JPM Exhibits, Financial Statement Schedules

1##Financial statements ##The Consolidated Financial Statements, the Notes thereto and the report of the Independent Registered Public Accounting Firm thereon listed in Item 8 are set forth commencing on page 156. 2##Financial statement schedules 3##Exhibits 3.1##Restated Certificate of Incorporation of JPMorgan Chase & Co., effective April 5, 2006 (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed April 7, 2006). 3.2##Amendment to the Restated Certificate of Incorporation of JPMorgan Chase & Co., effective June 7, 2013 (incorporated by reference to Appendix F to the Proxy Statement on Schedule 14A of JPMorgan Chase & Co. (File No. 1-5805) filed April 10, 2013). 3.3##Certificate of Designations for Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series Q (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed April 23, 2013). 3.4##Certificate of Designations for Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series R (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed July 29, 2013). 3.5##Certificate of Designations for Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series S (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed January 22, 2014). 3.6##Certificate of Designations for Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series U (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed on March 10, 2014). 3.7##Certificate of Designations for Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series X (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed on September 23, 2014). 3.8##Certificate of Designations for Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series CC (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed October 20, 2017). 3.9##Certificate of Designations for 5.75% Non-Cumulative Preferred Stock, Series DD (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed September 21, 2018). 3.10##Certificate of Designations for 6.00% Non-Cumulative Preferred Stock, Series EE (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed January 24, 2019). 3.11##Certificate of Designations for Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series FF (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed July 31, 2019). 3.12##Certificate of Designations for 4.75% Non-Cumulative Preferred Stock, Series GG (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed November 7, 2019). 3.13##Certificate of Designations for Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series HH (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed January 23, 2020). 3.14##Certificate of Designations for Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series II (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed February 24, 2020). 3.15##Certificate of Designations for 4.55% Non-Cumulative Preferred Stock, Series JJ (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed March 17, 2021). 3.16##Certificate of Designations for 3.65% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series KK (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed May 12, 2021). 3.17##Certificate of Designations for 4.625% Non-Cumulative Preferred Stock, Series LL (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed May 20, 2021). 3.18##Certificate of Designations for 4.20% Non-Cumulative Preferred Stock, Series MM (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed July 29, 2021). 3.19##By-laws of JPMorgan Chase & Co., as amended, effective January 17, 2023 (incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed January 17, 2023). 4.1(a)##Indenture, dated as of October 21, 2010, between JPMorgan Chase & Co. and Deutsche Bank Trust Company Americas, as Trustee (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No.1-5805) filed October 21, 2010). 4.1(b)##First Supplemental Indenture, dated as of January 13, 2017, between JPMorgan Chase & Co. and Deutsche Bank Trust Company Americas, as Trustee, to the Indenture, dated as of October 21, 2010 (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed January 13, 2017). 4.2(a)##Subordinated Indenture, dated as of March 14, 2014, between JPMorgan Chase & Co. and U.S. Bank Trust National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No.1-5805) filed March 14, 2014). 4.2(b)##First Supplemental Indenture, dated as of January 13, 2017, between JPMorgan Chase & Co. and U.S. Bank Trust National Association, as Trustee, to the Subordinated Indenture, dated as of March 14, 2014 (incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed January 13, 2017). 4.3(a)##Indenture, dated as of May 25, 2001, between JPMorgan Chase & Co. and Bankers Trust Company (succeeded by Deutsche Bank Trust Company Americas), as Trustee (incorporated by reference to Exhibit 4(a)(1) to the Registration Statement on Form S-3 of JPMorgan Chase & Co. (File No. 333-52826) filed June 13, 2001). 4.3(b)##Sixth Supplemental Indenture, dated as of January 13, 2017, between JPMorgan Chase & Co. and Bankers Trust Company (succeeded by Deutsche Bank Trust Company Americas), as Trustee, to the Indenture, dated as of May 25, 2001 (incorporated by reference to Exhibit 4.3 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed January 13, 2017). 4.4####Indenture, dated as of February 19, 2016, among JPMorgan Chase Financial Company LLC, JPMorgan Chase & Co. and Deutsche Bank Trust Company Americas, as Trustee (incorporated by reference to Exhibit 4(a)(7) to the Registration Statement on Form S-3 of JPMorgan Chase & Co. and JPMorgan Chase Financial Company LLC (File No. 333-209682) filed February 24, 2016). 4.5####Form of Deposit Agreement (incorporated by reference to Exhibit 4.3 to the Registration Statement on Form S-3 of JPMorgan Chase & Co. (File No. 333-191692) filed October 11, 2013). 4.6####Description of Securities of JPMorgan Chase & Co. registered pursuant to Section 12 of the Securities Exchange Act of 1934. (b) ##Other instruments defining the rights of holders of long-term debt securities of JPMorgan Chase & Co. and its subsidiaries are omitted pursuant to Section (b)(4)(iii)(A) of Item 601 of Regulation S-K. JPMorgan Chase & Co. agrees to furnish copies of these instruments to the SEC upon request.## 10.1####Deferred Compensation Plan for Non-Employee Directors of JPMorgan Chase & Co., as amended and restated July 2001 and as of December 31, 2004 (incorporated by reference to Exhibit 10.1 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2007).(a) 10.2####2005 Deferred Compensation Plan for Non-Employee Directors of JPMorgan Chase & Co., effective as of January 1, 2005 (incorporated by reference to Exhibit 10.2 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2007).(a) 10.3####2005 Deferred Compensation Program of JPMorgan Chase & Co., restated effective as of December 31, 2008 (incorporated by reference to Exhibit 10.4 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2008).(a) 10.4####JPMorgan Chase & Co. Amended and Restated Long-Term Incentive Plan, effective May 18, 2021 (incorporated by reference to the Appendix of the Schedule 14A of JPMorgan Chase & Co. (File No. 1-5805) filed April 7, 2021).(a) 10.5####Key Executive Performance Plan of JPMorgan Chase & Co., as amended and restated effective January 1, 2014 (incorporated by reference to Appendix G of the Schedule 14A of JPMorgan Chase & Co. (File No. 1-5805) filed April 10, 2013).(a)


JPM Part IV

10.6##Excess Retirement Plan of JPMorgan Chase & Co., restated and amended as of December 31, 2008, as amended (incorporated by reference to Exhibit 10.7 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2009).(a) 10.7##Executive Retirement Plan of JPMorgan Chase & Co., as amended and restated December 31, 2008 (incorporated by reference to Exhibit 10.9 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2008).(a) 10.8##Bank One Corporation Supplemental Savings and Investment Plan, as amended and restated effective December 31, 2008 (incorporated by reference to Exhibit 10.13 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2008).(a) 10.9##Forms of JPMorgan Chase & Co. Long-Term Incentive Plan Terms and Conditions for performance share units and restricted stock units for Operating Committee members (U.S. and U.K.), dated as of January 17, 2017 (incorporated by reference to Exhibit 10.23 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2016).(a) 10.10##Forms of JPMorgan Chase & Co. Long-Term Incentive Plan Terms and Conditions for performance share units and restricted stock units for Operating Committee members (U.S. and U.K.), dated as of January 16, 2018 (incorporated by reference to Exhibit 10.19 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2017).(a) 10.11##Forms of JPMorgan Chase & Co. Long-Term Incentive Plan Terms and Conditions for restricted stock units for Operating Committee members (U.S. and U.K.), dated as of January 15, 2019 (incorporated by reference to Exhibit 10.18 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2018).(a) 10.12##Form of JPMorgan Chase & Co. Long-Term Incentive Plan Terms and Conditions of Performance Share Unit Award Operating Committee (U.K.) (incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed March 15, 2019).(a) 10.13##Forms of JPMorgan Chase & Co. Long-Term Incentive Plan Terms and Conditions for restricted stock units and performance share unit awards for Operating Committee members (U.S. and U.K.), dated as of January 21, 2020 (incorporated by reference to Exhibit 10.18 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2019).(a) 10.14##Forms of JPMorgan Chase & Co. Long-Term Incentive Plan Terms and Conditions for restricted stock units and performance share unit awards for Operating Committee members (U.S. and U.K.), dated as of January 19, 2021(incorporated by reference to Exhibit 10.17 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2020).(a) 10.15##Form of JPMorgan Chase & Co. Long-Term Incentive Plan Terms and Conditions for stock appreciation rights for Chairman/Chief Executive Officer, dated July 20, 2021 (incorporated by reference to Exhibit 99 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed July 20, 2021).(a) 10.16##Form of JPMorgan Chase & Co. Long-Term Incentive Plan Terms and Conditions for stock appreciation rights for President and Chief Operating Officer, dated December 14, 2021 (incorporated by reference to Exhibit 99 to the Current Report on Form 8-K of JPMorgan Chase & Co. (File No. 1-5805) filed December 15, 2021).(a) 10.17##Forms of JPMorgan Chase & Co. Long-Term Incentive Plan Terms and Conditions for restricted stock units and performance share unit awards for Operating Committee members (U.S. and U.K.), dated as of January 18, 2022(incorporated by reference to Exhibit 10.20 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5808) for the year ended December 31, 2021).(a) 10.18##Forms of JPMorgan Chase & Co. Long-Term Incentive Plan Terms and Conditions for restricted stock units and performance share unit awards for Operating Committee members (U.S. and U.K.), dated as of January 17, 2023.(a) 10.19##Forms of JPMorgan Chase & Co. Long-Term Incentive Plan Terms and Conditions for restricted stock units and performance share unit awards for Operating Committee members (U.S. and U.K.), dated as of January 16, 2024.(a)(b) 10.20##Employee Stock Purchase Plan of JPMorgan Chase & Co., as amended and restated effective as of January 1, 2019 (incorporated by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q of JPMorgan Chase & Co. (File No. 1-5805) for the quarter ended September 30, 2019). 10.21##Form of JPMorgan Chase & Co. Performance-Based Incentive Compensation Plan, effective as of January 1, 2021, as amended (incorporated by reference to Exhibit 10.23 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5808) for the year ended December 31, 2021).(a) 21##List of subsidiaries of JPMorgan Chase & Co.(b) 22.1##Annual Report on Form 11-K of The JPMorgan Chase 401(k) Savings Plan for the year ended December 31, 2023 (to be filed pursuant to Rule 15d-21 under the Securities Exchange Act of 1934). 22.2##Subsidiary Guarantors and Issuers of Guaranteed Securities.(b) 23##Consent of independent registered public accounting firm.(b) 31.1##Certification.(b) 31.2##Certification.(b) 32##Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.(c) 97##Policy for the Recovery of Erroneously Awarded Incentive-Based Compensation.(b) 101.INS##The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document.(d) 101.SCH##XBRL Taxonomy Extension Schema  Document.(b) 101.CAL##XBRL Taxonomy Extension Calculation Linkbase Document.(b) 101.DEF##XBRL Taxonomy Extension Definition Linkbase Document.(b) 101.LAB##XBRL Taxonomy Extension Label Linkbase Document.(b) 101.PRE##XBRL Taxonomy Extension Presentation Linkbase Document.(b) 104##Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101).


JPM Part IV

(a) This exhibit is a management contract or compensatory plan or arrangement.


JPM Part IV

(b) Filed herewith.


JPM Part IV

(c) Furnished herewith. This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.


JPM Part IV

(d) Pursuant to Rule 405 of Regulation S-T, includes the following financial information included in the Firm’s Form 10-K for the year ended December 31, 2023, formatted in XBRL (eXtensible Business Reporting Language) interactive data files: (i) the Consolidated statements of income for the years ended December 31, 2023, 2022 and 2021, (ii) the Consolidated statements of comprehensive income for the years ended December 31, 2023, 2022 and 2021, (iii) the Consolidated balance sheets as of December 31, 2023 and 2022, (iv) the Consolidated statements of changes in stockholders’ equity for the years ended December 31, 2023, 2022 and 2021, (v) the Consolidated statements of cash flows for the years ended December 31, 2023, 2022 and 2021, and (vi) the Notes to Consolidated Financial Statements.


JPM Table of contents

##Financial:## 46####Three-Year Summary of Consolidated Financial Highlights 47####Five-Year Stock Performance ##Management’s discussion and analysis:## 48####Introduction 49####Executive Overview 54####Consolidated Results of Operations 58####Consolidated Balance Sheets and Cash Flows Analysis 62####Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures 65####Business Segment Results 86####Firmwide Risk Management 90####Strategic Risk Management 91####Capital Risk Management 102####Liquidity Risk Management 111####Credit and Investment Risk Management 135####Market Risk Management 144####Country Risk Management 146####Climate Risk Management 147####Operational Risk Management 155####Critical Accounting Estimates Used by the Firm 159####Accounting and Reporting Developments 161####Forward-Looking Statements


JPM THREE-YEAR SUMMARY OF CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited)

As of or for the year ended December 31, (in millions, except per share, ratio, employee data and where otherwise noted)#################### ####2023########2022######2021## Selected income statement data#################### Total net revenue##$##158,104######$##128,695####$##121,649## Total noninterest expense####87,172########76,140######71,343## Pre-provision profit(a)####70,932########52,555######50,306## Provision for credit losses####9,320########6,389######(9,256)## Income before income tax expense####61,612########46,166######59,562## Income tax expense####12,060########8,490######11,228## Net income##$##49,552######$##37,676####$##48,334## Earnings per share data#################### Net income: Basic##$##16.25######$##12.10####$##15.39## Diluted####16.23########12.09######15.36## Average shares: Basic####2,938.6########2,965.8######3,021.5## Diluted####2,943.1########2,970.0######3,026.6## Market and per common share data#################### Market capitalization####489,320########393,484######466,206## Common shares at period-end####2,876.6########2,934.2######2,944.1## Book value per share####104.45########90.29######88.07## Tangible book value per share (“TBVPS”)(a)####86.08########73.12######71.53## Cash dividends declared per share####4.10########4.00######3.80## Selected ratios and metrics#################### Return on common equity (“ROE”)####17##%######14##%####19##% Return on tangible common equity (“ROTCE”)(a)####21########18######23## Return on assets (“ROA”)####1.30########0.98######1.30## Overhead ratio####55########59######59## Loans-to-deposits ratio####55########49######44## Firm Liquidity coverage ratio (“LCR”) (average)(b)####113########112######111## JPMorgan Chase Bank, N.A. LCR (average)(b)####129########151######178## Common equity Tier 1 (“CET1”) capital ratio(c)(d)####15.0########13.2######13.1## Tier 1 capital ratio(c)(d)####16.6########14.9######15.0## Total capital ratio(c)(d)####18.5########16.8######16.8## Tier 1 leverage ratio(b)(c)####7.2########6.6######6.5## Supplementary leverage ratio (“SLR”)(b)(c)####6.1########5.6######5.4## Selected balance sheet data (period-end)#################### Trading assets##$##540,607######$##453,799####$##433,575## Investment securities, net of allowance for credit losses####571,552########631,162######672,232## Loans####1,323,706########1,135,647######1,077,714## Total assets####3,875,393########3,665,743######3,743,567## Deposits####2,400,688########2,340,179######2,462,303## Long-term debt####391,825########295,865######301,005## Common stockholders’ equity####300,474########264,928######259,289## Total stockholders’ equity####327,878########292,332######294,127## Employees(e)####309,926####(f)####293,723######271,025## Credit quality metrics#################### Allowances for credit losses##$##24,765######$##22,204####$##18,689## Allowance for loan losses to total retained loans####1.75##%######1.81##%####1.62##% Nonperforming assets##$##7,597######$##7,247####$##8,346## Net charge-offs####6,209########2,853######2,865## Net charge-off rate####0.52##%######0.27##%####0.30##%


As of and for the period ended December 31, 2023, the results of the Firm include the impact of First Republic. Refer to Business Segment Results on page 67 and Note 34 for additional information.


(a)Pre-provision profit, TBVPS and ROTCE are each non-GAAP financial measures. Tangible common equity (“TCE”) is also a non-GAAP financial measure. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 62–64 for a discussion of these measures.


(b)For the years ended December 31, 2023, 2022 and 2021, the percentage represents average ratios for the three months ended December 31, 2023, 2022 and 2021.


(c)The ratios reflect the Current Expected Credit Losses (“CECL”) capital transition provisions. Refer to Note 27 for additional information.


(d)Reflects the Firm’s ratios under the Basel III Standardized approach. Refer to Capital Risk Management on pages 91-101 for additional information.


(e)This metric, which was formerly Headcount, has been renamed Employees but is otherwise unchanged. Refer to Part I, Item 1, Business section on pages 2-3 of this Form 10-K for a further discussion of Human Capital.


(f)Included approximately 4,500 individuals associated with First Republic who became employees effective July 2, 2023.


JPM FIVE-YEAR STOCK PERFORMANCE

The following table and graph compare the five-year cumulative total return for JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) common stock with the cumulative return of the S&P 500 Index, the KBW Bank Index and the S&P Financials Index. The S&P 500 Index is a commonly referenced equity benchmark in the United States of America (“U.S.”), consisting of leading companies from different economic sectors. The KBW Bank Index seeks to reflect the performance of banks and thrifts that are publicly traded in the U.S. and is composed of leading national money center and regional banks and thrifts. The S&P Financials Index is an index of financial companies, all of which are components of the S&P 500. The Firm is a component of all three industry indices.


JPM FIVE-YEAR STOCK PERFORMANCE

The following table and graph assume simultaneous investments of $100 on December 31, 2018, in JPMorgan Chase common stock and in each of the above indices. The comparison assumes that all dividends were reinvested. December 31, (in dollars)####2018####2019####2020####2021####2022####2023 JPMorgan Chase##$##100.00##$##147.27##$##139.14##$##177.72##$##155.33##$##203.09 KBW Bank Index####100.00####136.12####122.09####168.90####132.76####131.58 S&P Financials Index####100.00####132.09####129.77####175.02####156.59####175.61 S&P 500 Index####100.00####131.48####155.65####200.29####164.02####207.13


JPM Management’s discussion and analysis

The following is Management’s discussion and analysis of the financial condition and results of operations (“MD&A”) of JPMorgan Chase for the year ended December 31, 2023. The MD&A is included in both JPMorgan Chase’s Annual Report for the year ended December 31, 2023 (“Annual Report”) and its Annual Report on Form 10-K for the year ended December 31, 2023 (“2023 Form 10-K” or “Form 10-K”) filed with the Securities and Exchange Commission (“SEC”). Refer to the Glossary of terms and acronyms on pages 315-321 for definitions of terms and acronyms used throughout the Annual Report and the 2023 Form 10-K.


This Form 10-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the current beliefs and expectations of JPMorgan Chase’s management, speak only as of the date of this Form 10-K and are subject to significant risks and uncertainties. Refer to Forward-looking Statements on page 161 and Part 1, Item 1A: Risk factors in this Form 10-K on pages 9-33 for a discussion of certain of those risks and uncertainties and the factors that could cause JPMorgan Chase’s actual results to differ materially because of those risks and uncertainties. There is no assurance that actual results will be in line with any outlook information set forth herein, and the Firm does not undertake to update any forward-looking statements.


JPM INTRODUCTION

JPMorgan Chase & Co. (NYSE: JPM), a financial holding company incorporated under Delaware law in 1968, is a leading financial services firm based in the United States of America (“U.S.”), with operations worldwide. JPMorgan Chase had $3.9 trillion in assets and $327.9 billion in stockholders’ equity as of December 31, 2023. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers, predominantly in the U.S., and many of the world’s most prominent corporate, institutional and government clients globally.


JPM INTRODUCTION

JPMorgan Chase’s principal bank subsidiary is JPMorgan Chase Bank, National Association (“JPMorgan Chase Bank, N.A.”), a national banking association with U.S. branches in 48 states and Washington, D.C. JPMorgan Chase’s principal non-bank subsidiary is J.P. Morgan Securities LLC (“J.P. Morgan Securities”), a U.S. broker-dealer. The bank and non-bank subsidiaries of JPMorgan Chase operate nationally as well as through overseas branches and subsidiaries, representative offices and subsidiary foreign banks. The Firm’s principal operating subsidiaries outside the U.S. are J.P. Morgan Securities plc and J.P. Morgan SE (“JPMSE”), which are subsidiaries of JPMorgan Chase Bank, N.A. and are based in the United Kingdom (“U.K.”) and Germany, respectively.


JPM INTRODUCTION

For management reporting purposes, the Firm’s activities are organized into four major reportable business segments, as well as a Corporate segment. The Firm’s consumer business is the Consumer & Community Banking (“CCB”) segment. The Firm’s wholesale businesses are the Corporate & Investment Bank (“CIB”), Commercial Banking (“CB”), and Asset & Wealth Management (“AWM”) segments. Refer to Business Segment Results on pages 65–85, and Note 32 for a description of the Firm’s business segments, and the products and services they provide to their respective client bases. On May 1, 2023, JPMorgan Chase acquired certain assets and assumed certain liabilities of First Republic Bank (the “First Republic acquisition”) from the Federal Deposit Insurance Corporation (“FDIC”). All references in this Form 10-K to “excluding First Republic,” “including First Republic,” “associated with First Republic” or “attributable to First Republic” refer to excluding or including the relevant effects of the First Republic acquisition, as well as subsequent related business and activities, as applicable. Refer to Note 34 for additional information.


JPM INTRODUCTION

The Firm’s website is www.jpmorganchase.com. JPMorgan Chase makes available on its website, free of charge, annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as soon as reasonably practicable after it electronically files or furnishes such material to the U.S. Securities and Exchange Commission (the “SEC”) at www.sec.gov. JPMorgan Chase makes new and important information about the Firm available on its website at https://www.jpmorganchase.com, including on the Investor Relations section of its website at https://www.jpmorganchase.com/ir. Information on the Firm's website, including documents on the website that are referenced in this Form 10-K, is not incorporated by reference into this 2023 Form 10-K or the Firm’s other filings with the SEC.


JPM EXECUTIVE OVERVIEW

This executive overview of the MD&A highlights selected information and does not contain all of the information that is important to readers of the Firm’s 2023 Form 10-K. For a complete description of the trends and uncertainties, as well as the risks and critical accounting estimates affecting the Firm, the 2023 Form 10-K should be read in its entirety. ####Financial performance of JPMorgan Chase########## Year ended December 31, (in millions, except per share data and ratios)############## ####2023######2022####Change Selected income statement data############## Noninterest revenue##$##68,837####$##61,985####11% Net interest income####89,267######66,710####34 Total net revenue####158,104######128,695####23 Total noninterest expense####87,172######76,140####14 Pre-provision profit####70,932######52,555####35 Provision for credit losses####9,320######6,389####46 Net income####49,552######37,676####32 Diluted earnings per share####16.23######12.09####34 Selected ratios and metrics############## Return on common equity####17##%####14##%## Return on tangible common equity####21######18#### Book value per share##$##104.45####$##90.29####16 Tangible book value per share####86.08######73.12####18 Capital ratios(a)(b)############## CET1 capital####15.0##%####13.2##%## Tier 1 capital####16.6######14.9#### Total capital####18.5######16.8#### Memo:############## NII excluding Markets(c)##$##90,041####$##62,355####44 NIR excluding Markets(c)####44,533######40,938####9 Markets(c)####27,792######28,984####(4) Total net revenue - managed basis##$##162,366####$##132,277####23


JPM EXECUTIVE OVERVIEW

As of and for the year ended December 31, 2023, the results of the Firm include the impact of First Republic. Refer to page 67 and Note 34 for additional information.


JPM EXECUTIVE OVERVIEW

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


JPM EXECUTIVE OVERVIEW

(b) Reflects the Firm’s ratios under the Basel III Standardized approach. Refer to Capital Risk Management on pages 91-101 for additional information.


JPM EXECUTIVE OVERVIEW

(c) NII and NIR refer to net interest income and noninterest revenue, respectively. Markets consists of CIB's Fixed Income Markets and Equity Markets businesses.


JPM EXECUTIVE OVERVIEW

Comparisons noted in the sections below are for the full year of 2023 versus the full year of 2022, unless otherwise specified.


JPM Firmwide overview

JPMorgan Chase reported net income of $49.6 billion for 2023, up 32%, earnings per share of $16.23, ROE of 17% and ROTCE of 21%. •Total net revenue was $158.1 billion, up 23%, reflecting:


JPM Firmwide overview

–Net interest income (“NII”) of $89.3 billion, up 34%, driven by higher rates, the impact of First Republic, and higher revolving balances in Card Services, partially offset by lower Markets net interest income and lower average deposit balances. NII excluding Markets was $90.0 billion, up 44%.


JPM Firmwide overview

–Noninterest revenue (“NIR”) was $68.8 billion, up 11%, driven by the impact of First Republic, including the $2.8 billion estimated bargain purchase gain, higher Markets noninterest revenue, and higher asset management fees, partially offset by the absence of the gain on the sale of Visa B shares in the prior year, higher net securities losses in Treasury and CIO, and lower auto operating lease income. •Noninterest expense was $87.2 billion, up 14%, predominantly driven by higher compensation expense, reflecting an increase in employees, primarily in technology and front office, as well as wage inflation. The increase in expense also includes the $2.9 billion FDIC special assessment and costs associated with the First Republic acquisition. •The provision for credit losses was $9.3 billion, reflecting $6.2 billion of net charge-offs and a net addition to the allowance for credit losses of $3.1 billion. Net charge-offs increased $3.3 billion, predominantly driven by Card Services, and to a lesser extent single name exposures in wholesale. The net addition to the allowance for credit losses included:


JPM Firmwide overview

–a net addition of $1.3 billion in consumer, predominantly driven by CCB, reflecting $1.4 billion in Card Services driven by loan growth, including an increase in revolving balances, partially offset by a net reduction of $200 million in Home Lending, and


JPM Firmwide overview

–a net addition of $657 million in wholesale, driven by net downgrade activity and a deterioration in the outlook for commercial real estate in CB.


JPM Firmwide overview

The net addition also included $1.2 billion to establish the allowance for First Republic loans and lending-related commitments in the second quarter of 2023.


JPM Firmwide overview

The provision in the prior year included a $3.5 billion net addition to the allowance for credit losses and net charge-offs of $2.9 billion. •The total allowance for credit losses was $24.8 billion at December 31, 2023. The Firm had an allowance for loan losses to retained loans coverage ratio of 1.75%, compared with 1.81% in the prior year. •The Firm’s nonperforming assets totaled $7.6 billion at December 31, 2023, up 5%, predominantly driven by wholesale nonaccrual loans, which reflected the impact of downgrades. Refer to Wholesale Credit Portfolio and Consumer Credit Portfolio on pages 120–130 and pages 114–119, respectively, for additional information.


JPM JPMorgan Chase & Co./2023 Form 10-K 49

•Firmwide average loans of $1.2 trillion were up 13%, predominantly driven by higher loans in CCB and CB, primarily as a result of First Republic. •Firmwide average deposits of $2.4 trillion were down 4%, driven by


–continued migration into higher-yielding investments in AWM, the impact of higher customer spending in CCB, continued deposit attrition in CB, and a net decline in CIB, which included actions taken to reduce certain deposits,


JPM partially offset by

–the increase in deposits associated with First Republic, and growth related to the Firm’s international consumer initiatives in Corporate.


JPM partially offset by

Refer to Liquidity Risk Management on pages 102–109 for additional information.


JPM Selected capital and other metrics

•CET1 capital was $251 billion, and the Standardized and Advanced CET1 ratios were both 15.0%. •SLR was 6.1%. •TBVPS grew 18%, ending 2023 at $86.08. •As of December 31, 2023, the Firm had eligible end-of-period High Quality Liquid Assets (“HQLA”) of approximately $798 billion and unencumbered marketable securities with a fair value of approximately $649 billion, resulting in approximately $1.4 trillion of liquidity sources. Refer to Liquidity Risk Management on pages 102–109 for additional information.


JPM Selected capital and other metrics

Refer to Consolidated Results of Operations and Consolidated Balance Sheets Analysis on pages 54–57 and pages 58–60, respectively, for a further discussion of the Firm's results, including the provision for credit losses; and Business Segment Results on page 67 and Note 34 for additional information on the First Republic acquisition.


JPM Selected capital and other metrics

Pre-provision profit, ROTCE, TCE, TBVPS, NII and NIR excluding Markets, and total net revenue on a managed basis are non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 62–64 for a further discussion of each of these measures.


JPM Business segment highlights

Selected business metrics for each of the Firm’s four lines of business (“LOB”) are presented below for the full year of 2023, and include the impact of First Republic, unless otherwise specified. CCB ROE 38%##•Average deposits down 3%; client investment assets up 47%, or up 25% excluding First Republic •Average loans up 20%, or up 6% excluding First Republic; Card Services net charge-off rate of 2.45%  •Debit and credit card sales volume(a) up 8% •Active mobile customers(b) up 8% CIB ROE 13%##•#1 ranking for Global Investment Banking fees with 8.8% wallet share for the year •Total Markets revenue of $27.8 billion, down 4%, with Fixed Income Markets up 1% and Equity Markets down 13% CB ROE 20%##•Gross Investment Banking and Markets revenue of $3.4 billion, up 14% •Average loans up 20%, or up 8% excluding First Republic; average deposits down 9% AWM ROE 31%##•Assets under management (“AUM”) of $3.4 trillion, up 24% •Average loans up 2%, or down 2% excluding First Republic; average deposits down 17%


JPM Business segment highlights

(a) Excludes Commercial Card.


JPM Business segment highlights

(b) Users of all mobile platforms who have logged in within the past 90 days. As of December 31, 2023, excludes First Republic.


JPM Business segment highlights

Refer to the Business Segment Results on pages 65–85 for a detailed discussion of results by business segment.


JPM Credit provided and capital raised

JPMorgan Chase continues to support consumers, businesses and communities around the globe. The Firm provided new and renewed credit and raised capital for wholesale and consumer clients during 2023, consisting of: $2.3 trillion##Total credit provided and capital raised (including loans and commitments) $239 billion##Credit for consumers $36 billion##Credit for U.S. small businesses $1.0 trillion##Credit for corporations $915 billion##Capital for corporate clients and non-U.S. government entities $47  billion##Credit and capital for nonprofit and U.S. government entities(a)


JPM Credit provided and capital raised

(a) Includes states, municipalities, hospitals and universities.


JPM Recent events

•On February 6, 2024, JPMorgan Chase announced that it plans to open more than 500 new branches, renovate approximately 1,700 locations and hire 3,500 employees over the next three years. •On January 25, 2024, JPMorgan Chase announced new responsibilities for several key executives:


JPM Recent events

–Jennifer Piepszak, formerly the Co-Chief Executive Officer (“CEO”) of CCB, and Troy Rohrbaugh, formerly the Co-head of Markets and Securities Services, became Co-CEOs of the expanded Commercial & Investment Bank, which brings together the Firm’s major wholesale businesses consisting of Global Investment Banking, Commercial Banking and Corporate Banking, as well as Markets, Securities Services and Global Payments.


JPM Recent events

–Marianne Lake, the former Co-CEO of CCB, became the sole CEO of that business.


JPM Recent events

–James Dimon, Chairman and CEO, and Daniel Pinto, President and Chief Operating Officer, will continue to jointly manage the company, with Mr. Pinto focusing on the execution of the Firm’s LOB priorities.


JPM Recent events

As a result of these organizational changes, the Firm will be reorganizing its business segments to reflect the manner in which the segments will be managed. The reorganization of the business segments is expected to be effective in the second quarter of 2024. •On January 16, 2024, JPMorgan Chase announced that Mark Weinberger, 62, had been elected to its Board of Directors, effective immediately. He will also serve as a member of the Board’s Audit Committee. Mr. Weinberger served as the Global Chairman and Chief Executive Officer of Ernst & Young from 2013 to 2019.


JPM Outlook

These current expectations are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs and expectations of JPMorgan Chase’s management, speak only as of the date of this Form 10-K, and are subject to significant risks and uncertainties. Refer to Forward-Looking Statements on page 161 and Part I, Item 1A, Risk Factors section on pages 9-33 of this Form 10-K for a further discussion of certain of those risks and uncertainties and the other factors that could cause JPMorgan Chase’s actual results to differ materially because of those risks and uncertainties. There is no assurance that actual results in 2024 will be in line with the outlook information set forth below, and the Firm does not undertake to update any forward-looking statements.


JPM Outlook

JPMorgan Chase’s current outlook for full-year 2024 should be viewed against the backdrop of the global and U.S. economies, financial markets activity, the geopolitical environment, the competitive environment, client and customer activity levels, and regulatory and legislative developments in the U.S. and other countries where the Firm does business. Each of these factors will affect the performance of the Firm. The Firm will continue to make appropriate adjustments to its businesses and operations in response to ongoing developments in the business, economic, regulatory and legal environments in which it operates.


JPM Full-year 2024

•Management expects net interest income to be approximately $90 billion, market dependent. •Management expects net interest income excluding Markets to be approximately $88 billion, market dependent. •Management expects adjusted expense to be approximately $90 billion, market dependent. •Management expects the net charge-off rate in Card Services to be less than 3.50%.


JPM Full-year 2024

Net interest income excluding Markets and adjusted expense are non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 62–64.


JPM First Republic acquisition

On May 1, 2023, JPMorgan Chase acquired certain assets and assumed certain liabilities of First Republic Bank (the "First Republic acquisition") from the Federal Deposit Insurance Corporation (“FDIC”), as receiver.


JPM First Republic acquisition

JPMorgan Chase’s Consolidated Financial Statements as of and for the period ended December 31, 2023 reflect the impact of First Republic. Where meaningful to the disclosure, the impact of the First Republic acquisition, as well as subsequent related business and activities, are disclosed in various sections of this Form 10-K. The Firm continues to convert certain operations, and to integrate clients, products and services, associated with the First Republic acquisition to align with the Firm’s businesses and operations.


JPM First Republic acquisition

Refer to Note 34 and page 67 for additional information related to First Republic.


JPM Interbank Offered Rate (“IBOR”) transition

The publication of the remaining principal tenors of U.S. dollar LIBOR (i.e., overnight, one-month, three-month, six-month and 12-month LIBOR) ceased on June 30, 2023 (“LIBOR Cessation”). The one-month, three-month and six-month tenors of U.S. dollar LIBOR will continue to be published on a "synthetic" basis, which will allow market participants to use such rates for certain legacy LIBOR-linked contracts through September 30, 2024.


As part of the Firm’s overall transition efforts which culminated in the second quarter of 2023, the Firm successfully completed the conversion of predominantly all of its remaining cleared derivatives contracts linked to U.S. dollar LIBOR to the Secured Overnight Financing Rate (“SOFR”) as part of initiatives by the principal central counterparties (“CCPs”) to convert cleared derivatives prior to LIBOR Cessation. Nearly all of the Firm’s other U.S. dollar LIBOR-linked products that remained outstanding at LIBOR Cessation have been remediated through contractual fallback provisions or through the framework provided by the Adjustable Interest Rate (LIBOR) Act (“LIBOR Act”). The Firm expects that the limited number of contracts remaining that reference “synthetic” U.S. dollar LIBOR will be remediated by September 30, 2024.


JPM CONSOLIDATED RESULTS OF OPERATIONS

This section provides a comparative discussion of JPMorgan Chase’s Consolidated Results of Operations on a reported basis for the two-year period ended December 31, 2023, unless otherwise specified. Refer to Consolidated Results of Operations on pages 51-54 of the Firm’s Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Form 10-K”) for a discussion of the 2022 versus 2021 results. Factors that relate primarily to a single business segment are discussed in more detail within that business segment’s results. Refer to pages 155–158 for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Results of Operations. Revenue############## Year ended December 31, (in millions)############## ####2023######2022####2021 Investment banking fees##$##6,519####$##6,686##$##13,216 Principal transactions####24,460######19,912####16,304 Lending- and deposit-related fees####7,413######7,098####7,032 Asset management fees####15,220######14,096####14,405 Commissions and other fees####6,836######6,581####6,624 Investment securities losses####(3,180)######(2,380)####(345) Mortgage fees and related income####1,176######1,250####2,170 Card income####4,784######4,420####5,102 Other income(a)####5,609##(b)####4,322####4,830 Noninterest revenue####68,837######61,985####69,338 Net interest income####89,267######66,710####52,311 Total net revenue##$##158,104####$##128,695##$##121,649


JPM CONSOLIDATED RESULTS OF OPERATIONS

(a)Included operating lease income of $2.8 billion, $3.7 billion and $4.9 billion for the years ended December 31, 2023, 2022 and 2021, respectively. Also includes losses on tax-oriented investments. Refer to Note 6 for additional information.


JPM CONSOLIDATED RESULTS OF OPERATIONS

(b)Included the estimated bargain purchase gain of $2.8 billion for the year ended December 31, 2023, in Corporate associated with the First Republic acquisition. Refer to Business Segment Results on page 67, and Notes 6 and 34 for additional information.


JPM 2023 compared with 2022

Investment banking fees decreased, reflecting in CIB: •lower advisory fees due to a lower number of completed transactions, reflecting the lower level of announced deals in the current and the prior year amid a challenging environment, and •lower debt underwriting fees as challenging market conditions, primarily in the first half of the year, resulted in lower issuance activity across leveraged loans, investment-grade loans and high-grade bonds. This was largely offset by higher issuance activity in high-yield bonds driven by higher industry-wide issuance,


JPM partially offset by

•higher equity underwriting fees driven by a higher level of follow-on offerings due to lower equity market volatility and a higher level of convertible securities offerings, which benefited from higher rates, partially offset by lower activity in private placements amid a challenging environment.


JPM partially offset by

Refer to CIB segment results on pages 72–77 and Note 6 for additional information.


JPM partially offset by

Principal transactions revenue increased, reflecting in CIB: •higher Equity Markets principal transactions revenue in Prime Finance and Equity Derivatives, •higher Fixed Income Markets principal transactions revenue in Securitized Products and Fixed Income


JPM partially offset by

Financing, largely offset by lower revenue in Rates and Currencies & Emerging Markets;


JPM partially offset by

–the net increase in Markets principal transactions revenue was more than offset by a decline in Markets net interest income, primarily due to higher funding costs; and •losses of $280 million in Credit Adjustments & Other compared with $836 million in the prior year.


JPM partially offset by

The prior year included net markdowns on held-for-sale positions, primarily unfunded commitments, in the bridge financing portfolio in CIB and CB.


JPM partially offset by

The increase in principal transactions revenue also included the impact of higher short-term cash deployment activities in Treasury and CIO, reflective of the current interest rate environment.


JPM partially offset by

Principal transactions revenue in CIB generally has offsets across other revenue lines, including net interest income. The Firm assesses the performance of its Markets business on a total net revenue basis.


JPM partially offset by

Refer to CIB and Corporate segment results on pages 72–77 and pages 84–85, respectively, and Note 6 for additional information.


JPM partially offset by

Lending- and deposit-related fees increased, reflecting: •higher lending-related revenue driven by the amortization of the purchase discount on certain acquired lending-related commitments associated with First Republic, primarily in AWM and CB,


JPM predominantly offset by

•lower deposit-related fees in CB and CIB driven by the higher level of client credits that reduce such fees.


JPM predominantly offset by

Refer to CIB, CB and AWM segment results on pages 72–77, pages 78–80 and pages 81–83, respectively, and Note 6 for additional information.


JPM predominantly offset by

Asset management fees increased driven by strong net inflows and the removal of most money market fund fee waivers in the prior year in AWM, and in CCB the impact of First Republic, as well as higher average market levels and strong net inflows. Refer to CCB and AWM segment results on pages 68–71 and pages 81–83, respectively, and Note 6 for additional information.


JPM 54 JPMorgan Chase & Co./2023 Form 10-K

Commissions and other fees increased due to higher commissions on annuity sales and travel-related services in CCB. Refer to CCB segment results on pages 68–71 and Note 6 for additional information.


Investment securities losses reflected higher net losses on higher sales of U.S. Treasuries and U.S. GSE and government agency MBS, associated with repositioning the investment securities portfolio in both periods in Treasury and CIO. Refer to Corporate segment results on pages 84–85 and Note 10 for additional information.


Mortgage fees and related income: refer to CCB segment results on pages 68–71, Note 6 and 15 for further information.


Card income increased in CIB and CB, reflecting growth in merchant processing volume and Commercial Card transactions in J.P. Morgan Payments; and in CCB, driven by higher net interchange income on increased debit and credit card sales volume. Refer to Business Segment Results, CCB, CIB and CB segment results on pages 65–85, pages 68–71, pages 72–77 and pages 78–80, respectively, and Note 6 for further information.


Other income increased, reflecting: •the $2.8 billion estimated bargain purchase gain in Corporate associated with the First Republic acquisition, •the impact of net investment hedges in Treasury and CIO, and •a gain of $339 million recognized in the first quarter of 2023 in AWM on the original minority interest in China International Fund Management (“CIFM”) upon the Firm's acquisition of the remaining 51% interest in the entity,


JPM partially offset by

•lower auto operating lease income in CCB due to a decline in volume, •lower net gains related to certain other Corporate investments, and •the net impact of equity investments in CIB, including impairment losses in the second half of 2023,


JPM partially offset by

The prior year included: •a gain of $914 million on the sale of Visa B shares and proceeds from an insurance settlement in Corporate, and •a gain on an equity-method investment received in partial satisfaction of a loan in CB.


JPM partially offset by

Refer to Business Segment Results on page 67 and Note 34 for additional information on the First Republic acquisition; Note 5 for additional information on net investment hedges; and Note 6 for further information.


JPM partially offset by

Net interest income increased driven by higher rates, the impact of First Republic, and higher revolving balances in Card Services, partially offset by lower Markets net interest income and lower average deposit balances.


JPM partially offset by

The Firm’s average interest-earning assets were $3.3 trillion, down $23 billion, and the yield was 5.14%, up 236 basis points (“bps”). The net yield on these assets, on an FTE basis, was 2.70%, an increase of 70 bps. The net yield excluding Markets was 3.85%, up 125 bps.


JPM partially offset by

Refer to the Consolidated average balance sheets, interest and rates schedule on pages 310-314 for further information. Net yield excluding Markets is a non-GAAP financial measure. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 62–64 for a further discussion of Net yield excluding Markets.


JPM JPMorgan Chase & Co./2023 Form 10-K 55

##Provision for credit losses########## Year ended December 31,############ (in millions)####2023####2022####2021 Consumer, excluding credit card##$##935##$##506##$##(1,933) Credit card####6,048####3,353####(4,838) Total consumer####6,983####3,859####(6,771) Wholesale####2,299####2,476####(2,449) Investment securities####38####54####(36) Total provision for credit losses##$##9,320##$##6,389##$##(9,256)


JPM 2023 compared with 2022

The provision for credit losses was $9.3 billion, reflecting $6.2 billion of net charge-offs and a net addition of $3.1 billion to the allowance for credit losses.


JPM 2023 compared with 2022

Net charge-offs increased $3.3 billion, consisting of $2.6 billion in consumer, predominantly driven by Card Services, as the portfolio continued to normalize to pre-pandemic levels, and $698 million in wholesale.


JPM 2023 compared with 2022

The net addition to the allowance for credit losses included $1.9 billion, consisting of: •$1.3 billion in consumer, predominantly driven by CCB, reflecting a $1.4 billion net addition in Card Services, partially offset by a net reduction of $200 million in Home Lending. The net addition in Card Services was driven by loan growth, including an increase in revolving balances, partially offset by reduced borrower uncertainty. The net reduction in Home Lending was driven by improvements in the outlook for home prices; and •$657 million in wholesale, driven by net downgrade activity and the net effect of changes in the Firm's weighted average macroeconomic outlook, including a deterioration in the outlook for commercial real estate in CB, partially offset by the impact of changes in the loan and lending-related commitment portfolios.


JPM 2023 compared with 2022

The net addition also included $1.2 billion to establish the allowance for the First Republic loans and lending-related commitments in the second quarter of 2023.


JPM 2023 compared with 2022

The provision in the prior year included a $3.5 billion net addition to the allowance for credit losses, consisting of $2.3 billion in wholesale and $1.2 billion in consumer, driven by loan growth and deterioration in the Firm’s macroeconomic outlook, partially offset by a reduction in the allowance related to a decrease in uncertainty associated with borrower behavior as the effects of the pandemic gradually receded, and net charge-offs of $2.9 billion.


JPM 2023 compared with 2022

Refer to the segment discussions of CCB on pages 68–71, CIB on pages 72–77, CB on pages 78–80, AWM on pages 81–83, the Allowance for Credit Losses on pages 131–133, and Notes 1, 10 and 13 for further discussion of the credit portfolio and the allowance for credit losses.


JPM 56 JPMorgan Chase & Co./2023 Form 10-K

##Noninterest expense########## Year ended December 31,############ (in millions)####2023####2022####2021 Compensation expense##$##46,465##$##41,636##$##38,567 Noncompensation expense:############ Occupancy####4,590####4,696####4,516 Technology, communications and equipment(a)####9,246####9,358####9,941 Professional and outside services####10,235####10,174####9,814 Marketing####4,591####3,911####3,036 Other(b)####12,045####6,365####5,469 Total noncompensation expense(c)####40,707####34,504####32,776 Total noninterest expense##$##87,172##$##76,140##$##71,343


(a)Includes depreciation expense associated with auto operating lease assets.


(b)Included Firmwide legal expense of $1.4 billion, $266 million and $426 million, as well as FDIC-related expense of $4.2 billion, $860 million and $730 million for the years ended December 31, 2023, 2022 and 2021, respectively. Refer to Note 6 for additional information.


(c)Reflected the impact of First Republic of $1.5 billion, which included expenses recorded in the second quarter of 2023 with respect to individuals associated with First Republic who did not become employees of the Firm until July 2, 2023. Refer to Business Segment Results on page 67 for additional information.


JPM 2023 compared with 2022

Compensation expense increased driven by: •an increase in employees, primarily in technology and front office, as well as wage inflation, •the impact of First Republic in the second half of 2023, predominantly in CCB and Corporate, and •higher volume- and revenue-related compensation predominantly in AWM and CCB.


JPM 2023 compared with 2022

Noncompensation expense increased as a result of: •higher FDIC-related expense, which included the $2.9 billion special assessment recognized in Corporate, •the impact of First Republic in Corporate and CCB, •higher legal expense in CIB, Corporate and CCB, •higher investments in the business, including marketing and technology, and •higher other expenses, including higher indirect tax expense in CIB, and higher travel and entertainment expense across the segments,


JPM partially offset by

•lower depreciation expense on lower auto lease assets.


JPM partially offset by

Refer to Business Segment Results on page 67 and Note 34 for additional information on the First Republic acquisition; Note 6 for further information; Income tax expense################## Year ended December 31, (in millions, except rate)################## ####2023######2022######2021## Income before income tax expense##$####61,612##$####46,166##$####59,562 Income tax expense####12,060######8,490######11,228## Effective tax rate####19.6##%####18.4##%####18.9##%


JPM 2023 compared with 2022

The effective tax rate increased predominantly driven by: •the higher level of pre-tax income and changes in the mix of income and expenses subject to U.S. federal, state and local taxes, •lower benefits associated with tax audit settlements, and • vesting of employee stock based awards,


JPM largely offset by

•the impact of the income tax expense associated with the First Republic acquisition that was reflected in the estimated bargain purchase gain, which resulted in a reduction in the Firm’s effective tax rate, and •an income tax benefit related to the finalization of certain income tax regulations.


JPM largely offset by

Refer to Note 25 for further information.


JPM Consolidated balance sheets analysis

The following is a discussion of the significant changes between December 31, 2023 and 2022. Refer to pages 155–158 for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Balance Sheets. ######Selected Consolidated balance sheets data######## December 31, (in millions)####2023######2022##Change## Assets############## Cash and due from banks##$##29,066####$##27,697##5##% Deposits with banks####595,085######539,537##10## Federal funds sold and securities purchased under resale agreements####276,152######315,592##(12)## Securities borrowed####200,436######185,369##8## Trading assets####540,607######453,799##19## Available-for-sale securities####201,704######205,857##(2)## Held-to-maturity securities####369,848######425,305##(13)## Investment securities, net of allowance for credit losses####571,552######631,162##(9)## Loans####1,323,706######1,135,647##17## Allowance for loan losses####(22,420)######(19,726)##14## Loans, net of allowance for loan losses####1,301,286######1,115,921##17## Accrued interest and accounts receivable####107,363######125,189##(14)## Premises and equipment####30,157######27,734##9## Goodwill, MSRs and other intangible assets####64,381######60,859##6## Other assets####159,308######182,884##(13)## Total assets##$##3,875,393####$##3,665,743##6##%


Cash and due from banks and deposits with banks increased reflecting the higher level of excess cash placed with the Federal Reserve Banks. The Firm’s excess cash primarily resulted from: •the net issuance of long-term debt, and •the impact of maturities and paydowns of investment securities in Treasury and CIO,


JPM partially offset by

•the impacts associated with the First Republic acquisition in the first half of 2023.


JPM partially offset by

Federal funds sold and securities purchased under resale agreements decreased, reflecting a reduction in client-driven market-making activities, partially offset by higher cash deployment in Treasury and CIO.


JPM partially offset by

Securities borrowed increased driven by Markets, reflecting a higher demand for securities to cover short positions and client-driven activities.


JPM partially offset by

Refer to Note 11 for additional information on securities purchased under resale agreements and securities borrowed.


JPM partially offset by

Trading assets increased, reflecting in Markets higher debt and equity instruments on client-driven market-making activities, partially offset by lower derivative receivables, primarily as a result of market movements. Refer to Notes 2 and 5 for additional information.


JPM partially offset by

Investment securities decreased due to: •lower available-for-sale ("AFS") securities driven by maturities and paydowns, predominantly offset by the impact of First Republic, net purchases, and the transfer of securities from held-to-maturity (“HTM”) in the first


JPM quarter of 2023, and

•lower HTM securities driven by maturities and paydowns, and the transfer of securities to AFS.


JPM quarter of 2023, and

Refer to Corporate segment results on pages 84–85, Investment Portfolio Risk Management on page 134 and Notes 2 and 10 for additional information on investment securities.


JPM quarter of 2023, and

Loans increased, reflecting: •$146 billion of loans associated with First Republic, •growth in new accounts in Card Services, as well as higher revolving balances, which continued to normalize to pre-pandemic levels, and •growth in Auto loans due to net originations.


JPM quarter of 2023, and

The allowance for loan losses increased, reflecting: •a net addition to the allowance for loan losses of $2.2 billion, consisting of:


JPM quarter of 2023, and

–$1.3 billion in consumer, predominantly driven by CCB, reflecting $1.4 billion in Card Services driven by loan growth, including an increase in revolving balances, partially offset by a net reduction of $176 million in Home Lending, and


JPM quarter of 2023, and

–$930 million in wholesale, driven by net downgrade activity and the net effect of changes in the Firm's weighted average macroeconomic outlook, and •$1.1 billion to establish the allowance for the First Republic loans in the second quarter of 2023.


JPM quarter of 2023, and

The allowance for loan losses also reflected a reduction of $587 million, on January 1, 2023, as a result of the adoption of the Financial Instruments - Credit Losses: Troubled Debt Restructurings accounting guidance.


JPM 58 JPMorgan Chase & Co./2023 Form 10-K

References in this Form 10-K to "changes to the TDR accounting guidance" pertain to the Firm's adoption of this guidance.


There was also a $408 million net reduction in the allowance for lending-related commitments recognized in other liabilities on the Consolidated balance sheets.


Refer to Consolidated Results of Operations and Credit and Investment Risk Management on pages 54–57 and pages 111–134, respectively, and Notes 2, 3, 12 and 13 for additional information on loans and the total allowance for credit losses; and Business Segment Results on page 67 and Note 34 for additional information on the First Republic acquisition.


Accrued interest and accounts receivable decreased due to lower client receivables related to client-driven activities in Markets.


Premises and equipment increased as a result of the construction-in-process associated with the Firm's headquarters, the First Republic acquisition, largely lease right-of-use assets, and higher capitalized software. Refer to Note 16 and 18 for additional information.


Goodwill, MSRs and other intangibles increased predominantly due to: •other intangibles and goodwill related to the acquisition of the remaining 51% interest in CIFM, •core deposit intangibles associated with the First Republic acquisition, and •higher MSRs as a result of net additions primarily from purchases, and the impact of higher interest rates, partially offset by the realization of expected cash flows.


Refer to Note 15 and 34 for additional information.


Other assets decreased reflecting the impact of the change in the type of collateral placed with CCPs from cash to securities. ######Selected Consolidated balance sheets data######## December 31, (in millions)####2023######2022##Change## Liabilities############## Deposits##$##2,400,688####$##2,340,179##3## Federal funds purchased and securities loaned or sold under repurchase agreements####216,535######202,613##7## Short-term borrowings####44,712######44,027##2## Trading liabilities####180,428######177,976##1## Accounts payable and other liabilities####290,307######300,141##(3)## Beneficial interests issued by consolidated variable interest entities (“VIEs”)####23,020######12,610##83## Long-term debt####391,825######295,865##32## Total liabilities####3,547,515######3,373,411##5## Stockholders’ equity####327,878######292,332##12## Total liabilities and stockholders’ equity##$##3,875,393####$##3,665,743##6##%


Deposits increased, 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.


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


Federal funds purchased and securities loaned or sold under repurchase agreements increased, reflecting the impact of a lower level of netting on reduced repurchase activity.


Refer to Liquidity Risk Management on pages 102–109 for additional information on deposits, federal funds purchased and securities loaned or sold under repurchase agreements, and short-term borrowings; Notes 2 and 17 for deposits and Note 11 for federal funds purchased and securities loaned or sold under repurchase agreements; Business Segment Results on page 67 and Note 34 for additional information on the First Republic acquisition.


Trading liabilities increased due to client-driven market-making activities in Fixed Income Markets, which resulted in higher levels of short positions in debt instruments, partially offset by lower derivative payables primarily as a result of market movements. Refer to Notes 2 and 5 for additional information.


Accounts payable and other liabilities decreased primarily due to lower client payables related to client-driven activities in Markets, partially offset by higher accounts payable and accrued liabilities, including the $2.9 billion payable related to the FDIC special assessment. Refer to Note 19 for additional information.


JPM JPMorgan Chase & Co./2023 Form 10-K 59

Beneficial interests issued by consolidated VIEs increased in CIB primarily driven by higher levels of Firm-administered multi-seller conduit commercial paper held by third parties, reflecting changes in the Firm’s short-term liquidity management. Refer to Liquidity Risk Management on pages 102–109; and Notes 14 and 28 for additional information on Firm-sponsored VIEs and loan securitization trusts.


Long-term debt increased, reflecting the impact of First Republic, which included the Purchase Money Note issued to the FDIC and additional FHLB advances, as well as net issuance consistent with the Firm’s long-term funding plans. The increase was also attributable to net issuances of structured notes in Markets due to client demand and an increase in fair value. Refer to Liquidity Risk Management on pages 102–109 and Note 34 for additional information on the First Republic acquisition.


Stockholders’ equity: refer to Consolidated Statements of changes in stockholders’ equity on page 169, Capital Actions on page 99, and Note 24 for additional information.


JPM Consolidated cash flows analysis

The following is a discussion of cash flow activities during the years ended December 31, 2023 and 2022. Refer to Consolidated cash flows analysis on page 57 of the Firm’s 2022 Form 10-K for a discussion of the 2021 activities. (in millions)####Year ended December 31,#### ####2023####2022 Net cash provided by/(used in)######## Operating activities##$##12,974##$##107,119 Investing activities####67,643####(137,819) Financing activities####(25,571)####(126,257) Effect of exchange rate changes on cash####1,871####(16,643) Net increase/(decrease) in cash and due from banks and deposits with banks##$##56,917##$##(173,600)


JPM Operating activities

JPMorgan Chase’s operating assets and liabilities primarily support the Firm’s lending and capital markets activities. These assets and liabilities can vary significantly in the normal course of business due to the amount and timing of cash flows, which are affected by client-driven and risk management activities and market conditions. The Firm believes that cash flows from operations, available cash and other liquidity sources, and its capacity to generate cash through secured and unsecured sources, are sufficient to meet its operating liquidity needs. •In 2023, cash provided primarily reflected net income, lower other assets, and accrued interest and accounts receivable, predominantly offset by higher trading assets, lower accounts payable and other liabilities, and higher securities borrowed. •In 2022, cash provided resulted from higher accounts payable and other liabilities, lower securities borrowed, and net proceeds from sales, securitizations, and paydowns of loans held-for-sale, partially offset by higher trading assets.


JPM Investing activities

The Firm’s investing activities predominantly include originating held-for-investment loans, investing in the investment securities portfolio and other short-term instruments. •In 2023, cash provided resulted from net proceeds from investment securities, proceeds from sales and securitizations of loans held-for-investment and lower securities purchased under resale agreements, largely offset by net originations of loans and net cash used in the First Republic Bank acquisition. •In 2022, cash used resulted from net originations of loans and higher securities purchased under resale agreements, partially offset by net proceeds from investment securities.


JPM Financing activities

The Firm’s financing activities include acquiring customer deposits and issuing long-term debt and preferred stock. •In 2023, cash used reflected lower deposits, which included the impact of the repayment of the deposits provided to First Republic Bank by the consortium of large U.S. banks that the Firm assumed as part of the First Republic acquisition, partially offset by higher securities loaned under repurchase agreements and net proceeds from long- and short-term borrowings. •In 2022, cash used reflected lower deposits, partially offset by net proceeds from long- and short-term borrowings. •For both periods, cash was used for repurchases of common stock and cash dividends on common and preferred stock.


JPM * * *

Refer to Consolidated Balance Sheets Analysis on pages 58–60, Capital Risk Management on pages 91-101, and Liquidity Risk Management on pages 102–109, and the Consolidated Statements of Cash Flows on page 170 for a further discussion of the activities affecting the Firm’s cash flows.


JPM JPMorgan Chase & Co./2023 Form 10-K 61

EXPLANATION AND RECONCILIATION OF THE FIRM’S USE OF NON-GAAP FINANCIAL MEASURES


JPM Non-GAAP financial measures

The Firm prepares its Consolidated Financial Statements in accordance with U.S. GAAP; these financial statements appear on pages 166–170. That presentation, which is referred to as “reported” basis, provides the reader with an understanding of the Firm’s results that can be tracked consistently from year-to-year and enables a comparison of the Firm’s performance with the U.S. GAAP financial statements of other companies.


JPM Non-GAAP financial measures

In addition to analyzing the Firm’s results on a reported basis, management reviews Firmwide results, including the overhead ratio, on a “managed” basis; these Firmwide managed basis results are non-GAAP financial measures. The Firm also reviews the results of the LOBs on a managed basis. The Firm’s definition of managed basis starts, in each case, with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm (and each of the reportable business segments) on an FTE basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. These financial measures allow


JPM Non-GAAP financial measures

management to assess the comparability of revenue from year-to-year arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense. These adjustments have no impact on net income as reported by the Firm as a whole or by the LOBs.


JPM Non-GAAP financial measures

Management also uses certain non-GAAP financial measures at the Firm and business-segment level because these other non-GAAP financial measures provide information to investors about the underlying operational performance and trends of the Firm or of the particular business segment, as the case may be, and therefore facilitate a comparison of the Firm or the business segment with the performance of its relevant competitors. Refer to Business Segment Results on pages 65–85 for additional information on these non-GAAP measures. Non-GAAP financial measures used by the Firm may not be comparable to similarly named non-GAAP financial measures used by other companies.


JPM Non-GAAP financial measures

The following summary table provides a reconciliation from the Firm’s reported U.S. GAAP results to managed basis. ##########2023################2022################2021###### Year ended December 31, (in millions, except ratios)####Reported######Fully taxable-equivalent adjustments(a)####Managed basis######Reported######Fully taxable-equivalent adjustments(a)####Managed basis######Reported######Fully taxable-equivalent adjustments(a)####Managed basis## Other income##$##5,609####$##3,782##$##9,391####$##4,322####$##3,148##$##7,470####$##4,830####$##3,225##$##8,055## Total noninterest revenue####68,837######3,782####72,619######61,985######3,148####65,133######69,338######3,225####72,563## Net interest income####89,267######480####89,747######66,710######434####67,144######52,311######430####52,741## Total net revenue####158,104######4,262####162,366######128,695######3,582####132,277######121,649######3,655####125,304## Total noninterest expense####87,172######NA####87,172######76,140######NA####76,140######71,343######NA####71,343## Pre-provision profit####70,932######4,262####75,194######52,555######3,582####56,137######50,306######3,655####53,961## Provision for credit losses####9,320######NA####9,320######6,389######NA####6,389######(9,256)######NA####(9,256)## Income before income tax expense####61,612######4,262####65,874######46,166######3,582####49,748######59,562######3,655####63,217## Income tax expense####12,060######4,262####16,322######8,490######3,582####12,072######11,228######3,655####14,883## Net income##$##49,552######NA##$##49,552####$##37,676######NA##$##37,676####$##48,334######NA##$##48,334## Overhead ratio####55##%####NM####54##%####59##%####NM####58##%####59##%####NM####57##%


JPM Non-GAAP financial measures

(a)Predominantly recognized in CIB, CB and Corporate.


JPM Net interest income, net yield, and noninterest revenue excluding Markets

In addition to reviewing net interest income, net yield, and noninterest revenue on a managed basis, management also reviews these metrics excluding Markets, as shown below. Markets consists of CIB’s Fixed Income Markets and Equity Markets. These metrics, which exclude Markets, are non-GAAP financial measures. Management reviews these metrics to assess the performance of the Firm’s lending, investing (including asset-liability management) and deposit-raising activities, apart from any volatility associated with Markets activities. In addition, management also assesses Markets business performance on a total revenue basis as offsets may occur across revenue lines. Management believes that these measures provide investors and analysts with alternative measures to analyze the revenue trends of the Firm. Year ended December 31, (in millions, except rates)####2023######2022######2021## Net interest income – reported##$##89,267####$##66,710####$##52,311## Fully taxable-equivalent adjustments####480######434######430## Net interest income – managed basis(a)##$##89,747####$##67,144####$##52,741## Less: Markets net interest income(b)####(294)######4,789######8,243## Net interest income excluding Markets(a)##$##90,041####$##62,355####$##44,498## Average interest-earning assets##$##3,325,708####$##3,349,079####$##3,215,942## Less: Average Markets interest-earning assets(b)####985,777######953,195######888,238## Average interest-earning assets excluding Markets##$##2,339,931####$##2,395,884####$##2,327,704## Net yield on average interest-earning assets – managed basis####2.70##%####2.00##%####1.64##% Net yield on average Markets interest-earning assets(b)####(0.03)######0.50######0.93## Net yield on average interest-earning assets excluding Markets####3.85##%####2.60##%####1.91##% Noninterest revenue – reported##$##68,837##$##61,985##$##69,338 Fully taxable-equivalent adjustments####3,782####3,148####3,225 Noninterest revenue – managed basis##$##72,619##$##65,133##$##72,563 Less: Markets noninterest revenue(b)####28,086####24,195####19,151 Noninterest revenue excluding Markets##$##44,533##$##40,938##$##53,412 Memo: Total Markets net revenue(b)##$##27,792##$##28,984##$##27,394


(a)Interest includes the effect of related hedges. Taxable-equivalent amounts are used where applicable.


(b)Refer to pages 75-76 for further information on Markets.


JPM Calculation of certain U.S. GAAP and non-GAAP financial measures

Certain U.S. GAAP and non-GAAP financial measures are calculated as follows:


Book value per share (“BVPS”) Common stockholders’ equity at period-end / Common shares at period-end


JPM ROTCE Net income* / Average tangible common equity

TBVPS Tangible common equity at period-end / Common shares at period-end


JPM * Represents net income applicable to common equity

In addition, the Firm reviews other non-GAAP measures such as: •Adjusted expense, which represents noninterest expense excluding Firmwide legal expense, and •Pre-provision profit, which represents total net revenue less total noninterest expense.


Management believes that these measures help investors understand the effect of these items on reported results and provide an alternative presentation of the Firm’s performance.


The Firm also reviews the allowance for loan losses to period-end loans retained excluding trade finance and conduits, a non-GAAP financial measure, to provide a more meaningful assessment of CIB’s allowance coverage ratio.


JPM TCE, ROTCE and TBVPS

TCE, ROTCE and TBVPS are each non-GAAP financial measures. TCE represents the Firm’s common stockholders’ equity (i.e., total stockholders’ equity less preferred stock) less goodwill and identifiable intangible assets (other than MSRs), net of related deferred tax liabilities. ROTCE measures the Firm’s net income applicable to common equity as a percentage of average TCE. TBVPS represents the Firm’s TCE at period-end divided by common shares at period-end. TCE, ROTCE and TBVPS are utilized by the Firm, as well as investors and analysts, in assessing the Firm’s use of equity.


JPM TCE, ROTCE and TBVPS

The following summary table provides a reconciliation from the Firm’s common stockholders’ equity to TCE. ######Period-end############Average######## ####Dec 31, 2023####Dec 31, 2022##########Year ended December 31,######## (in millions, except per share and ratio data)############2023######2022######2021## Common stockholders’ equity##$##300,474##$##264,928##$##282,056####$##253,068####$##250,968## Less: Goodwill####52,634####51,662####52,258######50,952######49,584## Less: Other intangible assets####3,225####1,224####2,572######1,112######876## Add: Certain deferred tax liabilities(a)####2,996####2,510####2,883######2,505######2,474## Tangible common equity##$##247,611##$##214,552##$##230,109####$##203,509####$##202,982## Return on tangible common equity####NA####NA####21##%####18##%####23##% Tangible book value per share##$##86.08##$##73.12####NA######NA######NA##


JPM TCE, ROTCE and TBVPS

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


JPM BUSINESS SEGMENT RESULTS

The Firm is managed on an LOB basis. There are four major reportable business segments – Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking and Asset & Wealth Management. In addition, there is a Corporate segment.


JPM BUSINESS SEGMENT RESULTS

The business segments are determined based on the products and services provided, or the type of customer served, and they reflect the manner in which financial information is evaluated by the Firm’s Operating Committee. Segment results are presented on a managed basis. Refer to Explanation and Reconciliation of the Firm’s use of Non-GAAP Financial Measures, on pages 62–64 for a definition of managed basis. ######JPMorgan Chase (a)######## ##Consumer Businesses##########Wholesale Businesses## ##Consumer & Community Banking######Corporate & Investment Bank######Commercial Banking Banking & Wealth Management##Home Lending##Card Services & Auto##Banking####Markets & Securities Services####• Middle Market Banking • Consumer Banking  • J.P. Morgan Wealth Management  • Business Banking##• Home Lending Production  • Home Lending Servicing  • Real Estate Portfolios##• Card Services • Auto##• Investment Banking  • Payments  • Lending####• Fixed  Income  Markets####• Corporate Client Banking ##########• Equity Markets  • Securities Services  • Credit Adjustments & Other####• Commercial Real Estate Banking


JPM BUSINESS SEGMENT RESULTS

(a)As a result of the organizational changes that were announced on January 25, 2024, the Firm will be reorganizing its business segments to reflect the manner in which the segments will be managed. The reorganization of the business segments is expected to be effective in the second quarter of 2024. Refer to Recent events on page 52 for additional information.


JPM Description of business segment reporting methodology

Results of the business segments are intended to present each segment as if it were a stand-alone business. The management reporting process that derives business segment results includes the allocation of certain income and expense items. The Firm periodically assesses the assumptions, methodologies and reporting classifications used for segment reporting, and therefore further refinements may be implemented in future periods. The Firm also assesses the level of capital required for each LOB on at least an annual basis. The Firm’s LOBs also provide various business metrics which are utilized by the Firm and its investors and analysts in assessing performance.


JPM Revenue sharing

When business segments join efforts to sell products and services to the Firm’s clients and customers, the participating business segments may agree to share revenue from those transactions. Revenue is generally recognized in the segment responsible for the related product or service, with allocations to the other segment(s) involved in the transaction. The segment results reflect these revenue-sharing agreements.


JPM Expense allocation

Where business segments use services provided by corporate support units, or another business segment, the costs of those services are allocated to the respective business segments. The expense is generally


JPM Expense allocation

allocated based on the actual cost and use of services provided. In contrast, certain costs and investments related to corporate support units, technology and operations that are not currently utilized by any LOB are not allocated to the business segments and are retained in Corporate. Expense retained in Corporate generally includes costs that would not be incurred if the segments were stand-alone businesses, and other items not solely aligned with a particular business segment.


JPM Funds transfer pricing

Funds transfer pricing (“FTP”) is the process by which the Firm allocates interest income and expense to the LOBs and Other Corporate and transfers the primary interest rate risk and liquidity risk to Treasury and CIO.


JPM Funds transfer pricing

The funds transfer pricing process considers the interest rate and liquidity risk characteristics of assets and liabilities and off-balance sheet products. Periodically, the methodology and assumptions utilized in the FTP process are adjusted to reflect economic conditions and other factors, which may impact the allocation of net interest income to the segments.


JPM Funds transfer pricing

As a result of the higher interest rate environment, the cost of funds for assets and the credits earned for liabilities have generally increased, impacting the business segments’ net interest income. During the period ended December 31, 2023, this has resulted in higher cost of funds for loans and


JPM JPMorgan Chase & Co./2023 Form 10-K 65

Markets activities, and contributed to margin expansion on deposits.


JPM Foreign exchange risk

Foreign exchange risk is transferred from the LOBs and Other Corporate to Treasury and CIO for certain revenues and expenses. Treasury and CIO manages these risks centrally and reports the impact of foreign exchange rate movements related to the transferred risk in its results. Refer to Market Risk Management on page 143 for additional information.


JPM Debt expense and preferred stock dividend allocation

As part of the funds transfer pricing process, almost all of the cost of the credit spread component of outstanding unsecured long-term debt and preferred stock dividends is allocated to the reportable business segments, while the balance of the cost is retained in Corporate. The methodology to allocate the cost of unsecured long-term debt and preferred stock dividends to the business segments is aligned with the relevant regulatory capital requirements and funding needs of the LOBs, as applicable.


The allocated cost of unsecured long-term debt is included in a business segment’s net interest income, and net income is reduced by preferred stock dividends, to arrive at a business segment’s net income applicable to common equity.


Refer to Capital Risk Management on pages 91-101 for additional information.


JPM Capital allocation

The amount of capital assigned to each business segment is referred to as equity. The Firm’s current allocation methodology incorporates Basel III Standardized risk-weighted assets (“RWA”) and the global systemically important banks (“GSIB”) surcharge, both under rules currently in effect, as well as a simulation of capital in a severe stress environment. At least annually, the assumptions, judgments and methodologies used to allocate capital are reassessed and, as a result, the capital allocated to the LOBs may change.


JPM Capital allocation

Refer to Line of business equity on page 98 for additional information on capital allocation.


JPM Segment Results – Managed Basis

The following tables summarize the Firm’s results by segment for the periods indicated. Year ended December 31,##############Consumer & Community Banking########################Corporate & Investment Bank####################Commercial Banking######## (in millions, except ratios)####2023######2022##########2021########2023######2022##########2021########2023######2022######2021## Total net revenue##$####70,148##$####54,814####(a)##$####49,879##(a)##$##48,807####$####48,102####(a)##$####51,943##(a)##$##15,546####$####11,533##$####10,008 Total noninterest expense####34,819######31,208######(a)####29,028####(a)####28,594######27,350######(a)####25,553####(a)####5,378######4,719######4,041## Pre-provision profit/(loss)####35,329######23,606##########20,851########20,213######20,752##########26,390########10,168######6,814######5,967## Provision for credit losses####6,899######3,813##########(6,989)########121######1,158##########(1,174)########1,970######1,268######(947)## Net income/(loss)####21,232######14,916######(a)####20,957####(a)####14,129######14,925######(a)####21,107####(a)####6,143######4,213######5,246## Return on equity (“ROE”)####38##%####29##%########41##%######13##%####14##%########25##%######20##%####16##%####21##% Year ended December 31,##########Asset & Wealth Management##################Corporate##################Total######## (in millions, except ratios)####2023######2022######2021######2023######2022######2021######2023######2022######2021## Total net revenue##$##19,827####$####17,748##$####16,957##$####8,038##$####80##$####(3,483)##$####162,366##$####132,277##$####125,304 Total noninterest expense####12,780######11,829######10,919######5,601######1,034######1,802######87,172######76,140######71,343## Pre-provision profit/(loss)####7,047######5,919######6,038######2,437######(954)######(5,285)######75,194######56,137######53,961## Provision for credit losses####159######128######(227)######171######22######81######9,320######6,389######(9,256)## Net income/(loss)####5,227######4,365######4,737######2,821######(743)######(3,713)######49,552######37,676######48,334## Return on equity (“ROE”)####31##%####25##%####33##%####NM######NM######NM######17##%####14##%####19##%


JPM Segment Results – Managed Basis

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


JPM Selected Firmwide Metrics

The following tables present key metrics for Wealth Management, which consists of the Global Private Bank in AWM and J.P. Morgan Wealth Management in CCB; and total revenue and key metrics for J.P. Morgan Payments, which consists of payments activities in CIB and CB. This presentation is intended to provide investors with additional information concerning Wealth Management and J.P. Morgan Payments, each of which consists of similar business activities conducted across LOBs to serve different types of clients and customers.


JPM Selected metrics - Wealth Management

Year ended December 31,####2023######2022####2021 Client assets (in billions)(a)##$##3,177##(b)##$##2,438##$##2,456 Number of client advisors####8,971######8,166####7,463


(a) Consists of Global Private Bank in AWM and client investment assets in J.P. Morgan Wealth Management in CCB.


(b)At December 31, 2023, included $144.6 billion of client investment assets associated with First Republic.


JPM Selected metrics - J.P. Morgan Payments

######(in millions, except where otherwise noted)###### Year ended December 31,####2023####2022####2021 Total net revenue(a)##$##18,248##$##13,909##$##9,861 Merchant processing volume (in billions)####2,408####2,158####1,887 Average deposits (in billions)####715####779####800


(a)Includes certain revenues that are reported as investment banking product revenue in CB, and excludes the net impact of equity investments.


JPM Segment information related to First Republic

The following table presents selected impacts to CCB, CB, AWM and Corporate associated with First Republic from the acquisition date of May 1, 2023. ##############As of or for the year ended December 31, 2023############ (in millions)####Consumer & Community Banking####Commercial Banking####Asset & Wealth Management######Corporate######Total## Selected Income Statement Data########################## Revenue########################## Asset management fees##$##387##$##—##$##—####$##—####$##387## All other income####489####201####503######2,862##(b)####4,055## Noninterest revenue####876####201####503######2,862######4,442## Net interest income####2,401####704####668######(55)######3,718## Total net revenue####3,277####905####1,171######2,807######8,160## Provision for credit losses####421####731####128######—######1,280## Noninterest expense####1,219####45####50######1,033##(c)####2,347## Net income####1,244####98####753######2,015######4,110## Selected Balance Sheet Data (period-end)########################## Loans##$##94,671##$##38,495##$##11,436####$##—####$##144,602##(d) Deposits (a)####42,710####6,163####12,098######—######60,971##(d)


(a)In the fourth quarter of 2023, CCB transferred certain deposits associated with First Republic to AWM, CB and CIB.


(b)Included the preliminary estimated bargain purchase gain of $2.7 billion recorded in other income. For the year ended December 31, 2023, reflects measurement period adjustments of $63 million, resulting in an estimated bargain purchase gain of $2.8 billion for the year ended December 31, 2023. Refer to Note 34 for additional information.


(c)Included $360 million of restructuring and integration costs.


(d)Excluded $1.9 billion of loans and $508 million of deposits allocated to CIB.


The following sections provide a comparative discussion of the Firm’s results by segment as of or for the years ended December 31, 2023 and 2022, unless otherwise specified.


JPM CONSUMER & COMMUNITY BANKING

Consumer & Community Banking offers products and services to consumers and small businesses through bank branches, ATMs, digital (including mobile and online) and telephone banking. CCB is organized into Banking & Wealth Management (including Consumer Banking, J.P. Morgan Wealth Management and Business Banking), Home Lending (including Home Lending Production, Home Lending Servicing and Real Estate Portfolios) and Card Services & Auto. Banking & Wealth Management offers deposit, investment and lending products, cash management, payments and services. Home Lending includes mortgage origination and servicing activities, as well as portfolios consisting of residential mortgages and home equity loans. Card Services issues credit cards and offers travel services. Auto originates and services auto loans and leases. ##Selected income statement data################ Year ended December 31,################## (in millions, except ratios)####2023######2022######2021## Revenue################## Lending- and deposit-related fees##$##3,356####$##3,316####$##3,034## Asset management fees####3,282##(d)####2,734######2,794## Mortgage fees and related income####1,175######1,236######2,159## Card income####2,532######2,469##(f)####3,364##(f) All other income(a)####4,773##(d)####5,131##(f)####5,741##(f) Noninterest revenue####15,118######14,886######17,092## Net interest income####55,030##(d)####39,928######32,787## Total net revenue####70,148######54,814######49,879## Provision for credit losses####6,899##(d)####3,813######(6,989)## Noninterest expense################## Compensation expense####15,171######13,092######12,142## Noncompensation expense(b)####19,648######18,116##(f)####16,886##(f) Total noninterest expense####34,819##(d)####31,208######29,028## Income before income tax expense####28,430######19,793######27,840## Income tax expense####7,198######4,877##(f)####6,883##(f) Net income##$##21,232####$##14,916####$##20,957## Revenue by line of business################## Banking & Wealth Management##$##43,199##(e)##$##30,059##(f)##$##23,786##(f) Home Lending####4,140##(e)####3,674######5,291## Card Services & Auto####22,809######21,081######20,802## Mortgage fees and related income details:################## Production revenue####421######497######2,215## Net mortgage servicing  revenue(c)####754######739######(56)## Mortgage fees and related income##$##1,175####$##1,236####$##2,159## Financial ratios################## Return on equity####38##%####29##%####41##% Overhead ratio####50######57######58##


JPM CONSUMER & COMMUNITY BANKING

(a)Primarily includes operating lease income and commissions and other fees. Operating lease income was $2.8 billion, $3.6 billion and $4.8 billion for the years ended December 31, 2023, 2022 and 2021, respectively.


JPM CONSUMER & COMMUNITY BANKING

(b)Included depreciation expense on leased assets of $1.7 billion, $2.4 billion and $3.3 billion for the years ended December 31, 2023, 2022 and 2021, respectively.


JPM CONSUMER & COMMUNITY BANKING

(c)Included MSR risk management results of $131 million, $93 million and $(525) million for the years ended December 31, 2023, 2022 and 2021, respectively.


JPM CONSUMER & COMMUNITY BANKING

(d)Includes First Republic. Refer to page 67 for additional information.


JPM CONSUMER & COMMUNITY BANKING

(e)Banking & Wealth Management and Home Lending included revenue associated with First Republic of $2.3 billion and $932 million, respectively, for the year ended December 31, 2023.


JPM CONSUMER & COMMUNITY BANKING

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


JPM 2023 compared with 2022

Net income was $21.2 billion, up 42%.


JPM 2023 compared with 2022

Net revenue was $70.1 billion, up 28%.


JPM 2023 compared with 2022

Net interest income was $55.0 billion, up 38%, driven by: •deposit margin expansion on higher rates, partially offset by lower average deposits and the impact of lower PPP loan forgiveness in Banking & Wealth Management (“BWM”), •higher Card Services NII, reflecting an increase in revolving balances, and •the impact of First Republic in Home Lending.