JPM Basel III Overview

In July 2023, the Federal Reserve, the OCC and the FDIC released a proposal to amend the risk-based capital framework, entitled "Regulatory capital rule: Amendments applicable to large banking organizations and to banking organizations with significant trading activity," which is referred to in this Form 10-K as “U.S. Basel III proposal”. Under the proposal, changes to the framework would include replacement of the Advanced approach with an expanded risk-based approach, which would not permit the use of internal models for the calculation of RWA, other than for market risk. In addition, the stress capital buffer requirement would be applicable to both the expanded risk-based approach and the Standardized approach. The proposal would significantly revise risk-based capital requirements for all banks with assets of $100 billion or more, including the Firm and other U.S. GSIBs. The proposed effective date is July 1, 2025, with a three-year transition period applicable to the expanded risk-based approach. Based on the Firm's understanding of the proposal, as applied to its Consolidated balance sheets as of June 30, 2023 (the reference date for a special data collection exercise conducted by the Federal Reserve), the estimated impact at the end of the transition period would increase RWA by approximately 30%, which would result in an approximately 25% increase to CET1 capital necessary to meet the Firm’s CET1 ratio requirement, all else equal. These estimates do not reflect any actions that the Firm may take to mitigate the impact of the rule as currently proposed.


JPM Basel III Overview

Pending the finalization of the U.S. Basel III proposal, the Firm expects that it will continue to build capital above the current levels, and therefore the CET1 target of 13.5% previously set by the Firm (which was with respect to the current Standardized RWA measure) is no longer meaningful. The Firm's quarterly capital ratios will vary dependent on market conditions and other factors. Under the requirements of the U.S. Basel III proposal, the new expanded risk-based approach, when fully phased-in, would be the Firm’s binding constraint.


JPM Basel III Overview

The current Basel III rules establish capital requirements for calculating credit risk RWA and market risk RWA, and in the case of Basel III Advanced, operational risk RWA. 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 generally calculated consistently between Basel III Standardized and Basel III Advanced. In addition to the RWA calculated under these approaches, the Firm may supplement such amounts to


JPM 92 JPMorgan Chase & Co./2023 Form 10-K

incorporate management judgment and feedback from its regulators.


As of December 31, 2023, the Advanced Total Capital ratio became the most binding constraint for the Firm’s Basel III risk-based ratios, primarily reflecting the reduction in the Stress Capital Buffer requirement. However, as of December 31, 2023, with respect to the CET1 and Tier 1 risk-based ratios, the Standardized ratios are more binding than the Advanced ratios.


Basel III also includes a requirement for Advanced Approaches banking organizations, including the Firm, to calculate its SLR. As of the fourth quarter of 2023, the Firm’s SLR became more binding than the Basel III risk-based ratios, primarily reflecting the reduction in the Stress Capital Buffer requirement. With the increase in the GSIB surcharge in the first quarter of 2024, the Firm expects the risk-based ratios to revert to being more binding than the SLR.


Refer to page 95 for additional information on GSIB surcharge and page 98 for additional information on SLR.


JPM GSIB Surcharge

In July 2023, the Federal Reserve also released a proposal to amend the calculation of the GSIB surcharge. If adopted as proposed, these amendments would require the Firm to assess its GSIB surcharge on an annual basis, using the average of the quarterly surcharge calculations throughout the calendar year, with daily averaging required for certain measures within the surcharge calculation. Surcharge increments would be reduced from 50 bps to 10 bps and there would also be other technical amendments to the Method 2 calculation. The proposed amendments would revise risk-based capital requirements for the Firm and other U.S. GSIBs, and would become effective two calendar quarters after the adoption of the final rule. Refer to Risk-based Capital Regulatory Requirements on pages 94-95 for further information on the GSIB surcharge.


JPM TLAC and Eligible LTD Requirements

In August 2023, the Federal Reserve, the FDIC and the OCC released a proposal to expand the eligible long-term debt ("eligible LTD") and clean holding company requirements under the existing total loss-absorbing capacity ("TLAC") rule to apply to non-GSIB banks with $100 billion or more in total consolidated assets. While U.S. GSIBs are already subject to these requirements, the proposal would reduce the amount of LTD with remaining maturities of less than two years that count towards a U.S. GSIB's TLAC requirement. The proposal would also expand the existing capital deduction framework for LTD issued by GSIBs to include LTD issued by non-GSIB banks subject to the LTD requirements.


JPM Risk-based Capital Regulatory Requirements

The following chart presents the Firm’s Basel III CET1 capital ratio requirements under the Basel III rules currently in effect.


All banking institutions are currently required to have a minimum CET1 capital ratio of 4.5% of risk-weighted assets.


Certain banking organizations, including the Firm, are required to hold additional levels of capital to serve as a “capital conservation buffer”. The capital conservation buffer incorporates a GSIB surcharge, a discretionary countercyclical capital buffer and a fixed capital conservation buffer of 2.5% for Advanced regulatory capital requirements, as well as a variable SCB requirement, floored at 2.5%, for Standardized regulatory capital requirements.


Under the Federal Reserve’s GSIB rule, the Firm is required to assess its GSIB surcharge on an annual basis under two separately prescribed methods based on data for the previous fiscal year-end, and is subject to the higher of the two. “Method 1” reflects the GSIB surcharge as prescribed by the Basel Committee’s assessment methodology, and is calculated by the Financial Stability Board (“FSB”) across five criteria: size, cross-jurisdictional activity, interconnectedness, complexity and substitutability. “Method 2”, calculated by the Firm, modifies the Method 1 requirements to include a measure of short-term wholesale funding in place of substitutability, and introduces a GSIB score “multiplication factor”.


JPM 94 JPMorgan Chase & Co./2023 Form 10-K

The following table presents the Firm’s effective GSIB surcharge for the years ended December 31, 2024, 2023 and 2022. ##2024####2023####2022## Method 1##2.5##%##2.5##%##2.0##% Method 2##4.5##%##4.0##%##3.5##%


On November 27, 2023, the FSB released its annual list of GSIBs based upon data as of December 31, 2022, which affirmed the Firm’s Method 1 GSIB surcharge of 2.5%, which will be effective January 1, 2025, unless the Firm’s Method 1 GSIB surcharge, as determined by the FSB, is lower based upon data as of December 31, 2023.


The Firm’s Method 2 surcharge calculated using data as of December 31, 2021 is 4.5% (up from 4.0%), which became effective January 1, 2024. The Firm’s estimated Method 2 surcharge calculated using data as of December 31, 2022 is 4.5%. Accordingly, based on the GSIB rule currently in effect, the Firm’s effective GSIB surcharge increased to 4.5% on January 1, 2024.


The U.S. federal regulatory capital standards include a framework for setting a discretionary countercyclical capital buffer taking into account the macro financial environment in which large, internationally active banks function. As of December 31, 2023, the U.S. countercyclical capital buffer remained at 0%. The Federal Reserve will continue to review the buffer at least annually. The buffer can be increased if the Federal Reserve, FDIC and OCC determine that systemic risks are meaningfully above normal and can be calibrated up to an additional 2.5% of RWA subject to a 12-month implementation period.


Failure to maintain regulatory capital equal to or in excess of the risk-based regulatory capital minimum plus the capital conservation buffer (inclusive of the GSIB surcharge) and any countercyclical buffer will result in limitations to the amount of capital that the Firm may distribute, such as through dividends and common share repurchases, as well as on discretionary bonus payments for certain executive officers.


JPM Total Loss-Absorbing Capacity

The Federal Reserve’s TLAC rule requires the U.S. GSIB top-tier holding companies, including the Firm, to maintain minimum levels of external TLAC and eligible LTD. Refer to TLAC on page 100 for additional information.


JPM Supplementary leverage ratio

Banking organizations subject to the Basel III Advanced approach are currently required to have a minimum SLR of 3.0%. Certain banking organizations, including the Firm, are also required to hold an additional 2.0% leverage buffer. The SLR is defined as Tier 1 capital under Basel III divided by the Firm’s total leverage exposure. Total leverage exposure is calculated by taking the Firm’s total average on-balance sheet assets, less amounts permitted to be deducted for Tier 1 capital, and adding certain off-balance sheet exposures, as defined in regulatory capital rules. Refer to SLR on page 98 for additional information.


JPM Supplementary leverage ratio

Failure to maintain an SLR equal to or greater than the regulatory requirement will result in limitations on the amount of capital that the Firm may distribute such as through dividends and common share repurchases, as well as on discretionary bonus payments for certain executive officers.


JPM Other regulatory capital

In addition to meeting the capital ratio requirements of Basel III, the Firm and its principal IDI subsidiary, JPMorgan Chase Bank, N.A. must also maintain minimum capital and leverage ratios in order to be “well-capitalized” under the regulations issued by the Federal Reserve and the Prompt Corrective Action requirements of the FDIC Improvement Act, respectively. Refer to Note 27 for additional information.


JPM Other regulatory capital

Additional information regarding the Firm’s capital ratios, as well as the U.S. federal regulatory capital standards to which the Firm is subject, is presented in Note 27. Refer to the Firm’s Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm’s website, for further information on the Firm’s current capital measures.


JPM Selected capital and RWA data

The following tables present the Firm’s risk-based capital metrics under both the Basel III Standardized and Advanced approaches and leverage-based capital metrics. Refer to Note 27 for JPMorgan Chase Bank, N.A.’s risk-based and leverage-based capital metrics. First Republic Bank was not subject to Advanced approach regulatory capital requirements. As a result, for certain exposures associated with the First Republic acquisition, Advanced RWA and any impact on Advanced Total capital is calculated under the Standardized approach as permitted by the transition provisions in the U.S. capital rules. Refer to Note 34 for additional information on the First Republic acquisition. ##########Standardized##################Advanced###### (in millions, except ratios)####December 31, 2023######December 31, 2022####Capital ratio requirements(b)######December 31, 2023########December 31, 2022####Capital ratio requirements(b)## Risk-based capital metrics:(a)################################## CET1 capital##$##250,585####$##218,934########$##250,585######$##218,934###### Tier 1 capital####277,306######245,631##########277,306########245,631###### Total capital####308,497######277,769##########295,417####(c)####264,583###### Risk-weighted assets####1,671,995######1,653,538##########1,669,156####(c)####1,609,773###### CET1 capital ratio####15.0##%####13.2##%##11.4##%####15.0##%######13.6##%##11.0##% Tier 1 capital ratio####16.6######14.9####12.9######16.6########15.3####12.5## Total capital ratio####18.5######16.8####14.9######17.7########16.4####14.5##


JPM Selected capital and RWA data

(a)The capital metrics reflect the CECL capital transition provisions. Refer to Note 27 for additional information.


JPM Selected capital and RWA data

(b)Represents minimum requirements and regulatory buffers applicable to the Firm for the period ended December 31, 2023. For the period ended December 31, 2022, the Basel III Standardized CET1, Tier 1, and Total capital ratio requirements applicable to the Firm were 12.0%, 13.5%, and 15.5%, respectively; the Basel III Advanced CET1, Tier 1, and Total capital ratio requirements applicable to the Firm were 10.5%, 12.0%, and 14.0%, respectively. Refer to Note 27 for additional information.


JPM Selected capital and RWA data

(c)Includes the impacts of certain assets associated with First Republic to which the Standardized approach has been applied as permitted by the transition provisions in the U.S. capital rules. Three months ended (in millions, except ratios)####December 31, 2023######December 31, 2022####Capital ratio requirements(c)## Leverage-based capital metrics:(a)################ Adjusted average assets(b)##$##3,831,200####$##3,703,873###### Tier 1 leverage ratio####7.2##%####6.6##%##4.0##% Total leverage exposure##$##4,540,465####$##4,367,092###### SLR####6.1##%####5.6##%##5.0##%


JPM Selected capital and RWA data


JPM Selected capital and RWA data

(b)Adjusted average assets, for purposes of calculating the leverage ratios, includes quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill, inclusive of estimated equity method goodwill, and other intangible assets.


JPM Selected capital and RWA data

(c)Represents minimum requirements and regulatory buffers applicable to the Firm. Refer to Note 27 for additional information.


JPM Capital components

The following table presents reconciliations of total stockholders’ equity to Basel III CET1 capital, Tier 1 capital and Total capital as of December 31, 2023 and 2022. (in millions)####December 31, 2023######December 31, 2022 Total stockholders’ equity##$##327,878####$##292,332 Less: Preferred stock####27,404######27,404 Common stockholders’ equity####300,474######264,928 Add:########## Certain deferred tax liabilities(a)####2,996######2,510 Other CET1 capital adjustments(b)####4,717######6,221 Less:########## Goodwill(c)####54,377######53,501 Other intangible assets####3,225######1,224 Standardized/Advanced CET1 capital####250,585######218,934 Add: Preferred stock####27,404######27,404 Less: Other Tier 1 adjustments####683######707 Standardized/Advanced Tier 1 capital##$##277,306####$##245,631 Long-term debt and other instruments qualifying as Tier 2 capital##$##11,779####$##13,569 Qualifying allowance for credit losses(d)####20,102######19,353 Other####(690)######(784) Standardized Tier 2 capital##$##31,191####$##32,138 Standardized Total capital##$##308,497####$##277,769 Adjustment in qualifying allowance for credit losses for Advanced Tier 2 capital(e)####(13,080)##(f)####(13,186) Advanced Tier 2 capital##$##18,111####$##18,952 Advanced Total capital##$##295,417####$##264,583


JPM Capital components

(a)Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in nontaxable transactions, which are netted against goodwill and other intangibles when calculating CET1 capital.


JPM Capital components

(b)As of December 31, 2023 and 2022, included a net benefit associated with cash flow hedges and debit valuation adjustments ("DVA") related to structured notes recorded in AOCI of $4.3 billion and $5.2 billion and the benefit from the CECL capital transition provisions of $1.4 billion and $2.2 billion, respectively.


JPM Capital components

(c)Goodwill deducted from capital includes goodwill associated with equity method investments in nonconsolidated financial institutions based on regulatory requirements. Refer to page 134 for additional information on principal investment risk.


JPM Capital components

(d)Represents the allowance for credit losses eligible for inclusion in Tier 2 capital up to 1.25% of credit risk RWA, including the impact of the CECL capital transition provision with any excess deducted from RWA. Refer to Note 27 for additional information on the CECL capital transition.


JPM Capital components

(e)Represents an adjustment to qualifying allowance for credit losses for the excess of eligible credit reserves over expected credit losses up to 0.6% of credit risk RWA, including the impact of the CECL capital transition provision with any excess deducted from RWA.


JPM Capital components

(f)Included an incremental $655 million allowance for credit losses on certain assets associated with First Republic to which the Standardized approach has been applied, as permitted by the transition provisions in the U.S. capital rules.


JPM Capital rollforward

The following table presents the changes in Basel III CET1 capital, Tier 1 capital and Tier 2 capital for the year ended December 31, 2023. Year ended December 31, (in millions)####2023 Standardized/Advanced CET1 capital at December 31, 2022##$##218,934 Net income applicable to common equity####48,051 Dividends declared on common stock####(12,055) Net purchase of treasury stock####(8,881) Changes in additional paid-in capital####1,084 Changes related to AOCI applicable to capital:#### Unrealized gains/(losses) on investment securities####5,381 Translation adjustments, net of hedges(a)####329 Fair value hedges####(101) Defined benefit pension and other postretirement employee benefit (“OPEB”) plans####373 Changes related to other CET1 capital adjustments(b)####(2,530) Change in Standardized/Advanced CET1 capital####31,651 Standardized/Advanced CET1 capital at  December 31, 2023##$##250,585 Standardized/Advanced Tier 1 capital at December 31, 2022##$##245,631 Change in CET1 capital(b)####31,651 Redemptions of noncumulative perpetual preferred stock####— Other####24 Change in Standardized/Advanced Tier 1 capital####31,675 Standardized/Advanced Tier 1 capital at December 31, 2023##$##277,306 Standardized Tier 2 capital at December 31, 2022##$##32,138 Change in long-term debt and other instruments qualifying as Tier 2####(1,790) Change in qualifying allowance for credit losses(b)####749 Other####94 Change in Standardized Tier 2 capital####(947) Standardized Tier 2 capital at December 31, 2023##$##31,191 Standardized Total capital at December 31, 2023##$##308,497 Advanced Tier 2 capital at December 31, 2022##$##18,952 Change in long-term debt and other instruments qualifying as Tier 2####(1,790) Change in qualifying allowance for credit losses(b)(c)####855 Other####94 Change in Advanced Tier 2 capital####(841) Advanced Tier 2 capital at December 31, 2023##$##18,111 Advanced Total capital at December 31, 2023##$##295,417


JPM Capital rollforward

(a)Includes foreign currency translation adjustments and the impact of related derivatives.


JPM Capital rollforward

(b)Includes the impact of the CECL capital transition provisions and the cumulative effect of changes in accounting principles. Refer to Note 27 for additional information on the CECL capital transition.


JPM Capital rollforward

(c)Included an incremental $655 million allowance for credit losses on certain assets associated with First Republic to which the Standardized approach has been applied, as permitted by the transition provisions in the U.S. capital rules.


JPM RWA rollforward

The following table presents changes in the components of RWA under Basel III Standardized and Advanced approaches for the year ended December 31, 2023. The amounts in the rollforward categories are estimates, based on the predominant driver of the change. ########Standardized##############Advanced###### Year ended December 31, 2023 (in millions)####Credit risk RWA(c)####Market risk RWA####Total RWA####Credit risk RWA(c)(d)####Market risk RWA####Operational risk RWA####Total RWA December 31, 2022##$##1,568,536##$##85,002##$##1,653,538##$##1,078,076##$##85,432##$##446,265##$##1,609,773 Model & data changes(a)####(11,024)####(4,883)####(15,907)####(11,313)####(4,883)####—####(16,196) Movement in portfolio levels(b)####46,339####(11,975)####34,364####88,498####(11,946)####(973)####75,579 Changes in RWA####35,315####(16,858)####18,457####77,185####(16,829)####(973)####59,383 December 31, 2023##$##1,603,851##$##68,144##$##1,671,995##$##1,155,261##$##68,603##$##445,292##$##1,669,156


JPM RWA rollforward

(a)Model & data changes refer to material movements in levels of RWA as a result of revised methodologies and/or treatment per regulatory guidance (exclusive of rule changes).


JPM RWA rollforward

(b)Movement in portfolio levels (inclusive of rule changes) refers to: for Credit risk RWA, changes in book size, impacts associated with the First Republic acquisition, including the benefit of the shared-loss agreements entered into with the FDIC, position roll-offs in legacy portfolios in Home Lending, changes in composition and credit quality, market movements, and deductions for excess eligible allowances for credit losses not eligible for inclusion in Tier 2 capital; for Market risk RWA, changes in position, market movements, and changes in the Firm’s regulatory multiplier from Regulatory VaR backtesting exceptions; and for Operational risk RWA, updates to cumulative losses and macroeconomic model inputs.


JPM RWA rollforward

(c)As of December 31, 2023 and 2022, the Basel III Standardized Credit risk RWA included wholesale and retail off balance-sheet RWA of $208.5 billion and $210.1 billion, respectively; and the Basel III Advanced Credit risk RWA included wholesale and retail off balance-sheet RWA of $188.5 billion and $180.8 billion, respectively.


JPM RWA rollforward

(d)As of December 31, 2023, Credit risk RWA reflected approximately $52.4 billion of RWA calculated under the Standardized approach for certain assets associated with First Republic as permitted by the transition provisions in the U.S. capital rules.


JPM RWA rollforward

Refer to the Firm’s Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm’s website, for further information on Credit risk RWA, Market risk RWA and Operational risk RWA.


JPM Supplementary leverage ratio

The following table presents the components of the Firm’s SLR. Three months ended (in millions, except ratio)####December 31, 2023######December 31, 2022## Tier 1 capital##$##277,306####$##245,631## Total average assets####3,885,632######3,755,271## Less: Regulatory capital adjustments(a)####54,432######51,398## Total adjusted average assets(b)####3,831,200######3,703,873## Add: Off-balance sheet exposures(c)####709,265######663,219## Total leverage exposure##$##4,540,465####$##4,367,092## SLR####6.1##%####5.6##%


JPM Supplementary leverage ratio

(a)For purposes of calculating the SLR, includes quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill, inclusive of estimated equity method goodwill, other intangible assets and adjustments for the CECL capital transition provisions. Refer to Note 27 for additional information on the CECL capital transition.


JPM Supplementary leverage ratio

(b)Adjusted average assets used for the calculation of Tier 1 leverage ratio.


JPM Supplementary leverage ratio

(c)Off-balance sheet exposures are calculated as the average of the three month-end spot balances on applicable regulatory exposures during the reporting quarter. Refer to the Firm’s Pillar 3 Regulatory Capital Disclosures reports for additional information.


JPM Line of business equity

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


JPM Line of business equity

The Firm’s current allocation methodology incorporates Basel III Standardized RWA and the GSIB surcharge, both


JPM Line of business equity

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. As of January 1, 2024, changes to the Firm’s line of business capital allocations are primarily a result of updates to the Firm’s current capital requirements and changes in RWA for each LOB under rules currently in effect. In addition, the capital that the Firm has accumulated to meet the increased requirements of the U.S. Basel III proposal has generally been retained in Corporate.


JPM Line of business equity

The following table presents the capital allocated to each business segment. ######Line of business equity (Allocated capital)######## ############December 31,## (in billions)####January 1, 2024######2023(a)####2022 Consumer & Community Banking##$##54.5####$##55.5##$##50.0 Corporate & Investment Bank####102.0######108.0####103.0 Commercial Banking####30.0######30.0####25.0 Asset & Wealth Management####15.5######17.0####17.0 Corporate####98.5######90.0####69.9 Total common stockholders’ equity##$##300.5####$##300.5##$##264.9


JPM Line of business equity

(a)Includes the impact of the First Republic acquisition.


JPM Common stock dividends

The Firm’s common stock dividends are planned as part of the Capital Management governance framework in line with the Firm’s capital management objectives.


JPM Common stock dividends

The Firm’s quarterly common stock dividend is currently $1.05 per share. The Firm’s dividends are subject to approval by the Board of Directors on a quarterly basis.


JPM Common stock dividends

Refer to Note 21 and Note 26 for information regarding dividend restrictions.


JPM Common stock dividends

The following table shows the common dividend payout ratio based on net income applicable to common equity. Year ended December 31,##2023####2022####2021## Common dividend payout ratio##25##%##33##%##25##%


JPM Common stock

Effective May 1, 2022, the Firm is authorized to purchase up to $30 billion under its common share repurchase program previously approved by the Board of Directors, which was announced on April 13, 2022.


JPM Common stock

The following table sets forth the Firm’s repurchases of common stock for the years ended December 31, 2023, 2022 and 2021. Year ended December 31, (in millions)####2023####2022(b)####2021(c) Total number of shares of common stock repurchased####69.5####23.1####119.7 Aggregate purchase price of common stock repurchases(a)##$##9,898##$##3,122##$##18,448


JPM Common stock

(a)Excludes excise tax and commissions. As part of the Inflation Reduction Act of 2022, a 1% excise tax was imposed on net share repurchases effective January 1, 2023.


JPM Common stock

(b)In the second half of 2022, the Firm temporarily suspended share repurchases, which it resumed under its current common share repurchase program in the first quarter of 2023.


JPM Common stock

(c)As directed by the Federal Reserve, total net repurchases and common stock dividends in the first and second quarter of 2021 were restricted and could not exceed the average of the Firm’s net income for the four preceding calendar quarters. Effective July 1, 2021, the Firm became subject to the normal capital distribution restrictions provided under the regulatory capital framework.


JPM Common stock

The Board of Directors’ authorization to repurchase common shares is utilized at management’s discretion, and the timing of purchases and the exact amount of common shares that may be repurchased is subject to various factors, including market conditions; legal and regulatory considerations affecting the amount and timing of repurchase activity; the Firm’s capital position (taking into account goodwill and intangibles); internal capital generation; current and proposed future capital requirements; and alternative investment opportunities. The $30 billion common share repurchase program approved by the Board does not establish specific price targets or timetables. The repurchase program may be suspended by management at any time; and may be executed through open market purchases or privately negotiated transactions, or utilizing Rule 10b5-1 plans, which are written trading plans that the Firm may enter into from time to time under Rule 10b5-1 of the Securities Exchange Act of 1934 and which allow the Firm to repurchase its common shares during periods when it may otherwise not be repurchasing common shares — for example, during internal trading blackout periods.


JPM Common stock

Refer to Part II, Item 5: Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities on page 35 of the 2023 Form 10-K for additional information regarding repurchases of the Firm’s equity securities.


JPM Common stock

Refer to capital planning and stress testing on page 91 for additional information.


JPM Preferred stock

Preferred stock dividends declared were $1.5 billion for the year ended December 31, 2023, and $1.6 billion for each of the years ended December 31, 2022 and 2021.


JPM Preferred stock

Refer to Note 21 for additional information on the Firm’s preferred stock, including the issuance and redemption of preferred stock.


JPM Subordinated Debt

Refer to Long-term funding and issuance on page 108 and Note 20 for additional information on the Firm’s subordinated debt.


JPM Total Loss-Absorbing Capacity

The Federal Reserve’s TLAC rule requires the U.S. GSIB top-tier holding companies, including the Firm, to maintain minimum levels of external TLAC and eligible long-term debt.


JPM Total Loss-Absorbing Capacity

The external TLAC requirements and the minimum level of eligible long-term debt requirements are shown below:


JPM Total Loss-Absorbing Capacity

(a)RWA is the greater of Standardized and Advanced compared to their respective regulatory capital ratio requirements.


JPM Total Loss-Absorbing Capacity

Failure to maintain TLAC equal to or in excess of the regulatory minimum plus applicable buffers will result in limitations on the amount of capital that the Firm may distribute, such as through dividends and common share repurchases, as well as on discretionary bonus payments for certain executive officers.


JPM Total Loss-Absorbing Capacity

The following table presents the eligible external TLAC and eligible LTD amounts, as well as a representation of these amounts as a percentage of the Firm’s total RWA and total leverage exposure applying the impact of the CECL capital transition provisions as of December 31, 2023 and 2022. ########December 31, 2023############December 31, 2022#### (in billions, except ratio)####External TLAC######LTD######External TLAC######LTD## Total eligible amount##$##513.8####$##222.6####$##486.0####$##228.5## % of RWA####30.7##%####13.3##%####29.4##%####13.8##% Regulatory requirements####23.0######10.0######22.5######9.5## Surplus/(shortfall)##$##129.2####$##55.4####$##114.0####$##71.4## % of total leverage exposure####11.3##%####4.9##%####11.1##%####5.2##% Regulatory requirements####9.5######4.5######9.5######4.5## Surplus/(shortfall)##$##82.5####$##18.3####$##71.2####$##32.0##


JPM Total Loss-Absorbing Capacity

Effective January 1, 2023, the Firm’s regulatory requirements for TLAC to RWA and eligible LTD to RWA ratios increased by 50 bps to 23.0% and 10.0%, respectively, due to the increase in the Firm’s GSIB requirements. Refer to Risk-based Capital Regulatory Requirements on pages 94–95 for further information on the GSIB surcharge.


JPM Total Loss-Absorbing Capacity

Refer to Liquidity Risk Management on pages 102–109 for further information on long-term debt issued by the Parent Company.


JPM Total Loss-Absorbing Capacity

Refer to Part I, Item 1A: Risk Factors on pages 9-33 of the 2023 Form 10-K for information on the financial consequences to holders of the Firm’s debt and equity securities in a resolution scenario.


JPM J.P. Morgan Securities

JPMorgan Chase’s principal U.S. broker-dealer subsidiary is J.P. Morgan Securities. J.P. Morgan Securities is subject to the regulatory capital requirements of Rule 15c3-1 under the Securities Exchange Act of 1934 (the “Net Capital Rule”). J.P. Morgan Securities is also registered as a futures commission merchant and is subject to regulatory capital requirements, including those imposed by the SEC, the Commodity Futures Trading Commission (“CFTC”), the Financial Industry Regulatory Authority (“FINRA”) and the National Futures Association (“NFA”).


JPM J.P. Morgan Securities

J.P. Morgan Securities has elected to compute its minimum net capital requirements in accordance with the “Alternative Net Capital Requirements” of the Net Capital Rule.


JPM J.P. Morgan Securities

The following table presents J.P. Morgan Securities’ net capital: December 31, 2023######## (in millions)####Actual####Minimum Net Capital##$##27,865##$##5,346


JPM J.P. Morgan Securities

J.P. Morgan Securities is registered with the SEC as a security-based swap dealer and with the CFTC as a swap dealer. As a result of additional SEC and CFTC capital and financial reporting requirements for security-based swap dealers and swap dealers, J.P. Morgan Securities is subject to alternative minimum net capital requirements and required to hold “tentative net capital” in excess of $5.0 billion. J.P. Morgan Securities is also required to notify the SEC and CFTC in the event that its tentative net capital is less than $6.0 billion. Tentative net capital is net capital before deducting market and credit risk charges as defined by the Net Capital Rule. As of December 31, 2023, J.P. Morgan Securities maintained tentative net capital in excess of the minimum and notification requirements.


JPM J.P. Morgan Securities plc

J.P. Morgan Securities plc is a wholly-owned subsidiary of JPMorgan Chase Bank, N.A. and has authority to engage in banking, investment banking and broker-dealer activities. J.P. Morgan Securities plc is jointly regulated in the U.K. by the Prudential Regulation Authority (“PRA”) and the Financial Conduct Authority (“FCA”). J.P. Morgan Securities plc is subject to the European Union (“EU”) Capital Requirements Regulation (“CRR”), as adopted in the U.K., and the PRA capital rules, each of which have implemented Basel III and thereby subject J.P. Morgan Securities plc to its requirements.


JPM J.P. Morgan Securities plc

The Bank of England requires that U.K. banks, including U.K. regulated subsidiaries of overseas groups, maintain minimum requirements for own funds and eligible liabilities (“MREL”). As of December 31, 2023, J.P. Morgan Securities plc was compliant with its MREL requirements.


JPM J.P. Morgan Securities plc

Effective January 1, 2023, J.P. Morgan Securities plc was required to meet the minimum Tier 1 leverage ratio requirement established by the PRA of 3.25%, plus regulatory buffers.


JPM J.P. Morgan Securities plc

The following table presents J.P. Morgan Securities plc’s risk-based and leverage-based capital metrics: December 31, 2023############ (in millions, except ratios)####Actual####Regulatory Minimum ratios(a)#### Total capital##$##52,522######## CET1 capital ratio####16.9##%##4.5##%## Tier 1 capital ratio####22.3####6.0#### Total capital ratio####28.1####8.0#### Tier 1 leverage ratio####7.3####3.3####(b)


JPM J.P. Morgan Securities plc

(a)Represents minimum Pillar 1 requirements specified by the PRA. J.P. Morgan Securities plc's capital ratios as of December 31, 2023 exceeded the minimum requirements, including the additional capital requirements specified by the PRA.


JPM J.P. Morgan Securities plc

(b)At least 75% of the Tier 1 leverage ratio minimum must be met with CET1 capital.


JPM J.P. Morgan SE

JPMSE is a wholly-owned subsidiary of JPMorgan Chase Bank, N.A. and has authority to engage in banking, investment banking and markets activities. JPMSE is regulated by the European Central Bank as well as the local regulators in each of the countries in which it operates, and it is subject to EU capital requirements under Basel III.


JPM J.P. Morgan SE

JPMSE is required by the EU Single Resolution Board to maintain MREL. As of December 31, 2023, JPMSE was compliant with its MREL requirements.


JPM J.P. Morgan SE

The following table presents JPMSE’s risk-based and leverage-based capital metrics: December 31, 2023###### (in millions, except ratios)####Actual## Total capital##$##44,158## CET1 capital ratio####18.1##% Tier 1 capital ratio####18.1## Total capital ratio####32.2## Tier 1 leverage ratio####5.8##


JPM J.P. Morgan SE

(a)Represents minimum Pillar 1 requirements specified by the EU CRR. J.P. Morgan SE’s capital and leverage ratios as of December 31, 2023 exceeded the minimum requirements, including the additional capital requirements specified by EU regulators.


JPM LIQUIDITY RISK MANAGEMENT

Liquidity risk is the risk that the Firm will be unable to meet its cash and collateral needs as they arise or that it does not have the appropriate amount, composition and tenor of funding and liquidity to support its assets and liabilities.


JPM Liquidity risk management

The Firm has a Liquidity Risk Management (“LRM”) function whose primary objective is to provide independent oversight of liquidity risk across the Firm. Liquidity Risk Management’s responsibilities include: •Defining, monitoring and reporting liquidity risk metrics; •Independently establishing and monitoring limits and indicators, including liquidity risk appetite; •Developing a process to classify, monitor and report limit breaches; •Performing an independent review of liquidity risk management processes to evaluate their adequacy and effectiveness; •Monitoring and reporting internal Firmwide and legal entity liquidity stress tests, regulatory defined metrics, as well as liquidity positions, balance sheet variances and funding activities; and •Approving or escalating for review new or updated liquidity stress assumptions.


JPM Liquidity management

Treasury and CIO is responsible for liquidity management.


JPM Liquidity management

The primary objectives of the Firm’s liquidity management are to: •Ensure that the Firm’s core businesses and material legal entities are able to operate in support of client needs and meet contractual and contingent financial obligations through normal economic cycles as well as during stress events, and •Manage an optimal funding mix and availability of liquidity sources.


JPM Liquidity management

The Firm addresses these objectives through: •Analyzing and understanding the liquidity characteristics of the assets and liabilities of the Firm, LOBs, legal entities, as well as currencies, taking into account legal, regulatory, and operational restrictions; •Developing internal liquidity stress testing assumptions; •Defining and monitoring Firmwide and legal entity-specific liquidity strategies, policies, reporting and contingency funding plans; •Managing liquidity within the Firm’s approved liquidity risk appetite tolerances and limits; •Managing compliance with regulatory requirements related to funding and liquidity risk; and •Setting FTP in accordance with underlying liquidity characteristics of balance sheet assets and liabilities as well as certain off-balance sheet items.


JPM Liquidity management

As part of the Firm’s overall liquidity management strategy, the Firm manages liquidity and funding using a centralized, global approach designed to: •Optimize liquidity sources and uses; •Monitor exposures; •Identify constraints on the transfer of liquidity between the Firm’s legal entities; and •Maintain the appropriate amount of surplus liquidity at a Firmwide and legal entity level, where relevant.


JPM Governance

Committees responsible for liquidity governance include the Firmwide ALCO, as well as regional ALCOs, the Treasurer Committee, and the CTC Risk Committee. In addition, the Board Risk Committee reviews and recommends to the Board of Directors, for approval, the Firm’s liquidity risk tolerances, liquidity strategy, and liquidity policy. Refer to Firmwide Risk Management on pages 86–89 for further discussion of ALCO and other risk-related committees.


JPM Internal stress testing

The Firm conducts internal liquidity stress testing that is intended to ensure that the Firm and its material legal entities have sufficient liquidity under a variety of adverse scenarios, including scenarios analyzed as part of the Firm’s resolution and recovery planning. Internal stress tests are produced on a regular basis, and other stress tests are performed in response to specific market events or concerns. Liquidity stress tests assume all of the Firm’s contractual financial obligations are met and take into consideration: •Varying levels of access to unsecured and secured funding markets; •Estimated non-contractual and contingent cash outflows; •Credit rating downgrades; •Collateral haircuts; and •Potential impediments to the availability and transferability of liquidity between jurisdictions and material legal entities such as regulatory, legal or other restrictions.


JPM Internal stress testing

Liquidity outflows are modeled across a range of time horizons and currency dimensions and contemplate both market and idiosyncratic stresses.


JPM Internal stress testing

Results of stress tests are considered in the formulation of the Firm’s funding plan and assessment of its liquidity position. The Parent Company acts as a source of funding for the Firm through equity and long-term debt issuances, and its intermediate holding company, JPMorgan Chase Holdings LLC (the “IHC”), provides funding to support the ongoing operations of the Parent Company and its subsidiaries. The Firm maintains liquidity at the Parent Company, the IHC, and operating subsidiaries at levels sufficient to comply with liquidity risk tolerances and minimum liquidity requirements, and to manage through


JPM 102 JPMorgan Chase & Co./2023 Form 10-K

periods of stress when access to normal funding sources may be disrupted.


JPM Contingency funding plan

The Firm’s Contingency Funding Plan (“CFP”) sets out the strategies for addressing and managing liquidity resource needs during a liquidity stress event and incorporates liquidity risk limits, indicators and risk appetite tolerances. The CFP also identifies the alternative contingent funding and liquidity resources available to the Firm and its legal entities in a period of stress.


JPM LCR and HQLA

The LCR rule requires that the Firm and JPMorgan Chase Bank, N.A. maintain an amount of eligible HQLA that is sufficient to meet their respective estimated total net cash outflows over a prospective 30 calendar-day period of significant stress. Eligible HQLA, for purposes of calculating the LCR, is the amount of unencumbered HQLA that satisfy certain operational considerations as defined in the LCR rule. HQLA primarily consist of cash and certain high-quality liquid securities as defined in the LCR rule.


JPM LCR and HQLA

Under the LCR rule, the amount of eligible HQLA held by JPMorgan Chase Bank, N.A. that is in excess of its stand-alone 100% minimum LCR requirement, and that is not transferable to non-bank affiliates, must be excluded from the Firm’s reported eligible HQLA.


JPM LCR and HQLA

Estimated net cash outflows are based on standardized stress outflow and inflow rates prescribed in the LCR rule, which are applied to the balances of the Firm’s assets, sources of funds, and obligations. The LCR for both the Firm and JPMorgan Chase Bank, N.A. is required to be a minimum of 100%.


JPM LCR and HQLA

The following table summarizes the Firm and JPMorgan Chase Bank, N.A.’s average LCR for the three months ended December 31, 2023, September 30, 2023 and December 31, 2022 based on the Firm’s interpretation of the LCR framework. ##########Three months ended######## Average amount (in millions)####December 31, 2023######September 30, 2023######December 31, 2022## JPMorgan Chase & Co.:################## HQLA################## Eligible cash(a)##$##485,263####$##402,663####$##542,847## Eligible securities(b)(c)####313,365######378,702######190,201## Total HQLA(d)##$##798,628####$##781,365####$##733,048## Net cash outflows##$##704,857####$##696,668####$##652,580## LCR####113##%####112##%####112##% Net excess eligible HQLA(d)##$##93,771####$##84,697####$##80,468## ########JPMorgan Chase Bank, N.A.:########## LCR####129##%####123##%####151##% Net excess eligible HQLA##$##215,190####$##167,096####$##356,733##


JPM LCR and HQLA

(a)Represents cash on deposit at central banks, primarily the Federal Reserve Banks.


JPM LCR and HQLA

(b)Eligible HQLA securities may be reported in securities borrowed or purchased under resale agreements, trading assets, or investment securities on the Firm’s Consolidated balance sheets. For purposes of calculating the LCR, HQLA securities are included at fair value, which may differ from the accounting treatment under U.S. GAAP.


JPM LCR and HQLA

(c)Predominantly U.S. Treasuries, U.S. GSE and government agency MBS, and sovereign bonds net of regulatory haircuts under the LCR rule.


JPM LCR and HQLA

(d)Excludes average excess eligible HQLA at JPMorgan Chase Bank, N.A. that are not transferable to non-bank affiliates.


JPM LCR and HQLA

JPMorgan Chase Bank, N.A.'s average LCR increased during the three months ended December 31, 2023, compared with the three months ended September 30, 2023, driven by CIB market activities, partially offset by loan growth.


JPM LCR and HQLA

JPMorgan Chase Bank, N.A.’s average LCR for the three months ended December 31, 2023 decreased compared with the three months ended December 31, 2022, reflecting a decrease in JPMorgan Chase Bank, N.A.’s HQLA as a result of a reduction in cash due to a decline in average deposits and loan growth, as well as the impact of First Republic and lower market values of HQLA-eligible investment securities. These impacts were partially offset by CIB markets activities.


JPM LCR and HQLA

Refer to Note 10 and Note 34 for additional information on the Firm's investment securities portfolio and the First Republic acquisition.


JPM Management’s discussion and analysis

Actions by the Federal Reserve have impacted depositor behavior, resulting in reductions to system-wide deposits, including those held by the Firm. Each of the Firm and JPMorgan Chase Bank, N.A.'s average LCR may fluctuate from period to period due to changes in their respective eligible HQLA and estimated net cash outflows as a result of ongoing business activity and from the continued impacts of Federal Reserve actions as well as other factors. Refer to the Firm’s U.S. LCR Disclosure reports, which are available on the Firm’s website, for a further discussion of the Firm’s LCR.


JPM Liquidity sources

In addition to the assets reported in the Firm’s eligible HQLA discussed above, the Firm had unencumbered marketable securities, such as equity and debt securities, that the Firm believes would be available to raise liquidity. This includes excess eligible HQLA securities at JPMorgan Chase Bank, N.A. that are not transferable to non-bank affiliates. The fair value of these securities was approximately $649 billion and $694 billion as of December 31, 2023 and 2022, respectively, although the amount of liquidity that could be raised at any particular time would be dependent on prevailing market conditions. The decrease compared to December 31, 2022, was driven by a reduction in excess eligible HQLA securities at JPMorgan Chase Bank, N.A., partially offset by an increase in unencumbered AFS securities.


JPM Liquidity sources

As of December 31, 2023 and 2022, the Firm had approximately $1.4 trillion of available cash and securities comprised of eligible end-of-period HQLA, excluding the impact of regulatory haircuts of $798.0 billion and $735.5 billion, respectively, and unencumbered marketable securities with a fair value of approximately $649 billion and $694 billion, respectively.


JPM Liquidity sources

The Firm also had available borrowing capacity at the Federal Home Loan Banks (“FHLBs”) and the discount window at the Federal Reserve Banks as a result of collateral pledged by the Firm to such banks of approximately $340 billion and $323 billion as of December 31, 2023 and 2022, respectively. This borrowing capacity excludes the benefit of cash and securities reported in the Firm’s eligible HQLA or other unencumbered securities that are currently pledged at the Federal Reserve Banks discount window and other central banks. Available borrowing capacity increased from December 31, 2022 primarily due to a higher amount of wholesale loans pledged at the Federal Reserve Banks. Although available, the Firm does not view this borrowing capacity at the Federal Reserve Banks discount window and the other central banks as a primary source of liquidity.


JPM NSFR

The net stable funding ratio (“NSFR”) is a liquidity requirement for large banking organizations that is intended to measure the adequacy of “available” stable funding that is sufficient to meet their “required” amounts of stable funding over a one-year horizon.


JPM NSFR

For the three months ended December 31, 2023, both the Firm and JPMorgan Chase Bank, N.A. were compliant with the 100% minimum NSFR requirement, based on the Firm’s interpretation of the final rule. Refer to the Firm's U.S. NSFR Disclosure report covering December 31, 2023 and September 30, 2023 on the Firm’s website for additional information.


JPM Sources of funds

Management believes that the Firm’s unsecured and secured funding capacity is sufficient to meet its on- and off-balance sheet obligations, which includes both short- and long-term cash requirements.


JPM Sources of funds

The Firm funds its global balance sheet through diverse sources of funding including stable deposits, secured and unsecured funding in the capital markets and stockholders’ equity. Deposits are the primary funding source for JPMorgan Chase Bank, N.A. Additionally, JPMorgan Chase Bank, N.A. may access funding through short- or long-term secured borrowings, the issuance of unsecured long-term


JPM Sources of funds

debt, or from borrowings from the IHC. The Firm’s non-bank subsidiaries are primarily funded from long-term unsecured borrowings and short-term secured borrowings which are primarily securities loaned or sold under repurchase agreements. Excess funding is invested by Treasury and CIO in the Firm’s investment securities portfolio or deployed in cash or other short-term liquid investments based on their interest rate and liquidity risk characteristics.


JPM Sources of funds

Refer to Note 28 for additional information on off–balance sheet obligations.


JPM Deposits

The table below summarizes, by LOB and Corporate, the period-end and average deposit balances as of and for the years ended December 31, 2023 and 2022. As of or for the year ended December 31,##############Average## (in millions)####2023####2022####2023####2022 Consumer & Community Banking##$##1,094,738##$##1,131,611##$##1,126,552##$##1,162,680 Corporate & Investment Bank####777,638####689,893####728,537####739,700 Commercial Banking####273,254####271,342####267,758####294,180 Asset & Wealth Management####233,232####233,130####216,178####261,489 Corporate####21,826####14,203####20,042####9,866 Total Firm##$##2,400,688##$##2,340,179##$##2,359,067##$##2,467,915


JPM Deposits

The Firm believes that deposits provide a stable source of funding and reduce the Firm’s reliance on the wholesale funding markets. A significant portion of the Firm’s deposits are consumer deposits and wholesale operating deposits, which are both considered to be stable sources of liquidity. Wholesale operating deposits are generally considered to be stable sources of liquidity because they are generated from customers that maintain operating service relationships with the Firm.


JPM Deposits

The Firm believes that average deposit balances are generally more representative of deposit trends than period-end deposit balances. However, during periods of market disruption, average deposit trends may be impacted.


JPM Deposits

Average deposits were lower for the year ended December 31, 2023 compared to the year ended December 31, 2022, reflecting the net impact of: •lower balances in AWM due to continued migration into higher-yielding investments driven by the higher interest rate environment, partially offset by growth from new and existing customers as a result of new product offerings and the impact of First Republic, •a decline in CCB reflecting higher customer spending, largely offset by the impact of First Republic, •a decrease in CB due to continued deposit attrition as clients seek higher-yielding investments, partially offset by the retention of inflows associated with disruptions in the market in the first quarter of 2023, •a decline in CIB due to deposit attrition, including actions taken to reduce certain deposits, predominantly offset by


JPM Deposits

net issuances of structured notes as a result of client demand, and •growth in Corporate related to the Firm's international consumer initiatives.


JPM Deposits

Period-end deposits increased from December 31, 2022, reflecting the net impact of: •higher balances in CIB due to net issuances of structured notes as a result of client demand, as well as deposit inflows from client-driven activities in Payments and Securities Services, partially offset by deposit attrition, including actions taken to reduce certain deposits, •growth in Corporate related to the Firm's international consumer initiatives, •lower balances in CCB reflecting higher customer spending, •a decline in AWM due to continued migration into higher-yielding investments driven by the higher interest rate environment, predominantly offset by growth from new and existing customers as a result of new product offerings, and •a decrease in CB due to continued deposit attrition as clients seek higher-yielding investments, predominantly offset by the retention of inflows associated with disruptions in the market in the first quarter of 2023.


JPM Deposits

The net increase also included $61 billion of deposits associated with First Republic, primarily reflected in CCB, AWM and CB.


Refer to Business Segment Results on pages 65–85 and Note 34 for additional information on the First Republic acquisition.


Refer to the Firm’s Consolidated Balance Sheets Analysis and the Business Segment Results on pages 58–60 and pages 65–85, respectively, for further information on deposit and liability balance trends. Refer to Note 3 for further information on structured notes.


Certain deposits are covered by insurance protection that provides additional funding stability and results in a benefit to the LCR. Deposit insurance protection may be available to depositors in the countries in which the deposits are placed. For example, the Federal Deposit Insurance Corporation (“FDIC”) provides deposit insurance protection for deposits placed in a U.S. depository institution. At December 31, 2023 and 2022, the Firmwide estimated uninsured deposits were $1,331.9 billion and $1,383.7 billion, respectively, primarily reflecting wholesale operating deposits.


Total uninsured deposits include time deposits. The table below presents an estimate of uninsured U.S. and non-U.S. time deposits, and their remaining maturities. The Firm’s estimates of its uninsured U.S. time deposits are based on data that the Firm calculates periodically under applicable FDIC regulations. For purposes of this presentation, all non-U.S. time deposits are deemed to be uninsured. (in millions)######December 31, 2023########December 31, 2022#### ####U.S.####Non-U.S.####U.S.######Non-U.S. Three months or less##$##82,719##$##77,466##$##43,513####$##68,765 Over three months but within 6 months####17,736####5,358####8,670######3,658 Over six months but within 12 months####10,294####4,820####7,035######2,850 Over 12 months####710####2,543####787######2,634 Total##$##111,459##$##90,187##$##60,005####$##77,907


The table below shows the loan and deposit balances, the loans-to-deposits ratios, and deposits as a percentage of total liabilities, as of December 31, 2023 and 2022. As of December 31, (in billions except ratios)############ ####2023######2022## Deposits##$##2,400.7####$##2,340.2## Deposits as a % of total liabilities####68##%####69##% Loans##$##1,323.7####$##1,135.6## Loans-to-deposits ratio####55##%####49##%


The following table provides a summary of the average balances and average interest rates of JPMorgan Chase’s deposits for the years ended December 31, 2023, 2022, and 2021. (Unaudited) Year ended December 31,########Average balances##########Average interest rates###### (in millions, except interest rates)####2023####2022####2021##2023####2022####2021## U.S. offices######################## Noninterest-bearing##$##635,791##$##691,206##$##648,170##NA####NA####NA## Interest-bearing######################## Demand(a)####279,725####324,512####322,122##3.50##%##0.92##%##0.06##% Savings(b)####864,558####971,788####930,866##1.10####0.28####0.06## Time####145,827####62,022####48,628##4.74####2.07####0.26## Total interest-bearing deposits####1,290,110####1,358,322####1,301,616##2.03####0.52####0.07## Total deposits in U.S. offices####1,925,901####2,049,528####1,949,786##1.36####0.34####0.05## Non-U.S. offices######################## Noninterest-bearing####24,747####28,043####26,315##NA####NA####NA## Interest-bearing######################## Demand####321,976####324,740####313,304##2.71####0.57####(0.10)## Time####86,443####65,604####57,749##5.82####1.85####(0.09)## Total interest-bearing deposits####408,419####390,344####371,053##3.37####0.78####(0.10)## Total deposits in non-U.S. offices####433,166####418,387####397,368##3.18####0.73####(0.09)## Total deposits##$##2,359,067##$##2,467,915##$##2,347,154##1.70##%##0.41##%##0.02##%


(a)Includes Negotiable Order of Withdrawal accounts, and certain trust accounts.


(b)Includes Money Market Deposit Accounts.


Refer to Note 17 for additional information on deposits.


JPM 106 JPMorgan Chase & Co./2023 Form 10-K

The following table summarizes short-term and long-term funding, excluding deposits, as of December 31, 2023 and 2022, and average balances for the years ended December 31, 2023 and 2022. Refer to the Consolidated Balance Sheets Analysis on pages 58–60 and Note 11 for additional information. Sources of funds (excluding deposits)#################### As of or for the year ended December 31,################Average#### (in millions)####2023######2022####2023######2022 Commercial paper##$##14,737####$##12,557##$##12,675####$##16,151 Other borrowed funds####8,200######8,418####9,712######12,250 Federal funds purchased####787######1,684####1,754######1,567 Total short-term unsecured funding##$##23,724####$##22,659##$##24,141####$##29,968 Securities sold under agreements to repurchase(a)##$##212,804####$##198,382##$##249,661####$##236,192 Securities loaned(a)####2,944######2,547####4,671######5,003 Other borrowed funds####21,775##(g)####23,052####22,010######25,211 Obligations of Firm-administered multi-seller conduits(b)####17,781######9,236####14,918######7,387 Total short-term secured funding##$##255,304####$##233,217##$##291,260####$##273,793 Senior notes##$##191,202####$##188,025##$##181,803####$##189,047 Subordinated debt####19,708######21,803####20,374######20,125 Structured notes(c)####86,056######70,839####76,574######68,656 Total long-term unsecured funding##$##296,966####$##280,667##$##278,751####$##277,828 Credit card securitization(b)##$##2,998####$##1,999##$##1,634####$##1,950 FHLB advances####41,246##(g)####11,093####28,865######11,103 Purchase Money Note(d)####48,989######NA##$##32,829######NA Other long-term secured funding(e)####4,624######4,105####4,513######3,837 Total long-term secured funding##$##97,857####$##17,197##$##67,841####$##16,890 Preferred stock(f)##$##27,404####$##27,404##$##27,404####$##31,893 Common stockholders’ equity(f)##$##300,474####$##264,928##$##282,056####$##253,068


(a)Primarily consists of short-term securities loaned or sold under agreements to repurchase.


(b)Included in beneficial interests issued by consolidated variable interest entities on the Firm’s Consolidated balance sheets.


(c)Includes certain TLAC-eligible long-term unsecured debt issued by the Parent Company.


(d)Reflects the Purchase Money Note associated with the First Republic acquisition on May 1, 2023. Refer to Note 34 for additional information.


(e)Includes long-term structured notes which are secured.


(f)Refer to Capital Risk Management on pages 91-101, Consolidated statements of changes in stockholders’ equity on page 169, Note 21 and Note 22 for additional information on preferred stock and common stockholders’ equity.


(g)As of December 31, 2023, included short-term and long-term FHLB advances of $500 million and $23.2 billion, respectively, associated with First Republic. Refer to Note 34 for additional information.


JPM Short-term funding

The Firm’s sources of short-term secured funding primarily consist of securities loaned or sold under agreements to repurchase. These instruments are secured predominantly by high-quality securities collateral, including government-issued debt and U.S. GSE and government agency MBS. Securities sold under agreements to repurchase increased at December 31, 2023, compared with December 31, 2022, reflecting the impact of a lower level of netting on reduced repurchase activity.


JPM Short-term funding

The balances associated with securities loaned or sold under agreements to repurchase fluctuate over time due to investment and financing activities of clients, the Firm’s demand for financing, the ongoing management of the mix of the Firm’s liabilities, including its secured and unsecured financing (for both the investment securities and market-making portfolios), and other market and portfolio factors.


JPM Short-term funding

The Firm’s sources of short-term unsecured funding primarily consist of issuances of wholesale commercial paper and other borrowed funds.


JPM Short-term funding

The increase in period-end commercial paper and the decrease in average balances for the year ended December 31, 2023 compared to the respective prior year periods were due to changes in net issuance levels primarily for short-term liquidity management.


JPM Short-term funding

The decrease in average secured other borrowed funds for the year ended December 31, 2023 compared to the prior year period was primarily due to lower financing of Markets activities.


JPM Long-term funding and issuance

Long-term funding provides an additional source of stable funding and liquidity for the Firm. The Firm’s long-term funding plan is driven primarily by expected client activity, liquidity considerations and regulatory requirements, including TLAC. Long-term funding objectives include maintaining diversification, maximizing market access and optimizing funding costs. The Firm evaluates various funding markets, tenors and currencies in creating its optimal long-term funding plan.


JPM Long-term funding and issuance

The significant majority of the Firm’s total outstanding long-term debt has been issued by the Parent Company to provide flexibility in support of the funding needs of both bank and non-bank subsidiaries. The Parent Company advances substantially all net funding proceeds to its subsidiary, the IHC. The IHC does not issue debt to external counterparties. For the year ended December 31, 2023, the increase in period-end structured notes compared to the prior year period was attributable to net issuances of structured notes in Markets due to client demand and an increase in fair value.


JPM Long-term funding and issuance

The following table summarizes long-term unsecured issuance and maturities or redemptions for the years ended December 31, 2023 and 2022. Refer to Note 20 for additional information on the IHC and long-term debt. Long-term unsecured funding################ Year ended December 31,####2023####2022####2023####2022 (Notional in millions)######Parent Company########Subsidiaries## Issuance################ Senior notes issued in the U.S. market##$##14,256##$##32,600##$##3,750##$##— Senior notes issued in non-U.S. markets####2,141####2,752####—####— Total senior notes####16,397####35,352####3,750####— Subordinated debt####—####3,500####—####— Structured notes(a)####3,013####2,535####35,281####35,577 Total long-term unsecured funding – issuance##$##19,410##$##41,387##$##39,031##$##35,577 Maturities/redemptions################ Senior notes##$##21,483##$##16,700##$##67##$##65 Subordinated debt####2,090####—####—####— Structured notes####1,532####1,594####28,777####25,481 Total long-term unsecured funding – maturities/redemptions##$##25,105##$##18,294##$##28,844##$##25,546


JPM Long-term funding and issuance

(a)Includes certain TLAC-eligible long-term unsecured debt issued by the Parent Company.


JPM Long-term funding and issuance

The Firm can also raise secured long-term funding through securitization of consumer credit card loans and FHLB advances. The following table summarizes the securitization issuance, the FHLB advances, and their respective maturities or redemptions, as applicable for the years ended December 31, 2023 and 2022. Additionally, the table includes the FHLB advances and Purchase Money Note associated with First Republic. Refer to Note 34 for additional information. ######Long-term secured funding################ Year ended December 31,########Issuance##########Maturities/Redemptions#### (in millions)####2023########2022####2023######2022 Credit card securitization##$##1,998######$##999##$##1,000####$##1,400 FHLB advances####39,775########—####9,485######14 Purchase Money Note(a)####50,000########NA####—######NA Other long-term secured funding(b)####991########476####432######268 Total long-term secured funding##$##92,764######$##1,475##$##10,917####$##1,682


JPM Long-term funding and issuance

(a)Reflects the Purchase Money Note associated with the First Republic acquisition. Refer to Note 34 for additional information.


JPM Long-term funding and issuance

(b)Includes long-term structured notes that are secured.


JPM Long-term funding and issuance

The Firm’s wholesale businesses also securitize loans for client-driven transactions; those client-driven loan securitizations are not considered to be a source of funding for the Firm and are not included in the table above. Refer to Note 14 for a further description of client-driven loan securitizations.


JPM Credit ratings

The cost and availability of financing are influenced by credit ratings. Reductions in these ratings could have an adverse effect on the Firm’s access to liquidity sources, increase the cost of funds, trigger additional collateral or funding requirements and decrease the number of investors and counterparties willing to lend to the Firm. The nature and magnitude of the impact of ratings downgrades depends on numerous contractual and behavioral factors,


JPM Credit ratings

which the Firm believes are incorporated in its liquidity risk and stress testing metrics. The Firm believes that it


JPM Credit ratings

maintains sufficient liquidity to withstand a potential decrease in funding capacity due to ratings downgrades.


JPM Credit ratings

Additionally, the Firm’s funding requirements for VIEs and other third-party commitments may be adversely affected by a decline in credit ratings. Refer to Note 5 and Note 14 for additional information.


JPM Credit ratings

The credit ratings of the Parent Company and the Firm’s principal bank and non-bank subsidiaries as of December 31, 2023, were as follows: ####JPMorgan Chase & Co.######JPMorgan Chase Bank, N.A.########J.P. Morgan Securities LLC  J.P. Morgan Securities plc  J.P. Morgan SE## December 31, 2023##Long-term issuer##Short-term issuer##Outlook##Long-term issuer##Short-term issuer##Outlook####Long-term issuer##Short-term issuer##Outlook Moody’s Investors Service##A1##P-1##Stable##Aa2##P-1##Negative##(b)##Aa3##P-1##Stable Standard & Poor’s(a)##A-##A-2##Stable##A+##A-1##Stable####A+##A-1##Stable Fitch Ratings##AA-##F1+##Stable##AA##F1+##Stable####AA##F1+##Stable


JPM Credit ratings

(a)On March 31, 2023, Standard & Poor's affirmed the credit ratings of the Parent Company and the Firm’s principal bank and non-bank subsidiaries, and revised the outlook from positive to stable.


JPM Credit ratings

(b)On November 13, 2023, Moody’s revised the outlook of the Firm’s principal bank subsidiary from stable to negative to reflect Moody’s change to the U.S. sovereign outlook.


JPM Credit ratings

JPMorgan Chase’s unsecured debt does not contain requirements that would call for an acceleration of payments, maturities or changes in the structure of the existing debt, provide any limitations on future borrowings or require additional collateral, based on unfavorable changes in the Firm’s credit ratings, financial ratios, earnings, or stock price.


JPM Credit ratings

Critical factors in maintaining high credit ratings include a stable and diverse earnings stream, strong capital and liquidity ratios, strong credit quality and risk management controls, and diverse funding sources. Rating agencies continue to evaluate economic and geopolitical trends, regulatory developments, future profitability, risk management practices, and litigation matters, as well as their broader ratings methodologies. Changes in any of these factors could lead to changes in the Firm’s credit ratings.


JPM REPUTATION RISK MANAGEMENT

Reputation risk is the risk that an action or inaction may negatively impact perception of the Firm’s integrity and reduce confidence in the Firm’s competence by various stakeholders, including clients, counterparties, customers, communities, investors, regulators, or employees.


JPM REPUTATION RISK MANAGEMENT

The types of events that may result in reputation risk are wide-ranging and can be introduced by the Firm’s employees, business strategies and activities, clients, customers and counterparties with which the Firm does business. These events could contribute to financial losses, litigation, regulatory enforcement actions, fines, penalties or other sanctions, as well as other harm to the Firm.


JPM Organization and management

Reputation Risk Management is an independent risk management function that establishes the governance framework for managing reputation risk across the Firm’s LOBs and Corporate. Reputation risk is inherently challenging to identify, manage, and quantify.


JPM Organization and management

The Firm’s reputation risk management function includes the following activities: •Maintaining a Firmwide Reputation Risk Governance policy and a standard consistent with the reputation risk framework •Providing oversight of the governance framework through processes and infrastructure to support consistent identification, escalation and monitoring of reputation risk issues Firmwide


JPM Governance and oversight

The Reputation Risk Governance policy establishes the principles for managing reputation risk for the Firm. It is the responsibility of each LOB, Corporate and employees to consider the reputation of the Firm when deciding whether to offer a new product, engage in a transaction or client relationship, enter a new jurisdiction, initiate a business process or consider any other activity. Environmental impacts and social concerns are increasingly important considerations in assessing the Firm’s reputation risk, and are a component of the Firm’s reputation risk governance.


JPM CREDIT AND INVESTMENT RISK MANAGEMENT

Credit and investment risk is the risk associated with the default or change in credit profile of a client, counterparty or customer; or loss of principal or a reduction in expected returns on investments, including consumer credit risk, wholesale credit risk, and investment portfolio risk.


JPM Credit risk management

Credit risk is the risk associated with the default or change in credit profile of a client, counterparty or customer. The Firm provides credit to a variety of clients and customers, ranging from large corporate and institutional clients to individual consumers and small businesses. In its consumer businesses, the Firm is exposed to credit risk primarily through its home lending, credit card, auto, and business banking businesses. In its wholesale businesses, the Firm is exposed to credit risk through its underwriting, lending, market-making, and hedging activities with and for clients and counterparties, as well as through its operating services activities (such as cash management and clearing activities), and securities financing activities. The Firm is also exposed to credit risk through its investment securities portfolio and cash placed with banks.


JPM Credit risk management

Credit Risk Management monitors, measures and manages credit risk throughout the Firm and defines credit risk policies and procedures. The Firm’s credit risk management governance includes the following activities: •Maintaining a credit risk policy framework •Monitoring, measuring and managing credit risk across all portfolio segments, including transaction and exposure approval •Setting industry and geographic concentration limits, as appropriate, and establishing underwriting guidelines •Assigning and managing credit approval authorities in connection with the approval of credit exposure •Managing criticized exposures and delinquent loans, and •Estimating credit losses and supporting appropriate credit risk-based capital management


JPM Risk identification and measurement

To measure credit risk, the Firm employs several methodologies for estimating the likelihood of obligor or counterparty default. Methodologies for measuring credit risk vary depending on several factors, including type of asset (e.g., consumer versus wholesale), risk measurement parameters (e.g., delinquency status and borrower’s credit score versus wholesale risk-rating) and risk management and collection processes (e.g., retail collection center versus centrally managed workout groups). Credit risk measurement is based on the probability of default of an obligor or counterparty, the loss severity given a default event and the exposure at default.


JPM Risk identification and measurement

Based on these factors and the methodology and estimates described in Note 13 and Note 10, the Firm estimates credit losses for its exposures. The allowance for loan losses reflects estimated credit losses related to the consumer and wholesale held-for-investment loan portfolios, the allowance for lending-related commitments reflects estimated credit losses related to the Firm’s lending-related commitments and the allowance for investment securities reflects estimated credit losses related to the investment securities portfolio. Refer to Note 13, Note 10 and Critical Accounting Estimates used by the Firm on pages 155–158 for further information.


JPM Risk identification and measurement

In addition, potential and unexpected credit losses are reflected in the allocation of credit risk capital and represent the potential volatility of actual losses relative to the established allowances for loan losses and lending-related commitments. The analyses for these losses include stress testing that considers alternative economic scenarios as described below.


JPM Stress testing

Stress testing is important in measuring and managing credit risk in the Firm’s credit portfolio. The stress testing process assesses the potential impact of alternative economic and business scenarios on estimated credit losses for the Firm. Economic scenarios and the underlying parameters are defined centrally, articulated in terms of macroeconomic factors and applied across the businesses. The stress test results may indicate credit migration, changes in delinquency trends and potential losses in the credit portfolio. In addition to the periodic stress testing processes, management also considers additional stresses outside these scenarios, including industry and country- specific stress scenarios, as appropriate. The Firm uses stress testing to inform decisions on setting risk appetite both at a Firm and LOB level, as well as to assess the impact of stress on individual counterparties.


JPM Risk monitoring and management

The Firm has developed policies and practices that are designed to preserve the independence and integrity of the approval and decision-making process for extending credit so that credit risks are assessed accurately, approved properly, monitored regularly and managed actively at both the transaction and portfolio levels. The policy framework establishes credit approval authorities, concentration limits, risk-rating methodologies, portfolio review parameters and guidelines for management of distressed exposures. In addition, certain models, assumptions and inputs used in evaluating and monitoring credit risk are independently validated by groups that are separate from the LOBs.


JPM Risk monitoring and management

Consumer credit risk is monitored for delinquency and other trends, including any concentrations at the portfolio level, as certain of these trends can be addressed through changes in underwriting policies and portfolio guidelines. Consumer Risk Management evaluates delinquency and other trends against business expectations, current and forecasted economic conditions, and industry benchmarks. Historical and forecasted economic performance and trends are incorporated into the modeling of estimated consumer credit losses and are part of the monitoring of the credit risk profile of the portfolio.


JPM Risk monitoring and management

Wholesale credit risk is monitored regularly at an aggregate portfolio, industry, and individual client and counterparty level with established concentration limits that are reviewed and revised periodically as deemed appropriate by management. Industry and counterparty limits, as measured in terms of exposure and economic risk appetite, are subject to stress-based loss constraints.


JPM Risk monitoring and management

Management of the Firm’s wholesale credit risk exposure is accomplished through a number of means, including: •Loan underwriting and credit approval processes •Loan syndications and participations •Loan sales and securitizations •Credit derivatives •Master netting agreements, and •Collateral and other risk-reduction techniques


JPM Risk monitoring and management

In addition to Credit Risk Management, an independent Credit Review function is responsible for: •Independently assessing risk grades assigned to exposures in the Firm’s wholesale credit portfolio and the timeliness of risk grade changes initiated by responsible business units; and •Evaluating the effectiveness of the credit management processes of the LOBs and Corporate, including the adequacy of credit analyses and risk grading/loss given default (“LGD”) rationales, proper monitoring and management of credit exposures, and compliance with applicable grading policies and underwriting guidelines.


JPM Risk monitoring and management

Refer to Note 12 for further discussion of consumer and wholesale loans.


JPM Risk reporting

To enable monitoring of credit risk and effective decision-making, aggregate credit exposure, credit quality forecasts, concentration levels and risk profile changes are reported regularly to senior members of Credit Risk Management. Detailed portfolio reporting of industry, clients, counterparties and customers, product and geography are prepared, and the appropriateness of the allowance for credit losses is reviewed by senior management at least on a quarterly basis. Through the risk reporting and governance structure, credit risk trends and limit exceptions are provided regularly to, and discussed with, risk committees, senior management and the Board of Directors.


JPM CREDIT PORTFOLIO

Credit risk is the risk associated with the default or change in credit profile of a client, counterparty or customer.


JPM CREDIT PORTFOLIO

In the following tables, total loans include loans retained (i.e., held-for-investment); loans held-for-sale; and certain loans accounted for at fair value. The following tables do not include loans which the Firm accounts for at fair value and classifies as trading assets; refer to Notes 2 and 3 for further information regarding these loans. Refer to Notes 12, 28, and 5 for additional information on the Firm’s loans, lending-related commitments and derivative receivables, including the Firm’s related accounting policies.


JPM CREDIT PORTFOLIO

Refer to Note 10 for information regarding the credit risk inherent in the Firm’s investment securities portfolio; and refer to Note 11 for information regarding credit risk inherent in the securities financing portfolio. Refer to Consumer Credit Portfolio on pages 114–119 and Note 12 for further discussions of the consumer credit environment and consumer loans. Refer to Wholesale Credit Portfolio on pages 120–130 and Note 12 for further discussions of the wholesale credit environment and wholesale loans.


JPM CREDIT PORTFOLIO

On January 1, 2023, the Firm adopted changes to the TDR accounting guidance, which eliminated the accounting and disclosure requirements for TDRs including the requirement to assess whether a modification is reasonably expected or involves a concession. The new guidance requires disclosure of loan modifications to borrowers experiencing financial difficulty consisting of principal forgiveness, interest rate reduction, other-than-insignificant payment delay, term extension or a combination of these modifications. The Firm has defined these types of modifications as financial difficulty modifications ("FDMs"). As a result of the elimination of the requirement to assess whether a modification is reasonably expected or involves a concession, the population of loans considered FDMs differs from the population previously considered TDRs. Refer to Note 1 and Note 12 for further information. ##Total credit portfolio################ December 31, (in millions)######Credit exposure##########Nonperforming(d)## ####2023######2022####2023####2022 Loans retained##$##1,280,870####$##1,089,598##$##5,989##$##5,837 Loans held-for-sale####3,985######3,970####184####54 Loans at fair value####38,851######42,079####744####829 Total loans####1,323,706######1,135,647####6,917####6,720 Derivative receivables####54,864######70,880####364####296 Receivables from customers(a)####47,625######49,257####—####— Total credit-related assets####1,426,195######1,255,784####7,281####7,016 Assets acquired in loan satisfactions################## Real estate owned####NA######NA####274####203 Other####NA######NA####42####28 Total assets acquired in loan satisfactions####NA######NA####316####231 Lending-related commitments####1,497,847######1,326,782####464####455 Total credit portfolio##$##2,924,042##(c)##$##2,582,566##$##8,061##$##7,702 Credit derivatives and credit-related notes used in credit portfolio management activities(b)##$##(37,779)####$##(19,330)##$##—##$##— Liquid securities and other cash collateral held against derivatives####(22,461)######(23,014)####NA####NA


JPM CREDIT PORTFOLIO

(a) Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM; these are reported within accrued interest and accounts receivable on the Consolidated balance sheets.


JPM CREDIT PORTFOLIO

(b) Represents the net notional amount of protection purchased and sold through credit derivatives and credit-related notes used to manage credit exposures.


JPM CREDIT PORTFOLIO

(c) Includes credit exposure associated with First Republic consisting of $102.2 billion in the Consumer credit portfolio and $90.6 billion in the Wholesale credit portfolio.


JPM CREDIT PORTFOLIO

(d) At December 31, 2023 and 2022, nonperforming assets excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $182 million and $302 million, respectively. These amounts have been excluded based upon the government guarantee. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.


JPM CREDIT PORTFOLIO

The following table provides information on Firmwide nonaccrual loans to total loans. December 31, (in millions, except ratios)####2023######2022## Total nonaccrual loans##$##6,917####$##6,720## Total loans####1,323,706######1,135,647## Firmwide nonaccrual loans to total loans outstanding####0.52##%####0.59##%


JPM CREDIT PORTFOLIO

The following table provides information about the Firm’s net charge-offs and recoveries. Year ended December 31, (in millions, except ratios)####2023######2022## Net charge-offs##$##6,209####$##2,853## Average retained loans####1,202,348######1,044,765## Net charge-off rates####0.52##%####0.27##%


JPM CONSUMER CREDIT PORTFOLIO

The Firm’s retained consumer portfolio consists primarily of loans and lending-related commitments for residential real estate, credit card, scored auto and business banking, including those associated with First Republic, primarily in residential real estate. The consumer credit portfolio also includes loans at fair value, predominantly in residential real estate. The Firm’s focus is on serving primarily the prime segment of the consumer credit market. Originated mortgage loans are retained in the residential real estate portfolio, securitized or sold to U.S. government agencies and U.S. government-sponsored enterprises; other types of consumer loans are typically retained on the balance sheet. Refer to Note 12 for further information on the consumer loan portfolio. Refer to Note 28 for further information on lending-related commitments.


JPM 114 JPMorgan Chase & Co./2023 Form 10-K

The following tables present consumer credit-related information with respect to the scored credit portfolio held in CCB, AWM, CIB and Corporate. ##########Consumer credit portfolio######## December 31, (in millions)######Credit exposure##########Nonaccrual loans(j)(k)(l)## ####2023######2022####2023####2022 Consumer, excluding credit card################## Residential real estate(a)##$##326,409####$##237,561##$##3,466##$##3,745 Auto and other(b)(c)####70,866######63,192####177####129 Total loans - retained####397,275######300,753####3,643####3,874 Loans held-for-sale####487######618####95####28 Loans at fair value(d)####12,331######10,004####465####423 Total consumer, excluding credit card loans####410,093######311,375####4,203####4,325 Lending-related commitments(e)####45,403######33,518######## Total consumer exposure, excluding credit card####455,496##(i)####344,893######## Credit card################## Loans retained(f)####211,123######185,175####NA####NA Total credit card loans####211,123######185,175####NA####NA Lending-related commitments(e)(g)####915,658######821,284######## Total credit card exposure####1,126,781######1,006,459######## Total consumer credit portfolio##$##1,582,277####$##1,351,352##$##4,203##$##4,325 Credit-related notes used in credit portfolio management activities(h)##$##(790)####$##(1,187)######## ##############Year ended December 31,############ (in millions, except ratios)######Net charge-offs/(recoveries)########Average loans - retained########Net charge-off/(recovery) rate(m)#### ####2023####2022####2023####2022##2023######2022## Consumer, excluding credit card########################## Residential real estate##$##(52)##$##(226)##$##296,515##$##233,454##(0.02)##%####(0.10)##% Auto and other####684####495####67,546####65,955##1.01######0.75## Total consumer, excluding credit card - retained####632####269####364,061####299,409##0.17######0.09## Credit card - retained####4,698####2,403####191,412####163,335##2.45######1.47## Total consumer - retained##$##5,330##$##2,672##$##555,473##$##462,744##0.96##%####0.58##%


(a)Includes scored mortgage and home equity loans held in CCB and AWM.


(b)At December 31, 2023 and 2022, excluded operating lease assets of $10.4 billion and $12.0 billion, respectively. These operating lease assets are included in other assets on the Firm’s Consolidated balance sheets. Refer to Note 18 for further information.


(c)Includes scored auto and business banking loans, and overdrafts.


(d)Includes scored mortgage loans held in CCB and CIB, and other consumer unsecured loans in CIB.


(e)Credit card, home equity and certain business banking lending-related commitments represent the total available lines of credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit would be used at the same time. For credit card commitments, and if certain conditions are met, home equity commitments and certain business banking commitments, the Firm can reduce or cancel these lines of credit by providing the borrower notice or, in some cases as permitted by law, without notice. Refer to Note 28 for further information.


(f)Includes billed interest and fees.


(g)Also includes commercial card lending-related commitments primarily in CB and CIB.


(h)Represents the notional amount of protection obtained through the issuance of credit-related notes that reference certain pools of residential real estate and auto loans in the retained consumer portfolio.


(i)At December 31, 2023, included credit exposure of $102.2 billion associated with First Republic, consisting of $99.6 billion in residential real estate and $2.6 billion in auto and other.


(j)At December 31, 2023 and 2022, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $182 million and $302 million, respectively. These amounts have been excluded from nonaccrual loans based upon the government guarantee. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status, as permitted by regulatory guidance.


(k)Generally excludes loans under payment deferral programs offered in response to the COVID-19 pandemic.


(l)At December 31, 2023 and 2022, nonaccrual loans excluded $15 million and $101 million, respectively, of PPP loans 90 or more days past due and guaranteed by the SBA.


(m)Average consumer loans held-for-sale and loans at fair value were $12.9 billion and $17.4 billion for the years ended December 31, 2023 and 2022, respectively. These amounts were excluded when calculating net charge-off/(recovery) rates.


JPM Maturities and sensitivity to changes in interest rates

The table below sets forth loan maturities by scheduled repayments, by class of loan and the distribution between fixed and floating interest rates based on the stated terms of the loan agreements. The Firm estimated the principal repayment amounts for both the residential real estate and auto and other loan classes by calculating the weighted-average loan balance and interest rates for loan pools based on remaining loan term. Refer to Note 12 for further information on loan classes. December 31, 2023 (in millions)####Within 1 year(e)######1-5 years####5-15 years####After 15 years####Total Consumer, excluding credit card###################### Residential real estate##$##17,830####$##27,447##$##110,504##$##181,593##$##337,374 Auto and other####20,191##(f)####47,315####5,209####4####72,719 Total consumer, excluding credit card loans(a)##$##38,021####$##74,762##$##115,713##$##181,597##$##410,093 Total credit card loans##$##210,418####$##700##$##5##$##—##$##211,123 Total consumer loans##$##248,439####$##75,462##$##115,718##$##181,597##$##621,216 Loans due after one year at fixed interest rates###################### Residential real estate(b)########$##20,337##$##59,603##$##89,044#### Auto and other##########47,236####3,767####4#### Credit card##########700####5####—#### Loans due after one year at variable interest rates(c)###################### Residential real estate(d)########$##7,110##$##50,901##$##92,549#### Auto and other##########79####1,442####—#### Total consumer loans########$##75,462##$##115,718##$##181,597####


(a)Included $3.9 billion, $4.6 billion, $27.9 billion, and $56.2 billion of loans within 1 year, 1-5 years, 5-15 years, and after 15 years, respectively, associated with First Republic.


(b)Included $3.0 billion, $8.9 billion, and $15.1 billion in 1-5 years, 5-15 years, and after 15 years, respectively, associated with First Republic.


(c)Includes loans that have an initial fixed interest rate that resets to a variable rate as the variable rate will be the prevailing rate over the life of the loan.


(d)Included $1.6 billion, $19.1 billion, and $41.0 billion in 1-5 years, 5-15 years, and after 15 years, respectively, associated with First Republic.


(e)Includes loans held-for-sale and loans at fair value.


(f)Includes overdrafts.


JPM Portfolio analysis

Loans increased from December 31, 2022 driven by residential real estate loans associated with First Republic and higher auto loans.


JPM Portfolio analysis

The following discussions provide information concerning individual loan products. Refer to Note 12 for further information about this portfolio, including information about delinquencies, loan modifications and other credit quality indicators.


JPM Portfolio analysis

Residential real estate: The residential real estate portfolio, including loans held-for-sale and loans at fair value, predominantly consists of prime mortgage loans and home equity lines of credit.


JPM Portfolio analysis

Retained loans increased compared to December 31, 2022 driven by residential real estate loans associated with First Republic. Retained nonaccrual loans decreased compared to December 31, 2022 predominantly driven by loan sales, partially offset by the net impact of paydowns and additions, including those associated with First Republic. Net recoveries were lower for the year ended December 31, 2023 compared to the prior year driven by lower prepayments due to higher interest rates.


JPM Portfolio analysis

Loans at fair value increased from December 31, 2022, driven by an increase in Home Lending as originations outpaced warehouse loan sales, and in CIB as purchases outpaced sales and paydowns.


JPM Portfolio analysis

At December 31, 2023 and 2022, the carrying values of interest-only residential mortgage loans were $90.6 billion and $36.3 billion, respectively. The increase was driven by First Republic. These loans have an interest-only payment period generally followed by an adjustable-rate or fixed-rate fully amortizing payment period to maturity and are typically originated as higher-balance loans to higher-income borrowers. The credit performance of this portfolio is comparable with the performance of the broader prime mortgage portfolio.


JPM Portfolio analysis

The carrying value of home equity lines of credit outstanding was $16.1 billion at December 31, 2023, which included $2.6 billion associated with First Republic. The carrying value of home equity lines of credit outstanding included $4.2 billion of HELOCs that have recast from interest-only to fully amortizing payments or have been modified and $4.3 billion of interest-only balloon HELOCs, which primarily mature after 2030. The Firm manages the risk of HELOCs during their revolving period by closing or reducing the undrawn line to the extent permitted by law when borrowers are exhibiting a material deterioration in their credit risk profile.


JPM residential mortgage portfolio insured and/or guaranteed

by U.S. government agencies, predominantly loans held-for-sale and loans at fair value. The Firm monitors its exposure to certain potential unrecoverable claim payments related to government-insured loans and considers this exposure in estimating the allowance for loan losses. (in millions)####December 31, 2023####December 31, 2022 Current##$##446##$##659 30-89 days past due####102####136 90 or more days past due####182####302 Total government guaranteed loans##$##730##$##1,097


Geographic composition and current estimated loan-to-value ratio of residential real estate loans


At December 31, 2023, $228.4 billion, or 70% of the total retained residential real estate loan portfolio, was concentrated in California, New York, Florida, Texas and Massachusetts, compared with $147.8 billion, or 62% at December 31, 2022.


Average current estimated loan-to-value (“LTV”) ratios have improved, reflecting an increase in home prices.


Refer to Note 12 for information on the geographic composition and current estimated LTVs of the Firm’s residential real estate loans.


JPM Modified residential real estate loans

For the year ended December 31, 2023, residential real estate FDMs were $136 million. In addition to FDMs, the Firm also had $69 million of loans subject to trial modification where the terms of the loans have not been permanently modified, as well as $9 million of loans subject to discharge under Chapter 7 bankruptcy proceedings ("Chapter 7 loans"). The changes to the TDR accounting guidance eliminated the TDR reasonably expected and concession assessment criteria. Accordingly, trial modifications and Chapter 7 loans were considered TDRs, but not FDMs. Refer to Note 1 and Note 12 for further information.


For the year ended December 31, 2022, residential real estate TDRs were $362 million. Refer to Note 12 for further information on TDRs in prior periods.


Auto and other: The auto and other loan portfolio, including loans at fair value, generally consists of prime-quality scored auto and business banking loans, other consumer unsecured loans, and overdrafts. The portfolio increased when compared to December 31, 2022 due to originations of scored auto loans and an increase in other consumer unsecured fair value option loans in CIB associated with First Republic, largely offset by paydowns. Net charge-offs for the year ended December 31, 2023 increased compared to the prior year due to higher charge-offs of scored auto loans driven by the decline in used vehicle valuations. The scored auto net charge-off rates were 0.56% and 0.24% for the years ended December 31, 2023 and 2022, respectively.