With respect to civil litigation matters, in a putative class action filed against the Firm and other foreign exchange dealers on behalf of certain parties who purchased foreign currencies at allegedly inflated rates, the District Court denied certification of a class and granted summary judgment against the named plaintiffs in March 2023. An appeal by those plaintiffs of the District Court's decision is pending. In addition, some FX-related individual and putative class actions based on similar alleged underlying conduct have been filed outside the U.S., including in the U.K., Israel, the Netherlands, Brazil and Australia. An agreement to resolve one of the U.K. actions was reached in December 2022. In July 2023, the U.K. Court of Appeal overturned the Competition Appeal Tribunal's earlier denial of a request for class certification on an opt-out basis. In Israel, a settlement in principle has been reached on the putative class action, which remains subject to court approval.


JPM 298 JPMorgan Chase & Co./2023 Form 10-K

Government Inquiries Related to the Zelle Network. The Firm is responding to inquiries from civil government authorities regarding the handling of disputes related to transfers of funds through the Zelle Network. The Firm is cooperating with these inquiries and responding to requests for information.


Interchange Litigation. Groups of merchants and retail associations filed a series of class action complaints alleging that Visa and Mastercard, as well as certain banks, conspired to set the price of credit and debit card interchange fees and enacted related rules in violation of antitrust laws.


In September 2018, the parties settled the class action seeking monetary relief, with the defendants collectively contributing approximately $6.2 billion. The settlement has been approved by the District Court and affirmed on appeal. Based on the percentage of merchants that opted out of the settlement, $700 million has been returned to the defendants from the settlement escrow. A separate class action seeking injunctive relief continues, and in September 2021, the District Court granted plaintiffs’ motion for class certification in part, and denied the motion in part.


Of the merchants who opted out of the damages class settlement, certain merchants filed individual actions raising similar allegations against Visa and Mastercard, as well as against the Firm and other banks. While some of those actions remain pending, the defendants have reached settlements with the merchants who opted out representing approximately 70% of the combined Mastercard-branded and Visa-branded payment card sales volume.


Jeffrey Epstein Litigation. JPMorgan Chase Bank, N.A. was named as a defendant in lawsuits filed in the United States


District Court for the Southern District of New York alleging that JPMorgan Chase Bank, N.A. knowingly facilitated Jeffrey Epstein’s sex trafficking and other unlawful conduct by providing banking services to Epstein until 2013. In June 2023, the Court granted preliminary approval of a settlement between the victim class and JPMorgan Chase Bank, N.A., pursuant to which JPMorgan Chase Bank, N.A. paid $290 million to a fund for Epstein survivors. In November 2023, the Court granted final approval of the settlement, rejecting objections, including those of certain state Attorneys General, regarding the victims’ releases.


LIBOR and Other Benchmark Rate Investigations and Litigation. JPMorgan Chase has responded to inquiries from various governmental agencies and entities around the world relating primarily to the British Bankers Association’s (“BBA”) London Interbank Offered Rate (“LIBOR”) for various currencies and the European Banking Federation’s Euro Interbank Offered Rate (“EURIBOR”). The Swiss Competition Commission’s investigation relating to EURIBOR, to which the Firm and one other bank remain subject, continues. The Firm appealed a December 2016 decision by the European Commission against the Firm and other banks finding an infringement of European antitrust rules relating to EURIBOR. In December 2023, the European General Court annulled the fine imposed by the European Commission, but exercised its discretion to re-impose a fine in an identical amount. The Firm is considering its options.


In addition, the Firm has been named as a defendant along with other banks in various individual and putative class actions related to benchmark rates, including U.S. dollar LIBOR. In actions related to U.S. dollar LIBOR during the period that it was administered by the BBA, the Firm has obtained dismissal of certain actions and resolved certain other actions, and others are in various stages of litigation. The United States District Court for the Southern District of New York has granted class certification of antitrust claims related to bonds and interest rate swaps sold directly by the defendants, including the Firm. In addition, a lawsuit filed by a group of individual plaintiffs asserting antitrust claims, alleging that the Firm and other defendants were engaged in an unlawful agreement to set U.S. dollar LIBOR and conspired to monopolize the market for LIBOR-based consumer loans and credit cards was dismissed in October 2023. Plaintiff filed an appeal of the dismissal to the United States Court of Appeals for the Ninth Circuit in November 2023. The Firm has resolved all non-U.S. dollar LIBOR actions.


Russian Litigation. The Firm is obligated to comply with international sanctions laws, which mandate the freezing or restriction of certain assets. These laws apply when assets associated with individuals, companies, products or services are within the scope of the sanctions. The Firm has faced actual and threatened litigation in Russia seeking payments on transactions that the Firm cannot make, and is contractually excused from paying, under relevant sanctions laws, with judgment entered against the Firm in one claim in February 2024. The Russian court may


JPM Notes to consolidated financial statements

disregard the parties’ contractual agreement on forum selection, and may not recognize foreign sanctions laws as a basis for not making payment. The Firm holds assets in Russia, which could be seized if the claims are granted and enforced.


SEC Inquiries. The Firm is responding to requests from the SEC regarding aspects of certain advisory programs within J.P. Morgan Securities LLC, including aggregation of accounts for billing, discounting advisory fees, and selecting portfolio managers. Separately, the Firm is responding to requests from the SEC in connection with the timing of the Firm’s liquidation of shares distributed in-kind to certain investment vehicles that invest in third-party managed private funds. The Firm is cooperating with the SEC in regard to both inquires.


Securities Lending Antitrust Litigation. JPMorgan Chase Bank, N.A., J.P. Morgan Securities LLC, J.P. Morgan Prime, Inc., and J.P. Morgan Strategic Securities Lending Corp. are named as defendants in a putative class action filed in the United States District Court for the Southern District of New York. The complaint asserts violations of federal antitrust law and New York State common law in connection with an alleged conspiracy to prevent the emergence of anonymous exchange trading for securities lending transactions. The settlement of this action by the parties has been preliminarily approved, and is subject to final court approval.


Shareholder Litigation. Several shareholder putative class actions, as well as shareholder derivative actions purporting to act on behalf of the Firm, have been filed against the Firm, its Board of Directors and certain of its current and former officers.


Certain of these shareholder suits relate to historical trading practices by former employees in the precious metals and U.S. treasuries markets and related conduct which were the subject of the Firm’s resolutions with the DOJ, CFTC and SEC in September 2020, and fiduciary activities that were separately the subject of a resolution between JPMorgan Chase Bank, N.A. and the OCC in November 2020. One of these shareholder derivative suits was filed in the Supreme Court of the State of New York in May 2022, asserting breach of fiduciary duty and unjust enrichment claims relating to the historical trading practices and related conduct and fiduciary activities which were the subject of the resolutions described above. In December 2022, the court granted defendants’ motion to dismiss this action in full, and in July 2023, the plaintiff filed an appeal, which remains pending. A second shareholder derivative action was filed in the United States District Court for the Eastern District of New York in December 2022 relating to the historical trading practices and related conduct, which asserts breach of fiduciary duty and contribution claims and alleges that the shareholder is excused from making a demand to commence litigation because such a demand would have been futile. Defendants have moved to dismiss the complaint. In addition, a consolidated putative class action is pending in the United


States District Court for the Eastern District of New York on behalf of shareholders who acquired shares of JPMorgan Chase common stock during the putative class period, alleging that certain SEC filings of the Firm were materially false or misleading because they did not disclose certain information relating to the historical trading practices and conduct. In December 2023, the court granted Defendants’ motion to dismiss the amended complaint.


A shareholder derivative suit was filed in May 2023 in the United States District Court for the Southern District of New York against various officers and directors of the Firm asserting breaches of fiduciary duty and unjust enrichment based upon allegations that the defendants caused the Firm to retain Jeffrey Epstein as a client of the bank after defendants knew, or should have known, that Epstein was using the Firm’s financial services to facilitate his alleged sex trafficking activities. In December 2023, the Court dismissed the derivative action.


A separate shareholder derivative suit was filed in March 2022 in the United States District Court for the Eastern District of New York asserting breaches of fiduciary duty and violations of federal securities laws based on the alleged failure of the Board of Directors to exercise adequate oversight over the Firm’s compliance with records preservation requirements which were the subject of resolutions between certain of the Firm’s subsidiaries and the SEC and the CFTC. Defendants’ motion to dismiss the amended complaint is pending.


Trading Venues Investigations. The Firm has been responding to government inquiries regarding its processes to inventory trading venues and confirm the completeness of certain data fed to trade surveillance platforms. The Firm self-identified that certain trading and order data through the CIB was not feeding into its trade surveillance platforms. The Firm has completed enhancements to the CIB’s venue inventory and data completeness controls, and other remediation is underway. The Firm has also performed a review of the data not originally surveilled, which is nearly complete, and has not identified any employee misconduct, harm to clients or the market. While the identified gaps represent a fraction of the overall activity across the CIB, the data gap on one venue, which largely consisted of sponsored client access activity, was significant. The Firm is dedicated to maintaining rigorous controls and continuously enhancing the reliability of its trade infrastructure. The Firm expects to enter into resolutions with two U.S. regulators that will require the Firm to, among other things, complete its remediation, engage an independent consultant, and pay aggregate civil penalties of approximately $350 million. The Firm is also in advanced negotiations with a third U.S. regulator, but there is no assurance that such discussions will result in a resolution. The Firm does not expect any disruption of service to clients as a result of these resolutions.


JPM 300 JPMorgan Chase & Co./2023 Form 10-K

In addition to the various legal proceedings discussed above, JPMorgan Chase and its subsidiaries are named as defendants or are otherwise involved in a substantial number of other legal proceedings. The Firm believes it has meritorious defenses to the claims asserted against it in its currently outstanding legal proceedings and it intends to defend itself vigorously. Additional legal proceedings may be initiated from time to time in the future.


The Firm has established reserves for several hundred of its currently outstanding legal proceedings. In accordance with the provisions of U.S. GAAP for contingencies, the Firm accrues for a litigation-related liability when it is probable that such a liability has been incurred and the amount of the loss can be reasonably estimated. The Firm evaluates its outstanding legal proceedings each quarter to assess its litigation reserves, and makes adjustments in such reserves, upward or downward, as appropriate, based on management’s best judgment after consultation with counsel. The Firm’s legal expense was $1.4 billion, $266 million and $426 million for the years ended December 31, 2023, 2022 and 2021, respectively. There is no assurance that the Firm’s litigation reserves will not need to be adjusted in the future.


In view of the inherent difficulty of predicting the outcome of legal proceedings, particularly where the claimants seek very large or indeterminate damages, or where the matters present novel legal theories, involve a large number of parties or are in early stages of discovery, the Firm cannot state with confidence what will be the eventual outcomes of the currently pending matters, the timing of their ultimate resolution or the eventual losses, fines, penalties or consequences related to those matters. JPMorgan Chase believes, based upon its current knowledge and after consultation with counsel, consideration of the material legal proceedings described above and after taking into account its current litigation reserves and its estimated aggregate range of possible losses, that the other legal proceedings currently pending against it should not have a material adverse effect on the Firm’s consolidated financial condition. The Firm notes, however, that in light of the uncertainties involved in such proceedings, there is no assurance that the ultimate resolution of these matters will not significantly exceed the reserves it has currently accrued or that a matter will not have material reputational consequences. As a result, the outcome of a particular matter may be material to JPMorgan Chase’s operating results for a particular period, depending on, among other factors, the size of the loss or liability imposed and the level of JPMorgan Chase’s income for that period.


JPM Note 31 – International operations

The following table presents income statement and balance sheet-related information for JPMorgan Chase by major international geographic area. The Firm defines international activities for purposes of this footnote presentation as business transactions that involve clients residing outside of the U.S., and the information presented below is based predominantly on the domicile of the client, the location from which the client relationship is managed, booking location or the location of the trading desk. However, many of the Firm’s U.S. operations serve international businesses.


JPM Note 31 – International operations

As the Firm’s operations are highly integrated, estimates and subjective assumptions have been made to apportion revenue and expense between U.S. and international operations. These estimates and assumptions are consistent with the allocations used for the Firm’s segment reporting as set forth in Note 32.


JPM Note 31 – International operations

The Firm’s long-lived assets for the periods presented are not considered by management to be significant in relation to total assets. The majority of the Firm’s long-lived assets are located in the U.S. As of or for the year ended December 31, (in millions)####Revenue(c)####Expense(d)####Income before income tax expense####Net income####Total assets## 2023###################### Europe/Middle East/Africa##$##20,974##$##11,947##$##9,027##$##6,402##$##529,335##(e) Asia-Pacific####10,605####6,550####4,055####2,709####251,588## Latin America/Caribbean####3,294####1,971####1,323####994####83,003## Total international####34,873####20,468####14,405####10,105####863,926## North America(a)(b)####123,231####76,024####47,207####39,447####3,011,467## Total##$##158,104##$##96,492##$##61,612##$##49,552##$##3,875,393## 2022###################### Europe/Middle East/Africa##$##18,765##$##11,754##$##7,011##$##5,158##$##558,430##(e) Asia-Pacific####10,025####6,763####3,262####2,119####281,479## Latin America/Caribbean####3,178####1,697####1,481####1,156####78,673## Total international####31,968####20,214####11,754####8,433####918,582## North America(a)####96,727####62,315####34,412####29,243####2,747,161## Total##$##128,695##$##82,529##$##46,166##$##37,676##$##3,665,743## 2021###################### Europe/Middle East/Africa##$##16,561##$##10,833##$##5,728##$##4,202##$##517,904##(e) Asia-Pacific####9,654####6,372####3,282####2,300####277,897## Latin America/Caribbean####2,756####1,589####1,167####878####65,040## Total international####28,971####18,794####10,177####7,380####860,841## North America(a)####92,678####43,293####49,385####40,954####2,882,726## Total##$##121,649##$##62,087##$##59,562##$##48,334##$##3,743,567##


JPM Note 31 – International operations

(a)Substantially reflects the U.S.


JPM Note 31 – International operations

(b)Includes the impact of First Republic. Refer to Note 34 for additional information.


JPM Note 31 – International operations

(c)Revenue is composed of net interest income and noninterest revenue.


JPM Note 31 – International operations

(d)Expense is composed of noninterest expense and the provision for credit losses.


JPM Note 31 – International operations

(e)Total assets for the U.K. were approximately $352 billion, $357 billion and $365 billion at December 31, 2023, 2022 and 2021, respectively.


JPM Note 32 – Business segments

The Firm is managed on an LOB basis. There are four major reportable business segments – Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking and Asset & Wealth Management. In addition, there is a Corporate segment. The business segments are determined based on the products and services provided, or the type of customer served, and they reflect the manner in which financial information is evaluated by the Firm’s Operating Committee. Segment results are presented on a managed basis. Refer to Segment results of this footnote for a further discussion of JPMorgan Chase’s business segments.


JPM Note 32 – Business segments

The following is a description of each of the Firm’s business segments, and the products and services they provide to their respective client bases.


JPM Consumer & Community Banking

Consumer & Community Banking offers products and services to consumers and small businesses through bank branches, ATMs, digital (including mobile and online) and telephone banking. CCB is organized into Banking & Wealth Management (including Consumer Banking, J.P. Morgan Wealth Management and Business Banking), Home Lending (including Home Lending Production, Home Lending Servicing and Real Estate Portfolios) and Card Services & Auto. Banking & Wealth Management offers deposit, investment and lending products, cash management, payments and services. Home Lending includes mortgage origination and servicing activities, as well as portfolios consisting of residential mortgages and home equity loans. Card Services issues credit cards and offers travel services. Auto originates and services auto loans and leases.


JPM Corporate & Investment Bank

The Corporate & Investment Bank, which consists of Banking and Markets & Securities Services, offers a broad suite of investment banking, market-making, prime brokerage, lending, and treasury and securities products and services to a global client base of corporations, investors, financial institutions, merchants, government and municipal entities. Banking offers a full range of investment banking products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt markets, as well as loan origination and syndication. Banking also includes Payments, which provides services, that enable clients to manage payments globally across liquidity and account solutions, commerce solutions, clearing, trade and working capital. Markets & Securities Services includes Markets, a global market-maker across products, including cash and derivative instruments, which also offers sophisticated risk management solutions, prime brokerage, clearing and research. Markets & Securities Services also includes


JPM Corporate & Investment Bank

Securities Services, a leading global custodian which provides custody, fund accounting and administration, and securities lending products principally for asset managers, insurance companies and public and private investment funds.


JPM Commercial Banking

Commercial Banking provides comprehensive financial solutions, including lending, payments, investment banking and asset management products across three primary client segments: Middle Market Banking, Corporate Client Banking and Commercial Real Estate Banking. Other includes amounts not aligned with a primary client segment.


JPM Commercial Banking

Middle Market Banking covers small and midsized companies, local governments and nonprofit clients.


JPM Commercial Banking

Corporate Client Banking covers large corporations.


JPM Commercial Banking

Commercial Real Estate Banking covers investors, developers, and owners of multifamily, office, retail, industrial and affordable housing properties.


JPM Asset & Wealth Management

Asset & Wealth Management, with client assets of $5.0 trillion, is a global leader in investment and wealth management.


JPM Asset Management

Offers multi-asset investment management solutions across equities, fixed income, alternatives and money market funds to institutional and retail investors providing for a broad range of clients’ investment needs.


JPM Global Private Bank

Provides retirement products and services, brokerage, custody, estate planning, lending, deposits and investment management to high net worth clients.


JPM Global Private Bank

The majority of AWM’s client assets are in actively managed portfolios.


JPM Corporate

The Corporate segment consists of Treasury and Chief Investment Office (“CIO”) and Other Corporate. Treasury and CIO is predominantly responsible for measuring, monitoring, reporting and managing the Firm’s liquidity, funding, capital, structural interest rate and foreign exchange risks.


JPM Corporate

Other Corporate includes staff functions and expense that is centrally managed as well as certain Firm initiatives and activities not solely aligned to a specific LOB. The major Other Corporate functions include Real Estate, Technology, Legal, Corporate Finance, Human Resources, Internal Audit, Risk Management, Compliance, Control Management, Corporate Responsibility and various Other Corporate groups.


JPM Segment results

The following table provides a summary of the Firm’s segment results as of or for the years ended December 31, 2023, 2022 and 2021, on a managed basis. The Firm’s definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm (and each of the reportable business segments) on an FTE basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. This allows management to assess the comparability of revenue from year-to-year arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense/(benefit). These adjustments have no impact on net income as reported by the Firm as a whole or by the LOBs.


JPM Capital allocation

Each business segment is allocated capital by taking into consideration a variety of factors including capital levels of similarly rated peers and applicable regulatory capital requirements. ROE is measured and internal targets for expected returns are established as key measures of a business segment’s performance.


JPM Capital allocation

The Firm’s current allocation methodology incorporates Basel III Standardized RWA and the GSIB surcharge, both under rules currently in effect, as well as a simulation of capital in a severe stress environment. At least annually, the assumptions, judgments and methodologies used to allocate capital are reassessed and, as a result, the capital allocated to the LOBs may change.


JPM Segment results and reconciliation(a)

##(Table continued on next page)###################################################################################### As of or for the year ended December 31, (in millions, except ratios)##############Consumer & Community Banking########################Corporate & Investment Bank########################Commercial Banking####################Asset & Wealth Management###### ####2023######2022##########2021########2023######2022##########2021########2023######2022########2021######2023######2022########2021## Noninterest revenue##$##15,118####$####14,886####(b)##$####17,092##(b)##$##40,315####$####36,202####(b)##$##38,403####(b)##$##3,494####$##3,336######$##3,929####$##13,560####$##12,507######$##13,071## Net interest income####55,030######39,928##########32,787########8,492######11,900##########13,540########12,052######8,197########6,079######6,267######5,241########3,886## Total net revenue####70,148######54,814##########49,879########48,807######48,102##########51,943########15,546######11,533########10,008######19,827######17,748########16,957## Provision for credit losses####6,899######3,813##########(6,989)########121######1,158##########(1,174)########1,970######1,268########(947)######159######128########(227)## Noninterest expense####34,819######31,208######(b)####29,028####(b)####28,594######27,350######(b)####25,553####(b)####5,378######4,719########4,041######12,780######11,829########10,919## Income/(loss) before income tax expense/(benefit)####28,430######19,793##########27,840########20,092######19,594##########27,564########8,198######5,546########6,914######6,888######5,791########6,265## Income tax expense/(benefit)####7,198######4,877######(b)####6,883####(b)####5,963######4,669######(b)####6,457####(b)####2,055######1,333########1,668######1,661######1,426########1,528## Net income/(loss)##$##21,232####$####14,916######$####20,957####$##14,129####$####14,925######$####21,107####$##6,143####$##4,213######$##5,246####$##5,227####$##4,365######$##4,737## Average equity##$##54,349####$####50,000######$####50,000####$##108,000####$####103,000######$####83,000####$##29,507####$##25,000######$##24,000####$##16,671####$##17,000######$##14,000## Total assets####642,951######514,085##########500,370########1,338,168######1,334,296##########1,259,896########300,325######257,106########230,776######245,512######232,037########234,425## Return on equity####38##%####29##%########41##%######13##%####14##%########25##%######20##%####16##%######21##%####31##%####25##%######33##% Overhead ratio####50######57##########58########59######57##########49########35######41########40######64######67########64##


JPM 304 JPMorgan Chase & Co./2023 Form 10-K

##(Table continued from previous page)############################################ As of or for the year ended December 31, (in millions, except ratios)##########Corporate##############Reconciling Items(a)##############Total######## ####2023####2022######2021####2023####2022######2021####2023######2022######2021## Noninterest revenue##$##132##$##(1,798)####$##68##$##(3,782)##$##(3,148)####$##(3,225)##$##68,837####$##61,985####$##69,338## Net interest income####7,906####1,878######(3,551)####(480)####(434)######(430)####89,267######66,710######52,311## Total net revenue####8,038####80######(3,483)####(4,262)####(3,582)######(3,655)####158,104######128,695######121,649## Provision for credit losses####171####22######81####—####—######—####9,320######6,389######(9,256)## Noninterest expense####5,601####1,034######1,802####—####—######—####87,172######76,140######71,343## Income/(loss) before income  tax expense/(benefit)####2,266####(976)######(5,366)####(4,262)####(3,582)######(3,655)####61,612######46,166######59,562## Income tax expense/(benefit)####(555)####(233)######(1,653)####(4,262)####(3,582)######(3,655)####12,060######8,490######11,228## Net income/(loss)##$##2,821##$##(743)####$##(3,713)##$##—##$##—####$##—##$##49,552####$##37,676####$##48,334## Average equity##$##73,529##$##58,068####$##79,968##$##—##$##—####$##—##$##282,056####$##253,068####$##250,968## Total assets####1,348,437####1,328,219######1,518,100####NA####NA######NA####3,875,393######3,665,743######3,743,567## Return on equity####NM####NM######NM####NM####NM######NM####17##%####14##%####19##% Overhead ratio####NM####NM######NM####NM####NM######NM####55######59######59##


(a)Segment results on a managed basis reflect revenue on a FTE basis with the corresponding income tax impact recorded within income tax expense/(benefit). These adjustments are eliminated in reconciling items to arrive at the Firm’s reported U.S. GAAP results.


(b)In the first quarter of 2023, the allocations of revenue and expense to CCB associated with a Merchant Services revenue sharing agreement were discontinued and are now retained in Payments in CIB. Prior-period amounts have been revised to conform with the current presentation.


As a result of the organizational changes that were announced on January 25, 2024, the Firm will be reorganizing its business segments to reflect the manner in which the segments will be managed. The reorganization of the business segments is expected to be effective in the second quarter of 2024.


JPM Note 33 – Parent Company

The following tables present Parent Company-only financial statements. ######Statements of income and comprehensive income######## Year ended December 31, (in millions)####2023######2022####2021 Income############## Dividends from subsidiaries and affiliates:############## Bank and bank holding company##$##61,000####$##40,500##$##10,000 Non-bank####—######—####— Interest income from subsidiaries####1,166######498####32 Other income/(expense) from subsidiaries:############## Bank and bank holding company####1,801######(3,497)####859 Non-bank####250######335####366 Other income/(expense)####(654)######5,271####1,137 Total income####63,563######43,107####12,394 Expense############## Interest expense/(income) to subsidiaries and affiliates(a)####2,258######22,731####5,353 Other interest expense/(income)(a)####11,714######(14,658)####(1,349) Noninterest expense####3,431######2,817####2,637 Total expense####17,403######10,890####6,641 Income before income tax benefit and undistributed net income of subsidiaries####46,160######32,217####5,753 Income tax benefit####1,525######1,260####1,329 Equity in undistributed net income of subsidiaries####1,867######4,199####41,252 Net income##$##49,552####$##37,676##$##48,334 Other comprehensive income/(loss), net####6,898######(17,257)####(8,070) Comprehensive income##$##56,450####$##20,419##$##40,264 Balance sheets######## December 31, (in millions)####2023####2022 Assets######## Cash and due from banks##$##42##$##41 Deposits with banking subsidiaries####9,804####9,806 Trading assets####3,198####2,727 Advances to, and receivables from, subsidiaries:######## Bank and bank holding company####152####136 Non-bank####21####46 Investments (at equity) in subsidiaries and affiliates:######## Bank and bank holding company####568,472####532,759 Non-bank####1,045####1,064 Other assets####8,962####9,108 Total assets##$##591,696##$##555,687 Liabilities and stockholders’ equity######## Borrowings from, and payables to, subsidiaries and affiliates##$##22,777##$##24,164 Short-term borrowings####999####1,130 Other liabilities####11,500####10,440 Long-term debt(b)(c)####228,542####227,621 Total liabilities(c)####263,818####263,355 Total stockholders’ equity####327,878####292,332 Total liabilities and stockholders’ equity##$##591,696##$##555,687 ####Statements of cash flows######## Year ended December 31, (in millions)####2023####2022####2021 Operating activities############ Net income##$##49,552##$##37,676##$##48,334 Less: Net income of subsidiaries and affiliates####62,868####44,699####51,252 Parent company net loss####(13,316)####(7,023)####(2,918) Cash dividends from subsidiaries and affiliates####61,000####40,500####10,000 Other operating adjustments####9,412####(23,747)####(12,677) Net cash provided by/(used in) operating activities####57,096####9,730####(5,595) Investing activities############ Net change in:############ Advances to and investments in subsidiaries and affiliates, net####(25,000)####—####(3,000) All other investing activities, net####25####31####31 Net cash provided by/(used in) investing activities####(24,975)####31####(2,969) Financing activities############ Net change in:############ Borrowings from subsidiaries and affiliates####(2,249)####(4,491)####2,647 Short-term borrowings####—####—####— Proceeds from long-term borrowings####19,398####41,389####49,169 Payments of long-term borrowings####(25,105)####(18,294)####(15,543) Proceeds from issuance of preferred stock####—####—####7,350 Redemption of preferred stock####—####(7,434)####(2,575) Treasury stock repurchased####(9,824)####(3,162)####(18,408) Dividends paid####(13,463)####(13,562)####(12,858) All other financing activities, net####(879)####(1,205)####(1,238) Net cash provided by/(used in) financing activities####(32,122)####(6,759)####8,544 Net increase/(decrease) in cash and due from banks and deposits with banking subsidiaries####(1)####3,002####(20) Cash and due from banks and deposits with banking subsidiaries at the beginning of the year####9,847####6,845####6,865 Cash and due from banks and deposits with banking subsidiaries at the end of the year##$##9,846##$##9,847##$##6,845 Cash interest paid##$##13,742##$##7,462##$##4,065 Cash income taxes paid, net(d)####10,291####6,941####15,259


JPM Note 33 – Parent Company

(a)Includes interest expense for intercompany derivative hedges on the Firm’s LTD and related fair value adjustments, which is offset by related amounts in Other interest expense/(income).


JPM Note 33 – Parent Company

(b)At December 31, 2023, long-term debt that contractually matures in 2024 through 2028 totaled $9.1 billion, $27.5 billion, $29.1 billion, $20.1 billion, and $21.8 billion, respectively.


JPM Note 33 – Parent Company

(c)Refer to Notes 20 and 28 for information regarding the Parent Company’s guarantees of its subsidiaries’ obligations.


JPM Note 33 – Parent Company

(d)Represents payments, net of refunds, made by the Parent Company to various taxing authorities and includes taxes paid on behalf of certain of its subsidiaries that are subsequently reimbursed. The reimbursements were $13.2 billion, $11.3 billion, and $13.9 billion for the years ended December 31, 2023, 2022 and 2021, respectively.


JPM Note 34 – Business combinations

On May 1, 2023, JPMorgan Chase acquired certain assets and assumed certain liabilities of First Republic Bank (the "First Republic acquisition") from the Federal Deposit Insurance Corporation (“FDIC”), as receiver. The Firm believes that the First Republic acquisition is complementary to the Firm's existing franchises. The acquisition resulted in an estimated bargain purchase gain, which represents the excess of the estimated fair value of the net assets acquired above the purchase price.


JPM Note 34 – Business combinations

The Firm has determined that this acquisition constitutes a business combination under U.S. GAAP. Accordingly, the initial recognition of the assets acquired and liabilities assumed were generally measured at their estimated fair values as of May 1, 2023. The determination of those fair values required management to make certain market-based assumptions about expected future cash flows, discount rates and other valuation inputs at the time of the acquisition. The Firm believes that the fair value estimates of the assets acquired and liabilities assumed provide a reasonable basis for determining the estimated bargain purchase gain.


JPM Note 34 – Business combinations

The Firm and the FDIC have not yet completed the settlement process under which the purchase price, and the identification of the assets acquired and liabilities assumed, will be finalized. The finalization of this settlement process may impact the amount of the estimated bargain purchase gain. The purchase and assumption agreement entered into with the FDIC allows for final settlement to occur up to a year after the acquisition date.


JPM Note 34 – Business combinations

In addition, the purchase price and the estimated bargain purchase gain could change pending management's finalization of its acquisition date fair value estimates for certain of the assets acquired and liabilities assumed, which may take place up to one year from the acquisition date, as permitted by U.S. GAAP.


JPM Note 34 – Business combinations

The First Republic acquisition resulted in a preliminary estimated bargain purchase gain of $2.7 billion. The Firm has continued to progress in the settlement process with the FDIC and refine its acquisition-date fair value estimates. As a result, during the year ended December 31, 2023, adjustments totaling $63 million were made, increasing the estimated bargain purchase gain to $2.8 billion.


JPM Note 34 – Business combinations

In connection with the First Republic acquisition, the Firm and the FDIC entered into two shared-loss agreements with respect to certain loans and lending-related commitments (the "shared-loss assets"): the Commercial Shared-Loss Agreement ("CSLA") and the Single-Family Shared-Loss Agreement (“SFSLA”). The CSLA covers 80% of credit losses, on a pari passu basis, over 5 years with a subsequent 3-year recovery period for certain acquired commercial loans and other real estate exposure. The SFSLA covers 80% of credit losses, on a pari passu basis, for 7 years for certain acquired loans secured by mortgages on real property or shares in cooperative property constituting a primary residence. The indemnification


JPM Note 34 – Business combinations

assets, which represent the fair value of the CSLA and SFSLA on the acquisition date, are reflected in the total assets acquired.


JPM Note 34 – Business combinations

As part of the consideration paid, JPMorgan Chase issued a five-year, $50 billion secured note to the FDIC (the "Purchase Money Note"). The Purchase Money Note bears interest at a fixed rate of 3.4% and is secured by certain of the acquired loans. The Purchase Money Note is prepayable upon notice to the holder.


JPM Note 34 – Business combinations

The Firm had placed a $5 billion deposit with First Republic Bank on March 16, 2023, as part of $30 billion of deposits provided by a consortium of large U.S. banks. The Firm's $5 billion deposit was effectively settled as part of the acquisition and the associated allowance for credit losses was released upon closing. The Firm subsequently repaid the remaining $25 billion of deposits to the consortium of banks, including accrued interest through the payment date on May 9, 2023.


JPM Notes to consolidated financial statements (in millions)

The computation of the purchase price, the estimated fair values of the assets acquired and liabilities assumed as part of the First Republic acquisition and the related estimated bargain purchase gain are presented below, and reflect the adjustments made through December 31, 2023 to the acquisition-date fair value of the net assets acquired.


JPM Estimated gain on acquisition, after-tax

(a)Includes $10.6 billion of cash paid to the FDIC at acquisition and $3.6 billion payable to the FDIC, less cash acquired of $680 million.


(b)Includes $447 million of securities financing transactions with First Republic Bank that were effectively settled on the acquisition date.


(c)In the fourth quarter, certain assets and liabilities were reclassified resulting in a $762 million increase to loans, an $870 million decrease to accounts receivable and other assets and a $30 million increase to accounts payable and other liabilities.


(d)Other assets include $1.2 billion in tax-oriented investments and $683 million of lease right-of-use assets. Other liabilities include the related tax-oriented investment liabilities of $669 million and lease liabilities of $748 million. Refer to Note 14 and Note 18 for additional information.


The issuance of the $50 billion Purchase Money Note, the effective settlement of the Firm's $5 billion deposit and $447 million of securities financing with First Republic Bank, and the $3.6 billion payable to the FDIC as part of the purchase price consideration are considered non-cash transactions.


The following describes the accounting policies and fair value methodologies generally used by the Firm for the following assets acquired and liabilities assumed: core deposit and customer relationship intangibles, shared-loss agreements and the related indemnification assets, Purchase Money Note, and FHLB advances.


For further discussion of the Firm’s accounting policies and valuation methodologies, refer to Note 2 and Note 3 for fair value measurement, Note 10 for investment securities, Note 12 for loans, Note 17 for deposits, and Note 28 for lending-related commitments.


JPM Core deposit and customer relationship intangibles

Core deposit and certain wealth management customer relationship intangibles were acquired as part of the First Republic acquisition. The core deposit intangible of $1.3 billion was valued by discounting estimated after-tax cost savings over the remaining useful life of the deposits using the favorable source of funds method. The after-tax cost savings were estimated based on the difference between the cost of maintaining the core deposit base relative to the cost of next best alternative funding sources available to market participants. The customer relationship intangibles of $180 million were valued by discounting estimated after-tax earnings over their remaining useful lives using the multi-period excess earnings method. Both intangible asset


valuations utilized assumptions that the Firm believes a market participant would use to estimate fair values, such as growth and attrition rates, projected fee income as well as related costs to service the relationships, and discount rates. The core deposit and customer relationship intangibles will be amortized over a projected period of future cash flows of approximately 7 years. Refer to Note 15 for further discussion on other intangible assets.


JPM Indemnification assets - Shared-loss agreements

The indemnification assets represent forecasted recoveries from the FDIC associated with the shared-loss assets over the respective shared-loss recovery periods. The indemnification assets were recorded at fair value in other


JPM 308 JPMorgan Chase & Co./2023 Form 10-K

assets on the Consolidated balance sheets on the acquisition date. The fair values of the indemnification assets were estimated based on the timing of the forecasted losses underlying the related allowance for credit losses. The subsequent quarterly remeasurement of the indemnification assets is based on changes in the amount and timing of forecasted losses in the allowance for credit losses associated with the shared-loss assets and is recorded in other income. Under certain circumstances, the Firm may be required to make a payment to the FDIC upon termination of the shared-loss agreements based on the level of actual losses and recoveries on the shared-loss assets. The estimated potential future payment is reflected as contingent consideration as part of the purchase price consideration.


JPM Purchase Money Note and FHLB advances

The Purchase Money Note is recorded in long-term debt on the Consolidated balance sheets. The fair value of the Purchase Money Note was estimated based on a discounted cash flow methodology and incorporated estimated market discount rates.


The FHLB advances assumed in the acquisition are recorded in short-term borrowings and in long-term debt. The fair values of the FHLB advances were based on a discounted cash flow methodology and considered the observed FHLB advance issuance rates.


JPM Loans

The following table presents the unpaid principal balance ("UPB") and estimated fair values of the loans acquired as of May 1, 2023, and reflects adjustments to the acquisition-date fair value of the loans acquired through December 31, 2023. ######May 1, 2023#### (in millions)####UPB######Fair value Residential real estate##$##106,240####$##92,053 Auto and other####3,093######2,030 Total consumer####109,333######94,083 Secured by real estate####37,117######33,602 Commercial & industrial####4,332######3,932 Other(a)####23,499######21,625 Total wholesale####64,948######59,159 Total loans##$##174,281####$##153,242


JPM Loans

(a)In the fourth quarter, certain assets and liabilities were reclassified resulting in a $900 million increase to the UPB and a $762 million increase to the fair value of Other wholesale loans.


JPM Unaudited pro forma condensed combined financial information

Included in the Firm's Consolidated statements of income are noninterest revenue, net interest income and net income contributed by First Republic of $4.4 billion, $3.7 billion and $4.1 billion, respectively, for the year ended December 31, 2023.


The following table presents certain unaudited pro forma financial information for the year ended December 31, 2023 and 2022 as if the First Republic acquisition had occurred on January 1, 2022, including recognition of the estimated bargain purchase gain of $2.8 billion and the provision for credit losses of $1.2 billion. Additional adjustments include the interest on the Purchase Money Note and the impact of amortizing and accreting certain estimated fair value adjustments related to intangible assets, loans and lending-related commitments.


The Firm expects to achieve operating cost savings and other business synergies resulting from the acquisition that are not reflected in the pro forma amounts. The pro forma information is not necessarily indicative of the historical results of operations had the acquisition occurred on January 1, 2022, nor is it indicative of the results of operations in future periods, particularly in light of recent changes in market and economic conditions. ######Year ended December 31,#### (in millions)####2023######2022 Noninterest revenue##$##65,816####$##66,510 Net interest income####90,856######71,005 Net income####48,665######41,089


JPM JPMorgan Chase & Co./2023 Form 10-K 309

Supplementary Information: Distribution of assets, liabilities and stockholders’ equity; interest rates and interest differentials


JPM Consolidated average balance sheets, interest and rates

Provided below is a summary of JPMorgan Chase’s consolidated average balances, interest and rates on a taxable-equivalent basis for the years 2021 through 2023. Income computed on a taxable-equivalent basis is the income reported in the Consolidated statements of income, adjusted to present interest income and rates earned on


assets exempt from income taxes (i.e., federal taxes) on a basis comparable with other taxable investments. The incremental tax rate used for calculating the taxable-equivalent adjustment was approximately 24% in 2023, 2022 and 2021. (Table continued on next page)###################### (Unaudited)############2023########## Year ended December 31, (Taxable-equivalent interest and rates; in millions, except rates)####Average balance######Interest(g)##########Rate## Assets###################### Deposits with banks##$##499,396####$##21,797######4.36##%#### Federal funds sold and securities purchased under resale agreements####317,159######15,079######4.75###### Securities borrowed####193,228######7,983######4.13###### Trading assets – debt instruments####376,928######16,001######4.25###### Taxable securities####573,914######17,390######3.03###### Non-taxable securities(a)####30,886######1,560######5.05###### Total investment securities####604,800######18,950######3.13######(i) Loans####1,248,076######83,589####(h)##6.70###### All other interest-earning assets(b)(c)####86,121######7,669######8.90###### Total interest-earning assets####3,325,708######171,068######5.14###### Allowance for loan losses####(20,762)################## Cash and due from banks####24,853################## Trading assets – equity and other instruments####160,087################## Trading assets – derivative receivables####64,227################## Goodwill, MSRs and other intangible assets####63,212################## All other noninterest-earning assets####204,899################## Total assets##$##3,822,224################## Liabilities###################### Interest-bearing deposits##$##1,698,529####$##40,016######2.36##%#### Federal funds purchased and securities loaned or sold under repurchase agreements####256,086######13,259######5.18###### Short-term borrowings####37,468######1,894######5.05###### Trading liabilities – debt and all other interest-bearing liabilities(d)(e)####286,605######9,396######3.28###### Beneficial interests issued by consolidated VIEs####18,648######953######5.11###### Long-term debt####296,433######15,803######5.33###### Total interest-bearing liabilities####2,593,769######81,321######3.14###### Noninterest-bearing deposits####660,538################## Trading liabilities – equity and other instruments(e)####30,501################## Trading liabilities – derivative payables####46,355################## All other liabilities, including the allowance for lending-related commitments####181,601################## Total liabilities####3,512,764################## Stockholders’ equity###################### Preferred stock####27,404################## Common stockholders’ equity####282,056################## Total stockholders’ equity####309,460##(f)################ Total liabilities and stockholders’ equity##$##3,822,224################## Interest rate spread################2.00##%#### Net interest income and net yield on interest-earning assets########$##89,747######2.70######


(a)Represents securities that are tax-exempt for U.S. federal income tax purposes.


(b)Includes brokerage-related held-for-investment customer receivables, which are classified in accrued interest and accounts receivable, and all other interest-earning assets, which are classified in other assets on the Consolidated Balance Sheets.


(c)The rates reflect the impact of interest earned on cash collateral where the cash collateral has been netted against certain derivative payables.


(d)All other interest-bearing liabilities include brokerage-related customer payables.


Within the Consolidated average balance sheets, interest and rates summary, the principal amounts of nonaccrual loans have been included in the average loan balances used to determine the average interest rate earned on loans. Refer to Note 12 for additional information on nonaccrual loans, including interest accrued.


JPM 310 JPMorgan Chase & Co./2023 Form 10-K

####(Table continued from previous page)################################## ##########2022####################2021######## ##Average balance######Interest(g)##########Rate######Average balance######Interest(g)####Rate#### $##670,773####$##9,039######1.35##%######$##719,772####$##512####0.07##%## ##307,150######4,632######1.51##########269,231######958####0.36#### ##205,516######2,237######1.09##########190,655######(385)####(0.20)####(j) ##283,108######9,097######3.21##########283,829######6,856####2.42#### ##626,122######10,372######1.66##########563,147######6,460####1.15#### ##27,863######1,224######4.39##########30,830######1,336####4.33#### ##653,985######11,596######1.77######(i)####593,977######7,796####1.31####(i) ##1,100,318######52,877####(h)##4.81##########1,035,399######41,663##(h)##4.02#### ##128,229######3,763######2.93##########123,079######894####0.73#### ##3,349,079######93,241######2.78##########3,215,942######58,294####1.81#### ##(17,399)######################(22,179)############## ##27,601######################26,776############## ##140,778######################172,822############## ##78,606######################69,101############## ##59,467######################55,003############## ##215,408######################207,737############## $##3,853,540####################$##3,725,202############## $##1,748,666####$##10,082######0.58##%######$##1,672,669####$##531####0.03##%## ##242,762######3,721######1.53##########259,302######274####0.11#### ##46,063######747######1.62##########44,618######126####0.28#### ##268,019######3,246######1.21##########241,431######257####0.11#### ##11,208######226######2.02##########14,595######83####0.57#### ##250,080######8,075######3.23##########250,378######4,282####1.71#### ##2,566,798######26,097######1.02##########2,482,993######5,553####0.22#### ##719,249######################674,485############## ##39,155######################36,656############## ##57,388######################60,318############## ##185,989######################186,755############## ##3,568,579######################3,441,207############## ##31,893######################33,027############## ##253,068######################250,968############## ##284,961##(f)####################283,995##(f)############ $##3,853,540####################$##3,725,202############## ##############1.76##%##################1.59##%## ######$##67,144######2.00##############$##52,741####1.64####


(e)The combined balance of trading liabilities – debt and equity instruments was $153.3 billion, $138.1 billion and $128.2 billion for the years ended December 31, 2023, 2022 and 2021, respectively.


(f)The ratio of average stockholders’ equity to average assets was 8.1%, 7.4% and 7.6% for the years ended December 31, 2023, 2022 and 2021, respectively. The return on average stockholders’ equity, based on net income, was 16.0%, 13.2% and 17.0% for the years ended December 31, 2023, 2022 and 2021, respectively.


(g)Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable.


(h)Included fees and commissions on loans of $2.2 billion, $1.8 billion and $1.9 billion for the years ended December 31, 2023, 2022 and 2021, respectively


(i)The annualized rate for securities based on amortized cost was 3.09%, 1.75% and 1.33% for the years ended December 31, 2023, 2022 and 2021, respectively, and does not give effect to changes in fair value that are reflected in AOCI.


(j)Negative interest and rates reflect the net impact of interest earned offset by fees paid on client-driven prime brokerage securities borrowed transactions.


JPM JPMorgan Chase & Co./2023 Form 10-K 311

Interest rates and interest differential analysis of net interest income – U.S. and non-U.S.


Presented below is a summary of interest and rates segregated between U.S. and non-U.S. operations for the years 2021 through 2023. The segregation of U.S. and non-U.S. components is based on the location of the office recording the transaction. (Table continued on next page)############## ##########2023#### (Unaudited) Year ended December 31, (Taxable-equivalent interest and rates; in millions, except rates)####Average balance####Interest####Rate## Interest-earning assets############## Deposits with banks:############## U.S.##$##296,784##$##15,348####5.17##% Non-U.S.####202,612####6,449####3.18## Federal funds sold and securities purchased under resale agreements:############## U.S.####155,304####8,330####5.36## Non-U.S.####161,855####6,749####4.17## Securities borrowed:############## U.S.####133,805####6,239####4.66## Non-U.S.####59,423####1,744####2.93## Trading assets – debt instruments:############## U.S.####248,541####10,721####4.31## Non-U.S.####128,387####5,280####4.11## Investment securities:############## U.S.####568,505####17,469####3.07## Non-U.S.####36,295####1,481####4.08## Loans:############## U.S.####1,137,162####76,884####6.76## Non-U.S.####110,914####6,705####6.05## All other interest-earning assets, predominantly U.S.(a)####86,121####7,669####8.90## Total interest-earning assets####3,325,708####171,068####5.14## Interest-bearing liabilities############## Interest-bearing deposits:############## U.S.####1,290,110####26,253####2.03## Non-U.S.####408,419####13,763####3.37## Federal funds purchased and securities loaned or sold under repurchase agreements:############## U.S.####197,049####10,639####5.40## Non-U.S.####59,037####2,620####4.44## Trading liabilities – debt, short-term and all other interest-bearing liabilities:############## U.S.####205,388####7,774####3.79## Non-U.S.####118,685####3,516####2.96## Beneficial interests issued by consolidated VIEs, predominantly U.S.####18,648####953####5.11## Long-term debt:############## U.S.####293,218####15,749####5.37## Non-U.S.####3,215####54####1.68## Total interest-bearing liabilities####2,593,769####81,321####3.14## Noninterest-bearing liabilities(b)####731,939########## Total investable funds##$##3,325,708##$##81,321####2.45##% Net interest income and net yield:######$##89,747####2.70##% U.S.########77,923####3.01## Non-U.S.########11,824####1.61## Percentage of total assets and liabilities attributable to non-U.S. operations:############## Assets############24.7## Liabilities############20.2##


(a)The rates reflect the impact of interest earned on cash collateral where that cash collateral has been netted against certain derivative payables.


(b)Represents the amount of noninterest-bearing liabilities funding interest-earning assets.


(c)Negative interest and rates reflect the net impact of interest earned offset by fees paid on client-driven prime brokerage securities borrowed transactions.


Refer to the “Net interest income” discussion in Consolidated Results of Operations on pages 54–57 for further information.


JPM 312 JPMorgan Chase & Co./2023 Form 10-K

######(Table continued from previous page)###################### ########2022##############2021###### ##Average balance####Interest####Rate######Average balance####Interest####Rate#### $##456,366##$##7,418####1.63##%##$##527,340##$##693####0.13##%## ##214,407####1,621####0.76######192,432####(181)####(0.09)#### ##130,213####2,191####1.68######114,406####299####0.26#### ##176,937####2,441####1.38######154,825####659####0.43#### ##142,736####1,811####1.27######137,752####(319)####(0.23)####(c) ##62,780####426####0.68######52,903####(66)####(0.12)####(c) ##170,975####5,414####3.17######158,793####3,530####2.22#### ##112,133####3,683####3.28######125,036####3,326####2.66#### ##623,285####10,994####1.76######563,109####7,399####1.31#### ##30,700####602####1.96######30,868####397####1.29#### ##985,187####48,953####4.97######924,713####39,215####4.24#### ##115,131####3,924####3.41######110,686####2,448####2.21#### ##128,229####3,763####2.93######123,079####894####0.73#### ##3,349,079####93,241####2.78######3,215,942####58,294####1.81#### ##1,358,322####7,026####0.52######1,301,616####901####0.07#### ##390,344####3,056####0.78######371,053####(370)####(0.10)#### ##173,016####3,083####1.78######199,220####222####0.11#### ##69,746####638####0.91######60,082####52####0.09#### ##194,570####2,384####1.23######176,466####(345)####(0.20)#### ##119,512####1,609####1.35######109,583####728####0.66#### ##11,208####226####2.02######14,595####83####0.57#### ##246,670####8,026####3.25######244,850####4,229####1.73#### ##3,410####49####1.44######5,528####53####0.96#### ##2,566,798####26,097####1.02######2,482,993####5,553####0.22#### ##782,281##############732,949############ $##3,349,079##$##26,097####0.78##%##$##3,215,942##$##5,553####0.17##%## ####$##67,144####2.00##%######$##52,741####1.64##%## ######58,950####2.27##########46,622####1.86#### ######8,194####1.09##########6,119####0.87#### ##########24.9##############24.6#### ##########20.6##############20.4####


JPM Changes in net interest income, volume and rate analysis

The table below presents an attribution of net interest income between volume and rate. The attribution between volume and rate is calculated using annual average balances for each category of assets and liabilities shown in the table and the corresponding annual rates (refer to pages 310-313 for more information on average balances and rates). In this analysis, when the change cannot be isolated to either volume or rate, it has been allocated to volume. The annual rates include the impact of changes in market rates, as well as the impact of any change in composition of the various products within each category of asset or liability. This analysis is calculated separately for each category without consideration of the relationship between categories (for example, the net spread between the rates earned on assets and the rates paid on liabilities that fund those assets). As a result, changes in the granularity or groupings considered in this analysis would produce a different attribution result, and due to the complexities involved, precise allocation of changes in interest rates between volume and rates is inherently complex and judgmental. ##########2023 versus 2022##############2022 versus 2021#### (Unaudited)######Increase/(decrease) due to change in:##############Increase/(decrease) due to change in:######## Year ended December 31, (On a taxable-equivalent basis; in millions)####Volume######Rate####Net change####Volume######Rate####Net change Interest-earning assets############################ Deposits with banks:############################ U.S.##$##(8,225)####$##16,155##$##7,930##$##(1,185)####$##7,910##$##6,725 Non-U.S.####(361)######5,189####4,828####166######1,636####1,802 Federal funds sold and securities purchased under resale agreements:############################ U.S.####1,347######4,792####6,139####267######1,625####1,892 Non-U.S.####(629)######4,937####4,308####311######1,471####1,782 Securities borrowed:############################ U.S.####(411)######4,839####4,428####64######2,066####2,130 Non-U.S.####(95)######1,413####1,318####69######423####492 Trading assets – debt instruments:############################ U.S.####3,358######1,949####5,307####375######1,509####1,884 Non-U.S.####666######931####1,597####(418)######775####357 Investment securities:############################ U.S.####(1,690)######8,165####6,475####1,061######2,534####3,595 Non-U.S.####228######651####879####(2)######207####205 Loans:############################ U.S.####10,296######17,635####27,931####2,988######6,750####9,738 Non-U.S.####(258)######3,039####2,781####148######1,328####1,476 All other interest-earning assets, predominantly U.S.####(3,749)######7,655####3,906####161######2,708####2,869 Change in interest income####477######77,350####77,827####4,005######30,942####34,947 Interest-bearing liabilities############################ Interest-bearing deposits:############################ U.S.####(1,284)######20,511####19,227####268######5,857####6,125 Non-U.S.####597######10,110####10,707####161######3,265####3,426 Federal funds purchased and securities loaned or sold under repurchase agreements:############################ U.S.####1,293######6,263####7,556####(466)######3,327####2,861 Non-U.S.####(480)######2,462####1,982####93######493####586 Trading liabilities – debt, short-term and all other interest-bearing liabilities:############################ U.S.####409######4,981####5,390####206######2,523####2,729 Non-U.S.####(17)######1,924####1,907####125######756####881 Beneficial interests issued by consolidated VIEs, predominantly U.S.####381######346####727####(69)######212####143 Long-term debt:############################ U.S.####2,494######5,229####7,723####75######3,722####3,797 Non-U.S.####(3)######8####5####(31)######27####(4) Change in interest expense####3,390######51,834####55,224####362######20,182####20,544 Change in net interest income##$##(2,913)####$##25,516##$##22,603##$##3,643####$##10,760##$##14,403


JPM Glossary of Terms and Acronyms

2022 Form 10-K: Annual report on Form 10-K for the year ended December 31, 2022, filed with the U.S. Securities and Exchange Commission.


JPM ALCO: Asset Liability Committee

Amortized cost: Amount at which a financing receivable or investment is originated or acquired, adjusted for accretion or amortization of premium, discount, and net deferred fees or costs, collection of cash, charge-offs, foreign exchange, and fair value hedge accounting adjustments. For AFS securities, amortized cost is also reduced by any impairment losses recognized in earnings. Amortized cost is not reduced by the allowance for credit losses, except where explicitly presented net.


JPM ARM: Adjustable rate mortgage(s)

AUC: “Assets under custody”: Represents assets held directly or indirectly on behalf of clients under safekeeping, custody and servicing arrangements.


JPM ARM: Adjustable rate mortgage(s)

AUM: “Assets under management”: Represent assets managed by AWM on behalf of its Private Banking, Institutional and Retail clients. Includes “Committed capital not Called.”


JPM ARM: Adjustable rate mortgage(s)

Auto loan and lease origination volume: Dollar amount of auto loans and leases originated.


JPM AWM: Asset & Wealth Management

Beneficial interests issued by consolidated VIEs: Represents the interest of third-party holders of debt, equity securities, or other obligations, issued by VIEs that JPMorgan Chase consolidates.


JPM AWM: Asset & Wealth Management

Benefit obligation: Refers to the projected benefit obligation for pension plans and the accumulated postretirement benefit obligation for OPEB plans.


JPM BWM: Banking & Wealth Management

Bridge Financing Portfolio: A portfolio of held-for-sale unfunded loan commitments and funded loans. The unfunded commitments include both short-term bridge loan commitments that will ultimately be replaced by longer term financing as well as term loan commitments. The funded loans include term loans and funded revolver facilities.


JPM CCB: Consumer & Community Banking

CCB Consumer customer: A unique individual that has financial ownership or decision-making power with respect to accounts; excludes customers under the age of 18. Where a customer uses the same identifier as both a


JPM CCB: Consumer & Community Banking

Consumer and a Small business, the customer is included in both metrics.


JPM CCB: Consumer & Community Banking

CCB Small business customer: A unique business or legal entity that has financial ownership or decision-making power with respect to accounts. Where a customer uses the same identifier as both a Consumer and a Small business, the customer is included in both metrics.


JPM CCO: Chief Compliance Officer

CCP: “Central counterparty” is a clearing house that interposes itself between counterparties to contracts traded in one or more financial markets, becoming the buyer to every seller and the seller to every buyer and thereby ensuring the future performance of open contracts. A CCP becomes a counterparty to trades with market participants through novation, an open offer system, or another legally binding arrangement.


JPM CIO: Chief Investment Office

Client assets: Represent assets under management as well as custody, brokerage, administration and deposit accounts.


JPM CIO: Chief Investment Office

Client deposits and other third-party liabilities: Deposits, as well as deposits that are swept to on-balance sheet liabilities (e.g., commercial paper, federal funds purchased and securities loaned or sold under repurchase agreements) as part of client cash management programs.


JPM CIO: Chief Investment Office

Client investment assets: Represent assets under management as well as custody, brokerage and annuity accounts, and deposits held in investment accounts.


JPM CMT: Constant Maturity Treasury

Collateral-dependent: A loan is considered to be collateral-dependent when repayment of the loan is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty, including when foreclosure is deemed probable based on borrower delinquency.


JPM CMT: Constant Maturity Treasury

Commercial Card: provides a wide range of payment services to corporate and public sector clients worldwide through the commercial card products. Services include procurement, corporate travel and entertainment, expense management services, and business-to-business payment solutions.


JPM Glossary of Terms and Acronyms

Credit derivatives: Financial instruments whose value is derived from the credit risk associated with the debt of a third-party issuer (the reference entity) which allow one party (the protection purchaser) to transfer that risk to another party (the protection seller). Upon the occurrence of a credit event by the reference entity, which may include, among other events, the bankruptcy or failure to pay its obligations, or certain restructurings of the debt of the reference entity, neither party has recourse to the reference entity. The protection purchaser has recourse to the protection seller for the difference between the face value of the CDS contract and the fair value at the time of settling the credit derivative contract. The determination as to whether a credit event has occurred is generally made by the relevant International Swaps and Derivatives Association (“ISDA”) Determinations Committee.


JPM Glossary of Terms and Acronyms

Criticized: Criticized loans, lending-related commitments and derivative receivables that are classified as special mention, substandard and doubtful categories for regulatory purposes and are generally consistent with a rating of CCC+/Caa1 and below, as defined by S&P and Moody’s.


JPM CTC: CIO, Treasury and Corporate

Custom lending: Loans to AWM’s Global Private Bank clients, including loans to private investment funds and loans that are collateralized by nontraditional asset types, such as art work, aircraft, etc.


JPM CVA: Credit valuation adjustment

Debit and credit card sales volume: Dollar amount of card member purchases, net of returns.


JPM CVA: Credit valuation adjustment

Deposit margin: Represents net interest income expressed as a percentage of average deposits.


JPM CVA: Credit valuation adjustment

Distributed denial-of-service attack: The use of a large number of remote computer systems to electronically send a high volume of traffic to a target website to create a service outage at the target. This is a form of cyberattack.


JPM EC: European Commission

Eligible HQLA: Eligible high-quality liquid assets, for purposes of calculating the LCR, is the amount of unencumbered HQLA that satisfy certain operational considerations as defined in the LCR rule.


JPM Eligible LTD: Long-term debt satisfying certain eligibility criteria

Embedded derivatives: are implicit or explicit terms or features of a financial instrument that affect some or all of the cash flows or the value of the instrument in a manner similar to a derivative. An instrument containing such terms


or features is referred to as a “hybrid.” The component of the hybrid that is the non-derivative instrument is referred to as the “host.” For example, callable debt is a hybrid instrument that contains a plain vanilla debt instrument (i.e., the host) and an embedded option that allows the issuer to redeem the debt issue at a specified date for a specified amount (i.e., the embedded derivative). However, a floating rate instrument is not a hybrid composed of a fixed-rate instrument and an interest rate swap.


JPM ERISA: Employee Retirement Income Security Act of 1974

ETD: “Exchange-traded derivatives”: Derivative contracts that are executed on an exchange and settled via a central clearing house.


JPM EU: European Union

Expense categories: •Volume- and/or revenue-related expenses generally correlate with changes in the related business/transaction volume or revenue. Examples include commissions and incentive compensation within the LOBs, depreciation expense related to operating lease assets, and brokerage expense related to trading transaction volume. •Investments in the business include expenses associated with supporting medium- to longer-term strategic plans of the Firm. Examples include front office growth, market expansion, initiatives in technology (including related compensation), marketing, and acquisitions. •Structural expenses are those associated with the day-to-day cost of running the Firm and are expenses not included in the above two categories. Examples include employee salaries and benefits, certain other incentive compensation, and costs related to real estate.


JPM FDIC: Federal Deposit Insurance Corporation

FDM: "Financial difficulty modification" applies to loan modifications effective January 1, 2023, and is deemed to occur when the Firm modifies specific terms of the original loan agreement. The following types of modifications are considered FDMs: principal forgiveness, interest rate reduction, other-than-insignificant payment delay, term extension or a combination of these modifications.


Federal Reserve: The Board of the Governors of the Federal Reserve System


JPM FICC: The Fixed Income Clearing Corporation

FICO score: A measure of consumer credit risk provided by credit bureaus, typically produced from statistical models by Fair Isaac Corporation utilizing data collected by the credit bureaus.


JPM FINRA: Financial Industry Regulatory Authority

Firm: JPMorgan Chase & Co.


Forward points: Represents the interest rate differential between two currencies, which is either added to or subtracted from the current exchange rate (i.e., “spot rate”) to determine the forward exchange rate.


JPM Freddie Mac: Federal Home Loan Mortgage Corporation

Free standing derivatives: a derivative contract entered into either separate and apart from any of the Firm’s other financial instruments or equity transactions. Or, in conjunction with some other transaction and is legally detachable and separately exercisable.


JPM FX: Foreign exchange

G7: Group of Seven nations: Countries in the G7 are Canada, France, Germany, Italy, Japan, the U.K. and the U.S.


JPM FX: Foreign exchange

G7 government securities: Securities issued by the government of one of the G7 nations.


JPM HELOC: Home equity line of credit

Home equity – senior lien: Represents loans and commitments where JPMorgan Chase holds the first security interest on the property.


JPM HELOC: Home equity line of credit

Home equity – junior lien: Represents loans and commitments where JPMorgan Chase holds a security interest that is subordinate in rank to other liens.


JPM HELOC: Home equity line of credit

Households: A household is a collection of individuals or entities aggregated together by name, address, tax identifier and phone number.


JPM HELOC: Home equity line of credit

HQLA: “High-quality liquid assets” consist of cash and certain high-quality liquid securities as defined in the LCR rule.


JPM IHC: JPMorgan Chase Holdings LLC, an intermediate holding company

Investment-grade: An indication of credit quality based on JPMorgan Chase’s internal risk assessment. The Firm considers ratings of BBB-/Baa3 or higher as investment-grade.


JPM ISDA: International Swaps and Derivatives Association

JPMorgan Chase: JPMorgan Chase & Co.


JPM JPMorgan Chase Bank, N.A.: JPMorgan Chase Bank, National Association

JPMorgan Chase Foundation or the Firm’s Foundation: A not-for-profit organization that makes contributions for charitable and educational purposes.


JPM LTIP: Long-term incentive plan

LTV: “Loan-to-value”: For residential real estate loans, the relationship, expressed as a percentage, between the principal amount of a loan and the appraised value of the collateral (i.e., residential real estate) securing the loan.


JPM Origination date LTV ratio

The LTV ratio at the origination date of the loan. Origination date LTV ratios are calculated based on the actual appraised values of collateral (i.e., loan-level data) at the origination date.


JPM Current estimated LTV ratio

An estimate of the LTV as of a certain date. The current estimated LTV ratios are calculated using estimated collateral values derived from a nationally recognized home price index measured at the metropolitan statistical area (“MSA”) level. These MSA-level home price indices consist of actual data to the extent available and forecasted data where actual data is not available. As a result, the estimated collateral values used to calculate these ratios do not represent actual appraised loan-level collateral values; as such, the resulting LTV ratios are necessarily imprecise and should therefore be viewed as estimates.


JPM Combined LTV ratio

The LTV ratio considering all available lien positions, as well as unused lines, related to the property. Combined LTV ratios are used for junior lien home equity products.


JPM Combined LTV ratio

Macro businesses: the macro businesses include Rates, Currencies and Emerging Markets, Fixed Income Financing


JPM Glossary of Terms and Acronyms

and Commodities in CIB's Fixed Income Markets.


JPM Glossary of Terms and Acronyms

Managed basis: A non-GAAP presentation of Firmwide financial results that includes reclassifications to present revenue on a fully taxable-equivalent basis. Management also uses this financial measure at the segment level, because it believes this provides information to enable investors to understand the underlying operational performance and trends of the particular business segment and facilitates a comparison of the business segment with the performance of competitors.


JPM Glossary of Terms and Acronyms

Markets: consists of CIB’s Fixed Income Markets and Equity Markets businesses.


JPM Glossary of Terms and Acronyms

Master netting agreement: A single agreement with a counterparty that permits multiple transactions governed by that agreement to be terminated or accelerated and settled through a single payment in a single currency in the event of a default (e.g., bankruptcy, failure to make a required payment or securities transfer or deliver collateral or margin when due).


JPM MD&A: Management’s discussion and analysis

Measurement alternative: Measures equity securities without readily determinable fair values at cost less impairment (if any), plus or minus observable price changes from an identical or similar investment of the same issuer.


Merchant Services: offers merchants payment processing capabilities, fraud and risk management, data and analytics, and other payments services. Through Merchant Services, merchants of all sizes can accept payments via credit and debit cards and payments in multiple currencies.


JPM Moody’s: Moody’s Investor Services

Mortgage origination channels:


JPM Moody’s: Moody’s Investor Services

Retail – Borrowers who buy or refinance a home through direct contact with a mortgage banker employed by the Firm using a branch office, the Internet or by phone. Borrowers are frequently referred to a mortgage banker by a banker in a Chase branch, real estate brokers, home builders or other third parties.


JPM Moody’s: Moody’s Investor Services

Correspondent – Banks, thrifts, other mortgage banks and other financial institutions that sell closed loans to the Firm.


JPM Moody’s: Moody’s Investor Services

Mortgage product types: Alt-A


JPM Moody’s: Moody’s Investor Services

Alt-A loans are generally higher in credit quality than subprime loans but have characteristics that would disqualify the borrower from a traditional prime loan. Alt-A lending characteristics may include one or more of the following: (i) limited documentation; (ii) a high CLTV ratio; (iii) loans secured by non-owner occupied properties; or (iv) a debt-to-income ratio above normal limits. A substantial proportion of the Firm’s Alt-A loans are those where a borrower does not provide complete documentation of his


JPM Moody’s: Moody’s Investor Services

or her assets or the amount or source of his or her income.


JPM Option ARMs

The option ARM real estate loan product is an adjustable-rate mortgage loan that provides the borrower with the option each month to make a fully amortizing, interest-only or minimum payment. The minimum payment on an option ARM loan is based on the interest rate charged during the introductory period. This introductory rate is usually significantly below the fully indexed rate. The fully indexed rate is calculated using an index rate plus a margin. Once the introductory period ends, the contractual interest rate charged on the loan increases to the fully indexed rate and adjusts monthly to reflect movements in the index. The minimum payment is typically insufficient to cover interest accrued in the prior month, and any unpaid interest is deferred and added to the principal balance of the loan. Option ARM loans are subject to payment recast, which converts the loan to a variable-rate fully amortizing loan upon meeting specified loan balance and anniversary date triggers.


JPM Prime

Prime mortgage loans are made to borrowers with good credit records who meet specific underwriting requirements, including prescriptive requirements related to income and overall debt levels. New prime mortgage borrowers provide full documentation and generally have reliable payment histories.


JPM Subprime

Subprime loans are loans that, prior to mid-2008, were offered to certain customers with one or more high risk characteristics, including but not limited to: (i) unreliable or poor payment histories; (ii) a high LTV ratio of greater than 80% (without borrower-paid mortgage insurance); (iii) a high debt-to-income ratio; (iv) an occupancy type for the loan is other than the borrower’s primary residence; or (v) a history of delinquencies or late payments on the loan.


JPM MSR: Mortgage servicing rights

Multi-asset: Any fund or account that allocates assets under management to more than one asset class.


JPM MSR: Mortgage servicing rights

NA: Data is not applicable or available for the period presented.


JPM NAV: Net Asset Value

Net Capital Rule: Rule 15c3-1 under the Securities Exchange Act of 1934.


JPM NAV: Net Asset Value

Net charge-off/(recovery) rate: Represents net charge-offs/(recoveries) (annualized) divided by average retained loans for the reporting period.


JPM NAV: Net Asset Value

Net interchange income includes the following components: 318 JPMorgan Chase & Co./2023 Form 10-K Glossary of Terms and Acronyms •Interchange income: Fees earned by credit and debit card issuers on sales transactions. •Rewards costs: The cost to the Firm for points earned by cardholders enrolled in credit card rewards programs generally tied to sales transactions. •Partner payments: Payments to co-brand credit card partners based on the cost of loyalty program rewards earned by cardholders on credit card transactions.


JPM NAV: Net Asset Value

Net mortgage servicing revenue: Includes operating revenue earned from servicing third-party mortgage loans, which is recognized over the period in which the service is provided; changes in the fair value of MSRs; the impact of risk management activities associated with MSRs; and gains and losses on securitization of excess mortgage servicing. Net mortgage servicing revenue also includes gains and losses on sales and lower of cost or fair value adjustments of certain repurchased loans insured by U.S. government agencies.


JPM NAV: Net Asset Value

Net revenue rate: Represents Card Services net revenue (annualized) expressed as a percentage of average loans for the period.


JPM NAV: Net Asset Value

Net yield on interest-earning assets: The average rate for interest-earning assets less the average rate paid for all sources of funds.


JPM NOL: Net operating loss

Nonaccrual loans: Loans for which interest income is not recognized on an accrual basis. Loans (other than credit card loans and certain consumer loans insured by U.S. government agencies) are placed on nonaccrual status when full payment of principal and interest is not expected, regardless of delinquency status, or when principal and interest have been in default for a period of 90 days or more unless the loan is both well-secured and in the process of collection. Collateral-dependent loans are typically maintained on nonaccrual status.


JPM NOL: Net operating loss

Nonperforming assets: Nonperforming assets include nonaccrual loans, nonperforming derivatives and certain assets acquired in loan satisfactions, predominantly real estate owned and other commercial and personal property.


JPM OPEB: Other postretirement employee benefit

Over-the-counter (“OTC”) derivatives: Derivative contracts that are negotiated, executed and settled bilaterally between two derivative counterparties, where one or both counterparties is a derivatives dealer.


Over-the-counter cleared (“OTC-cleared”) derivatives: Derivative contracts that are negotiated and executed bilaterally, but subsequently settled via a central clearing house, such that each derivative counterparty is only exposed to the default of that clearing house.


Overhead ratio: Noninterest expense as a percentage of total net revenue.


Parent Company: JPMorgan Chase & Co.


Participating securities: Represents unvested share-based compensation awards containing nonforfeitable rights to dividends or dividend equivalents (collectively, “dividends”), which are included in the earnings per share calculation using the two-class method. JPMorgan Chase grants RSUs to certain employees under its share-based compensation programs, which entitle the recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested awards meet the definition of participating securities. Under the two-class method, all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities, based on their respective rights to receive dividends.


JPM PCAOB: Public Company Accounting Oversight Board

PCD: “Purchased credit deteriorated” assets represent acquired financial assets that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Firm.


JPM PD: Probability of default

Pillar 1: The Basel framework consists of a three “Pillar” approach. Pillar 1 establishes minimum capital requirements, defines eligible capital instruments, and prescribes rules for calculating RWA.


JPM PD: Probability of default

Pillar 3: The Basel framework consists of a three “Pillar” approach. Pillar 3 encourages market discipline through disclosure requirements which allow market participants to assess the risk and capital profiles of banks.


JPM PRA: Prudential Regulation Authority

Pre-provision profit/(loss): Represents total net revenue less noninterest expense. The Firm believes that this financial measure is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.


Pre-tax margin: Represents income before income tax expense divided by total net revenue, which is, in management’s view, a comprehensive measure of pretax performance derived by measuring earnings after all costs are taken into consideration. It is one basis upon which management evaluates the performance of AWM against the performance of their respective competitors.


Principal transactions revenue: Principal transactions revenue is driven by many factors, including: JPMorgan Chase & Co./2023 Form 10-K 319 Glossary of Terms and Acronyms •the bid-offer spread, which is the difference between the price at which a market participant is willing and able to sell an instrument to the Firm and the price at which another market participant is willing and able to buy it from the Firm, and vice versa; and •realized and unrealized gains and losses on financial instruments and commodities transactions, including those accounted for under the fair value option, primarily used in client-driven market-making activities.


–Realized gains and losses result from the sale of instruments, closing out or termination of transactions, or interim cash payments.


–Unrealized gains and losses result from changes in valuation.


In connection with its client-driven market-making activities, the Firm transacts in debt and equity instruments, derivatives and commodities, including physical commodities inventories and financial instruments that reference commodities.


Principal transactions revenue also includes realized and unrealized gains and losses related to: •derivatives designated in qualifying hedge accounting relationships, primarily fair value hedges of commodity and foreign exchange risk; •derivatives used for specific risk management purposes, primarily to mitigate credit, foreign exchange and interest rate risks.


Production revenue: Includes fees and income recognized as earned on mortgage loans originated with the intent to sell, and the impact of risk management activities associated with the mortgage pipeline and warehouse loans. Production revenue also includes gains and losses on sales and lower of cost or fair value adjustments on mortgage loans held-for-sale (excluding certain repurchased loans insured by U.S. government agencies), and changes in the fair value of financial instruments measured under the fair value option.


JPM PSU(s): Performance share units

Regulatory VaR: Daily aggregated VaR calculated in accordance with regulatory rules.


JPM REO: Real estate owned

Reported basis: Financial statements prepared under U.S. GAAP, which excludes the impact of taxable-equivalent adjustments.


JPM REO: Real estate owned

Retained loans: Loans that are held-for-investment (i.e., excludes loans held-for-sale and loans at fair value).


JPM REO: Real estate owned

Revenue wallet: Proportion of fee revenue based on estimates of investment banking fees generated across the industry (i.e., the revenue wallet) from investment banking transactions in M&A, equity and debt underwriting, and loan syndications. Source: Dealogic, a third-party provider of investment banking competitive analysis and volume-based


JPM REO: Real estate owned

league tables for the above noted industry products.


JPM RSU(s): Restricted stock units

RWA: “Risk-weighted assets”: Basel III establishes two comprehensive approaches for calculating RWA (a Standardized approach and an Advanced approach) which include capital requirements for credit risk, market risk, and in the case of Basel III Advanced, also operational risk. Key differences in the calculation of credit risk RWA between the Standardized and Advanced approaches are that for Basel III Advanced, credit risk RWA is based on risk-sensitive approaches which largely rely on the use of internal credit models and parameters, whereas for Basel III Standardized, credit risk RWA is generally based on supervisory risk-weightings which vary primarily by counterparty type and asset class. Market risk RWA is calculated on a generally consistent basis between Basel III Standardized and Basel III Advanced.


JPM SAR as it pertains to Hong Kong: Special Administrative Region

SAR(s) as it pertains to employee stock awards: Stock appreciation rights


JPM SCB: Stress capital buffer

Scored portfolios: Consumer loan portfolios that predominantly include residential real estate loans, credit card loans, auto loans to individuals and certain small business loans.


JPM SEC: U.S. Securities and Exchange Commission

Securities financing agreements: Include resale, repurchase, securities borrowed and securities loaned agreements


Securitized Products Group: Comprised of Securitized Products and tax-oriented investments.


Seed capital: Initial JPMorgan capital invested in products, such as mutual funds, with the intention of ensuring the fund is of sufficient size to represent a viable offering to clients, enabling pricing of its shares, and allowing the manager to develop a track record. After these goals are achieved, the intent is to remove the Firm’s capital from the investment.


Shelf securities: Securities registered with the SEC under a shelf registration statement that have not been issued, offered or sold. These securities are not included in league tables until they have actually been issued.


JPM SPEs: Special purpose entities

Structural interest rate risk: Represents interest rate risk of the non-trading assets and liabilities of the Firm.


JPM SPEs: Special purpose entities

Structured notes: Structured notes are financial instruments whose cash flows are linked to the movement in one or more indexes, interest rates, foreign exchange rates, commodities prices, prepayment rates, underlying reference pool of loans or other market variables. The notes typically contain embedded (but not separable or detachable) derivatives. Contractual cash flows for principal, interest, or both can vary in amount and timing throughout the life of the note based on non-traditional indexes or non-traditional uses of traditional interest rates or indexes.


JPM SPEs: Special purpose entities

Taxable-equivalent basis: In presenting results on a managed basis, the total net revenue for each of the business segments and the Firm is presented on a tax-equivalent basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in managed basis results on a level comparable to taxable investments and securities; the corresponding income tax impact related to tax-exempt items is recorded within income tax expense.


JPM TCE: Tangible common equity

TDR: “Troubled debt restructuring” applies to loan modifications granted prior to January 1, 2023 and is deemed to occur when the Firm modifies the original terms of a loan agreement by granting a concession to a borrower that is experiencing financial difficulty. Loans with short-term and other insignificant modifications that are not considered concessions are not TDRs.


JPM U.K.: United Kingdom

Unaudited: Financial statements and/or information that have not been subject to auditing procedures by an independent registered public accounting firm.


JPM U.S.: United States of America

U.S. GAAP: Accounting principles generally accepted in the U.S.


JPM U.S.: United States of America

U.S. government agencies: U.S. government agencies include, but are not limited to, agencies such as Ginnie Mae and FHA, and do not include Fannie Mae and Freddie Mac which are U.S. government-sponsored enterprises (“U.S. GSEs”). In general, obligations of U.S. government agencies are fully and explicitly guaranteed as to the timely payment of principal and interest by the full faith and credit of the U.S. government in the event of a default.


JPM U.S. GSE(s): “U.S. government-sponsored enterprises” are

quasi-governmental, privately-held entities established or chartered by the U.S. government to serve public purposes as specified by the U.S. Congress to improve the flow of credit to specific sectors of the economy and provide certain essential services to the public. U.S. GSEs include Fannie Mae and Freddie Mac, but do not include Ginnie Mae or FHA. U.S. GSE obligations are not explicitly guaranteed as to the timely payment of principal and interest by the full faith and credit of the U.S. government.


JPM VA: U.S. Department of Veterans Affairs

VaR: “Value-at-risk” is a measure of the dollar amount of potential loss from adverse market moves in an ordinary market environment.


JPM VIEs: Variable interest entities

Warehouse loans: Consist of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as loans.


JPM Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on behalf of the undersigned, thereunto duly authorized.


JPM February 16, 2024

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacity and on the date indicated. JPMorgan Chase & Co. does not exercise the power of attorney to sign on behalf of any Director. ##Capacity##Date /s/ JAMES DIMON##Director, Chairman and Chief Executive Officer (Principal Executive Officer)## (James Dimon)#### /s/ LINDA B. BAMMANN##Director## (Linda B. Bammann)#### /s/ STEPHEN B. BURKE##Director## (Stephen B. Burke)#### /s/ TODD A. COMBS##Director## (Todd A. Combs)#### /s/ ALICIA BOLER DAVIS##Director##February 16, 2024 (Alicia Boler Davis)#### /s/ TIMOTHY P. FLYNN##Director## (Timothy P. Flynn)#### /s/ ALEX GORSKY##Director## (Alex Gorsky)#### /s/ MELLODY HOBSON##Director## (Mellody Hobson)#### /s/ MICHAEL A. NEAL##Director## (Michael A. Neal)#### /s/ PHEBE N. NOVAKOVIC##Director## (Phebe N. Novakovic)#### /s/ VIRGINIA M. ROMETTY##Director## (Virginia M. Rometty)#### /s/ MARK A. WEINBERGER##Director## (Mark A. Weinberger)#### /s/ JEREMY BARNUM##Executive Vice President and Chief Financial Officer## (Jeremy Barnum)##(Principal Financial Officer)## /s/ ELENA KORABLINA##Managing Director and Firmwide Controller## (Elena Korablina)##(Principal Accounting Officer)##


JPM 322 JPMorgan Chase & Co./2023 Form 10-K


META Overview

Our mission is to give people the power to build community and bring the world closer together.


META Overview

All of our products, including our apps, share the vision of helping to bring the metaverse to life. We build technology that helps people connect and share, find communities, and grow businesses. Our products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, and wearables. We also help people discover and learn about what is going on in the world around them, enable people to share their experiences, ideas, photos and videos, and other activities with audiences ranging from their closest family members and friends to the public at large, and stay connected everywhere by accessing our products. Meta is moving our offerings beyond 2D screens toward immersive experiences like augmented and virtual reality to help build the metaverse, which we believe is the next evolution in social technology. Our vision for the metaverse does not center on any single product, but rather an entire ecosystem of experiences, devices, and new technologies. While the metaverse is in the very early stages of its development, we believe it will become the next computing platform and the future of social interaction. Across our work, we are innovating in artificial intelligence (AI) technologies to build new experiences that help make our platform more social, useful, and immersive.