table summarizes MSR activity 2023 2022 2021. millions value#7,973,494,276 MSR activity Originations Purchase,400,363 Disposition(822) additions,376,908 Changes cash flows(1,011)(936)(788) Changes valuation assumptions market interest rates####424####404 Projected cash flows.cost service Discount rates Prepayment model changes valuation value December,494 unrealized gains MSRs December service fees late fees ancillary fees####1,298 mortgage loans December 31, billions####584####520 Servicer advances uncollectible amounts December 31####758####1,611


purchase price adjustments MSRs loans prepaid 90 settlement price.


MSRs transferred trusts mortgage securities. portion SMBS acquired Firm acquired trading securities.


impact future prepayments interest rates difference expected prepayments.


prepayments market interest rates.


amounts Firm pays. principal interest taxes reimbursed after advance from future cash flows trust loans. credit risk minimal reimbursement senior cash payments. right stop payment if collateral insufficient. advances not recoverable rules agreements.


table presents mortgage fees income MSR risk management 2023 2022 2021. mortgage fees Production revenue,215 Net mortgage revenue Operating Loan servicing revenue Changes MSR cash flows operating revenue Risk management market interest rates inputs assumptions derivative fair value risk management net mortgage servicing revenue mortgage fees income,175,159 Mortgage fees income,176,170


impact model inputs assumptions projected cash flows. cost to discount rates changes prepayments market interest rates.


Changes in fair value assumptions interrelated linear. table effect change assumption fair value calculated without changing assumption. changes factor result in magnify or counteract impact initial change.


table economic assumptions value Firm’s MSRs December 2023 2022 adverse changes. December millions Weighted-average prepayment speed assumption. Impact 10% adverse change 20% adverse change Weighted-average option adjusted spread. 100 basis points adverse change 200 points adverse change


risk regulatory capital.


Firm’s finite assets recorded fair value completion business combination. deposit amortized over lives future economic benefits. assets indefinite lives management contracts not amortization assessed periodically impairment.


2022 $4. 2 $1. 9 billion amortization $994 $679 million.


December 2023 2022 finite-lived $2. billion $707 million $1. billion $517 million.


December 2023 intangible assets deposit wealth First Republic acquisition asset management contracts 51% CIFM. Note 34.


2022 $315 $145 million.


table expense. December 31, assets 2024 2025


Firm’s finite indefinite assets assessed impairment annually if. determines impairment recognized in expense.


Premises equipment land buildings improvements software furniture depreciation amortization. lease right-of-use assets. Note 18-use assets.


table Premises equipment. December 31, Land buildings leasehold improvements,486 Right-use assets premises,157,734


$514 $350 million right-use 2023 2022.


premises equipment software furniture.


JPMorgan Chase depreciation buildings furniture equipment. depreciates leasehold improvements. capitalizes costs internal-use software. amortized. 10 to 50 years buildings leasehold improvements 3 to 10 years internal-use software furniture equipment.


Impairment assessed carrying value asset recoverable.


December 2023 2022 deposits. offices Noninterest-bearing $75,393 $26,363,748 Interest-bearing $573 $586,303,100,346 deposits.,848,248 Non. Noninterest-bearing $1,737 $1,398,005 Interest $681 $273,743 non. offices,840,400,688,179


notes deposits fair value. Note 3.


December 31, 2023 2022 deposits insured limit. U. offices,622 Non-U. offices,187 Total


deposits non. offices insured.


December 31, 2023 remaining maturities deposits. millions. 2024 2025 2026 2027 2028 5 years#196,631,450,081


December 31, 2023 JPMorgan Chase subsidiaries obligated noncancellable leases premises equipment business. leases 20 years maturity options extend terminate. leases twelve months liability right-of-use asset. dividends debt equity financing agreements. leases escalation clauses rental payments maintenance utility tax increases non-lease components. lease non-lease real estate leases. payments lease non-lease components.


lease liabilities assets recognized commencement future lease payments. payments discounted Firm’s borrowing rate included accounts payable liabilities. assets premises equipment include lease prepayments costs less incentives. Rental expense recognized occupancy expense statements income.


values operating leases December 31, millions Right-of-use assets,431 Lease liabilities,833 lease term years. discount rate. Supplemental cash flow information Cash paid lease liabilities non-cash information Right-use assets lease obligations


$647 million First.


$712 million lease liabilities First Republic. December 31, Rental expense Sublease income expense


table future payments leases 2023 2024 2025 2026,318 2027,169 2028,767 lease payments,530 interest,833


December 31, 2023 Firm lease commitments $420 million. leases commence 2024 2026 21.


Firm provides auto equipment lease financing renewal termination purchase options. financings predominantly auto leases. assets recognized depreciated residual value. Depreciation expense included technology communications equipment expense statements income. lease income recognized included other income.


Firm assesses leased assets impairment exceeds cash estimated residual value impairment recognized.


risk loss on auto leased assets monitored projections review mitigated arrangements manufacturers lessees.


table presents value assets leases balance December 31, millions leases net depreciation,663,302,288,282


table lease income depreciation expense statements December millions lease income,654 Depreciation expense,475,380


table receipts leases December 2023 millions 2024 2025 2026 2027 lease receipts


Accounts brokerage security purchases accrued expenses compensation credit card rewards lease interest merchant servicing income tax reserves.


table accounts liabilities. December 31, Brokerage payables,960,692 liabilities,347,449 accounts,307,141


card $13. billion December 2023 2022.


credit card rewards liability cost rewards points. liability accrued reduced. redemption rate cost per point impact Card Income.


Note 7 30 interest lease taxes reserves.


JPMorgan Chase issues long-term debt predominantly U. S. dollars fixed variable interest rates. senior debt equity-linked instruments fair value. Changes value recorded statements unrealized gains due DVA recorded OCI. long debt values unamortized premiums issuance costs valuation adjustments fair value adjustments contractual maturity December 31, 2023. millions 1 years Senior debt rate,890 rate,565 rates. Subordinated debt rate,976,863,693 rate rates.50,088,738 Federal Home Loan Banks advances#Fixed rate#13,940,246 rate rates. 59. 12. 89. 32 Purchase Money Note#Fixed rate rates. 40. Senior debt#Fixed rate#2,958#11#6,236,383 rate,933######25,336 rates. 28. 41%. 48. 91. 02 Subordinated debt#Fixed rate#255 rate rates.25.#42,086#109#12,052#68,244 Junior subordinated debt rate rate rates. 18. 45. 14. 33#1,308#1,848 Total long-term debt,174#133,098#391,825#295,865 Long-term beneficial interests rate,998######,999 rate rates. 74. 45. 69. 81 Total long-term beneficial interests#3#2,142


Purchase Note First Republic. Note 34.


long-term debt $93. $13. billion $218. $208. 2023 2022. hybrid instruments.


$87. $72. long-term debt 2023 2022.


$12. 5 billion $10. 3 billion zero-coupon notes December 2023 2022. $47. 9 billion $45. 3 billion. exceed.


interests. December 2023 2022. Excluded paper interests $19. 9 billion $10. 5 billion December 2023 2022.


interest rates December 2023 2022 non. variable issuances derivative instruments hedge accounting. exclude structured notes fair value.


December 2023. FHLB Republic. Note 34.


December 2023 long-term debt $208. 2 billion redeemable JPMorgan Chase.


debt 2023 $51. billion $53. 2025 $48. 2026. 2027 $79. 2028.


-average interest rates long-term debt 3. 65%. 26% December 31, 2023 2022. JPMorgan Chase utilizes derivative swaps debt. interest expense. modified interest rates-term debt 5. 20% 4. 89% December 31, 2023 2022.


JPMorgan Chase. guaranteed debt. indebtedness. $41. 1 billion $28. 2 billion December 2023 2022.


Firm’s unsecured debt maturities borrowings additional collateral credit ratings financial ratios earnings stock price.


December 2023 2022 JPMorgan Chase issue 200 million shares preferred stock value $1 share. liquidation preferred stock dividends distribution assets.


summary JPMorgan non preferred stock December 31, 2023 2022 quarterly dividend declarations years December 31, 2023 2022 2021. value millions date rate December 31, 2023 redemption date annualized rate per share 31, ended December Fixed-rate Series AA. Series/29/2015. DD#9/21/2018. 750####12/1/2023.#1/24/2019.,000. 750####12/1/2024.Series####150,000,500/2021. 550####6/1/2026. Series LL####185,000/2021. 625####6/1/2026. Series MM####200,000#7/29/2021.####9/1/2026.-to-floating rate Series I. Series Q####150,000,500 3. 25####5/1/2023. Series R####150,000,500,500/29/2013.####8/1/2023. Series S,000#1/22/2014. 750####2/1/2024. 78######675. Series U####100,000.####4/30/2024. 33######612. Series V/2019.####353. Series X,600#9/23/2014.####10/1/2024. 33######610./2020. 44 Series,750#10/20/2017.####11/1/2022. 58######804.####526.####462. Series####225,000,250#7/31/2019. 38######500.#1/23/2020.####2/1/2025. 125######460.,500#2/24/2020.####4/1/2025. 745######400. Series,000#5/12/2021.####6/1/2026 2. 85######365.76 preferred stock,740,375,404


depositary.


fixed-floating stock converts redemption date.


June 30, 2023 CME Term SOFR fixed-floating stock. LIBOR. References three-month SOFR spread adjustment. 26% per annum spreads. five-year Constant Maturity Treasury spread.


stock discretionary non-cumulative. declared quarterly. payable quarterly fixed-rate. semiannually fixed-to rate quarterly.


initial dividend days outstanding. declared quarterly contractual.


dividend Series Q floating payable quarterly May 1 2023. 15% $257. semiannually. August 1 2023 three-month spread. 26%. 25%.


dividend rate Series R floating payable quarterly August 1 2023 6. $300. share semiannually. three-month term SOFR spread. 26%. 30%.


dividend Series CC floating payable quarterly November 1 2022. 625% $231. share semiannually. August 1 2023 three-month spread. 26%.


liquidation $10,000 dividends. $27. 7 billion December 2023.


October 2022 redeemed $2. 9 billion.


October 3 2022 redeemed $2. billion.


February 2022 redeemed $2. billion stock.


Firm’s preferred stock redeemed dividend payment earliest redemption date. redeemed treatment event. redemption subject non-objection Board Governors Federal Reserve System.


2022 JPMorgan Chase issue. billion stock $1.


shares issued reissued treasury December 31, 2023 2022 2021. December balance January 1,104. Treasury balance January 1,170.,160.,055. Repurchase. Employee benefits compensation plans. Employee stock purchase plans. treasury balance December 31,228.,170.,160. Outstanding December 31.,934.,944.


May 1 2022 Firm purchase $30 billion share repurchase April.


table Firm’s repurchases common stock 2023 2022 2021. millions Total shares repurchased. purchase price#9,898,122,448


commissions. Inflation Reduction Act 1% excise tax 2023.


2022 Firm suspended repurchases resumed first quarter 2023.


Federal Reserve repurchases dividends quarter 2021 restricted exceed income four quarters. July 1 2021 capital restrictions regulatory framework.


Board Directors’ authorization repurchase shares discretion timing amount subject to factors market conditions legal regulatory considerations Firm’s capital position internal capital generation future capital requirements alternative investment opportunities. $30 billion common share repurchase program price targets timetables. suspended executed through open market purchases privately negotiated transactions Rule 10b5-1 plans trading blackout periods.


December 2023 61. 6 million shares common stock employee compensation.


earnings per share calculated two-class method. earnings allocated common stock participating securities. JPMorgan Chase grants RSUs compensation nonforfeitable dividends vesting common stock. unvested RSUs participating securities separate EPS. not diluted EPS Note 9.


Diluted EPS issuable shares future service common stock. calculated two-class treasury stock methods dilutive amount. two-class more dilutive.


table net income common stockholders diluted EPS 2023 2022 2021. earnings Net income,552,676,334 Preferred stock dividends,600 common equity,051,734 Dividends undistributed earnings participating securities common stockholders,760,503 shares outstanding,938.,965. Net income share. Diluted earnings,760,503 shares.,965. Dilutive impact unvested PSUs nondividend-earning RSUs SARs. diluted shares,943.,970. Net income share.


after-tax gains losses foreign currency adjustments changes cash flow hedging net gain defined benefit pension OPEB plans liabilities credit risk.December 31, millions gains investment securities adjustments value hedges flow hedges benefit pension OPEB plans value liabilities income Balance December 31, 2020,132 Net change Balance December 31, 2021#2,640(934),153 Net change,360 Balance December 31, 2022(9,124(1,545)(5,656),341) Net change Balance December 31, 2023,743)(3,932),443


December 31, 2023 gains $(29) million HTM securities transferred. $(895 million $(1. billion $2. 4 billion AFS securities 2023 2022 2021. Note 10.


table pre after OCI.December 31, millions-tax Unrealized gains investment securities gains,891(922),969,290,572 Reclassification adjustment net income,180(768,412(572 Net change,071(1,690),381(15,482),718,289(5,540) Translation adjustments(3,574),309),447)(1,697)(1,290)(855,698,452 change Fair value hedges net change Cash flow hedges unrealized gainsperiod(7,473)(5,679)(2,303),750) Reclassification net income,355(1,222)(929),258(7,053),360)(3,525)(2,679) pension OPEB plans change(1,459)(1,241),129 value liabilities change(1,066)(808),141 income(1,669)(17,257)(8,070)


pre-tax securities gains statements.


pre-tax gains Consolidated statements. reclassified pre-tax loss $(3) million $(35) million investment hedge loss $32 million gain translation adjustment acquisition CIFM. 2022-tax loss $(8) million. 2021 loss $(7) million.


changes value-currency swaps spreads excluded hedge effectiveness recorded income. initial cost spreads recognized earnings interest.


pre-tax revenue income expense Consolidated statements.


2022 remeasurement Firm’s. benefit plan pension settlement. decrease $1. 4 billion pre-tax. Note 8.


JPMorgan Chase subsidiaries file consolidated. federal income tax return. uses asset liability method taxes Financial Statements. reflect future tax consequences differences assets liabilities. deferred tax asset determined tax rates. expense includes current deferred portions. valuation allowance deferred tax assets.


complexities Firm’s businesses jurisdictions judgments estimates. tax liabilities JPMorgan Chase tax jurisdictions Firm years. Firm’s final tax assets liabilities different reported.


table. federal income tax rate effective tax rate. Year ended December 31, Statutory. federal tax rate. Increase(decrease tax rate. state local income taxes. federal income tax benefit. Tax-exempt income. Non-U. S earnings. Business tax credits. Effective tax rate. 6


Income tax First Republic acquisition bargain gain tax rate.


table reflects income tax expense Consolidated statements. Year ended December 31, millions tax expense. federal Non.,992,718. state local tax expense,228 Deferred income tax expense. federal Non. state local deferred income tax expense,738,748 Total expense,060,490,228


tax $68 million 2023 $331 million 2022 $69 million 2021.


table reflect tax effect stockholders’ equity reflected OCI Note 24. 2023 equity tax effect TDR accounting guidance earnings. Note 1.


table presents. non. before tax expense. Year ended December 31, millions.,868,126 Non.,744,436 before tax,166


non-U. S. income defined operations outside.


Firm U. S. income tax expense low tax period.


Firm recognized $2. billion tax credits housing 2023 $1. 8 billion. 7 billion 2022 2021. amortization $1. 6 billion. 4. 3 billion. carrying value $14. 6 billion $12. 1 billion 2023 2022. commitments $6. 8 billion $5. 4 billion.


Deferred income tax differences assets liabilities. assets recognized realizability likely. unrealizable valuation allowance. tax assets liabilities net assets balance sheets. December Deferred tax assets loan losses,193 Employee benefits Accrued expenses Non. operations,148 Tax carryforwards deferred tax assets Valuation allowance Deferred tax liabilities Depreciation amortization,044 Mortgage servicing rights Leasing transactions,801 deferred tax liabilities,552 Net tax assets


Includes estimated deferred tax asset First Republic acquisition. tax deferred tax assets liabilities.


JPMorgan Chase deferred tax $290 million 2023. State $1 2 billion. NOL $586 million non. $570 million. tax $118 million. expire 2026 2037 unlimited. non. NOL expire 2026 2040. state local carryforwards expire 2026 2027.


valuation December 2023 carryforwards non. deferred tax assets.


December 31, 2023 2022 2021 JPMorgan Chase’s unrecognized tax benefits were $5. 4 billion $5. 0 billion $4. 6 billion $3. 9 billion $3. 4 billion recognized annual tax rate. unrecognized tax benefits tax rate recognized. tax effect temporary differences state local benefits. federal income tax deductions non. JPMorgan Chase evaluates changes tax benefits. under audit Internal Revenue Service. 12 months balance tax benefits may increase decrease approximately $1. 1 billion. change payment income statement recognition.


table reconciliation unrecognized tax benefits. Year December 31, millions Balance January 1,,043,250 Increases current prior periods Decreases,110)(824) Decreases cash settlements authorities Balance December 31,,401,043


penalties $229 $141 $174 million 2023 2022 2021.


December 31, 2023 2022 tax accrued. billion. billion penalties.


JPMorgan Chase Internal Revenue Service taxing authorities state jurisdictions. table summarizes JPMorgan Chase subsidiaries December 31, 2023. examination Chase U. – 2013 amended Appellate. - 2020 original New York State - 2014 New York City - 2017 U. K. – 2020 entities


Firm’s cash assets restricted withdrawal usage. imposed authorities subsidiaries.


JPMorgan Chase Bank. OCC. member. Federal Reserve System deposits. insured FDIC limits.


Firm reserves-US banks.


Firm subject to rules U. non U. regulators. broker-dealer activities restrictions cash assets.


table restricted cash December 31, Segregated securities cleared customers. Cash reserves non. banks purposes. restricted cash.


$18. 2 billion $25. 4 billion deposits. cash December 2023 2022.


2023 2022 Firm restricted assets securities pledged $40. $42. 4 billion. $20. billion $31. billion restricted.


Restrictions. federal law prohibit JPMorgan Chase Bank. subsidiaries lending JPMorgan Chase & Co. affiliates unless loans secured amounts. secured loans Parent Company transactions consistent safe banking practices. unless collateralized cash debt obligations covered transactions limited 10% capital guidelines transactions limited 20% capital.


Parent subsidiaries JPMorgan Chase Bank. JPMorgan Chase Holdings LLC. IHC holds JPMorgan subsidiaries. owns assets provides loans Company. net proceeds from securities issuances preferred common stock.


principal sources income Parent Company are dividends JPMorgan Chase Bank. IHC. Federal Reserve OCC FDIC prohibit dividends banking organizations including Parent Company subsidiaries unsafe. IHC prohibited paying dividends extending credit Parent Company if capital liquidity “thresholds” breached limits imposed by Parent management Board.


January 1, 2024 Parent subsidiaries pay $20 billion dividends without approval regulators. capacity supplemented earnings.


Federal Reserve capital requirements standards Firm. OCC capital requirements JPMorgan Chase Bank.


capital rules Basel III capital ratios adequacy standards U. S. companies Firm JPMorgan Chase Bank. Two approaches calculating RWA standardized advanced. Firm JPMorgan Chase Bank. evaluated Standardized requirements.


three components capital Basel III


risk leverage Federal Reserve JPMorgan Chase Tier Total leverage SLR. Failure. JPMorgan Chase Bank. subject capital requirements regulators.


table presents risk-based regulatory capital ratio requirements well ratios Firm JPMorgan Chase Bank. subject December 31, 2023 2022. capital ratio requirements-capitalized ratios(c-based capital ratios capital. Tier 1 capital. Total capital.


regulatory capital. Tier 1 Total minimum GSIB surcharge. 2. 9% SCB Basel III. 5% capital conservation buffer. countercyclical buffer 0% federal.


December 31, 2022 Tier 1 capital Basel III 12. 13. 15. III Advanced 10. 5% 12. 14. 0% Basel III 4. 0%.


JPMorgan Chase Bank. Tier 1 fixed capital conservation buffer. 5% Bank. not subject GSIB surcharge.


bank companies Federal Reserve.


JPMorgan Chase Bank. FDIC Act.


table presents leverage capital requirements ratios Firm JPMorgan Chase Bank. December 2023 2022. requirements Leverage capital Tier 1 leverage.


minimum SLR 3. supplementary leverage. BHC JPMorgan Chase Bank.


Federal Reserve establish-capitalized thresholds.


January 2022 $2. 9 billion CECL COVID-19 phased 25% three. December 31, 2023 $1. 4 billion.


January 2023 phased 50% CECL Tier 2 assets leverage RWA.


tables present risk-based capital metrics Basel III Standardized Advanced for JPMorgan Chase Bank,. December 31, 2023 2022 JPMorgan Chase Bank,. well-capitalized met capital requirements. December 31, 2023 millions except ratios III Chase. Bank Risk-based capital metrics capital Tier 1 capital Total capital,417,392 Risk-weighted assets,156,952 capital ratio. Tier 1 capital ratio. Total capital ratio. December 31, 2022 millions except ratios III Chase. Bank.Risk-based capital metrics CET1 capital Tier 1 capital Total capital,255 Risk-weighted assets,773,602 capital ratio. 2 Tier 1 capital ratio. Total capital ratio. 4 7


capital metrics CECL.


impacts assets First Republic Standardized approach transition U. S. capital rules. Three months millions 31, 31, 2022 Chase. Leverage capital metrics Adjusted average assets,831,200,337,842,703,873,249,912 Tier 1 leverage ratio. Total leverage exposure,465,038,739,367,092,502.


assets leverage ratios quarterly deduction Tier 1 capital goodwill equity intangible assets.


JPMorgan Chase provides instruments. commitments guarantees financing needs customers. contractual represents maximum credit risk Firm commitment obligation. commitments guarantees refinanced extended cancelled expired without default. total contractual amount not representative future credit exposure funding requirements.


expected credit losses wholesale consumer lending commitments allowance maintained. Note 13 allowance.


table summarizes contractual amounts values-balance lending instruments guarantees commitments at December 31, 2023 2022. amounts credit card home equity lending represent total credit. all lines credit. reduce cancel credit lines. closes lines 60 days past due. reduce close HELOCs decreases value property decline creditworthiness.


sheet financial instruments guarantees amount value maturity December 31, millions 1 year 3 5 Lending Consumer excluding credit card Residential Real Estate,175,125 Auto,247,278,231 consumer excluding credit card,164,334,412,403 Credit card Total consumer,334,412,802 Wholesale unfunded commitments,478,190,046,812,407,797 Standby letters credit financial guarantees,775,478,628,872,439 letters credit,084,388,134 wholesale,337,890,756,803,786,980,742,159,224,249,215,326,782,139 guarantees Securities indemnification agreements guarantees,664 guarantees,657,848,180 Unsettled resale borrowed agreements,106 repurchase,170,724 Loan sale securitization indemnifications Mortgage repurchase liability Loans sold recourseExchange house guarantees commitments,887 guarantees commitments,216,028,074,634


commitments purchase.


commercial card CB CIB.


consumer wholesale lending.


December 2023 2022 risk $88 million $71 million unfunded $8. 2 billion standby letters guarantees $589 million $512 million credit. Federal.


December 2023 2022 collateral Firm $300. 3 billion $298. 5 billion. cash G7. agencies.


December 31, 2023 2022 Fixed Income Clearing Corporation membership houses.


December 31, 2023 2022 unfunded equity. secondary market loans.


lending-related products carrying value includes allowance guarantee liability derivative value represents.


lending commitments carrying value includes fees purchase discounts premiums deferred accounts balance sheets. Deferred amounts revolving amortized lending deposit fees. until sold.


December 2023 adjustments First Republic $630 million auto $148 million unfunded. 1 billion. Note 34.


December 2022 markdowns unfunded bridge financing.


unfunded commitments credit working capital corporate purposes facilities bond financings liquidity clearing organizations. Firm issues commitments multipurpose facilities standby letter credit.


. GAAP requires guarantor liability equal fair value obligation. defines guarantee changes asset liability equity third failure. Firm considers off–balance arrangements guarantees. standby letters credit financial guarantees securities indemnifications agreements derivative contracts guarantees sponsored member repo program.


. GAAP Firm records guarantees inception non-contingent obligation. consideration premium receivable. records value liabilities offsetting entry cash premiums


assets premiums. premium receivable reduced cash liability amortized income lending deposit fees contract. lending contingent obligation recognized credit losses non.


Non-lending obligations recognized liability probable estimable. not recognized estimated less than liability inception amortization. indemnifications sales agreements sale allocated guarantee adjusts gain loss. initial liability amortized to income risk reduced.


contractual guarantees indemnifications 292.


guarantees.


Standby letters credit financial guarantees lending commitments Firm performance client party bond acquisition trade.


table carrying value letters credit guarantees December 2023 2022.


letters credit financial December 31, millions Investment-grade#19,694#3,552,205#3,040 Noninvestment-grade contractual amount#28,872#4,388,439,134-related commitments#110#82 Guarantee liability Total carrying value#479#408 Commitments collateral#16,861#539#15,296#795


ratings scale internal risk ratings. Note 12.


Firm’s securities lending program counterparties’ securities lent third parties. Firm provides indemnification lent securities. obtains cash liquid collateral market value exceeding 100% securities. Collateral marked market daily. Additional collateral called if shortfall released overcollateralization. defaults Firm collateral replacement securities or credit cash equivalent.


cash collateral Firm invested client indemnified resale agreements loss principal. obtains collateral value 100% principal.


Firm transacts derivative contracts guarantee. S. GAAP. contracts put options purchase assets price date. enter option contracts client needs. terms options five years.


guarantees stable value contracts Firm payment difference market book value counterparty’s market value less book conditions met. Stable products returns less volatility unprotected. contracts longer-term no maturity allow Firm terminate under conditions.


notional value derivative guarantees maximum exposure. stable products lower.


fair value derivative guarantees reflects probability perform contract. reduces exposures offsetting transactions market risk.


table summarizes derivatives guarantees December 2023 2022. 2023 2022 amounts Derivative guarantees,180 contracts,488 Maximum Derivative payables


derivative contracts Firm purchaser seller credit protection market. Note 5 derivatives.


Firm resale borrowed agreements. cash receiving securities collateral. repurchase securities loaned agreements. cash collateral. agreements settle future. derivative not recorded balance sheets settlement. regular-way settlement terms. Note 11 securities financing agreements.


Firm’s mortgage loan sale securitization activities. GSEs warranties loans meet requirements repurchase indemnify breached.


liability repurchase label evaluated litigation reserves.


Note 30.


Firm provides servicing mortgages products recourse nonrecourse. nonrecourse principal credit risk temporary advances. recourse credit risk owner Fannie Mae


Freddie Mac private investor insurer guarantor. Losses recourse servicing occur foreclosure sales proceeds defaulted loan less than principal balance interest cost property. securitizations nonrecourse credit losses purchaser mortgage-backed securities. unpaid principal balance loans sold carrying value liability disclosed table page 292.


issuing securities to investors outside U. S. Firm may pay additional amounts holders tax law withholding taxes imposed. terms securities right to redeem if additional amounts payable. Firm enter indemnification clauses licensing software business indemnifies licensees for liability damages purchasers losses due actions. difficult to estimate maximum exposure indemnification arrangements future changes tax law claims. management expects risk loss remote.


payment networks merchant acquirer Firm’s Merchant Services CIB Payments retains contingent liability for disputed card transactions charge-back. dispute resolved Firm credit refund back. If loss. mitigates risk withholding settlements retaining cash obtaining collateral. recognizes valuation allowance payment risk charge-backs.


2022 2021 processed $2,411.,158. $1,886. billion.


Firm provides clearing services securities purchases sales derivative contracts futures options OTC contracts. stands behind performance collects cash securities collateral settlement amounts remits CCP. two types margin variation daily contracts initial margin inception contract potential changes margin.


clearing member Firm exposed to risk nonperformance not liable for performance CCPs. risk through collection margin at inception transactions. can cease services if clients obligations. In nonperformance positions access margin. CCP margin remaining shortfalls paid by Firm.


Firm nonperformance risk margin receivables payables securities contracts not reflected Financial Statements.


difficult estimate Firm’s maximum exposure clearing member assessment transactions. historical experience credit risk mitigants management believes unlikely material payments risk loss remote.


Note 5 derivatives Firm Financial Statements.


Firm member securities exchanges clearing houses U. S. countries provides clearing services. Membership requires pay pro rata losses default member. obligations vary organizations. limited to contribution to guarantee fund losses default. obligations include pro rata residual losses after. clearing houses require Firm pay pro rata losses from guarantee fund contributions margin unrelated independent default. payment required losses exceed resources clearing. difficult estimate Firm’s maximum exposure future claims. management expects risk loss remote. maximum exposure disclosed in table page 292 Exchange clearing house guarantees commitments line.


Firm sponsoring member overnight resale repurchase agreements Government Securities Division Fixed Income Clearing Corporation. guarantees prompt payment performance obligations. minimizes liability security interest cash securities collateral risk loss. maximum exposure Exchange clearing house guarantees commitments page 292. Note 11 credit risk mitigation resale collateral repurchase.


Parent Company guarantees trading obligations subsidiaries contract-by-contract negotiated


. obligations subsidiaries Firm’s balance sheets off-balance commitments Parent Company separate liability guarantees. believes payments remote.


Parent Company guaranteed-term debt notes JPMorgan Chase Financial 100%. securities JPMFC guaranteed Parent subsidiary. guarantees unsecured indebtedness not table page 292. Note 20.


Firm pledges assets borrowing capacity Federal Reserve central banks FHLBs. pledges repurchase securities financing short sales derivative contracts deposits. pledged assets sold repledged pledged.


table Firm’s pledged assets. December 31, billions Assets. 8 Assets####244. 8 Assets pledged Federal Reserve banks. Total pledged assets#1,064.#793.


December 2023. billion FDIC First Republic. Note 34.


pledged assets consolidated VIEs liabilities. Note 14. Note 11 securities financing. Note 20 long-term debt. pledged assets. December 31, billions Investment securities. Loans. Trading assets. Total pledged assets. 8#793.


Firm accepts assets collateral. obtained resale agreements receivables derivative contracts. used repurchase agreements short sales derivative contracts deposits.


table value collateral accepted. December 31, billions Collateral sold repledged,303. sold repledged.


December 31, 2023 Firm subsidiaries affiliates defendants legal proceedings private public regulatory. litigations class millions. formal informal governmental self-regulatory organizations. stages adjudication arbitration business geographies claims common law tort contract antitrust securities consumer protection novel legal theories.


Firm believes estimate possible losses reserves for legal proceedings $0 to $1. 3 billion at December 31, 2023. estimated based information for proceedings. For certain matters believe estimate. estimate involves significant judgment number variety stages proceedings preliminary stages multiple defendants including Firm liability-unresolved issues class certification scope claims uncertainty of potential outcomes assumptions future rulings court behavior incentives adverse parties regulatory authorities.


outcome proceeding may Firm estimate deemed likelihood remote. Firm’s estimate losses change actual losses may vary significantly.


descriptions proceedings.


1MDB Litigation. J. P. Morgan (Suisse) defendant civil May 2021 1Malaysia Development Berhad investment fund. claim alleges J. P. Morgan payments $300 million $500 million 2009 2010, 1MDB. Morgan 1MDB PetroSaudi. Firm validity Malaysian jurisdiction. August 2023 Court denied 1MDB. appeals court August 2024 appeals. prevent claim.


November 2023 Attorney notified. P. Morgan) investigation criminal liability. Morgan 1MDB PetroSaudi September 2009 August 2015. investigation ongoing.


Amrapali. J. P. Morgan India investments 2010 2012 offshore funds housing projects Amrapali Group delays units. August 2021 fining. Morgan $31. 5 million Firm appealing. July 2019 Supreme Court India Amrapali violated currency control money laundering ordered inquiry. Firm cooperating inquiry.


Foreign Exchange Investigations. Firm reported settlements foreign exchange sales trading. 2015, pleaded guilty antitrust law. Labor granted exemptions Qualified Professional Asset Manager


Employee Retirement Security Act ten-year disqualification antitrust. FX South Africa Competition Commission.


class action Firm foreign exchange dealers currencies inflated rates District Court denied certification summary judgment March 2023. appeal pending. FX-related actions filed outside U. S. Israel Netherlands Brazil Australia. agreement resolve. December 2022. July 2023. Court Appeal overturned Competition Appeal Tribunal denial certification. Israel settlement action approval.


Government Inquiries Zelle Network. Firm responding inquiries disputes transfers Zelle Network. responding.


Interchange Litigation. merchants associations class action complaints Visa Mastercard banks fees antitrust laws.


September 2018 parties settled class action defendants $6. 2 billion. approved District Court affirmed. $700 million returned escrow. separate class action September 2021 District Court denied.


merchants opted damages settlement filed actions Visa Mastercard Firm banks. pending defendants reached settlements 70% Mastercard sales volume.


Epstein. JPMorgan Chase Bank. defendant


Southern District New York JPMorgan Chase Bank. facilitated sex trafficking 2013. June 2023 settlement victim class JPMorgan Chase Bank. paid $290 million Epstein survivors. November 2023 approval objections Attorneys.


LIBOR Benchmark Rate Investigations. JPMorgan Chase responded inquiries British Bankers London Interbank Offered Rate European Banking Euro Interbank Offered Rate. Swiss Competition investigation EURIBOR continues. appealed 2016 decision European antitrust rules. 2023 European General Court annulled. considering options.


Firm defendant banks actions. dollar LIBOR. Firm obtained dismissal resolved stages. District Court Southern District New York granted class certification antitrust claims bonds interest rate swaps defendants Firm. lawsuit plaintiffs Firm unlawful. dollar LIBOR monopolize LIBOR loans credit cards dismissed October 2023. appeal Appeals Ninth November 2023. Firm resolved non. dollar LIBOR actions.


Russian Litigation. Firm international sanctions laws freezing assets. laws apply products sanctions. faced litigation Russia payments contractually excused paying judgment against February 2024. Russian court


disregard agreement forum recognize sanctions payment. Firm assets Russia seized claims.


SEC Inquiries. Firm responding advisory programs J. P. Morgan Securities accounts discounting advisory fees selecting portfolio managers. liquidation shares third-party funds. cooperating SEC.


Antitrust. JPMorgan Chase Bank. P Morgan Securities. Prime. Morgan Strategic Securities Lending. defendants class action Southern New York. antitrust law York law conspiracy anonymous exchange trading. settlement approved final court approval.


Shareholder Litigation. class actions actions filed against Board Directors current former officers.


shareholder suits trading precious metals. treasuries resolutions DOJ CFTC SEC September 2020 fiduciary activities resolution JPMorgan Chase Bank N. A. OCC November 2020. filed Supreme Court New York May 2022 breach fiduciary duty unjust enrichment. December 2022 court granted July 2023 plaintiff appeal. second filed Eastern New York December 2022 asserts breach fiduciary duty contribution claims shareholder litigation. Defendants dismiss. consolidated class action pending


Eastern District New York shareholders JPMorgan Chase SEC filings false misleading historical trading practices. December 2023 court granted dismiss complaint.


shareholder suit filed May 2023 Court Southern District New York officers directors Firm fiduciary duty unjust enrichment Epstein services sex trafficking. December 2023 Court dismissed action.


shareholder suit filed March 2022 Eastern District New York fiduciary duty securities laws failure Board Directors preservation resolutions subsidiaries SEC CFTC. dismiss complaint pending.


Trading Venues Investigations. Firm inquiries trading venues data.-identified trading data not platforms. completed enhancements venue inventory data completeness controls remediation underway. review data nearly complete employee misconduct harm market. gaps activity data gap one venue sponsored client access significant. dedicated controls enhancing reliability trade infrastructure. expects resolutions two. regulators remediation engage independent consultant pay civil penalties $350 million. negotiations third. regulator no assurance resolution. disruption service.


JPMorgan Chase subsidiaries defendants involved in proceedings. Firm believes meritorious defenses claims intends defend vigorously. Additional proceedings future.


Firm established reserves outstanding legal proceedings. GAAP accrues litigation liability probable loss estimated. evaluates legal proceedings makes adjustments judgment. legal expense $1. 4 billion $266 million $426 million years December 31, 2023 2022 2021. no assurance reserves.


difficulty predicting outcome legal proceedings claimants seek large damages novel legal theories large parties early stages discovery Firm state eventual outcomes pending matters timing resolution losses fines penalties consequences. JPMorgan Chase believes current knowledge current litigation reserves estimated possible losses other legal proceedings financial condition. uncertainties no assurance ultimate resolution exceed reserves material reputational consequences. outcome may material to JPMorgan Chase’s operating results depending size loss liability income.


table presents income balance JPMorgan Chase area. defines international activities transactions outside U. S. based domicile booking trading desk. U. S. operations serve international businesses.


Firm’s operations integrated estimates assumptions revenue expense. international. allocations segment reporting Note 32.


Firm’s long-lived assets not significant total. majority assets U. S.year December 31, millions tax income assets 2023 Europe East,974,027,335 Asia-Pacific,605,055,709 Latin America/Caribbean,294,323,003,468,405,105 North America,231,207,447,467,104,492,552,875,393 2022 Europe East,765,754,011,158,430 Asia-Pacific,262 Latin America/Caribbean,178,156,673 international,214,754,433 North America,243,747,161,695,166,676,665,743 Europe East,561,833,202 Asia-Pacific,372,282,300 Latin America,756,167,040 international,794,177,380,841 North America,678,293,385,954,726,649,087,334,743,567


reflects U.


First Republic. Note 34.


net interest noninterest.


noninterest credit losses.


assets. $352 $357 $365 December 2022 2021.


Firm managed LOB. four segments Consumer Community Banking Corporate Investment Commercial Banking Asset Wealth Management. Corporate segment. segments determined products services financial information Operating Committee. Segment results. JPMorgan segments.


Firm’s business segments products services client bases.


Consumer Community Banking businesses branches ATMs digital telephone banking. Banking Wealth Management. Home Lending Card Services Auto. deposit investment cash payments. Home Lending mortgage origination residential mortgages home equity loans. Card Services travel. loans leases.


Corporate Investment Bank Markets Securities investment banking market-making brokerage treasury securities global corporations investors financial institutions merchants government municipal entities. banking markets strategy capital-raising loan origination syndication. includes Payments liquidity commerce clearing trade capital. Markets Securities Services market-maker risk management brokerage clearing research.


Securities Services custodian custody accounting asset managers funds.


Commercial Banking solutions lending payments investment management Middle Market Corporate Commercial Real Estate.


Banking governments nonprofit.


Banking.


investors multifamily office retail industrial.


Wealth Management $5. trillion leader.


multi-asset equities fixed income alternatives funds institutional investors.


retirement brokerage custody deposits investment.


majority assets managed.


Corporate Treasury Chief Investment Office. liquidity funding capital interest rate foreign exchange risks.


Corporate expense initiatives. functions Real Estate Technology Legal Finance Resources Internal Audit Risk Compliance Control Responsibility groups.


table Firm’s segment results years December 2023 2022 2021 managed basis. definition U. S. GAAP results reclassifications net revenue FTE basis. revenue investments tax credits tax-exempt securities comparable. income tax impact tax-exempt items recorded income tax expense/(benefit). adjustments no impact net income.


business segment allocated capital peers regulatory capital requirements. ROE measured targets established performance.


allocation methodology Basel III RWA GSIB surcharge simulation capital stress. annually assumptions judgments methodologies capital LOBs change.


continued next page year ended December 31, millions except ratios Community Investment Banking Wealth Noninterest revenue,118,886,092,315,202,403,560,071 Net interest income,030######39,928,787,900,052######8,197,241,886 Total net revenue,148######54,814,879,102 Provision credit losses,813(6,989),158,174128#######(227) Noninterest expense,028,553,378######4,719,041######12,919 Income before tax expense,430######19,793,092######19,594,564,265 Income tax expense,055######1,333 Net income(loss,232,957,129,107,143,213######,246,227,365#######4,737 Average equity,349#108,000,507#16,671 Total assets,951######514,085,370,3381,334,296,259,896,325######257,106,776######245,512######232,037 Return equity####38####29 Overhead ratio####50######57


previous page year ended December 31, millions except ratios Items Noninterest revenue(1,798),782),148),225,837,985 Net interest income(3,551) Total net revenue(3,483),262),655,649 Provision credit losses,256 Noninterest expense,343 Income(loss before income tax expense(benefit,266,262),655) Income tax expense(benefit,262),655),228 Net income/(loss)$#(3,713),552,676,334 Average equity#73,529#58,068#79,968#253,068#250,968 Total assets,348,437,328,100,875,743,567 Return equity Overhead ratio


results revenue FTE income tax impact expense. adjustments eliminated reconciling. GAAP results.


quarter 2023 allocations expense CCB Merchant Services discontinued retained CIB. amounts revised.


organizational changes announced January 25 2024 Firm reorganizing business segments. effective second quarter 2024.


tables statements.income Year December 31, millions Dividends subsidiaries Bank,500 Non-bank Interest income subsidiaries income Bank Non-bank income,271 Total income,107,394 Expense Interest subsidiaries affiliates,731,353 Noninterest expense Total expense,890 tax net income subsidiaries,217 tax benefit Equity net income,199,252 Net income,552,676,334 income income,450,419,264 Balance sheets December 31, millions Assets Cash due banks Depositbanking subsidiaries Trading assets,198,727 Advances receivables Bank Non-bank Investments subsidiaries,472,759 assets,108,687 Liabilities stockholders’ equity Borrowings payables subsidiaries,777,164 Short borrowings,130 liabilities,500,440 Long-term debt,542,818,355 stockholders’ equity,687 cash flows Net income,552,676,334 subsidiaries affiliates,868,252 net loss,316),023) dividends,500 adjustments,412,747,677 Net cash,096,730 Net change Advances investmentssubsidiaries affiliates net(3,000) investing activities cash,969 change Borrowings subsidiaries affiliates,249)(4,491) Short-term borrowings long borrowings,398,389,169 Payments long-term borrowings,105),294) preferred stock,350 Redemption(7,434)(2,575) Treasury stock repurchased(9,824),162),408) Dividends paid,858) financing activities net(879)(1,205)(1,238) cash,122)(6,759) cash deposits interest paid,742,065 income taxes,291,259


interest expense intercompany hedges value adjustments offset expense.


December 31, 2023 debt 2024 2028 $9. $27. $29.


Notes 20 28 Parent obligations.


payments Parent Company taxes subsidiaries reimbursed. reimbursements $13. $11. 3. billion 2023 2022 2021.


May 1, 2023 JPMorgan Chase acquired assets liabilities First Republic Bank Federal Deposit Insurance. complementary franchises. estimated bargain purchase gain purchase price.


Firm acquisition business combination. GAAP. assets liabilities measured estimated values May 1, 2023. determination required assumptions cash flows discount rates valuation inputs. believes value estimates bargain purchase gain.


Firm FDIC settlement purchase price assets liabilities. impact estimated bargain purchase gain. agreement FDIC final settlement year after acquisition date.


purchase price gain change management acquisition assets acquired liabilities assumed year acquisition permitted. GAAP.


First Republic acquisition gain $2. 7 billion. settlement FDIC estimates. 2023 adjustments $63 million gain $2. 8 billion.


First Republic acquisition Firm FDIC shared-loss agreements Commercial Shared-Loss Single-Family Shared-Loss Agreement. CSLA covers 80% credit losses 5 years 3-year recovery commercial loans real estate. SFSLA 80% losses 7 years loans mortgages.


CSLA SFSLA reflected assets acquired.


JPMorgan Chase issued five-year $50 billion note FDIC Money. 3. 4% secured acquired loans. prepayable.


Firm $5 billion deposit First Republic Bank March 16 2023 $30 billion. $5 billion settled credit losses. repaid $25 billion interest May 9 2023.


purchase price assets liabilities First Republic acquisition bargain gain adjustments December 31, 2023 acquisition-date assets.


$10. billion $3. billion less $680 million.


$447 million First Republic Bank acquisition.


fourth quarter $762 million loans million accounts receivable $30 million accounts payable.


assets $1. billion tax $683 million lease. $669 million $748 million. 14 18.


$50 billion Purchase Note $5 billion deposit $447 million First Republic. billion FDIC non-cash.


accounting value methodologies liabilities intangibles shared-loss agreements indemnification Note FHLB advances.


accounting valuation 2 3 value 10 securities 12 loans 17 deposits 28 lending.


Core deposit customer intangibles acquired First Republic. core deposit $1. 3 billion valued after-tax cost savings favorable source method. funding. customer relationship intangibles $180 million valued-tax earnings multi-period excess earnings method.


valuations assumptions growth attrition income costs discount rates. core deposit customer relationship intangibles amortized 7 years. Note 15 intangible assets.


indemnification assets recoveries FDIC shared-loss. recorded fair value


balance sheets acquisition date. values indemnification assets estimated forecasted losses allowance credit losses. quarterly remeasurement changes losses recorded income. Firm payment FDIC termination shared-loss agreements losses recoveries. estimated future payment reflected contingent purchase price.


Purchase Money Note-term debt. estimated discounted cash flow market discount rates.


FHLB advances recorded borrowings long-term debt. values discounted cash flow rates.


table unpaid principal balance loans May 1 2023 adjustments December 31, 2023. Residential real estate,240,053 Auto consumer,083 Secured real estate,602 Commercial industrial wholesale,159 loans,281,242


fourth quarter liabilities $900 million UPB $762 million fair value.


Firm noninterest First Republic $4. billion $3. 7 billion. billion 2023.


table 2023 2022 First Republic acquisition gain $2. 8 billion credit losses $1. 2 billion. adjustments interest Purchase Money Note amortizing assets loans commitments.


Firm expects cost savings business synergies acquisition pro forma. pro forma indicative historical results future market economic conditions. ended December 31, millions Noninterest revenue Net interest income,005 Net income


liabilities equity interest differentials


summary JPMorgan consolidated balances interest rates taxable-equivalent 2021 2023. statements adjusted present interest rates


exempt. comparable taxable investments. incremental tax rate adjustment 24% 2023 2022 2021. December 31,-equivalent interest rates millions Assets Deposits banks,396. Federal funds sold securities purchased resale. Securities borrowed. Trading debt instruments. Taxable securities. Non securities. investment securities. Loans,589. interest-earning assets.loan losses,762 Cash Trading equity derivative receivables Goodwill MSRs intangible assets noninterest assets Total,822 Liabilities Interest deposits. Federal funds securities. Short-term borrowings. Trading liabilities debt liabilities. Beneficial interests. Long-term debt. Total interest liabilities.Noninterest deposits Trading liabilities equity derivative payables commitments equity Preferred stock Common equity equity,460 liabilities equity,822 Interest rate spread. Net interest income yield assets.


securities tax-exempt. tax.


brokerage receivables accrued interest interest assets Consolidated Balance Sheets.


rates reflect interest cash collateral payables.


interest payables.


Consolidated balance nonaccrual loans balances interest rate. Note 12 information loans interest accrued.


previous page,773. 35,772. 51,231######958. ##205,516######2.,108######9. 21,829######6,856. 42,122######10. 66,147######6,460.,863######1,224######4. 39,336. 31,100,318######52,877. 81,399######41,663.,229######3. 93.,349,079######93. 78,215,942######58,294.(17,399)(22,179),601,776,778,606,101,467,003,408,853,540,725,202,666.,669.,762######3.,302######274. ##46. ##268,019######3. ##250,080######8,075######3.,378######4,282. ##2,566,798######26,097######1.,482,993######5,553.22#### ##719,249,155,656,388,318,989,579 ##31,893,968 ##284,961,853,540,725,202. 76#. 59#67.#52,741. 64


$153. 3 $138. 1 $128. 2 billion 2022 2021.


equity assets 8. 4%. 6% 2023 2022 2021. return equity 16. 13. 2% 17. 0% 2022.


hedging. Taxable-equivalent amounts.


fees commissions loans. 8. 9 2023 2022 2021


annualized rate securities cost 3. 09%,. 75%. 33% 2023 2022 2021 value.


interest rates fees securities borrowed transactions.


Interest rates differential analysis income.


summary interest rates. non-U. operations 2021 2023. segregation. location office. ended December 31, interest rates millions balance Interest assets Deposits banks.,784,348. Non-U. Federal funds sold securities purchased agreements.,304,330. Non-U.,855. Securities borrowed.,805,239. Non-U.,423. Trading assets debt instruments.,721. Non,387,280. Investment securities.,469. Non-U,295####1,481. Loans.,137,162,884. Non-U,914####6,705. interest-earning assets.,121. interest-earning assets,325,708.-bearing liabilities deposits.,110,253. Non-U.,419,763. Federal funds securities repurchase.,049,639. Non-U.,037. Trading liabilities debt short.,388. Non-U.,685. Beneficial interests consolidated VIEs.,648. Long-term debt.,218,749. Non-U.,215. interest-bearing liabilities,769,321. investable funds,325,708,321. Net interest income yield,747. Non-U. assets liabilities non-U.operations. 7.


rates interest cash collateral netted payables.


noninterest liabilities assets.


interest Consolidated Results pages 54–57.


previous page balance,366. 63,340.####1,621.,432.,213,191.,406####299.####2,441.,736####1,811. 27######137,752.,780####426.,903.,975,414. 17######158,793####3,530.,133,683.,036,326.,285,994.,109,399.,700####602.,868.,187####48,953. 97######924,713,215.,131####3,924.,686,448.,229,763.####894 73,349,079,241.78######3,215,942,294.,358,322,026.,301,616.,344####3,056.,053.,016####3,083.,220.,746####638. ##194,570####2,384.,466. ##119,512####1,609.####728.,208####226. ##246,670####8,026.####4,229.####49. 44######5,528.,798####26,097.,482,993####5,553.,281,349,079#26,097.,215,942.,144.,741.,950.,622.,119.#.####


table presents attribution net interest income between volume rate. calculated using annual average balances assets liabilities annual rates pages 310-313. change volume rate allocated to volume. rates include market rates composition products. calculated separately without relationship. changes granularity different attribution allocation interest rates complex judgmental. versus 2022 2021/(decrease due change Year ended December 31, taxable-equivalent basis millions change change Interest-earning assets Deposits with banks.,225),155,185) Non.,189####4,828####1,802 Federal funds sold securities purchased under resale agreements.,139####1,892 Non..,308 Securities borrowed.,130 Non-U.,318####492 Trading assets debt instruments.,307 Non. Investment securities.####6,475####3,595 Non-U####879 Loans.,635,738 Non-U.,781,328 interest-earning assets.,749)######7,655####3,906,708 Change interest income,350####77,827,942 Interest liabilities deposits.,227,125 Non-U.,110,707,265 Federal securities loaned sold repurchase.,263,327 Non-U.,462 Trading liabilities debt short interest.,390,729.####881 Beneficial interests issued consolidated VIEs.####727(69)######212 Long-term debt.,229,722,797 Non. interest expense,834,224,182,544 net interest income,913),603,643,760,403


2022 Annual December 31,. Securities Exchange Commission.


Amortized cost financing adjusted premium discount deferred fees cash charge-offs foreign exchange hedge adjustments. securities reduced impairment losses. not credit losses.


under Represents safekeeping custody servicing arrangements.


Private Banking Institutional Retail clients. capital not Called.


loan lease loans leases.


interests consolidated holders debt obligations JPMorgan Chase.


projected pension accumulated postretirement OPEB.


Bridge Financing Portfolio unfunded funded loans. short-term replaced term. funded loans revolver facilities.


Consumer unique individual financial ownership accounts excludes under 18. same identifier


business customer metrics.


Small business customer unique financial ownership decision-making accounts. identifier Small business included metrics.


clearing house counterparties contracts financial markets buyer seller ensuring future performance contracts. counterparty trades novation open offer system binding arrangement.


assets custody brokerage deposit.


deposits third liabilities-balance sheet liabilities. commercial paper federal funds securities cash management.


management custody brokerage annuity deposits.


Collateral-dependent loan repayment sale collateral borrower financial difficulty foreclosure probable borrower delinquency.


Commercial Card payment services. procurement travel entertainment expense management business-to-business payment.


Credit derivatives Financial instruments from credit risk debt third-party issuer entity transfer risk seller. credit event entity bankruptcy failure restructurings debt neither party recourse. purchaser seller for difference face value CDS fair value contract. determination event International Swaps Derivatives Association Determinations Committee.


loans commitments receivables special substandard doubtful CCC+/Caa1 S&P Moody’s.


lending Private Bank clients investment funds nontraditional art aircraft.


card sales purchases returns.


margin interest income deposits.


Distributed denial-of-service attack remote high traffic service outage. form cyberattack.


Eligible-quality assets LCR unencumbered operational considerations LCR rule.


Embedded derivatives financial instrument affect cash flows value similar. instrument containing terms


“hybrid. component non-derivative “host. callable debt hybrid vanilla debt. embedded option issuer redeem debt specified date amount. floating rate instrument not hybrid fixed-rate interest rate swap.


-traded contracts executed settled clearing house.


Expense categories revenue-related expenses correlate business volume. commissions incentive compensation depreciation brokerage expense. strategic plans. office growth market expansion technology marketing. expenses day-to-day cost not. employee salaries benefits incentive compensation costs real estate.


difficulty modification loan January 1 2023 original loan agreement. principal forgiveness interest rate reduction delay term extension.


Reserve Governors System


FICO score consumer credit risk models Fair Isaac Corporation.


Chase.


Forward points interest rate differential currencies added subtracted exchange rate.


derivatives contract Firm’s financial instruments equity transactions. legally detachable exercisable.


Seven nations Canada France Germany Italy Japan.


G7 government securities issued.


equity loans commitments JPMorgan Chase.


equity loans JPMorgan Chase security interest.


name address tax identifier phone number.


-quality liquid cash securities LCR rule.


Investment credit quality JPMorgan risk. BBB/Baa3-grade.


JPMorgan Chase not charitable educational.


-to residential real estate loans relationship principal appraised value collateral. securing loan.


LTV ratio origination date loan. values collateral. loan-level data.


estimate LTV date. current estimated LTV ratios calculated collateral values home price index level. price indices actual data forecasted data. estimated collateral values represent loan-level LTV ratios imprecise estimates.


LTV ratio lien positions property. junior lien equity.


Rates Currencies Markets Income


CIB Markets.


Managed basis non-GAAP financial results reclassifications taxable-equivalent. Management uses financial measure segment level understand operational performance trends comparison competitors.


CIB’s Income Equity.


netting agreement single counterparty multiple transactions settled single payment currency default. bankruptcy failure payment securities transfer collateral margin.


Measures equity securities values less impairment price changes issuer.


Merchant Services processing fraud risk management data services. credit debit multiple currencies.


Borrowers refinance home mortgage banker Internet phone. referred Chase real estate brokers builders third parties.


Banks thrifts sell loans Firm.


Mortgage


Alt-A loans higher subprime traditional prime loan. characteristics limited documentation high CLTV ratio non-owner properties debt-to-income ratio above limits. Firm’s Alt-A loans complete documentation


assets amount source income.


option ARM adjustable-rate option fully amortizing interest-only minimum payment. minimum payment based interest rate introductory period. below fully indexed. calculated index margin. introductory interest rate increases adjusts. minimum payment insufficient interest unpaid interest deferred added principal balance. loans payment recast variable-rate fully amortizing balance anniversary date.


Prime mortgage loans credit debt. New borrowers documentation reliable payment histories.


Subprime loans mid-2008 high risk characteristics unreliable payment histories high LTV ratio 80% high debt-to-income ratio occupancy other primary residence history delinquencies.


Multi-asset fund allocates class.


not applicable period.


Securities Exchange 1934.


charge-off rate divided loans reporting.


interchange income JPMorgan Chase. Form 10-K Glossary income Fees credit debit card issuers sales. costs points rewards. payments co-brand card partners loyalty rewards.


mortgage servicing revenue Includes revenue third-party loans fair value MSRs risk management gains securitization excess. includes gains sales cost value adjustments repurchased loans.


revenue rate Card Services percentage loans.


yield interest-earning assets average rate less.


Nonaccrual loans interest income not recognized. nonaccrual full payment principal interest not expected delinquency default 90 days unless well collection. Collateral-dependent loans maintained nonaccrual status.


Nonperforming assets include loans derivatives assets real estate property.


-counter derivatives contracts negotiated executed settled counterparties dealer.


-counter cleared derivatives negotiated settled central clearing house counterparty exposed default.


Noninterest expense revenue.


Chase.


Participating securities unvested share compensation awards rights dividends earnings per share calculation two-class. JPMorgan Chase grants RSUs dividends common stock. awards participating securities.-class earnings allocated common stock participating securities rights.


credit assets assets deterioration credit quality origination determined Firm.


Basel framework three. capital requirements instruments rules calculating RWA.


Basel framework. encourages market discipline disclosure requirements risk capital profiles.


Pre-provision profit revenue less noninterest expense. Firm lending institution credit losses.


Pre-tax margin income before tax expense divided net revenue measure pretax performance earnings costs. AWM competitors.


Principal transactions revenue driven by factors JPMorgan Chase & Co. Form 10-K 319 Glossary bid-offer spread difference gains losses on financial instruments commodities transactions fair value option client-driven market-making activities.


gains losses sale interim cash payments.


gains losses.


Firm transacts debt equity derivatives commodities instruments.


revenue includes gains losses commodity foreign exchange risk risk management credit foreign exchange interest rate risks.


Production revenue Includes fees income mortgage loans risk management. gains losses sales cost value adjustments loans-sale repurchased loans. changes fair value financial instruments.


Regulatory Daily rules.


Financial statements. GAAP adjustments.


Retained loans-for-investment.-sale fair value.


Revenue wallet fee revenue banking fees. M&A equity underwriting loan syndications. Dealogic banking analysis


league tables.


-weighted Basel III approaches RWA Standardized Advanced capital requirements credit market operational risk. differences credit risk RWA Standardized Advanced Advanced risk-sensitive approaches internal credit models Standardized supervisory risk-weightings counterparty class. Market risk RWA calculated Basel Standardized Advanced.


awards appreciation rights


Consumer residential estate credit card auto small business.


resale repurchase borrowed loaned


Products Group investments.


Seed capital JPMorgan invested mutual funds sufficient size pricing shares track record. After goals achieved remove Firm’s capital.


Shelf securities registered SEC not issued sold. league tables until.


interest risk non-trading assets liabilities.


Structured notes financial instruments cash flows linked indexes interest rates exchange commodities prepayment rates loans market variables. contain derivatives. cash flows vary-traditional indexes interest rates.


Taxable-equivalent basis net revenue business segments Firm tax-equivalent. revenue investments tax credits tax-exempt securities income tax impact recorded tax expense.


debt loan modifications January 1 2023 Firm modifies concession borrower financial difficulty. short-term insignificant modifications not TDRs.


Unaudited Financial statements accounting firm.


. Accounting principles accepted.


. government agencies. include Ginnie Mae FHA Fannie Mae Freddie Mac. government-sponsored enterprises. obligations. government agencies guaranteed timely payment principal interest. government default.


quasi-governmental privately-held entities. government public purposes. improve credit provide services. include Fannie Mae Freddie Mac Ginnie Mae FHA. obligations timely payment principal interest. government


-at potential loss adverse market moves ordinary.


loans prime mortgages sell accounted loans.


Section 13 15 Securities Exchange Act 1934 registrant report signed undersigned.


Securities Exchange Act 1934 report signed registrant. JPMorgan Chase Co. attorney. JAMES DIMON Chairman Chief Executive Officer LINDA B. BAMMANN. STEPHEN B. BURKE. TODD A. COMBS. ALICIA BOLER DAVIS P. FLYNN. ALEX GORSKY MELLODY HOBSON MICHAEL. NEAL. PHEBE. NOVAKOVIC. VIRGINIA M. ROMETTY. A. WEINBERGER. JEREMY BARNUM Vice President Chief Financial Officer ELENA KORABLINA Director Firmwide Controller


mission give power community world.


products apps vision metaverse. build technology connect find communities grow businesses. products connect mobile devices computers virtual mixed reality headsets wearables. help discover learn share experiences ideas photos videos activities public stay connected. moving beyond 2D augmented virtual reality metaverse next evolution social technology. vision product ecosystem experiences devices new technologies. metaverse early stages next computing platform future social interaction. innovating artificial experiences social useful immersive.


report financial results Family Apps Reality Labs. generate revenue selling advertising marketers reflected FoA. Ads reach marketing objectives. purchase ads Facebook Instagram Messenger third-party websites. RL hardware software content.


invest business company priorities. 2024 focus six investment areas AI metaverse discovery engine monetization regulatory readiness developer efficiency. AI investments support power systems content discovery engine tools AI experiences product development.


investments apps. 2023 80% costs expenses FoA 20% RL. FoA investments $70. 13 billion 2023 headcount data centers technical infrastructure apps advertising services. investments metaverse virtual augmented reality social neural interfaces foundational technologies. RL investments $18. 02 billion 2023 headcount technology. new technologies products realized next decade. difficult RL segment loss profits. complex evolving long-term initiative. investing next chapter internet monetization opportunities businesses developers creators advertising hardware digital goods.


. build community world closer. share discuss relationships connect interests create economic opportunity. Feed Reels Stories Groups Marketplace.


. brings people closer. Feed Stories Reels Live messaging connect express photos video private messaging discover shop businesses. •Messenger. simple powerful friends family communities businesses text audio video calls. •Threads. text updates public conversations. connect with creators build following ideas opinions creativity. simple reliable secure businesses. launched WhatsApp Channels one-to-many broadcast service follow information important.


metaverse investments long-term research development products not next decade. exploring new technologies neural interfaces electromyography innovations AI hardware next-generation interfaces. early metaverse experiences Reality Labs.


VR Meta Quest devices software content Meta Quest Store social experiences distance gaming fitness entertainment. Meta Horizon Worlds platform play games events.


adoption VR introduced MR capabilities immersion VR physical Meta Quest Pro Quest 3.


augmented reality roadmap Ray-Ban Meta smart glasses Meta AI conversational assistant livestream video hands-free interaction. Meta Spark AR experiences digital physical.


investments long-term initiative metaverse VR social include shorter-term projects products AR longer-term research. 2024 spend 50% Reality Labs expenses AR 40% VR 10% social. apply judgment shared costs expectations change metaverse ecosystem business strategies. evaluate product roadmaps make changes technological challenges market landscape product ideas designs.


business innovation rapid change disruptive technologies. compete with companies connection sharing discovery communication products online advertising tools campaigns. face competition including companies create share communicate discover content


marketers reach prospective audiences. compete attract engage retain products businesses advertising services developers applications. compete companies consumer hardware virtual augmented reality products services. expect face additional competition new products evolve introduce develop metaverse new technologies AI.


product development philosophy innovation social design social interactions core experience. user base grows engagement video VR MR new technologies computing needs expand. designed built data centers technical infrastructure provided third parties. depends availability components power network capacity.


investments in technology improve products services develop new marketers developers. security privacy integrity platform systems against abuse. AI initiatives generative AI recommend content enhance advertising tools ad delivery targeting measurement develop new products features.


marketers use self-service ad platform campaigns. global sales force attracting retaining advertisers support marketing. work advertisers agencies resellers. operate offices 90 cities majority sales presence. invest self-service tools customer support.


RL products third retailers resellers Meta. consumer enterprise sales Meta Quest Ray-Ban Meta glasses.


communities grown organically inviting friends supported efforts awareness. invested marketing products services grow brand community.


rights rely patents trademarks copyrights secrets license agreements confidentiality procedures non-disclosure agreements employee disclosure invention assignment agreements contractual rights. patents third parties. technology dependent patent. duration adequate lives products.


subject laws central business evolving. privacy data use protection younger biometrics encryption publicity content integrity intellectual property advertising marketing distribution data security retention deletion localization storage disclosure AI machine learning electronic contracts competition minors consumer protection civil rights accessibility telecommunications product liability e taxation trade controls anti-corruption securities online payment. Foreign data privacy obligations fines.


U. S. federal state EU international laws regulations enforced by private parties government entities evolving change. application interpretation enforcement uncertain in new evolving industry inconsistently with current policies practices. regulatory actions content services data advertising could affect financial results fines calculated based on global revenue. 2023. Supreme Court protections online platforms under Section 230 Communications Decency Act declined to address. efforts to remove restrict protections online 230 changes may increase costs require changes products business practices operations affect business financial results.


subject to evolving laws data critical to operations products services. data affect services target ads financial results. Privacy Shield framework invalidated July 2020 by Court of Justice European. Standard Contractual Clauses subjected to regulatory scrutiny. CJEU upheld SCCs May 12, 2023 Irish Data Protection Committee Meta Platforms Ireland on SCCs Facebook data with Data Protection Regulation. issued administrative fine EUR €1. 2 billion corrective orders suspend transfers compliance with Chapter V GDPR processing. appealing decision corrective orders subject to interim stay Irish High Court. March 25, 2022 European Union United States agreement on EU-U. S. Data Privacy Framework. October 7, 2022 President Biden signed Executive Order on Enhancing Safeguards for United States Signals Intelligence Activities.June 30, 2023 European Union three countries EEA United States Attorney General state Section 3(f) E. O July 10, 2023 European Commission adequacy decision United States. States ensures protection personal data European Union Privacy Framework List Department Commerce. EU-U. DPF decision milestones implementing corrective orders. increase cost complexity delivering products services Europe. EU-U. DPF


adequacy frameworks invalidated CJEU. invalidation EU-U. S. DPF uncertainty offer products services Facebook Instagram Europe business financial results.


subject to legislative regulatory developments could affect business. implemented product changes controls GDPR may implement changes. GDPR requires personal data breach notifications to regulator IDPC includes penalties for non-compliance. interpretation GDPR evolving decisions regulators may lead changes. interpretation enforcement GDPR penalties non-compliance uncertainty could impact business operations. Brazil United Kingdom other countries enacted data protection regulations privacy requirements. California Consumer Privacy Act California Privacy Rights Act laws establish transparency rules data privacy rights. Some states proposed laws privacy rights for under 18 parents guardians. laws evolving interpretation may restrict products services affecting advertising business. European Union ePrivacy Directive national laws limitations use data messaging include penalties for non-compliance. Changes products business practices may advertising business.regulatory developments plans change legal behavioral advertising Facebook Instagram to November 2023 "subscription for no ads alternative. regulators consent model compliance GDPR Digital Markets Act EU consumer laws. developments may impact user growth engagement revenue financial results. legislative proposals laws European Union United States federal state jurisdictions impose obligations limitations. DMA imposes restrictions data mergers acquisitions product design. includes penalties non-compliance enforceable gatekeeper companies March 2024. DMA compliance costs changes products business practices. requirements subject interpretation regulatory engagement. proposals modify competition laws. subject Digital Services Act) 2023 restrictions compliance costs. penalties non-compliance.countries India Turkey considering passed legislation data protection competition local storage processing changes products increase cost complexity services cease offering products services fines penalties. New legislation information minors may advertising services products services minors.


expect investigations inquiries requests audits United States Europe privacy use protection sensitive advertising security minors safety law enforcement consumer protection civil rights content moderation competition AI machine learning. subject regulatory orders consent decrees modified consent order. Federal Trade Commission April 2020


required enhance practices privacy compliance oversight. FTC consent order initiated administrative proceeding alleges deficient compliance violations Children's Online Privacy Protection Act COPPA Rule Section 5 Federal Trade Commission Act seeks changes business. unsuccessful FTC order subject limitations launch new products use data users under 18. Orders costs expose civil criminal liability penalties monetary interrupt change business practices negative publicity reputational harm divert resources time management subject remedies.


regulation Part Factors Annual Report Form 10-K.


Meta connected proud unique company culture.


global workforce 67,317 employees December 31, 2023 offices 90 cities. committed enriching environment. offer competitive compensation benefits learning resources diverse inclusive workplace.


November 2022 expense. cost reduction budgets reducing perks real estate layoffs restructurings. treat outgoing employees generous severance package. severance 16 weeks base pay two time off restricted stock vesting health insurance healthcare six months career services three months support job leads support specialists. support employees outside local employment laws.


value investment skilled workforce. aim provide performance reviews growth career development impact. offer career development work experience programs beyond. learning modalities live on e-learning self-service resources communities coaching engagements.


conduct company-wide employee surveys Meta experience. measure company manager team personal experience. frequent surveys measure real-time sentiment events changes. invite feedback suggestions inform decisions drive change. 2024 update listening strategy product capabilities improve actionability impact.


offer competitive compensation care mission. compensation includes salary bonuses incentives equity. offer full-time employees equity hire annual grants long-term success. conducted pay equity analyses. July 2023 analyses confirm pay equity genders race United States similar jobs location role level.


Life@ Meta employees dependents resources. benefits health family finance community time family building retirement legal services Meta Resource Groups health well-being benefits.


health well-being programs flexible benefits well-being goals. boost physical mental health financial peace support families community. autism cancer transgender services holistic well-being mental health retirement savings.


diverse inclusive workplace leverage diversity products decisions global community.


2023 Business Practices Report global. ethnic diversity workforce data. employee base. 4% underrepresented 47. 43 1% leaders. color. disabilities 7. 2%. workforce veterans 2. 3% LGBTQ+ 9. 8%. workforce.


want products work grow keep best talent. committed skilled inclusive diverse workforce diversity fuels innovation. bias hiring performance management learning development courses.


incorporated Delaware 2004. public offering 2012 Class Nasdaq. offices 1 Meta Way Menlo Park California 543-4800.


Meta logo Quest Horizon Facebook Instagram Oculus WhatsApp Reels trademarks Annual Report Form 10-K property Meta Platforms Inc. affiliates. property owners.


Annual 10-K Quarterly 10-Q Current 8-K amendments Sections 13 15(d Securities Exchange Act 1934 filed U. Securities Exchange Commission (SEC. subject Exchange Act file reports proxy statements information SEC. available website.


SEC website. Mark Zuckerberg Facebook Page. Instagram account. Threads profile. disclosing-public information complying disclosure obligations Regulation.


SEC maintains Internet site reports proxy statements issuers. sec


contents websites not incorporated filing. references URLs inactive.


factors business financial condition results operations. consider risks uncertainties Annual Report Form 10-K consolidated financial statements notes. risks not only. Additional risks may business. If business financial condition results future prospects affected. trading price Class A common stock could decline lose investment.


business subject to risks objectives affect financial condition results cash flows prospects. risks include Product Offerings ability add retain users engagement loss reduction spending marketers data ad targeting •ineffective operation mobile operating systems changes relationships new attract retain users generate revenue


compete financial results media coverage risks brands build scale technical infrastructure risks disruptions catastrophic events crises business multiple countries integrate class action lawsuits


restrictions Facebook products advertising. foreign privacy data protection content competition consumer protection laws Data Digital Markets Act Digital Services Act


impact investigations settlements privacy consumer protection competition privacy requirements consent Federal Trade Commission


security breaches improper access cyber incidents intentional misuse undesirable activity obtain intellectual property rights


holders Class A Common Stock influence dual class structure control majority voting power founder Board Chair.


retain add decrease engagement products revenue financial results business harmed.


size active user base engagement products critical to success. financial performance determined by adding retaining engaging users Facebook Instagram. experienced expect fluctuations declines in size base markets particularly higher penetration rates. User growth engagement impacted by factors competitive products services TikTok global business macroeconomic geopolitical conditions. COVID-19 pandemic led to increases decreases size engagement base. war Ukraine access Facebook Instagram restricted Russia decreases base. future declines may impact ad impressions financial performance.


If perceive our products useful reliable trustworthy we may attract retain users maintain increase engagement. other social networking companies early popularity active user bases. no guarantee we similar erosion base. user engagement patterns changed difficult to measure introduce new products services. factors affect user retention growth engagement engage with competitive products fail introduce new features products services feel experience diminished decisions quality ads difficulty installing updating accessing products on mobile devices third parties


behavior changes quality frequency content unable develop products mobile devices operating systems networks high market acceptance decreases user sentiment due to questions quality usefulness data practices content privacy safety security well-being unable manage prioritize information content appropriate interesting useful relevant unable obtain attract engaging third-party content maintain grow usage engagement applications adopt new technologies products displaced other changes by legislation government affect products users unable to offer significant products services including Facebook Instagram Europe limited business operations European courts invalidating EU-U. S. DPF legal bases data invalid decreased engagement failure accept terms of service changes GDPR ePrivacy Directive DMA DSA.state privacy youth social media laws California Consumer Privacy Act Privacy Rights Act Arkansas Social Media Safety Act Ohio Parental Notification Act Utah Social Media Regulation Act problems prevent products affect user experience security breaches spam objectionable content users feel experience diminished security adopt terms policies procedures sharing content user data advertising perceived negatively users public decisions Oversight Board focus product decisions longer-term initiatives near-term user growth engagement young adult experience changes user account login registration processes products attract retain users engagement artificial intelligence unsuccessful discontinued


•third-party initiatives use products low-cost discounted data plans discontinued pricing increases decreased engagement taxes social media mobile applications internet shutdowns actions governments accessibility products user growth engagement affected by war Ukraine service restrictions Russian fail provide adequate customer service developers partners adverse media reports negative publicity user data practices current future products development tools application programming interfaces reduce user activity third-party applications.


factors affected user retention growth engagement. maintain increase user base engagement Facebook Instagram revenue financial results. decrease in user retention growth engagement products less attractive ad impressions revenue business financial condition results. active user base dependent on maintain user engagement monetization grow revenue.


generate revenue from advertising. loss harm business.


our revenue from marketers advertising Facebook Instagram. marketers long-term advertising commitments. Many spend small portion advertising budget. or reduce budgets if deliver ads competitive return not satisfied. implemented changes to user data practices. changes reduce ability target ads advertising business. If unable to provide return on investment demand for ads may increase or decline revenue financial results harmed.


advertising revenue affected by factors user engagement time inability increase access engagement changes inventory decisions size format frequency prominence ads unpaid content inability maintain increase marketer demand pricing quantity quality ads •changes content third-party policies deliver target measure


effectiveness advertising changes mobile system browser providers Apple Google litigation government actions legislative regulatory legal developments advertising deliver target measure effectiveness behavior product changes traffic feed Stories increased usage Reels video messaging products •reductions advertising advertising policies security integrity platform availability accuracy security measurement solutions advertising market share competitors prices increase competitors lower priced effective products products services Facebook Instagram Europe European courts invalidating EU-U.DPF regulators courts bodies determining legal bases transfer user data European Union to United States invalid •limitations ads under 18 products services cohorts new laws regulations •changes in marketing sales operations risks laws regulatory requirements government actions •decisions marketers reduce advertising media reports negative publicity data advertising metrics content policies Oversight developers companies •reductions advertising due to illegal illicit objectionable content questions about user data practices security platform concerns brand safety legal liability uncertainty legal compliance obligations effectiveness ad targeting users consent opt out use data ads product changes controls GDPR ePrivacy Directive CCPA DMA laws regulations regulatory actions litigation November 2023 "subscription for no ads" alternative EU EEA users ads •changes advertising mobile devices personal computerssuccess technologies display ads composition marketer base inability maintain grow


impact macroeconomic geopolitical conditions advertising industry marketers geographies war Ukraine service restrictions Russian affected advertising business Europe advertiser spending Israel-Hamas war.


factors affected advertising revenue varying degrees. occurrence future could demand reduce prices cause stop advertising negatively affect revenue financial results.


ad targeting measurement tools incorporate signals products changes regulatory environment third-party operating systems browsers products impacted availability signals advertising revenue.


ad targeting tools rely on signals products ads changes affect business. legislative developments GDPR ePrivacy Directive CCPA impacted signals ad products. increases users ad targeting Europe GDPR ePrivacy Directive introduced changes data signal use California CCPA. Judicial regulatory guidance decisions enforcement actions new legislation may require changes reduce signals. plans to change legal basis behavioral advertising on Facebook Instagram European Union Switzerland to "consent November 2023 offering "subscription for no ads" alternative. with regulators on new consent model compliance with GDPR DMA EU consumer laws.


mobile browser providers Apple Google implemented changes limit developers collect use signals target measure advertising. 2021 Apple changes iOS ability target measure advertising negatively impacted budgets marketers advertising platforms. we implemented product changes limit use data signals improve ads experiences including changes GDPR ePrivacy Directive DMA regulatory frameworks.


developments limited target measure ads impacted revenue. revenue impacted targeting measurement challenges iOS changes 2021. If mitigate developments targeting measurement capabilities impact advertising revenue.


user growth engagement monetization networks technologies products standards.


majority revenue from advertising mobile devices. no guarantee devices feature our products users use our products. dependent on interoperability with operating systems networks technologies products standards Android iOS browsers. Changes bugs technical issues relationships with partners handset manufacturers browser developers mobile carriers terms service policies degrade functionality update distribute treatment products deliver target measure effectiveness fees usage monetization. Apple limits third-party cookies monetization changes iOS limit target measure ads advertising business. Google out third-party cookies Chrome. similar changes limit target impact monetization. quality mobile products important work with technologies products systems networks standards good relationships with handset manufacturers mobile carriers browser developers. may maintaining relationships with participants mobile ecosystem developing products with these technologies products systems networks standards.difficult for users access use products not user growth engagement harmed. take actions distribution operation business long-term best interests. affect users relationships with operators mobile handset manufacturers mobile carriers browser developers business partners advertisers no long-term benefits. users affected relationships deteriorate growth engagement monetization business harmed. challenges operating mobile operating systems networks technologies products standards control occurrences impact user growth engagement monetization affect business financial results.


new changes attract retain generate affect business.


retain increase user base revenue depends on products create new products independently developers third parties. introduce changes acquire new products technologies experience. limited experience consumer hardware virtual augmented reality affect market. investments in artificial initiatives. launched new AI features conversational AIs stickers editing tools. incur costs may not profits.


invested expect resources growing messaging products usage. monetized messaging limited may not revenue profits long term. commenced end-to-end encryption Facebook Instagram subject scrutiny jurisdictions.


new engage marketers developers business plans unsuccessful attract retain generate revenue margin value investments business affected.


artificial intelligence initiatives business financial results.


investments AI initiatives generative AI recommend content enhance advertising tools develop new features. infrastructure headcount.


risks developing deploying AI no assurance products services business profitability. risks harmful content accuracy misinformation bias discrimination intellectual property defamation data privacy cybersecurity sanctions export controls. uncertain laws online services intermediary liability content AI. risks scrutiny litigation legal liability ethical concerns negative consumer perceptions safety business reputation financial results.


complexity rapid development AI review by governmental agencies applying platform moderation intellectual property cybersecurity data protection laws legal frameworks. anticipate courts regulators apply laws predict new legal frameworks. expend resources adjust offerings if legal frameworks not consistent.


face competition from companies developing AI features. Other companies may develop similar superior cost-effective. other parties may obtain patents proprietary rights sell AI features. develop deploy AI technologies on third-party equipment infrastructure hardware network capacity control availability pricing competitive environment.


developing AI technology open source non-commercial license agreements third-parties products services. third parties AI. guarantee improper purposes illegal inaccurate defamatory harmful content intellectual property infringement bias cybersecurity attacks data privacy violations safety competing technologies. mitigate risks improper use technical measures contractual restrictions guarantee. improper use affect business reputation financial results legal liability.


possible predict risks AI changes laws rules directives regulations may affect develop legal liability.


investment decisions results produce long-term benefits.


make product investment decisions prioritize short-term financial results if consistent with mission user experience improve financial performance long term. implemented changes user data practices. changes reduce target ads advertising business. Off-Facebook Activity tool enables limits storage use information interactions reduces deliver relevant ads. update feed display ranking algorithms improve user experience time spent user engagement could affect financial results. change size frequency prominence of ads product monetization strategies. expect changes products affect distribution content reduce incentive invest. may introduce new features changes products products attract users away from proven monetization. focus on growing users engagement products reduced may engagement with products other. plan to promote Reels monetize lower rate than feed products. decisions may affect business results may not produce long-term benefits.


metaverse strategy investments business financial results.


believe metaverse embodied internet immersive experiences beyond screens next evolution social technology. 2021 shift business product strategy metaverse. expect complex evolving long-term initiative development new technologies investment infrastructure privacy safety security collaboration companies developers partners. metaverse may not develop market acceptance features products services uncertain. evaluate product roadmaps make changes technological challenges market landscape product ideas evolve. limited experience consumer hardware virtual augmented reality companies. unsuccessful research product development develop relationships participants products technologies. divert resources attention. expect virtual augmented reality profits. subject laws regulations international jurisdictions privacy safety competition content regulation consumer protection e-commerce delay development increase costs require management time harm business. metaverse strategy investments not affect business reputation financial results.


maintain brands expand base users marketers developers business financial results harmed.


brands contributed success business. maintaining enhancing critical base users developers. new users referred by. Maintaining brands useful reliable trustworthy innovative products. introduce new products policies affect brands.


actions developers advertisers may affect brands if positive experience using third-party applications interacting. media regulatory scrutiny privacy data use encryption content product design algorithms advertising competition generative AI younger users issues elections geopolitical events affected reputation brands. September 2021 scrutiny former employee's allegations documents algorithms advertising metrics content enforcement misinformation undesirable activity user well-being. March 2018 developments misuse data by developer. may fail respond to content practices illegal illicit enforce policies address objectionable content user concerns could erode confidence.


brands be affected by actions users hostile inappropriate false identities use products information misleading efforts governments to obtain access information for security censor content use for illicit objectionable ends including geopolitical events elections decisions from Oversight Board reports impacts on user well-being decisions to remove content suspend participation community standards terms service negative sentiment management.


Maintaining brands substantial investments. actions developer misuse political speech hate speech user well-being issues eroded confidence brands may continue. fail promote brands incur excessive expenses business financial results affected.


not maintain grow usage engagement applications products.


We made investments developers build grow monetize applications our products. prospective developers may not successful building growing monetizing applications user engagement. developers may build on other platforms than our. balance distribution objectives with optimal user experience may developers. volume communications from developers to users reduced distribution user engagement monetization opportunities applications integrated with products. conduct investigations audits of platform applications announced product changes developer access to user data. actions adversely affected relationships with developers. If not successful developers or unable relations user growth engagement financial results may affected.