450 32 
Asset management, administration and commissions1,286 1,261 
All other income176 90 96 
Noninterest revenue11,088 6,896 61 
Net interest income3,517 3,107 13 
Total net revenue(a)
14,605 10,003 46 
Provision for credit losses(331)1,401 NM
Noninterest expense
Compensation expense4,329 3,006 44 
Noncompensation expense2,775 2,949 (6)
Total noninterest expense7,104 5,955 19 
Income before income tax expense7,832 2,647 196 
Income tax expense2,092 662 216 
Net income$5,740 $1,985 189 %
Financial ratios
Return on equity27 %%
Overhead ratio49 60 
Compensation expense as percentage of total net revenue30 30 
(a)Includes tax-equivalent adjustments, predominantly due to income tax credits related to alternative energy investments; income tax credits and amortization of the cost of investments in affordable housing projects; and tax-exempt income from municipal bonds of $703 million and $573 million for the three months ended March 31, 2021 and 2020, respectively. Prior-period tax-equivalent adjustment amounts have been revised to conform with the current presentation. Refer to Note 1 for further information.
Selected income statement data
Three months ended March 31,
(in millions)20212020Change
Revenue by business
Investment Banking$2,851 $886 222 %
Wholesale Payments1,392 1,414 (2)
Lending265 350 (24)
Total Banking4,508 2,650 70 
Fixed Income Markets5,761 4,993 15 
Equity Markets3,289 2,237 47 
Securities Services1,050 1,074 (2)
Credit Adjustments & Other(a)
(3)(951)100 
Total Markets & Securities Services10,097 7,353 37 
Total net revenue$14,605 $10,003 46 %
(a)Includes credit valuation adjustments (“CVA”) managed centrally within CIB and funding valuation adjustments (“FVA”) on derivatives and certain components of fair value option elected liabilities, which are primarily reported in principal transactions revenue. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets.
Quarterly results
Net income was $5.7 billion, up 189%.
Net revenue was $14.6 billion, up 46%.
Banking revenue was $4.5 billion, up 70%.
Investment Banking revenue was $2.9 billion, up 222%, driven by higher Investment Banking fees, up 57%, reflecting higher fees across products, and the absence of prior year markdowns on held-for-sale positions in the bridge financing portfolio. The Firm ranked #2 for Global Investment Banking fees, according to Dealogic.
Equity underwriting fees were $1.1 billion, up 219%, largely driven by the IPO market due to increased industry-wide fees.
Debt underwriting fees were $1.3 billion, up 17%, driven by high yield bonds and leveraged loans due to increased industry-wide fees and wallet share gains.
Advisory fees were $680 million, up 35%, driven by a higher number of completed transactions, in part related to transactions announced in the second half of 2020.
Wholesale Payments revenue was $1.4 billion, down 2%, driven by deposit margin compression, predominantly offset by the impact of higher deposit balances.
Lending revenue was $265 million, down 24%, predominantly driven by fair value gains on hedges of accrual loans in the prior year.
Markets & Securities Services revenue was $10.1 billion, up 37%. Markets revenue was $9.1 billion, up 25%.
Fixed Income Markets revenue was $5.8 billion, up 15%, predominantly driven by strong performance in Securitized Products and Credit, largely offset by lower
23


revenue in Rates and Currencies & Emerging Markets compared to a strong prior year.
Equity Markets revenue was $3.3 billion, up 47%, driven by strong performance across derivatives, Cash Equities, and prime brokerage.
Securities Services revenue was $1.1 billion, down 2%, with deposit margin compression largely offset by deposit balance growth.
Credit Adjustments & Other was a loss of $3 million, compared with a loss of $951 million in the prior year which was predominantly driven by funding spread widening on derivatives.
Noninterest expense was $7.1 billion, up 19%, predominantly driven by higher revenue-related compensation expense, partially offset by lower legal expense.
The provision for credit losses was a net benefit of $331 million, driven by a net reduction in the allowance for credit losses, compared with an expense of $1.4 billion in the prior year.
Refer to Credit and Investment Risk Management on pages 47-65 and Allowance for Credit Losses on pages 63–64 for further discussions of the credit portfolios and the allowance for credit losses.


















Selected metrics
As of or for the three months
ended March 31,
(in millions, except headcount)20212020Change
Selected balance sheet data (period-end)
Total assets(a)
$1,355,123 $1,216,558 11 %
Loans:
Loans retained(b)
134,134 165,376 (19)
Loans held-for-sale and loans at fair value(c)
45,846 34,644 32 
Total loans179,980 200,020 (10)
Equity83,000 80,000 
Selected balance sheet data (average)
Total assets(a)
$1,293,864 $1,081,912 20 
Trading assets-debt and equity instruments464,692 398,504 17 
Trading assets-derivative receivables77,735 55,133 41 
Loans:
Loans retained(b)
$136,794 $128,838 
Loans held-for-sale and loans at fair value(c)
45,671 35,211 30 
Total loans$182,465 $164,049 11 
Equity83,000 80,000 
Headcount62,772 60,245 %
(a)Prior-period amounts have been revised to conform with the current presentation. Refer to Note 1 for further information.
(b)Loans retained includes credit portfolio loans, loans held by consolidated Firm-administered multi-seller conduits, trade finance loans, other held-for-investment loans and overdrafts.
(c)Loans held-for-sale and loans at fair value primarily reflect lending related positions originated and purchased in CIB Markets, including loans held for securitization.

24


Selected metrics
As of or for the three months
ended March 31,
(in millions, except ratios)20212020Change
Credit data and quality statistics
Net charge-offs/(recoveries)$(7)$55 NM
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained(a)
$842 $689 22 %
Nonaccrual loans held-for-sale and loans at fair value(b)
1,266 766 65 
Total nonaccrual loans2,108 1,455 45 
Derivative receivables284 85 234 
Assets acquired in loan satisfactions97 43 126 
Total nonperforming assets$2,489 $1,583 57 
Allowance for credit losses:
Allowance for loan losses$1,982 $1,422 39 
Allowance for lending-related commitments1,602 1,468 
Total allowance for credit losses$3,584 $2,890 24 %
Net charge-off/(recovery) rate(c)
(0.02)%0.17 %
Allowance for loan losses to period-end loans retained1.48 0.86 
Allowance for loan losses to period-end loans retained, excluding trade finance and conduits(d)
2.06 1.11 
Allowance for loan losses to nonaccrual loans retained(a)
235 206 
Nonaccrual loans to total period-end loans1.17 %0.73 %
(a)Allowance for loan losses of $174 million and $317 million were held against these nonaccrual loans at March 31, 2021 and 2020, respectively.
(b)At March 31, 2021 and 2020, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $340 million and $124 million, respectively. These amounts have been excluded based upon the government guarantee.
(c)Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.
(d)Management uses allowance for loan losses to period-end loans retained, excluding trade finance and conduits, a non-GAAP financial measure, to provide a more meaningful assessment of CIB’s allowance coverage ratio.






Investment banking fees
Three months ended March 31,
(in millions)20212020Change
Advisory$680 $503 35 %
Equity underwriting1,056 331 219 
Debt underwriting(a)
1,252 1,073 17 
Total investment banking fees$2,988 $1,907 57 %
(a)Represents long-term debt and loan syndications.
25


League table results – wallet share
Three months ended March 31,Full-year 2020
20212020
RankShareRankShareRankShare
Based on fees(a)
M&A(b)
Global#2 9.0 %#8.3 %#9.1 %
U.S.2 9.6 9.0 9.4 
Equity and equity-related(c)
Global4 7.7 8.7 8.7 
U.S.4 8.4 12.1 11.2 
Long-term debt(d)
Global1 9.0 8.9 8.9 
U.S.1 11.9 12.4 12.8 
Loan syndications
Global1 13.9 10.5 11.1 
U.S.1 16.6 10.1 11.6 
Global investment banking fees(e)
#2 9.0 %#8.9 %#9.1 %
(a)Source: Dealogic as of April 1, 2021. Reflects the ranking of revenue wallet and market share.
(b)Global M&A excludes any withdrawn transactions. U.S. M&A revenue wallet represents wallet from client parents based in the U.S.
(c)Global equity and equity-related ranking includes rights offerings and Chinese A-Shares.
(d)Long-term debt rankings include investment-grade, high-yield, supranationals, sovereigns, agencies, covered bonds, ABS and mortgage-backed securities (“MBS”); and exclude money market, short-term debt, and U.S. municipal securities.
(e)Global investment banking fees exclude money market, short-term debt and shelf securities.
Markets revenue
The following table summarizes select income statement data for the Markets businesses. Markets includes both Fixed Income Markets and Equity Markets. Markets revenue comprises principal transactions, fees, commissions and other income, as well as net interest income. The Firm assesses its Markets business performance on a total revenue basis, as offsets may occur across revenue line items. For example, securities that generate net interest income may be risk-managed by derivatives that are
recorded in principal transactions revenue. Refer to Notes 5 and 6 for a description of the composition of these income statement line items. Refer to Markets revenue on page 74 of JPMorgan Chase’s 2020 Form 10-K for further information.
For the periods presented below, the predominant source of principal transactions revenue was the amount recognized upon executing new transactions.
Three months ended March 31,Three months ended March 31,
20212020

(in millions)
Fixed Income MarketsEquity
Markets
Total
Markets
Fixed Income MarketsEquity
Markets
Total
Markets
Principal transactions$3,564 $2,482 $6,046 $3,143 $1,723 $4,866 
Lending- and deposit-related fees69 4 73 47 49 
Asset management, administration and commissions129 544 673 111 608 719 
All other income66 (31)35 (1)— 
Noninterest revenue3,828 2,999 6,827 3,302 2,332 5,634 
Net interest income1,933 290 2,223 1,691 (95)1,596 
Total net revenue$5,761 $3,289 $9,050 $4,993 $2,237 $7,230 
26


Selected metrics
As of or for the three months
ended March 31,
(in millions, except where otherwise noted)20212020Change
Assets under custody (“AUC”) by asset class (period-end)
(in billions):
Fixed Income$15,552 $13,572 15 %
Equity12,006 7,819 54 
Other(a)
3,693 3,018 22 
Total AUC$31,251 $24,409 28 
Merchant processing volume (in billions)(b)
$425.7 $374.8 14 
Client deposits and other third-party liabilities (average)(c)
$705,764 $514,464 37 %
(a)Consists of mutual funds, unit investment trusts, currencies, annuities, insurance contracts, options and other contracts.
(b)Represents total merchant processing volume across CIB, CCB and CB.
(c)Client deposits and other third-party liabilities pertain to the Wholesale Payments and Securities Services businesses.








International metrics
As of or for the three months
ended March 31,
(in millions, except where
 otherwise noted)
20212020Change
Total net revenue(a)
Europe/Middle East/Africa$4,060 $2,591 57 %
Asia-Pacific2,261 1,776 27 
Latin America/Caribbean494 507 (3)
Total international net revenue6,815 4,874 40 
North America7,790 5,129 52 
Total net revenue$14,605 $10,003 46 
Loans retained (period-end)(a)
Europe/Middle East/Africa$28,624 $31,607 (9)
Asia-Pacific13,944 16,667 (16)
Latin America/Caribbean5,518 8,129 (32)
Total international loans48,086 56,403 (15)
North America86,048 108,973 (21)
Total loans retained$134,134 $165,376 (19)
Client deposits and other third-party liabilities (average)(b)
Europe/Middle East/Africa$234,795 $190,976 23 
Asia-Pacific131,761 103,792 27 
Latin America/Caribbean43,927 30,849 42 
Total international$410,483 $325,617 26 
North America295,281 188,847 56 
Total client deposits and other third-party liabilities$705,764 $514,464 37 
AUC (period-end)(b)
(in billions)
North America$20,244 $15,590 30 
All other regions11,007 8,819 25 
Total AUC$31,251 $24,409 28 %
(a)Total net revenue and loans retained (excluding loans held-for-sale and loans at fair value) are based on the location of the trading desk, booking location, or domicile of the client, as applicable.
(b)Client deposits and other third-party liabilities pertaining to the Wholesale Payments and Securities Services businesses, and AUC, are based on the domicile of the client.
27


COMMERCIAL BANKING
Refer to pages 77–79 of JPMorgan Chase’s 2020 Form 10-K and Line of Business Metrics on page 170 for a discussion of the business profile of CB.
Selected income statement data
Three months ended March 31,
(in millions)20212020Change
Revenue
Lending- and deposit-related fees$331 $261 27 %
All other income586 347 69 
Noninterest revenue917 608 51 
Net interest income1,476 1,557 (5)
Total net revenue(a)
2,393 2,165 11 
Provision for credit losses(118)1,010 NM
Noninterest expense
Compensation expense482 472 
Noncompensation expense487 514 (5)
Total noninterest expense969 986 (2)
Income before income tax expense1,542 169 NM
Income tax expense374 30 NM
Net income$1,168 $139 NM
(a)Total net revenue included tax-equivalent adjustments from income tax credits related to equity investments in designated community development entities and in entities established for rehabilitation of historic properties, as well as tax-exempt income related to municipal financing activities of $73 million and $81 million for the three months ended March 31, 2021 and 2020, respectively.


Selected income statement data (continued)
Three months ended March 31,
(in millions, except ratios)20212020Change
Revenue by product
Lending$1,168 $954 22 %
Wholesale payments843 978 (14)
Investment banking(a)
350 235 49 
Other32 (2)NM
Total Commercial Banking net revenue$2,393 $2,165 11 
Investment banking revenue, gross(b)
$1,129 $686 65 
Revenue by client segments
Middle Market Banking$916 $943 (3)
Corporate Client Banking851 673 26 
Commercial Real Estate Banking604 541 12 
Other22 175 
Total Commercial Banking net revenue$2,393 $2,165 11 %
Financial ratios
Return on equity19 %%
Overhead ratio40 46 
(a)Includes CB’s share of revenue from investment banking products sold to CB clients through the CIB.
(b)Refer to Business Segment Results on page 18 for discussion of revenue sharing.
Quarterly results
Net income was $1.2 billion, up $1.0 billion, predominantly driven by a decrease in the provision for credit losses.
Net revenue was $2.4 billion, up 11%. Net interest income was $1.5 billion, down 5%, driven by deposit margin compression, predominantly offset by higher deposit balances and lending revenue due to increased portfolio spreads. Noninterest revenue was $917 million, up 51%, predominantly driven by higher investment banking revenue, the absence of prior year markdowns in the bridge financing portfolio, and higher deposit-related fees, particularly cash management fees.
Noninterest expense was $969 million, down 2%, driven by lower structural expense.
The provision for credit losses was a net benefit of $118 million, driven by a net reduction in the allowance for credit losses, compared with an expense of $1.0 billion in the prior year.

28


Selected metrics
As of or for the three months
ended March 31,
(in millions, except headcount)20212020Change
Selected balance sheet data (period-end)
Total assets$223,583 $247,786 (10)%
Loans:
Loans retained202,975 232,254 (13)
Loans held-for-sale and loans at fair value2,884 1,112 159 
Total loans$205,859 $233,366 (12)
Equity24,000 22,000 
Period-end loans by client segment
Middle Market Banking$59,983 (a)$60,317 (1)
Corporate Client Banking45,540 69,540 (35)
Commercial Real Estate Banking100,035 102,799 (3)
Other301 710 (58)
Total Commercial Banking loans$205,859 (a)$233,366 (12)
Selected balance sheet data (average)
Total assets$225,574 $226,071 — 
Loans:
Loans retained204,164 209,988 (3)
Loans held-for-sale and loans at fair value2,578 1,831 41 
Total loans$206,742 $211,819 (2)
Average loans by client segment
Middle Market Banking$60,011 $56,045 
Corporate Client Banking45,719 53,032 (14)
Commercial Real Estate Banking100,661 101,526 (1)
Other351 1,216 (71)
Total Commercial Banking loans$206,742 $211,819 (2)
Client deposits and other third-party liabilities$290,992 $188,808 54 
Equity24,000 22,000 
Headcount11,748 11,779 — %
(a)At March 31, 2021, total loans included $7.4 billion of loans under the PPP, of which $7.2 billion were in Middle Market Banking. Refer to Credit Portfolio on page 47 for a further discussion of the PPP.
Selected metrics (continued)
As of or for the three months
ended March 31,
(in millions, except ratios)20212020Change
Credit data and quality statistics
Net charge-offs/(recoveries)$29 $100 (71)%
Nonperforming assets
Nonaccrual loans:
Nonaccrual loans retained(a)
$1,134 $793 43 %
Nonaccrual loans held-for-sale and loans at fair value — — 
Total nonaccrual loans$1,134 $793 43 
Assets acquired in loan satisfactions24 24 — 
Total nonperforming assets$1,158 $817 42 
Allowance for credit losses:
Allowance for loan losses$3,086 $2,680 15 
Allowance for lending-related commitments753 505 49 
Total allowance for credit losses$3,839 $3,185 21 %
Net charge-off/(recovery) rate(b)
0.06 %0.19 %
Allowance for loan losses to period-end loans retained1.52 1.15 
Allowance for loan losses to nonaccrual loans retained(a)
272 338 
Nonaccrual loans to period-end total loans0.55 0.34 
(a)Allowance for loan losses of $227 million and $175 million was held against nonaccrual loans retained at March 31, 2021 and 2020, respectively.
(b)Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.

29


ASSET & WEALTH MANAGEMENT
Refer to pages 80–82 of JPMorgan Chase’s 2020 Form 10-K and Line of Business Metrics on pages 170-171 for a discussion of the business profile of AWM.
Selected income statement data
(in millions, except ratios)Three months ended March 31,
20212020Change
Revenue
Asset management, administration and commissions$2,888 $2,583 12 %
All other income258 (54)NM
Noninterest revenue3,146 2,529 24 
Net interest income931 860 
Total net revenue4,077 3,389 20 
Provision for credit losses(121)94 NM
Noninterest expense
Compensation expense1,389 1,226 13 
Noncompensation expense1,185 1,209 (2)
Total noninterest expense2,574 2,435 
Income before income tax expense1,624 860 89 
Income tax expense380 191 99 
Net income$1,244 $669 86 
Revenue by line of business
Asset Management$2,185 $1,740 26 
Global Private Bank(a)
1,892 1,649 15 
Total net revenue$4,077 $3,389 20 %
Financial ratios
Return on equity35 %25 %
Overhead ratio6372
Pre-tax margin ratio:
Asset Management3524
Global Private Bank(a)
4527
Asset & Wealth Management4025
(a)In the first quarter of 2021, the Wealth Management business was renamed Global Private Bank. In the fourth quarter of 2020, certain wealth management clients were transferred from AWM Global Private Bank to the J.P. Morgan Wealth Management unit in CCB’s Consumer & Business Banking business. For further information see page 80 of the 2020 Form 10-K.
Quarterly results
Net income was $1.2 billion, up 86%.
Net revenue was $4.1 billion, up 20%. Net interest income was $931 million, up 8%. Noninterest revenue was $3.1 billion, up 24%.
Revenue from Asset Management was $2.2 billion, up 26%, predominantly driven by:
higher asset management fees on strong cumulative net inflows into long-term and liquidity products and higher average market levels, net of liquidity fee waivers, and
net investment valuation gains, compared with losses in the prior year.
Revenue from Global Private Bank was $1.9 billion, up 15%, largely driven by:
higher deposit and loan balances, higher asset management fees, loan margin expansion and an investment valuation gain,
largely offset by
deposit margin compression.
Noninterest expense was $2.6 billion, up 6% predominantly driven by higher volume- and revenue-related expense, partially offset by lower structural expense.
The provision for credit losses was a net benefit of $121 million, driven by a reduction in the allowance for credit losses.
Refer to Credit and Investment Risk Management on pages 47-65 and Allowance for Credit Losses on pages 63–64 for further discussions of the credit portfolios and the allowance for credit losses.
30


Selected metrics
As of or for the three months
ended March 31,
(in millions, except ranking data, headcount and ratios)20212020Change
% of JPM mutual fund assets rated as 4- or 5-star(a)
60 %62 %
% of JPM mutual fund assets ranked in 1st or 2nd quartile:(b)
1 year60 69 
3 years73 74 
5 years74 78 
Selected balance sheet data (period-end)(c)
Total assets$213,088 $178,897 19 %
Loans192,256 163,763 17 
Deposits217,460 160,231 36 
Equity14,000 10,500 33 
Selected balance sheet data (average)(c)
Total assets$207,505 $174,834 19 
Loans188,726 159,513 18 
Deposits206,562 144,570 43 
Equity14,000 10,500 33 
Headcount20,578 21,302 (3)
Number of Global Private Bank client advisors2,462 2,418 
Credit data and quality statistics(c)
Net charge-offs/(recoveries)$11 $450 
Nonaccrual loans755 303 149 
Allowance for credit losses:
Allowance for loan losses$479 $436 10 
Allowance for lending-related commitments25 14 79 
Total allowance for credit losses$504 $450 12 %
Net charge-off/(recovery) rate0.02 %0.01 %
Allowance for loan losses to period-end loans0.25 0.27 
Allowance for loan losses to nonaccrual loans63 144 
Nonaccrual loans to period-end loans0.39 0.19 
(a)Represents the Nomura “star rating” for Japan domiciled funds and Morningstar for all other domiciled funds. Includes only Asset Management retail open-ended mutual funds that have a rating. Excludes money market funds, Undiscovered Managers Fund, and Brazil domiciled funds.
(b)Quartile ranking sourced from Lipper, Morningstar and Nomura based on country of domicile. Includes only Asset Management retail open-ended mutual funds that are ranked by the aforementioned sources. Excludes money market funds, Undiscovered Managers Fund, and Brazil domiciled funds.
(c)Loans, deposits and related credit data and quality statistics relate to the Global Private Bank business.

Client assets
Client assets of $3.8 trillion and assets under management of $2.8 trillion were up 32% and 28%, respectively, driven by higher market levels and cumulative net inflows into long term and liquidity products.
Client assets
As of March 31,
(in billions)20212020Change
Assets by asset class
Liquidity$686 $619 11 %
Fixed income662 574 15 
Equity661 361 83 
Multi-asset669 517 29 
Alternatives155 139 12 
Total assets under management2,833 2,210 28 
Custody/brokerage/administration/deposits995 681 46 
Total client assets(a)
$3,828 $2,891 32 
Assets by client segment
Private Banking$718 $577 24 
Global Institutional(b)
1,320 1,107 19 
Global Funds(b)
795 526 51 
Total assets under management$2,833 $2,210 28 
Private Banking$1,664 $1,233 35 
Global Institutional(b)
1,362 1,128 21 
Global Funds(b)
802 530 51 
Total client assets(a)
$3,828 $2,891 32 %
(a)Includes CCB client investment assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager.
(b)In the first quarter of 2021, Institutional and Retail client segments were renamed to Global Institutional and Global Funds, respectively. This did not result in a change to the clients within either client segment.
Client assets (continued)

Three months ended
March 31,
(in billions)20212020
Assets under management rollforward
Beginning balance$2,716 $2,328 
Net asset flows:
Liquidity44 77 
Fixed income8 — 
Equity31 (1)
Multi-asset6 (2)
Alternatives3 — 
Market/performance/other impacts25 (192)
Ending balance, March 31$2,833 $2,210 
Client assets rollforward
Beginning balance$3,652 $3,089 
Net asset flows130 91 
Market/performance/other impacts46 (289)
Ending balance, March 31$3,828 $2,891 
31


International metrics
Three months ended March 31,
(in millions)20212020Change
Total net revenue (a)
Europe/Middle East/Africa$834 $623 34 %
Asia-Pacific514 400 29 
Latin America/Caribbean214 188 14 
Total international net revenue1,562 1,211 29 
North America2,515 2,178 15 
Total net revenue(a)
$4,077 $3,389 20 %
(a)Regional revenue is based on the domicile of the client.
As of March 31,
(in billions)20212020Change
Assets under management
Europe/Middle East/Africa$521 $395 32 %
Asia-Pacific228 174 31 
Latin America/Caribbean71 56 27 
Total international assets under management820 625 31 
North America2,013 1,585 27 
Total assets under management$2,833 $2,210 28 
Client assets
Europe/Middle East/Africa$629 $479 31 
Asia-Pacific338 248 36 
Latin America/Caribbean168 134 25 
Total international client assets1,135 861 32 
North America2,693 2,030 33 
Total client assets$3,828 $2,891 32 %

32


CORPORATE
Refer to pages 83–84 of JPMorgan Chase’s 2020 Form 10-K for a discussion of Corporate.
Selected income statement and balance sheet data
As of or for the three months
ended March 31,
(in millions, except headcount)20212020Change
Revenue
Principal transactions$272 $(113)NM
Investment securities gains14 233 (94)%
All other income96 211 (55)
Noninterest revenue382 331 15 %
Net interest income(855)(165)(418)%
Total net revenue(a)
(473)166 NM
Provision for credit losses16 100 
Noninterest expense876 146 500 %
Income/(loss) before income tax expense/(benefit)(1,365)12 NM
Income tax expense/(benefit)(785)137 NM
Net income/(loss)$(580)$(125)(364)
Total net revenue
Treasury and CIO$(705)$169 NM
Other Corporate232 (3)NM
Total net revenue$(473)$166 NM
Net income/(loss)
Treasury and CIO$(675)$83 NM
Other Corporate95 (208)NM
Total net income/(loss)$(580)$(125)(364)
Total assets (period-end)$1,409,564 $981,937 44 
Loans (period-end)1,627 1,650 (1)
Headcount38,168 38,785 (2)%
(a)Included tax-equivalent adjustments, driven by tax-exempt income from municipal bonds, of $67 million and $61 million for the three months ended March 31, 2021 and 2020, respectively.
Quarterly results
Net loss was $580 million compared with a net loss of $125 million in the prior year.
Net revenue was a loss of $473 million, down $639 million. The decrease was driven by:
lower net interest income on lower rates, as well as limited opportunities to deploy funds in response to continued deposit growth,
partially offset by
higher noninterest revenue reflecting net gains on certain legacy private equity investments compared with net losses in the prior year, offset by lower investment securities gains reflecting the impact of repositioning the investment securities portfolio, as well as lower gains on certain Corporate investments.
Noninterest expense of $876 million was up $730 million primarily due to a higher contribution to the Firm's Foundation and higher structural expense.
The current period income tax benefit was driven by the change in the level and mix of income and expenses subject to U.S. federal, and state and local taxes as well as the impact of the Firm’s estimated full-year expected tax rate relative to the level of year-to-date pretax income, partially offset by the resolution of certain tax audits.
33


Treasury and CIO overview
At March 31, 2021, the average credit rating of the Treasury and CIO investment securities comprising the portfolio in the table below was AA+ (based upon external ratings where available and, where not available, based primarily upon internal risk ratings). Refer to Note 9 for further information on the Firm’s investment securities portfolio and internal risk ratings.
Refer to Liquidity Risk Management on pages 42-46 for further information on liquidity and funding risk. Refer to Market Risk Management on pages 66-70 for information on interest rate, foreign exchange and other risks.
Selected income statement and balance sheet data
As of or for the three months
ended March 31,
(in millions)20212020Change
Investment securities gains$14 $233 (94)%
Available-for-sale securities (average)$372,443 $372,954 — %
Held-to-maturity securities (average)(a)
207,957 46,673 346 
Investment securities portfolio (average)$580,400 $419,627 38 
Available-for-sale securities (period-end)$377,911 $397,891 (5)
Held-to-maturity securities, net of allowance for credit losses (period-end)(a)(b)
217,452 71,200 205 
Investment securities portfolio, net of allowance for credit losses (period-end)(b)
$595,363 $469,091 27 %
(a)During 2020, the Firm transferred $164.2 billion of investment securities from AFS to HTM for capital management purposes, including $26.1 billion in the first quarter of 2020.
(b)At March 31, 2021 and 2020, the allowance for credit losses on HTM securities was $94 million and $19 million, respectively.



34


FIRMWIDE RISK MANAGEMENT
Risk is an inherent part of JPMorgan Chase’s business activities. When the Firm extends a consumer or wholesale loan, advises customers and clients on their investment decisions, makes markets in securities, or offers other products or services, the Firm takes on some degree of risk. The Firm’s overall objective is to manage its businesses, and the associated risks, in a manner that balances serving the interests of its clients, customers and investors and protects the safety and soundness of the Firm.
The Firm believes that effective risk management requires, among other things:
Acceptance of responsibility, including identification and escalation of risks by all individuals within the Firm;
Ownership of risk identification, assessment, data and management within each of the LOBs and Corporate; and
Firmwide structures for risk governance.
The Firm follows a disciplined and balanced compensation framework with strong internal governance and independent oversight by the Board of Directors (the “Board”). The impact of risk and control issues is carefully considered in the Firm’s performance evaluation and incentive compensation processes.
Risk governance and oversight framework
The Firm’s risk management governance and oversight framework involves understanding drivers of risks, types of risks, and impacts of risks.
jpm-20210331_g1.jpg
Refer to pages 85-89 of JPMorgan Chase’s 2020 Form 10-K for a further discussion of Firmwide risk management governance and oversight.
Risk governance and oversight functions
The following sections of this Form 10-Q and the 2020 Form 10-K discuss the risk governance and oversight functions in place to manage the risks inherent in the Firm’s business activities.
Risk governance and oversight functionsForm 10-Q page referenceForm 10-K page reference
Strategic risk90
Capital risk36-4191-101
Liquidity risk42-46102-108
Reputation risk109
Consumer credit risk48-52114-120
Wholesale credit risk53-62121-131
Investment portfolio risk65134
Market risk66-70135-142
Country risk71143-144
Operational risk72145-151
Compliance risk148
Conduct risk149
Legal risk150
Estimations and Model risk73151
35


CAPITAL RISK MANAGEMENT
Capital risk is the risk the Firm has an insufficient level or composition of capital to support the Firm’s business activities and associated risks during normal economic environments and under stressed conditions.
The Firm has been impacted by market events as a result of the COVID-19 pandemic, but has remained well-capitalized.
Refer to pages 91-101 of JPMorgan Chase’s 2020 Form
10-K, Note 21 of this Form 10-Q and the Firm’s Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm’s website, for a further discussion of the Firm’s Capital Risk Management, including capital planning and stress testing.
Basel III Overview
The capital rules under Basel III establish minimum capital ratios and overall capital adequacy standards for large and internationally active U.S. Bank Holding Companies ("BHCs") and banks, including the Firm and its insured depository institution (“IDI”) subsidiaries, including JPMorgan Chase Bank, N.A. The minimum amount of regulatory capital that must be held by BHCs and banks is determined by calculating risk-weighted assets (“RWA”), which are on-balance sheet assets and off-balance sheet exposures, weighted according to risk. Two comprehensive approaches are prescribed for calculating RWA: a standardized approach (“Basel III Standardized”), and an advanced approach (“Basel III Advanced”). For each of the risk-based capital ratios, the capital adequacy of the Firm is evaluated against the lower of the Standardized or Advanced approaches compared to their respective minimum capital ratios.
The Firm’s Basel III Standardized-risk-based ratios are currently more binding than the Basel III Advanced-risk-based ratios.
Basel III also includes a requirement for Advanced Approach banking organizations, including the Firm, to calculate the SLR. Refer to SLR on page 39 for additional information.
Key Regulatory Developments
CECL regulatory capital transition delay. As part of their response to the impact of the COVID-19 pandemic, the federal banking agencies issued a final rule that provided the option beginning January 1, 2020 to delay the effects of CECL on regulatory capital for two years, followed by a three-year transition period beginning January 1, 2022 (“CECL capital transition provisions”).
The Firm has elected to apply the CECL capital transition provisions, and accordingly, for the period ended March 31, 2021, the capital metrics of the Firm exclude $4.5 billion, which is the $2.7 billion day 1 impact to retained earnings and 25% of the $7.0 billion increase in the allowance for credit losses from January 1, 2020 (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 Capital Risk Management on pages 91-101 and Note 1 of JPMorgan Chase’s 2020 Form 10-K for further information on CECL capital transition provisions and the CECL accounting guidance.
SLR temporary revision. The Federal Reserve issued an interim final rule that requires, on a temporary basis, the calculation of total leverage exposure for purposes of calculating the SLR for bank holding companies, to exclude the on-balance sheet amounts of U.S. Treasury securities and deposits at Federal Reserve Banks. These exclusions became effective April 1, 2020, and remained in effect through March 31, 2021.
On June 1, 2020, the Federal Reserve, Office of the Comptroller of the Currency ("OCC") and FDIC issued an interim final rule which became effective April 1, 2020 and remained in effect through March 31, 2021 that provides IDI subsidiaries with an option to apply this temporary exclusion subject to certain restrictions. As of March 31, 2021, JPMorgan Chase Bank, N.A. did not elect to apply this exclusion.
PPP. On April 13, 2020, the federal banking agencies issued an interim final rule (issued as final on September 29, 2020) to neutralize the regulatory capital effects of participating in the PPP on risk-based capital ratios by applying a zero percent risk weight to loans originated under the program. Given that PPP loans are guaranteed by the SBA, the Firm does not expect to realize material credit losses on these loans. As of March 31, 2021, the Firm had approximately $32 billion of loans under the program.
Total leverage exposure for purposes of calculating the SLR includes PPP loans as the Firm did not participate in the Federal Reserve’s Paycheck Protection Program Lending (“PPPL”) Facility, which would allow the Firm to exclude them under the final rule.
TLAC Holdings rule. On October 20, 2020, the federal banking agencies issued a final rule prescribing the regulatory capital treatment for holdings of Total Loss-Absorbing Capacity ("TLAC") debt instruments by certain large banking organizations, such as the Firm and JPMorgan Chase Bank, N.A. This rule expands the scope of the existing capital deductions rule around the holdings of capital instruments of financial institutions to also include TLAC debt instruments issued by systemically important banking organizations. The final rule became effective April 1, 2021 and is not expected to have a material impact on the Firm’s risk-based capital metrics.
36


The following table presents the Firm’s risk-based and leverage-based capital metrics under both the Basel III Standardized and Advanced approaches. Refer to Capital Risk Management on pages 91-101 of JPMorgan Chase’s 2020 Form 10-K for a further discussion of these capital metrics.
StandardizedAdvanced
(in millions, except ratios)
March 31, 2021(c)
December 31, 2020(c)
Minimum capital ratios(d)
March 31, 2021(c)
December 31, 2020(c)
Minimum capital ratios(d)
Risk-based capital metrics:
CET1 capital$206,078 $205,078 $206,078 $205,078 
Tier 1 capital237,333 234,844 237,333 234,844 
Total capital271,407 269,923 258,635 257,228 
Risk-weighted assets1,577,007 1,560,609 1,503,828 1,484,431 
CET1 capital ratio13.1 %13.1 %11.3 %13.7 %13.8 %10.5 %
Tier 1 capital ratio15.0 15.0 12.8 15.8 15.8 12.0 
Total capital ratio17.2 17.3 14.8 17.2 17.3 14.0 
Leverage-based capital metrics:
Adjusted average assets(a)
$3,565,545 $3,353,319 $3,565,545 $3,353,319 
Tier 1 leverage ratio6.7 %7.0 %4.0 %6.7 %7.0 %4.0 %
Total leverage exposure(b)
NANA$3,522,629 $3,401,542 
SLR(b)
NANANA6.7 %6.9 %5.0 %
(a)Adjusted average assets, for purposes of calculating the leverage ratios, includes total quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill and other intangible assets.
(b)Total leverage exposure for purposes of calculating the SLR excludes U.S. Treasury securities and deposits at Federal Reserve Banks, as provided by the rule issued by the Federal Reserve which became effective April 1, 2020 and remained in effect through March 31, 2021. The SLR excluding the relief was 5.5% and 5.8% for the periods ended March 31, 2021 and December 31, 2020, respectively.
(c)The capital metrics reflect the CECL capital transition provisions. Additionally, loans originated under the PPP receive a zero percent risk weight.
(d)Represents minimum requirements and regulatory buffers applicable to the Firm. Refer to Note 21 for additional information.


37


Capital components
The following table presents reconciliations of total stockholders’ equity to Basel III CET1 capital, Tier 1 capital and Total capital as of March 31, 2021 and December 31, 2020.
(in millions)March 31,
2021
December 31, 2020
Total stockholders’ equity$280,714 $279,354 
Less: Preferred stock31,563 30,063 
Common stockholders’ equity249,151 249,291 
Add:
Certain deferred tax liabilities(a)
2,457 2,453 
Other CET1 capital adjustments(b)
4,588 3,486 
Less:
Goodwill49,243 49,248 
Other intangible assets875 904 
Standardized/Advanced CET1 capital206,078 205,078 
Preferred stock31,563 30,063 
Less: Other Tier 1 adjustments308 297 
Standardized/Advanced Tier 1 capital$237,333 $234,844 
Long-term debt and other instruments qualifying as Tier 2 capital$15,646 $16,645 
Qualifying allowance for credit losses(c)
18,486 18,372 
Other(58)62 
Standardized Tier 2 capital$34,074 $35,079 
Standardized Total capital$271,407 $269,923 
Adjustment in qualifying allowance for credit losses for Advanced Tier 2 capital(d)
(12,772)(12,695)
Advanced Tier 2 capital$21,302 $22,384 
Advanced Total capital$258,635 $257,228 
(a)Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in nontaxable transactions, which are netted against goodwill and other intangibles when calculating CET1 capital.
(b)As of March 31, 2021 and December 31, 2020, the impact of the CECL capital transition provision was an increase in CET1 capital of $4.5 billion and $5.7 billion, respectively.
(c)Represents the allowance for credit losses eligible for inclusion in Tier 2 capital up to 1.25% of credit risk RWA, including the impact of the CECL capital transition provision with any excess deducted from RWA.
(d)Represents an adjustment to qualifying allowance for credit losses for the excess of eligible credit reserves over expected credit losses up to 0.6% of credit risk RWA, including the impact of the CECL capital transition provision with any excess deducted from RWA.

Capital rollforward
The following table presents the changes in Basel III CET1 capital, Tier 1 capital and Tier 2 capital for the three months ended March 31, 2021.
Three months ended March 31,
(in millions)
2021
Standardized/Advanced CET1 capital at December 31, 2020$205,078 
Net income applicable to common equity13,921 
Dividends declared on common stock(2,760)
Net purchase of treasury stock(3,967)
Changes in additional paid-in capital(389)
Changes related to AOCI(6,945)
Adjustment related to AOCI(a)
2,396 
Changes related to other CET1 capital adjustments(b)
(1,256)
Change in Standardized/Advanced CET1 capital1,000 
Standardized/Advanced CET1 capital at March 31, 2021$206,078 
Standardized/Advanced Tier 1 capital at December 31, 2020$234,844 
Change in CET1 capital(b)
1,000 
Net issuance of noncumulative perpetual preferred stock1,500 
Other(11)
Change in Standardized/Advanced Tier 1 capital2,489 
Standardized/Advanced Tier 1 capital at March 31, 2021$237,333 
Standardized Tier 2 capital at December 31, 2020$35,079 
Change in long-term debt and other instruments qualifying as Tier 2(999)
Change in qualifying allowance for credit losses(b)
114 
Other(120)
Change in Standardized Tier 2 capital(1,005)
Standardized Tier 2 capital at March 31, 2021$34,074 
Standardized Total capital at March 31, 2021$271,407 
Advanced Tier 2 capital at December 31, 2020$22,384 
Change in long-term debt and other instruments qualifying as Tier 2(999)
Change in qualifying allowance for credit losses(b)
37 
Other(120)
Change in Advanced Tier 2 capital(1,082)
Advanced Tier 2 capital at March 31, 2021$21,302 
Advanced Total capital at March 31, 2021$258,635 
(a)Includes cash flow hedges and DVA related to structured notes recorded in AOCI.
(b)Includes the impact of the CECL capital transition provisions.
38


RWA rollforward
The following table presents changes in the components of RWA under Basel III Standardized and Advanced approaches for the three months ended March 31, 2021. The amounts in the rollforward categories are estimates, based on the predominant driver of the change.
StandardizedAdvanced
Three months ended March 31, 2021
(in millions)
Credit risk RWAMarket risk RWATotal RWACredit risk RWAMarket risk RWAOperational risk
RWA
Total RWA
December 31, 2020$1,464,219 $96,390 $1,560,609 $1,002,330 $96,910 $385,191 $1,484,431 
Model & data changes(a)
— (1,100)(1,100)— (1,100)— (1,100)
Portfolio runoff(b)
(1,200)— (1,200)(700)— — (700)
Movement in portfolio levels(c)
13,896 4,802 18,698 11,431 4,635 5,131 21,197 
Changes in RWA12,696 3,702 16,398 10,731 3,535 5,131 19,397 
March 31, 2021$1,476,915 $100,092 $1,577,007 $1,013,061 $100,445 $390,322 $1,503,828 
(a)Model & data changes refer to material movements in levels of RWA as a result of revised methodologies and/or treatment per regulatory guidance (exclusive of rule changes).
(b)Portfolio runoff for credit risk RWA primarily reflects reduced risk from position rolloffs in legacy portfolios in Home Lending.
(c)Movement in portfolio levels (inclusive of rule changes) refers to: changes in book size, composition, credit quality, and market movements for credit risk RWA; changes in position and market movements for market risk RWA; updates to cumulative losses for operational risk RWA; and deductions to credit risk RWA for excess eligible credit reserves not eligible for inclusion in Tier 2 capital.
Supplementary leverage ratio
Refer to Supplementary Leverage Ratio on page 95 of JPMorgan Chase’s 2020 Form 10-K for additional information.
The following table presents the components of the Firm’s SLR.
Three months ended
(in millions, except ratio)
March 31,
2021
December 31,
2020
Tier 1 capital$237,333 $234,844 
Total average assets3,612,841 3,399,818 
Less: Regulatory capital adjustments(a)
47,296 46,499 
Total adjusted average assets(b)
3,565,545 3,353,319 
Add: Off-balance sheet exposures(c)
757,651 729,978 
Less: Exclusion for U.S. Treasuries and Federal Reserve Bank deposits800,567 681,755 
Total leverage exposure$3,522,629 $3,401,542 
SLR(d)
6.7 %6.9 %
(a)For purposes of calculating the SLR, includes total quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill, other intangible assets and adjustments for the CECL capital transition provisions.
(b)Adjusted average assets used for the calculation of Tier 1 leverage ratio.
(c)Off-balance sheet exposures are calculated as the average of the three month-end spot balances during the reporting quarter.
(d)The SLR excluding the relief was 5.5% and 5.8% for the periods ended March 31, 2021 and December 31, 2020, respectively.
Refer to Note 21 for JPMorgan Chase Bank, N.A.’s SLR.
Line of business equity
Each business segment is allocated capital by taking into consideration a variety of factors including capital levels of similarly rated peers and applicable regulatory capital requirements. Refer to line of business equity on page 98 of JPMorgan Chase’s 2020 Form 10-K for additional information on capital allocation.
The following table presents the capital allocated to each business segment.
Line of business equity (Allocated capital)

(in billions)
March 31,
2021
December 31,
2020
Consumer & Community Banking$50.0 $52.0 
Corporate & Investment Bank83.0 80.0 
Commercial Banking24.0 22.0 
Asset & Wealth Management14.0 10.5 
Corporate78.2 84.8 
Total common stockholders’ equity$249.2 $249.3 
Capital actions
Common stock dividends
The Firm’s quarterly common stock dividend is currently $0.90 per share. The Firm’s dividends are subject to approval by the Board of Directors on a quarterly basis.
Common stock
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. Subsequently, the Firm announced that its Board of Directors authorized a new common share repurchase program for up to $30 billion. As directed by the Federal Reserve, total net repurchases and common stock dividends in the first quarter of 2021 were restricted and could not exceed the average of the Firm’s net income for the four preceding calendar quarters. On March 25, 2021, the Federal Reserve extended these restrictions through at least the second quarter of 2021.
Refer to capital planning and stress testing on page 40 for additional information.
39


The following table sets forth the Firm’s repurchases of common stock for the three months ended March 31, 2021 and 2020.
Three months ended
March 31,
(in millions)20212020
Total number of shares of common stock repurchased34.7 50.0 
Aggregate purchase price of common stock repurchases$4,999 $6,397 
Refer to Part II, Item 2: Unregistered Sales of Equity Securities and Use of Proceeds and Part II, Item 5: Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities on page 173 of this Form 10-Q and page 34 of JPMorgan Chase’s 2020 Form 10-K, respectively, for additional information regarding repurchases of the Firm’s equity securities.
Preferred stock
Preferred stock dividends declared were $379 million for the three months ended March 31, 2021.
On March 17, 2021, the Firm issued $1.5 billion of 4.55% non-cumulative preferred stock, Series JJ. On April 30, 2021, the Firm announced that it will redeem on June 1, 2021 all $1.4 billion of its outstanding 6.10% non-cumulative preferred stock, Series AA and all $1.2 billion of its outstanding 6.15% non-cumulative preferred stock, Series BB. Refer to Note 17 of this Form 10-Q and Note 21 of JPMorgan Chase’s 2020 Form 10-K for additional information on the Firm’s preferred stock, including the issuance and redemption of preferred stock.
Capital planning and stress testing
Comprehensive Capital Analysis and Review
On April 5, 2021, the Firm submitted its 2021 Capital Plan to the Federal Reserve under the Federal Reserve’s 2021 Comprehensive Capital Analysis and Review ("CCAR") process. The Firm anticipates that the Federal Reserve will disclose the Firm’s indicative Stress Capital Buffer ("SCB") requirement which will become effective October 1, 2021 and summary information regarding the Firm’s stress test results by July 1, 2021. The Firm's SCB is currently 3.3%.
Based on the Federal Reserve's March 25, 2021 announcement, if the Firm remains above all of its minimum risk-based capital requirements based on the 2021 CCAR stress test results, the temporary restrictions on capital distributions currently in effect will expire as planned on June 30, 2021. However, if the Firm falls below any of its minimum risk-based requirements in the 2021 CCAR stress test it will remain subject to the temporary restrictions through at least September 30, 2021.
Refer to Capital planning and stress testing on pages 91-92 of JPMorgan Chase’s 2020 Form 10-K for additional information on CCAR.
Other capital requirements
Total Loss-Absorbing Capacity
The Federal Reserve’s TLAC rule requires the U.S. global systemically important bank (“GSIB”) top-tier holding companies, including the Firm, to maintain minimum levels of external TLAC and eligible long-term debt (“eligible LTD”).
Refer to other capital requirements on page 100 of JPMorgan Chase’s 2020 Form 10-K for additional information on TLAC.
The following table presents the TLAC and external long-term debt minimum requirements including applicable regulatory buffers, as of March 31, 2021 and December 31, 2020, except as noted below.
Minimum Requirements
TLAC to RWA(a)
22.5 %
TLAC to leverage exposure9.5 
External long-term debt to RWA9.5 
External long-term debt to leverage4.5 
(a)For the period ended December 31, 2020, the TLAC to RWA minimum requirement was 23.0%.
The following table presents the eligible external TLAC and eligible LTD amounts, as well as a representation of the amounts as a percentage of the Firm’s total RWA and total leverage exposure applying the impact of the CECL capital transition provisions as of March 31, 2021 and December 31, 2020.
March 31, 2021December 31, 2020
(in billions, except ratio)External TLACLTDExternal TLACLTD
Total eligible amount$432.5 $188.3 $421.0 $181.4 
% of RWA27.4 %11.9 %27.0 %11.6 %
Surplus/(shortfall)$77.6 $38.5 $62.1 $33.1 
% of total leverage exposure(a)
12.3 %5.3 %12.4 %5.3 %
Surplus/(shortfall)$97.8 $29.7 $97.9 $28.3 
(a)Total leverage exposure excludes U.S. Treasury securities and deposits at Federal Reserve Banks, as provided by the rule issued by the Federal Reserve which became effective April 1, 2020 and remained in effect through March 31, 2021.
Refer to Liquidity Risk Management on pages 42-46 for further information on long-term debt issued by the Parent Company, including long-term debt issued subsequent to the period ended March 31, 2021.
Refer to Part I, Item 1A: Risk Factors on pages 8-32 of JPMorgan Chase’s 2020 Form 10-K for information on the financial consequences to holders of the Firm’s debt and equity securities in a resolution scenario.
40


Broker-dealer regulatory capital
J.P. Morgan Securities
JPMorgan Chase’s principal U.S. broker-dealer subsidiary is J.P. Morgan Securities. J.P. Morgan Securities is subject to Rule 15c3-1 under the Securities Exchange Act of 1934 (the “Net Capital Rule”). J.P. Morgan Securities is also registered as a futures commission merchant and is subject to regulatory capital requirements, including those imposed by the SEC, Commodity Futures Trading Commission (“CFTC”), Financial Industry Regulatory Authority (“FINRA”) and the National Futures Association (“NFA”).
Refer to Capital risk management on pages 91-101 of JPMorgan Chase’s 2020 Form 10-K for a discussion on J.P. Morgan Securities’ capital requirements.
The following table presents J.P. Morgan Securities’ net capital:
March 31, 2021
(in millions)ActualMinimum
Net Capital$25,908 $4,966 
J.P. Morgan Securities plc
J.P. Morgan Securities plc is a wholly-owned subsidiary of JPMorgan Chase Bank, N.A. and has authority to engage in banking, investment banking and broker-dealer activities. J.P. Morgan Securities plc is jointly regulated by the U.K. Prudential Regulation Authority (“PRA”) and the Financial Conduct Authority (“FCA”). J.P. Morgan Securities plc is subject to the European Union Capital Requirements Regulation, as adopted in the U.K., and the PRA capital rules, each of which implement Basel III and thereby subject J.P. Morgan Securities plc to its requirements.
Refer to Capital risk management on pages 91-101 of JPMorgan Chase’s 2020 Form 10-K for a further discussion on J.P. Morgan Securities plc.
The Bank of England requires, on a transitional basis, that U.K. banks, including U.K. regulated subsidiaries of overseas groups, maintain a minimum requirement for own funds and eligible liabilities (“MREL”). As of March 31, 2021, J.P. Morgan Securities plc was compliant with the requirements of the MREL rule.
The following table presents J.P. Morgan Securities plc’s capital metrics:
March 31, 2021
(in millions, except ratios)EstimatedMinimum ratios
Total capital$54,673 
CET1 ratio17.2 %4.5 %
Total capital ratio22.0 %8.0 %



41


LIQUIDITY RISK MANAGEMENT
Liquidity risk is the risk that the Firm will be unable to meet its contractual and contingent financial obligations as they arise or that it does not have the appropriate amount, composition and tenor of funding and liquidity to support its assets and liabilities. Refer to pages 102–108 of JPMorgan Chase’s 2020 Form 10-K and the Firm’s U.S. LCR Disclosure reports, which are available on the Firm’s website for a further discussion of the Firm’s Liquidity Risk Management.
LCR and HQLA
The LCR rule requires that the Firm and JPMorgan Chase Bank, N.A. maintain an amount of eligible HQLA that is sufficient to meet their respective estimated total net cash outflows over a prospective 30 calendar-day period of significant stress. Under the LCR rule, the amount of eligible HQLA held by JPMorgan Chase Bank, N.A. that is in excess of its stand-alone 100% minimum LCR requirement, and that is not transferable to non-bank affiliates, must be excluded from the Firm’s reported eligible HQLA. The LCR for both the Firm and JPMorgan Chase Bank, N.A. is required to be a minimum of 100%. Refer to page 103 of JPMorgan Chase’s 2020 Form 10-K and the Firm’s U.S. LCR Disclosure reports for additional information on HQLA and net cash outflows.
The following table summarizes the Firm and JPMorgan Chase Bank, N.A.’s average LCR for the three months ended March 31, 2021, December 31, 2020 and March 31, 2020 based on the Firm’s interpretation of the LCR framework.
Three months ended
Average amount
(in millions)
March 31,
2021
December 31, 2020March 31,
2020
JPMorgan Chase & Co.
HQLA
Eligible cash(a)
$578,029 $455,612 $205,027 
Eligible securities(b)(c)
118,542 241,447 343,124 
Total HQLA(d)
$696,571 $697,059 $548,151 
Net cash outflows$634,221 $634,037 $482,372 
LCR110 %110 %114 %
Net excess eligible HQLA(d)
$62,350 $63,022 $65,779 
JPMorgan Chase Bank N.A.:
LCR166 %160 %117 %
Net excess eligible HQLA$442,617 $401,903 $87,126 
(a)Represents cash on deposit at central banks, primarily the Federal Reserve Banks.
(b)Predominantly U.S. Treasuries, U.S. GSE and government agency MBS, and sovereign bonds net of applicable haircuts under the LCR rule.
(c)Eligible HQLA eligible securities may be reported in securities borrowed or purchased under resale agreements, trading assets, or investment securities on the Firm’s Consolidated balance sheets.
(d)Excludes average excess eligible HQLA at JPMorgan Chase Bank, N.A. that are not transferable to non-bank affiliates.
The Firm’s average LCR was 110% for the three months ended March 31, 2021 and December 31, 2020.
The Firm's average LCR decreased during the three months ended March 31, 2021, compared with the prior year period primarily due to the relative impact on net cash outflows from a significant increase in deposits.
JPMorgan Chase Bank, N.A.’s average LCR increased during the three months ended March 31, 2021, compared with both the three month periods ended December 31, 2020 and March 31, 2020 primarily due to growth in deposits. Deposits continued to increase in the first quarter primarily driven by the effect of certain government actions in response to the COVID-19 pandemic. The increase in excess liquidity in JPMorgan Chase Bank, N.A. is excluded from the Firm’s reported LCR under the LCR rule.
The Firm’s average LCR fluctuates from period to period, due to changes in its eligible HQLA and estimated net cash outflows as a result of ongoing business activity.
Other liquidity sources
In addition to the assets reported in the Firm’s eligible HQLA above, the Firm had unencumbered marketable securities, such as equity and debt securities, that the Firm believes would be available to raise liquidity. This includes securities included as part of the excess eligible HQLA at JPMorgan Chase Bank, N.A. that are not transferable to non-bank affiliates. The fair value of these securities was approximately $841 billion and $740 billion as of March 31, 2021 and December 31, 2020, respectively, although the amount of liquidity that could be raised would be dependent on prevailing market conditions. The fair value increased compared to December 31, 2020, primarily due to an increase in CIB trading assets and an increase in excess eligible HQLA at JPMorgan Chase Bank, N.A. which was primarily a result of increased deposits.
The Firm also had available borrowing capacity at the Federal Home Loan Banks ("FHLBs") and the discount window at the Federal Reserve Bank as a result of collateral pledged by the Firm to such banks of approximately $301 billion and $307 billion as of March 31, 2021 and December 31, 2020, respectively. This borrowing capacity excludes the benefit of cash and securities reported in the Firm’s eligible HQLA or other unencumbered securities that are currently pledged at the Federal Reserve Bank discount window and other central banks. Although available, the Firm does not view this borrowing capacity at the Federal Reserve Bank discount window and the other central banks as a primary source of liquidity.
NSFR
The net stable funding ratio (“NSFR”) is a liquidity requirement for large banking organizations that is intended to measure the adequacy of “available” and “required” amounts of stable funding over a one-year horizon. On October 20, 2020, the federal banking agencies issued a final NSFR rule under which large banking organizations such as the Firm will be required to maintain an NSFR of at least 100% on an ongoing basis. The final NSFR rule will become effective on July 1, 2021, and the Firm will be required to publicly disclose its quarterly average NSFR semi-annually beginning in 2023.
The Firm estimates that it is compliant with the 100% minimum NSFR which becomes effective July 1, 2021, based on its current understanding of the final rule.
42


Funding
Sources of funds
Management believes that the Firm’s unsecured and secured funding capacity is sufficient to meet its on- and off-balance sheet obligations.
The Firm funds its global balance sheet through diverse sources of funding including stable deposits, secured and unsecured funding in the capital markets and stockholders’ equity. Deposits are the primary funding source for JPMorgan Chase Bank, N.A. Additionally, JPMorgan Chase Bank, N.A. may also access funding through short- or long-term secured borrowings, through the issuance of
unsecured long-term debt, or from borrowings from the Parent Company or the Intermediate Holding Company (“IHC”). The Firm’s non-bank subsidiaries are primarily funded from long-term unsecured borrowings and short-term secured borrowings, primarily securities loaned or sold under repurchase agreements. Excess funding is invested by Treasury and CIO in the Firm’s investment securities portfolio or deployed in cash or other short-term liquid investments based on their interest rate and liquidity risk characteristics.
Deposits
The table below summarizes, by LOB and Corporate, the period-end deposit balances as of March 31, 2021, and December 31, 2020, and the average deposit balances for the three months ended March 31, 2021 and 2020, respectively.
March 31, 2021December 31, 2020Three months ended March 31,
DepositsAverage
(in millions)20212020
Consumer & Community Banking$1,037,903 $958,706 $979,686 $739,709 
Corporate & Investment Bank726,708 702,215 747,087 562,226 
Commercial Banking295,748 284,263 290,818 188,683 
Asset & Wealth Management217,460 198,755 206,562 144,570 
Corporate293 318 479 998 
Total Firm$2,278,112 $2,144,257 $2,224,632 $1,636,186 
Deposits provide a stable source of funding and reduce the Firm’s reliance on the wholesale funding markets. A significant portion of the Firm’s deposits are consumer deposits and wholesale operating deposits, which are both considered to be stable sources of liquidity. Wholesale operating deposits are considered to be stable sources of liquidity because they are generated from customers that maintain operating service relationships with the Firm.
The table below shows the loan and deposit balances, the loans-to-deposits ratios, and deposits as a percentage of total liabilities, as of March 31, 2021 and December 31, 2020.
(in billions except ratios)March 31, 2021December 31, 2020
Deposits$2,278.1 $2,144.3 
Deposits as a % of total liabilities67 %69 %
Loans$1,011.3 $1,012.9 
Loans-to-deposits ratio44 %47 %
The Firm believes that average deposit balances are generally more representative of deposit trends than period-end deposit balances, over time. However, during periods of market disruption those trends could be affected.
Average deposits increased for the three months ended March 31, 2021 compared to the three months ended March 31, 2020, reflecting significant inflows across the LOBs primarily driven by the effect of certain government actions in response to the COVID-19 pandemic. In CCB, the increase was also driven by lower spending, as well as growth from existing and new accounts across both consumer and small business customers.
Refer to the discussion of the Firm’s Business Segment Results and the Consolidated Balance Sheets Analysis on pages 18-34 and pages 12-13, respectively, for further information on deposit and liability balance trends.
43


The following table summarizes short-term and long-term funding, excluding deposits, as of March 31, 2021, and December 31, 2020, and average balances for the three months ended March 31, 2021 and 2020, respectively. Refer to the Consolidated Balance Sheets Analysis on pages 12-13 and Note 10 for additional information.
March 31, 2021December 31, 2020Three months ended March 31,
Sources of funds (excluding deposits)Average
(in millions)20212020
Commercial paper$15,189 $12,031 $12,853 $13,974 
Other borrowed funds12,416 8,510 11,246 9,093 
Total short-term unsecured funding$27,605 $20,541 $24,099 $23,067 
Securities sold under agreements to repurchase(a)
$293,080 $207,877 $291,405 $234,394 
Securities loaned(a)
8,396 4,886 7,562 7,349 
Other borrowed funds27,373 24,667 (f)25,959 (f)19,761 (f)
Obligations of Firm-administered multi-seller conduits(b)
$9,030 $10,523 $10,211 $9,898 
Total short-term secured funding$337,879 $247,953 $335,137 $271,402 
Senior notes$166,960 $166,089 $167,453 $165,741 
Subordinated debt20,522 21,608 21,251 18,155 
Structured notes(c)
74,389 75,325 75,039 72,848 
Total long-term unsecured funding$261,871 $263,022 $263,743 $256,744 
Credit card securitization(b)
$4,319 $4,943 $4,825 $6,171 
FHLB advances13,121 14,123 13,733 27,128 
Other long-term secured funding(d)
4,435 4,540 4,626 4,408 
Total long-term secured funding$21,875 $23,606 $23,184 $37,707 
Preferred stock(e)
$31,563 $30,063 $30,312 $29,406 
Common stockholders’ equity(e)
$249,151 $249,291 $245,542 $234,530 
(a)Primarily consists of short-term securities loaned or sold under agreements to repurchase.
(b)Included in beneficial interests issued by consolidated variable interest entities on the Firm’s Consolidated balance sheets.
(c)Includes certain TLAC-eligible long-term unsecured debt issued by the Parent Company.
(d)Includes long-term structured notes which are secured.
(e)Refer to Capital Risk Management on pages 36-41 and Consolidated statements of changes in stockholders’ equity on page 82 of this Form 10-Q, and Note 21 and Note 22 of JPMorgan Chase’s 2020 Form 10-K for additional information on preferred stock and common stockholders’ equity.
(f)Includes nonrecourse advances provided under the MMLF. Refer to page 106 of JPMorgan Chase’s 2020 Form 10-K for additional information on the MMLF.
Short-term funding
The Firm’s sources of short-term secured funding primarily consist of securities loaned or sold under agreements to repurchase. These instruments are secured predominantly by high-quality securities collateral, including government-issued debt and U.S. GSE and government agency MBS. Securities sold under agreements to repurchase increased at March 31, 2021, compared with December 31, 2020, reflecting higher secured financing of AFS investment securities in Treasury and CIO, as well as higher trading assets in CIB, and the impact of client activities in CIB.

The balances associated with securities loaned or sold under agreements to repurchase fluctuate over time due to investment and financing activities of clients, the Firm’s demand for financing, the ongoing management of the mix of the Firm’s liabilities, including its secured and unsecured financing (for both the investment securities and market-making portfolios), and other market and portfolio factors.
The Firm’s sources of short-term unsecured funding consist of other borrowed funds and issuance of wholesale commercial paper. The increase in commercial paper at March 31, 2021, from December 31, 2020 was due to higher net issuance primarily for short-term liquidity management.
44


Long-term funding and issuance
Long-term funding provides an additional source of stable funding and liquidity for the Firm. The Firm’s long-term funding plan is driven primarily by expected client activity, liquidity considerations, and regulatory requirements, including TLAC. Long-term funding objectives include maintaining diversification, maximizing market access and optimizing funding costs. The Firm evaluates various funding markets, tenors and currencies in creating its optimal long-term funding plan.
The significant majority of the Firm’s long-term unsecured funding is issued by the Parent Company to provide flexibility in support of both bank and non-bank subsidiary funding needs. The Parent Company advances substantially all net funding proceeds to its subsidiary, the IHC. The IHC does not issue debt to external counterparties. The following table summarizes long-term unsecured issuance and maturities or redemptions for the three months ended March 31, 2021 and 2020. Refer to Liquidity Risk Management on pages 102–108 and Note 20 of JPMorgan Chase’s 2020 Form 10-K for additional information on the IHC and long-term debt.
Long-term unsecured funding
Three months ended March 31,Three months ended March 31,
2021202020212020
(Notional in millions)Parent CompanySubsidiaries
Issuance
Senior notes issued in the U.S. market$9,250 $5,250 $ $— 
Senior notes issued in non-U.S. markets2,792 1,355  — 
Total senior notes12,042 6,605  — 
Subordinated debt —  — 
Structured notes(a)
1,496 2,782 10,495 9,252 
Total long-term unsecured funding – issuance$13,538 $9,387 $10,495 $9,252 
Maturities/redemptions
Senior notes$2,700 $5,466 $66 $4,065 
Subordinated debt —  — 
Structured notes1,970 1,525 8,514 9,382 
Total long-term unsecured funding – maturities/redemptions$4,670 $6,991 $8,580 $13,447 
(a)Includes certain TLAC-eligible long-term unsecured debt issued by the Parent Company.
Subsequent to March 31, 2021, the Parent Company issued approximately $16 billion of senior notes.
The Firm can also raise secured long-term funding through securitization of consumer credit card loans and FHLB advances. The following table summarizes the securitization issuance and FHLB advances and their respective maturities or redemptions for the three months ended March 31, 2021 and 2020, respectively.
Long-term secured funding
Three months ended March 31,
IssuanceMaturities/Redemptions
(in millions)2021202020212020
Credit card securitization$ $1,000 $625 $900 
FHLB advances 15,000 1,001 7,503 
Other long-term secured funding(a)
138 234 108 205 
Total long-term secured funding$138 $16,234 $1,734 $8,608 
(a)Includes long-term structured notes which are secured.
The Firm’s wholesale businesses also securitize loans for client-driven transactions; those client-driven loan securitizations are not considered to be a source of funding for the Firm and are not included in the table above. Refer to Note 14 of JPMorgan Chase’s 2020 Form 10-K for further description of the client-driven loan securitizations.
45


Credit ratings
The cost and availability of financing are influenced by credit ratings. Reductions in these ratings could have an adverse effect on the Firm’s access to liquidity sources, increase the cost of funds, trigger additional collateral or funding requirements and decrease the number of investors and counterparties willing to lend to the Firm. The nature and magnitude of the impact of ratings downgrades depends on numerous contractual and behavioral factors, which the Firm believes are incorporated in its liquidity risk and stress testing metrics. The Firm believes that it maintains sufficient liquidity to withstand a potential decrease in funding capacity due to ratings downgrades.
Additionally, the Firm’s funding requirements for VIEs and other third-party commitments may be adversely affected by a decline in credit ratings. Refer to SPEs on page 15, and liquidity risk and credit-related contingent features in Note 4 for additional information on the impact of a credit ratings downgrade on the funding requirements for VIEs, and on derivatives and collateral agreements.

The credit ratings of the Parent Company and the Firm’s principal bank and non-bank subsidiaries as of March 31, 2021, except as noted below, were as follows:
JPMorgan Chase & Co.JPMorgan Chase Bank, N.A.J.P. Morgan Securities LLC
J.P. Morgan Securities plc
March 31, 2021Long-term issuerShort-term issuerOutlookLong-term issuerShort-term issuerOutlookLong-term issuerShort-term issuerOutlook
Moody’s Investors ServiceA2P-1StableAa2P-1StableAa3P-1Stable
Standard & Poor’sA-A-2StableA+A-1StableA+A-1Stable
Fitch Ratings (a)
AA-F1+StableAAF1+StableAAF1+Stable
(a) On April 23, 2021, Fitch affirmed the credit ratings of the Parent Company and the Firm’s principal bank and non-bank subsidiaries, and revised the outlook from negative to stable.
Refer to page 108 of JPMorgan Chase’s 2020 Form 10-K for a discussion of the factors that could affect credit ratings of the Parent Company and the Firm’s principal bank and non-bank subsidiaries.

46


CREDIT AND INVESTMENT RISK MANAGEMENT
Credit and investment risk is the risk associated with the default or change in credit profile of a client, counterparty or customer; or loss of principal or a reduction in expected returns on investments, including consumer credit risk,
wholesale credit risk, and investment portfolio risk. Refer to Consumer Credit Portfolio, Wholesale Credit Portfolio and
Allowance for Credit Losses on pages 48-64 for a further discussion of Credit Risk.
Refer to page 65 for a further discussion of Investment Portfolio Risk. Refer to Credit and Investment Risk Management on pages 110–134 of JPMorgan Chase’s 2020 Form 10-K for a further discussion of the Firm’s Credit and Investment Risk Management framework.
CREDIT PORTFOLIO
Credit risk is the risk associated with the default or change in credit profile of a client, counterparty or customer.
In the following tables, reported loans include loans retained (i.e., held-for-investment); loans held-for-sale; and certain loans accounted for at fair value. The following tables do not include loans which the Firm accounts for at fair value and classifies as trading assets; refer to Notes 2 and 3 for further information regarding these loans. Refer to Notes 11, 22, and 4 for additional information on the Firm’s loans, lending-related commitments and derivative receivables, including the Firm’s accounting policies.
Refer to Note 9 for information regarding the credit risk inherent in the Firm’s investment securities portfolio; and refer to Note 10 for information regarding the credit risk inherent in the securities financing portfolio. Refer to Consumer Credit Portfolio on pages 48-52 and Note 11 for further discussions of the consumer credit environment and consumer loans. Refer to Wholesale Credit Portfolio on pages 53-62 and Note 11 for further discussions of the wholesale credit environment and wholesale loans.
Total credit portfolio
Credit exposure
Nonperforming(c)
(in millions)Mar 31,
2021
Dec 31,
2020
Mar 31,
2021
Dec 31,
2020
Loans retained$948,642 $960,506 $8,397 $8,782 
Loans held-for-sale11,898 7,873 165 284 
Loans at fair value50,767 44,474 1,144 1,507 
Total loans–reported1,011,307 1,012,853 9,706 10,573 
Derivative receivables73,119 79,630 284 56 
Receivables from customers(a)
58,180 47,710  — 
Total credit-related assets1,142,606 1,140,193 9,990 10,629 
Assets acquired in loan satisfactions
Real estate ownedNANA250 256 
OtherNANA17 21 
Total assets acquired in loan satisfactions
NANA267 277 
Lending-related commitments1,211,856 1,165,688 800 577 
Total credit portfolio$2,354,462 $2,305,881 $11,057 $11,483 
Credit derivatives used
in credit portfolio management activities(b)
$(22,649)$(22,239)$ $— 
Liquid securities and other cash collateral held against derivatives(13,958)(14,806)NANA
(in millions,
except ratios)
Three months ended March 31,
20212020
Net charge-offs$1,057 $1,469 
Average retained loans952,068 948,635 
Net charge-off rates0.45 %0.62 %
(a)Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM; these are reported within accrued interest and accounts receivable on the Consolidated balance sheets.
(b)Represents the net notional amount of protection purchased and sold through credit derivatives used to manage both performing and nonperforming wholesale credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. Refer to Credit derivatives on page 62 and Note 4 for additional information.
(c)At March 31, 2021, and December 31, 2020, nonperforming assets excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $798 million and $874 million, respectively, and real estate owned (“REO”) insured by U.S. government agencies of $8 million and $9 million, respectively. These amounts have been excluded based upon the government guarantee. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.
The Firm has provided 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 troubled debt restructurings (TDRs). Assistance provided in response to the COVID-19 pandemic could delay the recognition of delinquencies, nonaccrual status, and net charge-offs for those customers and clients who would have otherwise moved into past due or nonaccrual status. Refer to Consumer Credit Portfolio on pages 48-52 and Wholesale Credit Portfolio on pages 53-62 for information on loan modifications as of March 31, 2021. Refer to Notes 12 and 13 of JPMorgan Chase's 2020 Form 10-K for further information on the Firm’s accounting policies for loan modifications and the allowance for credit losses.
Paycheck Protection Program
The Firm continues to participate in the PPP, for which the application deadline was extended to May 31, 2021. At March 31, 2021 and December 31, 2020, the Firm had approximately $32 billion and $27 billion of loans under the PPP, respectively, including $23 billion and $19 billion in the consumer portfolio, and $9 billion and $8 billion in the wholesale portfolio. The impact on interest income related to PPP loans was not material for the three months ended March 31, 2021.
When certain criteria are met, PPP loans are subject to forgiveness and the Firm will receive payment of the forgiveness amount from the SBA. The Firm continues to process forgiveness applications and through March 31, 2021, approximately $7 billion of loans were forgiven.
Refer to Credit Portfolio on page 113 of JPMorgan Chase's 2020 Form 10-K for a further discussion on the PPP.
47


CONSUMER CREDIT PORTFOLIO
The Firm’s retained consumer portfolio consists primarily of residential real estate loans, credit card loans, scored auto and business banking loans, as well as associated lending-related commitments. The Firm’s focus is on serving primarily the prime segment of the consumer credit market. In the first quarter of 2021, the macroeconomic environment continued to improve. The credit performance of the consumer portfolio, including net charge-offs, benefited from government stimulus programs, payment deferrals and increasing home prices. The Firm may obtain
credit protection against certain pools of loans in the retained consumer portfolio through the issuance of credit linked notes. Refer to Note 11 of this Form 10-Q; and Consumer Credit Portfolio on pages 114-120 and Note 12 of JPMorgan Chase's 2020 Form 10-K for further information on consumer loans, as well as the Firm’s nonaccrual and charge-off accounting policies. Refer to Note 22 of this Form 10-Q and Note 28 of JPMorgan Chase's 2020 Form 10-K for further information on lending-related commitments.
The following table presents consumer credit-related information with respect to the scored credit portfolios held in CCB, AWM, CIB and Corporate.
Consumer credit portfolio
Three months ended March 31,
(in millions, except ratios)Credit exposure
Nonaccrual loans(i)(j)
Net charge-offs/(recoveries)
Net charge-off/(recovery) rate(k)
Mar 31,
2021
Dec 31,
2020
Mar 31,
2021
Dec 31,
2020
2021202020212020
Consumer, excluding credit card
Residential real estate(a)
$219,173 $225,302 $5,247 $5,313 $(51)$(120)(0.09)%(0.20)%
Auto and other(b)(c)(d)
83,219 76,825 135 151 72 114 0.37 (d)0.89 
Total loans – retained302,392 302,127 5,382 5,464 21 (6)0.03 (0.01)
Loans held-for-sale1,232 1,305  — NANANANA
Loans at fair value(e)
21,284 15,147 608 1,003 NANANANA
Total consumer, excluding credit card loans324,908 318,579 5,990 6,467 21 (6)0.03 (0.01)
Lending-related commitments(f)
56,245 57,319 
Total consumer exposure, excluding credit card381,153 375,898 
Credit card
Loans retained(g)
131,772 143,432 NANA983 1,313 2.97 3.25 
Loans held-for-sale721 784 NANANANANANA
Total credit card loans132,493 144,216 NANA983 1,313 2.97 3.25 
Lending-related commitments(f)(h)
674,367 658,506 
Total credit card exposure(h)
806,860 802,722 
Total consumer credit portfolio(h)
$1,188,013 $1,178,620 $5,990 $6,467 $1,004 $1,307 0.93 %1.15 %
(a)Includes scored mortgage and home equity loans held in CCB and AWM, and scored mortgage loans held in Corporate.
(b)At March 31, 2021 and December 31, 2020, excluded operating lease assets of $20.0 billion and $20.6 billion, respectively. These operating lease assets are included in other assets on the Firm’s Consolidated balance sheets. Refer to Note 16 for further information.
(c)Includes scored auto and business banking loans and overdrafts.
(d)At March 31, 2021 and December 31, 2020, included $23.4 billion and $19.2 billion of loans, respectively, in Business Banking under the PPP. Given that PPP loans are guaranteed by the SBA, the Firm does not expect to realize material credit losses on these loans. Refer to Credit Portfolio on page 47 for a further discussion of the PPP.
(e)Includes scored mortgage loans held in CCB and CIB.
(f)Credit card, home equity and certain business banking lending-related commitments represent the total available lines of credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit would be used at the same time. For credit card commitments, and if certain conditions are met, home equity commitments and certain business banking commitments, the Firm can reduce or cancel these lines of credit by providing the borrower notice or, in some cases as permitted by law, without notice. Refer to Note 22 for further information.
(g)Includes billed interest and fees.
(h)Also includes commercial card lending-related commitments primarily in CB and CIB.
(i)At March 31, 2021 and December 31, 2020, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $798 million and $874 million, respectively. These amounts have been excluded from nonaccrual loans based upon the government guarantee. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status, as permitted by regulatory guidance.
(j)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 are considered collateral-dependent and charged down to the lower of amortized cost or fair value of the underlying collateral less costs to sell.
(k)Average consumer loans held-for-sale and loans at fair value were $21.3 billion and $22.4 billion for the three months ended March 31, 2021 and 2020, respectively. These amounts were excluded when calculating net charge-off/(recovery) rates.
48


Consumer assistance
In March 2020, the Firm began providing assistance to customers in response to the COVID-19 pandemic, predominantly in the form of payment deferrals.
As of March 31, 2021, the Firm had $9.3 billion of retained loans under payment deferral programs, which represented a decrease of approximately $1.5 billion from December 31, 2020, $3.0 billion from September 30, 2020 and $19.0 billion from June 30, 2020. During the first quarter of 2021, there were approximately $886 million of new enrollments
in payment deferral programs predominantly in residential real estate and credit card. Predominantly all borrowers that exited payment deferral programs are current. The Firm continues to monitor the credit risk associated with loans subject to payment deferrals throughout the deferral period and on an ongoing basis after the borrowers are required to resume making regularly scheduled payments and considers expected losses of principal and accrued interest on these loans in its allowance for credit losses.
March 31, 2021December 31, 2020September 30, 2020June 30, 2020
(in millions, except ratios)Loan balance
Percent of loan class balance(e)
Percent of accounts who exited payment deferral and are currentLoan balanceLoan balanceLoan balanceType of assistance
Residential real estate(a)(b)
$9,059 4.1 %96 %$10,106 $11,458 $20,548 Rolling three month payment deferral up to eighteen months; in most cases, deferred payments will be due at the end of the loan term
Auto and other(c)
127 0.2 96 377 457 3,357 
Auto: Currently offering one month payment deferral (initially offered three month payment deferral). Maturity date is extended by number of months deferred
Business Banking: Three month deferral with automatic deferment to either maturity (loan) or one year forward (line)
Credit card105 0.1 94 (f)264 368 4,384 Currently offering deferral of one month minimum payment (initially offered three month minimum payment deferral). Interest continues to accrue during the deferral period and is added to the principal balance
Total consumer(d)
$9,291 2.1 %94 %$10,747 $12,283 $28,289 
(a)Excludes $11.0 billion, $13.4 billion, $17.1 billion and $34.0 billion of third-party mortgage loans serviced at March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively.
(b)The weighted average LTV ratio of residential real estate loans under payment deferral at March 31, 2021 was 52%.
(c)Excludes risk-rated business banking and auto dealer loans held in CCB and auto operating lease assets that were still under payment deferral programs. Auto operating lease asset payment assistance is currently offering one month payment deferral (initially offered three month payment deferral). Deferrals do not extend the term of the lease and all deferred payments are due at the end of the lease term.
(d)Includes $3.6 billion, $3.8 billion, $3.8 billion and $5.7 billion of loans that were accounted for as TDRs prior to payment deferral as of March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively.
(e)Represents the unpaid principal balance of retained loans which were still under payment deferral programs, divided by the total unpaid principal balance of the respective loan classes retained loans.
(f)89% of the balance that exited deferral were current at March 31, 2021.
Of the $9.3 billion of loans still under payment deferral programs as of March 31, 2021, approximately $3.9 billion were accounted for as TDRs, either because they were accounted for as TDRs prior to payment deferral, or because they did not qualify for or the Firm did not elect the option to suspend TDR accounting guidance provided by the CARES Act and extended by the Consolidated Appropriations Act.
Predominantly all borrowers, including those with loans accounted for as TDRs, were current upon enrollment in payment deferral programs and are expected to exit payment deferral programs in a current status, either because no payments are contractually due during the deferral period or because payments originally contractually due during the deferral period will be due at maturity upon exit. For those borrowers that are unable to resume making payments in accordance with the original or modified contractual terms of their agreements upon exit from deferral programs, they will be placed on nonaccrual status in line with the Firm’s nonaccrual policy, except for credit cards as permitted by regulatory guidance, and charged off
or down in accordance with the Firm’s charge-off policies. Refer to Note 12 of JPMorgan Chase's 2020 Form 10-K for additional information on the Firm’s nonaccrual and charge-off policies.
49


Consumer, excluding credit card
Portfolio analysis
Loan balances increased from December 31, 2020 driven by higher loans in auto and other reflecting PPP loan originations, partially offset by lower residential real estate loans.
Residential real estate: The residential real estate portfolio, including loans held-for-sale and loans at fair value, predominantly consists of prime mortgage loans and home equity lines of credit.
The retained loan portfolio declined from December 31, 2020 due to paydowns predominantly in Home Lending which were largely offset by originations of prime mortgage loans in Home Lending and AWM. Retained nonaccrual loans were relatively flat from December 31, 2020. Net recoveries for the three months ended March 31, 2021 were lower when compared with the same period in the prior year as the prior year benefited from a recovery on a loan sale in Home Lending.
The loans held-for-sale and loans at fair value portfolio increased from December 31, 2020 largely driven by warehouse loans in Home Lending. Nonaccrual loans at fair value decreased from December 31, 2020 largely due to sales in CIB.
The carrying value of home equity lines of credit outstanding was $22.2 billion at March 31, 2021. This amount included $8.6 billion of HELOCs that have recast from interest-only to fully amortizing payments or have been modified and $7.3 billion of interest-only balloon HELOCs, which primarily mature after 2030. The Firm manages the risk of HELOCs during their revolving period by closing or reducing the undrawn line to the extent permitted by law when borrowers are exhibiting a material deterioration in their credit risk profile.
At March 31, 2021 and December 31, 2020, the carrying value of interest-only residential mortgage loans were $25.9 billion and $25.6 billion, respectively. These loans have an interest-only payment period generally followed by an adjustable-rate or fixed-rate fully amortizing payment period to maturity and are typically originated as higher-balance loans to higher-income borrowers, predominantly in AWM. Charge-offs for the three months ended March 31, 2021 were consistent with the broader residential mortgage portfolio as the performance of this portfolio is generally in line with the performance of the broader residential mortgage portfolio.
The following table provides a summary of the Firm’s residential mortgage portfolio insured and/or guaranteed by U.S. government agencies, including loans held-for-sale and loans at fair value. The Firm monitors its exposure to certain potential unrecoverable claim payments related to government-insured loans and considers this exposure in estimating the allowance for loan losses.
(in millions)March 31,
2021
December 31,
2020
Current$775 $669 
30-89 days past due146 235 
90 or more days past due798 874 
Total government guaranteed loans$1,719 $1,778 
Geographic composition and current estimated loan-to-value ratio of residential real estate loans
Refer to Note 11 for information on the geographic composition and current estimated LTVs of the Firm’s residential real estate loans.
Modified residential real estate loans
The following table presents information relating to modified retained residential real estate loans for which concessions have been granted to borrowers experiencing financial difficulty, which include both TDRs and modified PCD loans not accounted for as TDRs. The following table does not include loans with short-term or other insignificant modifications that are not considered concessions and, therefore, are not TDRs, or loans for which the Firm has elected to apply the option to suspend the application of accounting guidance for TDRs as provided by the CARES Act and extended by the Consolidated Appropriations Act. Refer to Note 11 for further information on modifications for the three months ended and March 31, 2021 and 2020.
(in millions)March 31, 2021December 31, 2020
Retained loans(a)
$14,943 $15,406 
Nonaccrual retained loans(b)
$3,907 $3,899 
(a)At March 31, 2021 and December 31, 2020, $9 million and $7 million, respectively, of loans modified subsequent to repurchase from Ginnie Mae in accordance with the standards of the appropriate government agency (i.e., Federal Housing Administration (“FHA”), U.S. Department of Veterans Affairs (“VA”), Rural Housing Service of the U.S. Department of Agriculture (“RHS”)) are not included in the table above. When such loans perform subsequent to modification in accordance with Ginnie Mae guidelines, they are generally sold back into Ginnie Mae loan pools. Modified loans that do not re-perform become subject to foreclosure. Refer to Note 13 for additional information about sales of loans in securitization transactions with Ginnie Mae.
(b)At both March 31, 2021 and December 31, 2020, nonaccrual loans included $3.0 billion of TDRs for which the borrowers were less than 90 days past due. Refer to Note 11 for additional information about loans modified in a TDR that are on nonaccrual status.
50


Auto and other: The auto and other loan portfolio, including loans at fair value, predominantly consists of prime-quality scored auto and business banking loans, as well as overdrafts. The portfolio increased when compared with December 31, 2020 due to PPP loan originations net of forgiveness in Business Banking as well as from growth in the auto portfolio from loan originations, largely offset by paydowns and charge-offs or liquidation of delinquent loans. The scored auto portfolio net charge-off rates were 0.13% and 0.41% for the three months ended March 31, 2021 and 2020, respectively. Auto charge-offs for the three months ended March 31, 2021 benefited from government stimulus, payment assistance programs, and high vehicle collateral values.
Nonperforming assets
The following table presents information as of March 31, 2021 and December 31, 2020, about consumer, excluding credit card, nonperforming assets.
Nonperforming assets(a)
(in millions)March 31,
2021
December 31,
2020
Nonaccrual loans
Residential real estate(b)
$5,855 $6,316 
Auto and other135 151 
Total nonaccrual loans5,990 6,467 
Assets acquired in loan satisfactions
Real estate owned118 131 
Other17 21 
Total assets acquired in loan satisfactions135 152 
Total nonperforming assets$6,125 $6,619 
(a)At March 31, 2021 and December 31, 2020, nonperforming assets excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $798 million and $874 million, respectively, and REO insured by U.S. government agencies of $8 million and $9 million, respectively. These amounts have been excluded based upon the government guarantee.
(b)Generally excludes loans under payment deferral programs offered in response to the COVID-19 pandemic. Includes loans to customers that have exited COVID-19 payment deferral programs and are 90 or more days past due, predominantly all of which are considered collateral-dependent and charged down to the lower of amortized cost or fair value of the underlying collateral less costs to sell.
Nonaccrual loans
The following table presents changes in consumer, excluding credit card, nonaccrual loans for the three months ended March 31, 2021 and 2020.
Nonaccrual loan activity(a)
Three months ended March 31,
(in millions)
20212020
Beginning balance$6,467 $3,366 
Additions:
PCD loans, upon adoption of CECLNA708
Other additions673 1,016 
Total additions673 1,724 
Reductions:
Principal payments and other(a)
598 341 
Charge-offs73 97 
Returned to performing status459 150 
Foreclosures and other liquidations20 103 
Total reductions1,150 691 
Net changes(477)1,033 
Ending balance$5,990 $4,399 
(a)Other reductions includes loan sales.
Active and suspended foreclosure: Refer to Note 11 for information on loans that were in the process of active or suspended foreclosure.
Refer to Note 11 for further information about the consumer credit portfolio, including infor