JPM 10-Q Quarterly Report Sept. 30, 2024

JPMORGAN CHASE & CO

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jpm-20240930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

Quarterly report pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

For the quarterly period ended

Commission file

September 30, 2024

number

1-5805

JPMorgan Chase & Co .

(Exact name of registrant as specified in its charter)


Delaware		13-2624428
(State or other jurisdiction of incorporation or organization)		(I.R.S. employer identification no.)

383 Madison Avenue,
New York,	New York	10179
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: ( 212 ) 270-6000

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock	JPM	The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 5.75% Non-Cumulative Preferred Stock, Series DD	JPM PR D	The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 6.00% Non-Cumulative Preferred Stock, Series EE	JPM PR C	The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.75% Non-Cumulative Preferred Stock, Series GG	JPM PR J	The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.55% Non-Cumulative Preferred Stock, Series JJ	JPM PR K	The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.625% Non-Cumulative Preferred Stock, Series LL	JPM PR L	The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.20% Non-Cumulative Preferred Stock, Series MM	JPM PR M	The New York Stock Exchange
Guarantee of Callable Fixed Rate Notes due June 10, 2032 of JPMorgan Chase Financial Company LLC	JPM/32	The New York Stock Exchange
Guarantee of Alerian MLP Index ETNs due January 28, 2044 of JPMorgan Chase Financial Company LLC	AMJB	NYSE Arca, Inc.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

Number of shares of common stock outstanding as of September 30, 2024: 2,815,340,422

FORM 10-Q

TABLE OF CONTENTS


Part I – Financial information		Page
Item 1.	Financial Statements.
	Consolidated Financial Statements – JPMorgan Chase & Co.:
	Consolidated statements of income (unaudited) for the three and nine months ended September 30, 2024 and 2023	89
	Consolidated statements of comprehensive income (unaudited) for the three and nine months ended September 30, 2024 and 2023	90
	Consolidated balance sheets (unaudited) at September 30, 2024 and December 31, 2023	91
	Consolidated statements of c hanges in stockholder s ' equity (unaudited) for the three and nine months ended September 30, 2024 and 2023	92
	Consolidated statements of cash flows (unaudited) for the nine months ended September 30, 2024 and 2023	93
	Notes to Consolidated Financial Statements (unaudited)	94
	Report of Independent Registered Public Accounting Firm	189
	Consolidated Average Balance Sheets, Interest and Rates (unaudited) for the three months ended September 30, 2024 and 2023	190
	Glossary of Terms and Acronyms and Line of Business Metrics	192
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.
	Consolidated Financial Highlights	3
	Introduction	4
	Executive Overview	5
	Consolidated Results of Operations	9
	Consolidated Balance Sheets and Cash Flows Analysis	15
	Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures	18
	Business Segment Results	20
	Firmwide Risk Management	43
	Capital Risk Management	44
	Liquidity Risk Management	50
	Consumer Credit Portfolio	60
	Wholesale Credit Portfolio	64
	Investment Portfolio Risk Management	76
	Market Risk Management	77
	Country Risk Management	83
	Critical Accounting Estimates Used by the Firm	84
	Accounting and Reporting Developments	87
	Forward-Looking Statements	88
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	200
Item 4.	Controls and Procedures.	200
Part II – Other information
Item 1.	Legal Proceedings.	200
Item 1A.	Risk Factors.	200
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	200
Item 3.	Defaults Upon Senior Securities.	201
Item 4.	Mine Safety Disclosures.	201
Item 5.	Other Information.	201
Item 6.	Exhibits.	202

JPMorgan Chase & Co.

Consolidated financial highlights (unaudited)


As of or for the period ended, (in millions, except per share, ratio, employee data and where otherwise noted)																	Nine months ended Sep 30,
	3Q24			2Q24				1Q24			4Q23			3Q23			2024			2023
Selected income statement data
Total net revenue	$	42,654		$	50,200		(f)	$	41,934		$	38,574		$	39,874		$	134,788		$	119,530
Total noninterest expense	22,565			23,713			(f)	22,757			24,486			21,757			69,035		(f)	62,686
Pre-provision profit (a)	20,089			26,487				19,177			14,088			18,117			65,753			56,844
Provision for credit losses	3,111			3,052				1,884			2,762			1,384			8,047			6,558
Income before income tax expense	16,978			23,435				17,293			11,326			16,733			57,706			50,286
Income tax expense	4,080			5,286				3,874			2,019			3,582			13,240			10,041
Net income	$	12,898		$	18,149			$	13,419		$	9,307		$	13,151		$	44,466		$	40,245

Earnings per share data
Net income: Basic	$	4.38		$	6.13			$	4.45		$	3.04		$	4.33		$	14.97		$	13.20
Diluted	4.37			6.12				4.44			3.04			4.33			14.94			13.18
Average shares: Basic	2,860.6			2,889.8				2,908.3			2,914.4			2,927.5			2,886.2			2,946.6
Diluted	2,865.9			2,894.9				2,912.8			2,919.1			2,932.1			2,891.2			2,951.0

Market and per common share data
Market capitalization	593,643			575,463				575,195			489,320			419,254			593,643			419,254
Common shares at period-end	2,815.3			2,845.1				2,871.6			2,876.6			2,891.0			2,815.3			2,891.0
Book value per share	115.15			111.29				106.81			104.45			100.30			115.15			100.30
Tangible book value per share (“TBVPS”) (a)	96.42			92.77				88.43			86.08			82.04			96.42			82.04
Cash dividends declared per share	1.25			1.15				1.15			1.05			1.05			3.55			3.05

Selected ratios and metrics
Return on common equity (“ROE”) (b)	16		%	23		%		17		%	12		%	18		%	19		%	19		%
Return on tangible common equity (“ROTCE”) (a)(b)	19			28				21			15			22			23			23
Return on assets (b)	1.23			1.79				1.36			0.95			1.36			1.46			1.42
Overhead ratio	53			47				54			63			55			51			52
Loans-to-deposits ratio	55			55				54			55			55			55			55
Firm Liquidity coverage ratio (“LCR”) (average) (c)	114			112				112			113			112			114			112
JPMorgan Chase Bank, N.A. LCR (average) (c)	121			125				129			129			123			121			123
Common equity Tier 1 (“CET1”) capital ratio (d)(e)	15.3			15.3				15.0			15.0			14.3			15.3			14.3
Tier 1 capital ratio (d)(e)	16.4			16.7				16.4			16.6			15.9			16.4			15.9
Total capital ratio (d)(e)	18.2			18.5				18.2			18.5			17.8			18.2			17.8
Tier 1 leverage ratio (d)	7.1			7.2				7.2			7.2			7.1			7.1			7.1
Supplementary leverage ratio (“SLR”) (d)	6.0			6.1				6.1			6.1			6.0			6.0			6.0

Selected balance sheet data (period-end)
Trading assets	$	787,489		$	733,882			$	754,409		$	540,607		$	601,993		$	787,489		$	601,993
Investment securities, net of allowance for credit losses	634,502			589,998				570,679			571,552			585,380			634,502			585,380
Loans	1,340,011			1,320,700				1,309,616			1,323,706			1,310,059			1,340,011			1,310,059
Total assets	4,210,048			4,143,003				4,090,727			3,875,393			3,898,333			4,210,048			3,898,333
Deposits	2,430,772			2,396,530				2,428,409			2,400,688			2,379,526			2,430,772			2,379,526
Long-term debt	410,157			394,028				395,872			391,825			362,793			410,157			362,793
Common stockholders’ equity	324,186			316,652				306,737			300,474			289,967			324,186			289,967
Total stockholders’ equity	345,836			340,552				336,637			327,878			317,371			345,836			317,371
Employees	316,043			313,206				311,921			309,926			308,669			316,043			308,669

Credit quality metrics
Allowances for credit losses	$	26,543		$	25,514			$	24,695		$	24,765		$	24,155		$	26,543		$	24,155
Allowance for loan losses to total retained loans	1.86		%	1.81		%		1.77		%	1.75		%	1.73		%	1.86		%	1.73		%
Nonperforming assets	$	8,628		$	8,423			$	8,265		$	7,597		$	8,131		$	8,628		$	8,131
Net charge-offs	2,087			2,231				1,956			2,164			1,497			6,274			4,045
Net charge-off rate	0.65		%	0.71		%		0.62		%	0.68		%	0.47		%	0.66		%	0.46		%

(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 18-19 for a further discussion of these measures.

(b) Ratios are based upon annualized amounts.

(c) For the nine months ended September 30, 2024 and 2023, the percentage represents average ratios for the three months ended September 30, 2024 and 2023.

(d) The ratios reflect the Current Expected Credit Losses (“CECL”) capital transition provisions. Refer to Note 21 of this Form 10-Q and Note 27 of JPMorgan Chase’s 2023 Form 10-K for additional information.

(e) Reflects the Firm’s ratios under the Basel III Standardized approach. Refer to Capital Risk Management on pages 44-49 for additional information.

(f) Total net revenue included a $7.9 billion net gain related to Visa shares, and total noninterest expense included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation. Refer to Consolidated Results of Operations on pages 9–14 of this Form 10-Q, and Notes 2 and 5 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024 for additional information on the exchange offer for Visa Class B-1 common stock.

INTRODUCTION

The following is Management’s discussion and analysis of the financial condition and results of operations (“MD&A”) of JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) for the third quarter of 2024.

This Quarterly Report on Form 10-Q for the third quarter of 2024 (“Form 10-Q”) should be read together with JPMorgan Chase’s Annual Report on Form 10-K for the year ended December 31, 2023 (“2023 Form 10-K”). Refer to the Glossary of terms and acronyms and line of business metrics on pages 192–199 for definitions of terms and acronyms used throughout this Form 10-Q.

This Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the current beliefs and expectations of JPMorgan Chase’s management, speak only as of the date of this Form 10-Q and are subject to significant risks and uncertainties. Refer to Forward-looking Statements on page 88 of this Form 10-Q and Part I, Item 1A, Risk Factors on pages 9-33 of the 2023 Form 10-K for a discussion of certain of those risks and uncertainties and the factors that could cause JPMorgan Chase’s actual results to differ materially because of those risks and uncertainties. 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.

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 $4.2 trillion in assets and $345.8 billion in stockholders’ equity as of September 30, 2024. 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.

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.

Business Segment Reorganization : Effective in the second quarter of 2024, the Firm reorganized its reportable business segments by combining the former Corporate & Investment Bank and Commercial Banking business segments to form one reportable segment, the Commercial & Investment Bank (“CIB”). As a result of the reorganization, the Firm has three 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 Commercial & Investment Bank (“CIB”) and Asset & Wealth Management (“AWM”) segments. Refer to Business Segment Results on pages 20-21 of this Form 10-Q and Recent events on page 52 of the 2023 Form 10-K for additional information on the reorganization, as well as Note 25 of this Form 10-Q and Note 32 of the 2023 Form 10-K, for a description of the Firm’s business segments and the products and services they provide to their respective client bases.

First Republic : 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”). References in this Form 10-Q to "associated with First Republic," "impact of First Republic" or similar expressions refer to the relevant effects of the First Republic acquisition, as well as subsequent related business and activities, as applicable. Refer to Note 26 for additional information.

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-Q, is not incorporated by reference into this Form 10-Q or the Firm’s other filings with the SEC.

EXECUTIVE OVERVIEW

This executive overview of the MD&A highlights selected information and does not contain all of the information that is important to readers of this Form 10-Q. For a complete description of the trends and uncertainties, as well as the risks and critical accounting estimates affecting the Firm, this Form 10-Q and the 2023 Form 10-K should be read together and in their entirety.


Financial performance of JPMorgan Chase
(unaudited) As of or for the period ended, (in millions, except per share data and ratios)	Three months ended September 30,								Nine months ended September 30,
	2024			2023			Change		2024			2023			Change
Selected income statement data
Noninterest revenue	$	19,249		$	17,148		12	%	$	65,555		$	54,314		21	%
Net interest income	23,405			22,726			3		69,233			65,216			6
Total net revenue	42,654			39,874			7		134,788			119,530			13
Total noninterest expense	22,565			21,757			4		69,035			62,686			10
Pre-provision profit	20,089			18,117			11		65,753			56,844			16
Provision for credit losses	3,111			1,384			125		8,047			6,558			23
Net income	12,898			13,151			(2)		44,466			40,245			10
Diluted earnings per share	4.37			4.33			1		14.94			13.18			13
Selected ratios and metrics
Return on common equity	16		%	18		%			19		%	19		%
Return on tangible common equity	19			22					23			23
Book value per share	$	115.15		$	100.30		15		$	115.15		$	100.30		15
Tangible book value per share	96.42			82.04			18		96.42			82.04			18
Capital ratios (a)(b)
CET1 capital	15.3		%	14.3		%			15.3		%	14.3		%
Tier 1 capital	16.4			15.9					16.4			15.9
Total capital	18.2			17.8					18.2			17.8
Memo:
NII excluding Markets (c)	$	23,447		$	23,173		1		$	69,405		$	66,479		4
NIR excluding Markets (c)	12,716			10,896			17		44,492			33,827			32
Markets (c)	7,152			6,617			8		22,958			22,117			4
Total net revenue - managed basis	$	43,315		$	40,686		6		$	136,855		$	122,423		12

(a) The ratios reflect the CECL capital transition provisions. Refer to Note 21 of this Form 10-Q and Note 27 of JPMorgan Chase’s 2023 Form 10-K for additional information.

(b) Reflects the Firm’s ratios under the Basel III Standardized approach. Refer to Capital Risk Management on pages 44-49 for additional information.

(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.

Comparisons noted in the sections below are for the third quarter of 2024 versus the third quarter of 2023, unless otherwise specified.

Firmwide overview

For the third quarter of 2024, JPMorgan Chase reported net income of $12.9 billion, down 2%, earnings per share of $4.37, ROE of 16% and ROTCE of 19%.

• Total net revenue was $42.7 billion, up 7%, reflecting:

– Net interest income ("NII") of $23.4 billion, up 3%, driven by the impact of balance sheet mix and reinvestments in the investment securities portfolio, higher revolving balances in Card Services, higher Markets net interest income, and higher wholesale deposit balances, largely offset by lower average deposit balances in CCB and deposit margin compression across the lines of business. NII excluding Markets was $23.4 billion, up 1%.

– Noninterest revenue ("NIR") was $19.2 billion, up 12%, predominantly driven by lower net investment securities losses in Treasury and CIO, higher asset management fees in AWM and CCB, and higher investment banking fees.

• Noninterest expense was $22.6 billion, up 4%, driven by higher compensation expense, including higher revenue-related compensation and growth in the number of employees, partially offset by lower legal expense.

• The provision for credit losses was $3.1 billion, reflecting $2.1 billion of net charge-offs and a net addition to the allowance for credit losses of $1.0 billion. Net charge-offs increased by $590 million, predominantly driven by the seasoning of newer vintages and continued credit normalization in Card Services. The net addition to the allowance for credit losses included $882 million in consumer , driven by Card Services, and $144 million in wholesale .

The provision in the prior year was $1.4 billion, reflecting $1.5 billion of net charge-offs and a $113 million net reduction in the allowance for credit losses.

• The total allowance for credit losses was $26.5 billion at September 30, 2024 . The Firm had an allowance for loan losses to retained loans coverage ratio of 1.86%, compared with 1.73% in the prior year.

• The Firm’s nonperforming assets totaled $8.6 billion at September 30, 2024 , up 6%, driven by higher wholesale nonaccrual loans, which reflected downgrades in Real Estate, concentrated in Office, partially offset by net sales of consumer nonaccrual loans. Refer to Wholesale Credit Portfolio and Consumer Credit Portfolio on pages 64-72 and pages 60-63, respectively, for additional information.

• Firmwide average loans of $1.3 trillion were up 1%, driven by higher loans across the lines of business.

• Firmwide average deposits of $2.4 trillion were up 1%, reflecting:

– net inflows in Payments and Securities Services,

– the impact of new and existing product offerings in AWM, and

– higher balances in Corporate related to the Firm's international consumer initiatives,

largely offset by

– a decline in CCB in existing accounts primarily due to increased customer spending.

Refer to Liquidity Risk Management on pages 50-57 for additional information.

Selected capital and other metrics

• CET1 capital was $273 billion, and the Standardized and Advanced CET1 ratios were 15.3% and 15.5%, respectively.

• SLR was 6.0%.

• TBVPS grew 18%, ending the third quarter of 2024 at $96.42.

• As of September 30, 2024 , the Firm had eligible end-of-period High Quality Liquid Assets (“HQLA”) of approximately $868 billion and unencumbered marketable securities with a fair value of approximately $608 billion, resulting in approximately $1.5 trillion of liquidity sources. Refer to Liquidity Risk Management on pages 50-57 for additional information.

Refer to Consolidated Results of Operations and Consolidated Balance Sheets Analysis on pages 9–14 and pages 15–16, respectively, for a further discussion of the Firm's results, including the provision for credit losses .

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 18-19 for a further discussion of each of these measures.

Business segment highlights

Selected business metrics for each of the Firm’s lines of business ("LOB") are presented below for the third quarter of 2024.


CCB ROE 29%						• Average deposits down 8% year-over-year ("YoY"), down 2% quarter-over-quarter ("QoQ"); client investment assets up 21% • Average loans up 1% YoY, flat QoQ; Card Services net charge-off rate of 3.24% • Debit and credit card sales volume (a) up 6% • Active mobile customers (b) up 7%
CIB ROE 17%						• Investment Banking fees up 31% YoY, down 4% QoQ; #1 ranking for Global Investment Banking fees with 9.1% wallet share YTD • Markets revenue up 8%, with Fixed Income Markets flat and Equity Markets up 27% • Average Banking & Payments loans down 2% YoY, down 1% QoQ; average client deposits (c) up 7% YoY, up 3% QoQ

AWM ROE 34%						• Assets under management ("AUM") of $3.9 trillion, up 23% • Average loans up 2% YoY and QoQ; average deposits up 17% YoY including the allocation of First Republic deposits to AWM in 4Q23 (d) , up 4% QoQ

(a) Excludes Commercial Card.

(b) Users of all mobile platforms who have logged in within the past 90 days.

(c) Represents client deposits and other third-party liabilities pertaining to the Payments and Securities Services businesses.

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

Refer to the Business Segment Results on pages 20-42 for a detailed discussion of results by business segment.

Credit provided and capital raised

JPMorgan Chase continues to support consumers, businesses and communities around the globe. The Firm provided new and renewed credit and raised capital for wholesale and consumer clients during the first nine months of 2024, consisting of approximately:


$2.0 trillion						Total credit provided and capital raised (including loans and commitments)

$185 billion						Credit for consumers

$30 billion						Credit for U.S. small businesses

$1.9 trillion						Credit and capital for corporations and non-U.S. government entities (a)

$50 billion						Credit and capital for nonprofit and U.S. government entities (b)

(a) Includes Individuals and Individual Entities primarily consisting of Global Private Bank clients within AWM.

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

Recent events

• On October 17, 2024, JPMorgan Chase announced that Brad D. Smith, 60, had been elected as a director of the Firm, effective January 21, 2025. Mr. Smith is the President of Marshall University and served as Chief Executive Officer of Intuit from 2008 to 2018.

Outlook

These current expectations are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs and expectations of JPMorgan Chase’s management, speak only as of the date of this Form 10-Q, and are subject to significant risks and uncertainties. Refer to Forward-Looking Statements on page 88 of this Form 10-Q and Part I, Item 1A, Risk Factors on pages 9-33 of the 2023 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.

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.

Full-year 2024

• Management expects net interest income to be approximately $92.5 billion and net interest income excluding Markets to be approximately $91.5 billion, market dependent.

• Management expects adjusted expense to be approximately $91.5 billion, market dependent.

• Management expects the net charge-off rate in Card Services to be approximately 3.40%.

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 18-19.

Business Developments

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 FDIC, as receiver.

The Firm continues to progress in the conversion of operations, and the integration of clients, products and services, associated with the First Republic acquisition to align with the Firm’s businesses and operations. The Firm expects that these actions will be substantially complete by the end of 2024.

Refer to Note 26 for additional information on First Republic.

CONSOLIDATED RESULTS OF OPERATIONS

This section provides a comparative discussion of JPMorgan Chase’s Consolidated Results of Operations on a reported basis for the three and nine months ended September 30, 2024 and 2023, unless otherwise specified. Factors that relate primarily to a single business segment are discussed in more detail within that business segment's results. Refer to pages 84-86 of this Form 10-Q and pages 155–158 of JPMorgan Chase’s 2023 Form 10-K for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Results of Operations.

Visa shares : On April 8, 2024, Visa Inc. commenced an initial exchange offer for its Class B-1 common shares. On May 6, 2024, the Firm announced that Visa had accepted the Firm’s tender of its 37.2 million Visa Class B-1 common shares in exchange for a combination of Visa Class B-2 common shares and Visa Class C common shares (“Visa C shares”), resulting in a $7.9 billion net gain on the share exchange recorded in the second quarter of 2024. As of September 30, 2024, the Firm had disposed of all of its Visa C shares through sales and through a donation to the Firm’s Foundation. Refer to Market Risk Management on pages 77-82, and Notes 2 and 5 for additional information.

First Republic : JPMorgan Chase acquired certain assets and assumed certain liabilities of First Republic Bank from the FDIC on May 1, 2023. As a result, the year-to-date results include the nine-month impact of First Republic compared with five months in the prior-year period. Where meaningful to the results, this is referred to in this Form 10-Q as the "timing impact" of First Republic. Refer to Notes 5 and 26 for additional information.


Revenue
	Three months ended September 30,						Nine months ended September 30,
(in millions)	2024		2023		Change		2024			2023			Change
Investment banking fees	$	2,231	$	1,722	30	%	$	6,489		$	4,884		33	%
Principal transactions	5,988		6,210		(4)		19,592			20,735			(6)
Lending- and deposit-related fees	1,924		2,039		(6)		5,654			5,487			3
Asset management fees	4,479		3,904		15		12,927			11,143			16
Commissions and other fees	1,936		1,705		14		5,665			5,139			10

Investment securities losses	(16)		(669)		98		(929)			(2,437)			62
Mortgage fees and related income	402		414		(3)		1,025			913			12
Card income	1,345		1,209		11		3,895			3,537			10
Other income (a)(b)	960		614		56		11,237		(c)	4,913		(d)	129
Noninterest revenue	19,249		17,148		12		65,555			54,314			21
Net interest income	23,405		22,726		3		69,233			65,216			6
Total net revenue	$	42,654	$	39,874	7	%	$	134,788		$	119,530		13	%

(a) Included operating lease income of $706 million and $695 million for the three months ended September 30, 2024 and 2023, respectively, and $2.1 billion and $2.2 billion for the nine months ended September 30, 2024 and 2023, respectively. Refer to Note 5 for additional information.

(b) Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures guidance, the amortization of certain of the Firm’s alternative energy tax-oriented investments that was previously recognized in other income is now being recognized in income tax expense. Refer to Notes 1, 5 and 13 for additional information.

(c) Included the net gain related to Visa shares of $7.9 billion recorded in the second quarter of 2024. Refer to Notes 2 and 5 for additional information.

(d) Included the estimated bargain purchase gain of $2.8 billion for the nine months ended September 30, 2023 associated with the First Republic acquisition. Refer to Notes 5 and 26 for additional information.

Quarterly results

Investment banking fees in creased, reflecting in CIB:

• higher debt underwriting fees predominantly driven by higher industry-wide issuances in high-grade and high-yield bo nds, as well as wallet share gains in investment-grade loans,

• higher advisory fees predominantly driven by the closing of several large transactions, and

• higher equity underwriting fees driven by increased industry-wide fees in follow-on offerings and wallet share gains in convertible securities offerings.

Refer to CIB segment results on pages 27-34 and Note 5 for additional information.

Principal transactions revenue decreased driven by:

• lower Fixed Income Markets revenue across most businesses, and

• a loss of $109 million in Credit Adjustments & Other in CIB, compared with a loss of $61 million in the prior year,

predominantly offset by

• higher Equity Markets revenue in Prime Finance and Equity Derivatives.

The decrease in principal transactions revenue also included lower revenue in Treasury and CIO.

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.

Refer to CIB and Corporate segment results on pages 27-34 and pages 40-42, respectively, and Note 5 for additional information.

Lending- and deposit-related fees decreased driven by:

• a decline in the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic in AWM, and to a lesser extent in CIB,

partially offset by

• higher other len ding- and deposit-related fees in CIB.

Refer to CIB and AWM segment results on pages 27-34 and pages 35-39, respectively, and Note 5 for additional information.

Asset management fees increased driven by higher average market levels in AWM and CCB, and net inflows in AWM. Refer to CCB and AWM segment results on pages 22-26 and pages 35-39, respectively, and Note 5 for additional information.

Commissions and other fees increased, predominantly due to higher brokerage commissions and fees, higher custody fees primarily in CIB, as well as higher annuity sales commissions in CCB. Refer to CCB, CIB and AWM segment results on pages 22-26, pages 27-34 and pages 35-39, respectively, and Note 5 for additional information.

Investment securities losses decreased, reflecting lower net losses associated with repositioning the investment securities portfolio in Treasury and CIO. R efer to Corporate segment results on pages 40-42 and Note 9 for additional information.

Refer to CCB segment results on pages 22-26 and Note 14 for information on mortgage fees and related income .

Card income increased in CCB, reflecting higher annual fees, and higher net interchange on increased debit and credit card sales volume, partially offset by an increase in amortization related to new account origination costs. Refer to CCB segment results on pages 22-26 and Note 5 for additional information.

Other income incre ased, reflecting:

• an increase associated with other equity investments in Corporate, primarily driven by a net gain compared to a net loss in the prior year related to Visa shares, and

• the impact of the adoption of updates to the Accounting for Investments in Tax Credit Structures guidance on January 1, 2024, resulting in the amortization of certain of the Firm's alternative energy tax-oriented investments previously recognized in other income now being recognized in income tax expense,

partially offset by

• the absence of the prior-year adjustment to the estimated bargain purchase gain associated with the First Republic acquisition in Corporate.

Both periods included impairment losses related to certain equity investments in CIB.

Refer to Notes 1, 5 and 13 for additional information on the adoption of updates to the Accounting for Investments in Tax Credit Structures guidance; Notes 2 and 5 for additional information on Visa shares and Notes 5 and 26 for additional information on the First Republic acquisition.

Net interest income increased, driven by the impact of balance sheet mix and reinvestments in the investment securities portfolio; higher revolving balances in Card Services; higher Markets net interest income; and higher wholesale deposit balances. These factors were largely offset by lower average deposit balances in CCB and deposit margin compression across the lines of business.

The Firm’s average interest-earning assets were $3.6 trillion, up $290 billion, and the yield was 5.55%, up 23 basis points (“bps”). The net yield on these assets, on an FTE basis, was 2.58%, a decrease of 14 bps. The net yield excluding Markets was 3.86%, down 3 bps.

Refer to the Consolidated average balance sheets, interest and rates schedule on page 190 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 18-19 for a further discussion of net yield excluding Markets.

Year-to-date results

Investment banking fees in creased, reflecting in CIB:

• higher debt underwriting fees predominantly driven by higher industry-wide issuances in leveraged loans, high-grade and high-yield bonds,

• higher equity underwriting fees driven by higher IPOs, follow-on, and convertible securities offerings, and

• higher advisory fees predominantly driven by increased M&A activity.

Principal transactions revenue de creased driven by :

• lower Fixed Income Markets revenue, reflecting the net impact of declines across macro businesses and higher revenue in Securitized Products,

predominantly offset by

• higher Equity Markets revenue in Prime Finance and Equity Derivatives.

The decrease in principal transactions revenue also included lower revenue in Treasury and CIO.

Lending- and deposit-related fees incr eased, reflecting in CIB, higher len ding-related fees, including loan commitment fees, and higher deposit-related fees, including cash management fees in Payments, on higher volume. These factors were largely offset by a decline in the amortization of the fair value discount, primarily in AWM, as certain of the acquired First Republic lending-related commitments have expired.

Asset management fees in creased driven by higher average market levels and net inflows in AWM and CCB, as well as the timing impact of First Republic in CCB.

Commissions and other fees increased, predominantly due to higher brokerage commissions and fees, and custody fees, in both CIB and AWM, as well as higher annuity sales commissions in CCB.

Investment securities losses decreased, reflecting lower losses on sales of U.S. Treasuries and U.S. GSE and government agency MBS, associated with repositioning the investment securities portfolio in Treasury and CIO.

Mortgage fees and related income increased in Home Lending, reflecting higher production revenue, which included the timing impact of First Republic.

Card income increased in CCB, reflecting higher net interchange on increased debit and credit card sales volume, as well as h igher annual fees, partially offset by an increase in amortization related to new account origination costs.

Other income in creased, reflecting:

• in Corporate

– the $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024,

partially offset by

– the absence of the prior-year $2.8 billion estimated bargain purchase gain associated with the First Republic acquisition, and

Both periods included impairment losses related to certain equity investments in CIB.

The prior year included a gain of $339 million on the original minority interest in China International Fund Management ("CIFM") in AWM .

Refer to AWM segment results on pages 35-39 for additional information on CIFM.

Net interest income increased, driven by the impact of balance sheet mix, reinvestments in the investment securities portfolio, and higher rates; higher revolving balances in Card Services; the timing impact of First Republic; higher Markets net interest income; and higher wholesale deposit balances. These factors were largely offset by deposit margin compression across the lines of business and lower average deposit balances in CCB .

The Firm’s average interest-earning assets were $3.5 trillion, up $228 billion, and the yield was 5.56%, up 55 bps. The net yield on these assets, on an FTE basis, was 2.64%, a decrease of 2 bps. The net yield excluding Markets was 3.85%, relatively flat when compared to the prior year.


Provision for credit losses
	Three months ended September 30,						Nine months ended September 30,
(in millions)	2024		2023		Change		2024		2023		Change
Consumer, excluding credit card	$	145	$	(75)	NM		$	366	$	728	(50)	%
Credit card	2,666		1,527		75	%	6,932		4,073		70
Total consumer	2,811		1,452		94		7,298		4,801		52
Wholesale	302		(81)		NM		702		1,730		(59)
Investment securities	(2)		13		NM		47		27		74
Total provision for credit losses	$	3,111	$	1,384	125	%	$	8,047	$	6,558	23	%

Q uarterly results

The provision for credit losses was $3.1 billion, reflecting $2.1 billion of net charge-offs and a $1.0 billion net addition to the allowance for credit losses.

Net charge-offs included $1.9 billion in consumer , predominantly driven by Card Services, reflecting the seasoning of newer vintages and continued credit normalization, and $158 million in wholesale .

The net addition to the allowance for credit losses consisted of:

• $882 million in consumer , driven by Card Services, due to growth in revolving balances and changes in certain macroeconomic variables, and

• $144 million in wholesale , reflecting the impact of changes in the loan and lending-related commitment portfolios, and net downgrade activity, primarily in Real Estate, partially offset by changes in certain macroeconomic variables.

The provision in the prior year was $1.4 billion, reflecting net charge-offs of $1.5 billion and a $113 million net reduction in the allowance for credit losses.

Refer to CCB segment results on pages 22-26, CIB on pages 27-34, AWM on pages 35-39, and Corporate on pages 40-42; Allowance for Credit Losses on pages 73-75; Critical Accounting Estimates Used by the Firm on pages 84-86; and Notes 11 and 12 for additional information on the credit portfolio and the allowance for credit losses.

Year-to-date results

The provision for credit losses was $8.0 billion, reflecting $6.3 billion of net charge-offs and a $1.8 billion net addition to the allowance for credit losses.

Net charge-offs included $5.8 billion in consumer , predominantly driven by Card Services, reflecting the seasoning of newer vintages and continued credit normalization, and $511 million in wholesale , including in Real Estate, concentrated in Office.

The net addition to the allowance for credit losses consisted of:

• $1.5 billion in consumer , reflecting:

– a $1.7 billion net addition in Card Services, due to loan growth, reflecting higher revolving balances, including the seasoning of newer vintages, and changes in certain macroeconomic variables,

partially offset by

– a $125 million net reduction in Home Lending in the first quarter of 2024, and

• $191 million in wholesale , reflecting:

– net downgrade activity, primarily in Real Estate, and the impact of incorporating the First Republic portfolio into the Firm’s modeled credit loss estimates in the second quarter of 2024,

partially offset by

– changes in certain macroeconomic variables and the impact of changes in the loan and lending-related commitment portfolios.

The provision in the prior year was $6.6 billion, reflecting net charge-offs of $4.0 billion and a $2.5 billion net addition to the allowance for credit losses, which included $1.2 billion to establish the allowance for the First Republic loans and lending-related commitments in the second quarter of 2023.


Noninterest expense
(in millions)	Three months ended September 30,						Nine months ended September 30,
	2024		2023		Change		2024			2023		Change
Compensation expense	$	12,817	$	11,726	9	%	$	38,888		$	34,618	12	%
Noncompensation expense:
Occupancy	1,258		1,197		5		3,717			3,382		10
Technology, communications and equipment (a)	2,447		2,386		3		7,315			6,837		7
Professional and outside services	2,780		2,620		6		8,050			7,629		6
Marketing	1,258		1,126		12		3,639			3,293		11
Other expense	2,005		2,702		(26)		7,426		(d)	6,927		7
Total noncompensation expense	9,748		10,031		(3)		30,147			28,068		7
Total noninterest expense	$	22,565	$	21,757	4	%	$	69,035		$	62,686	10	%
Certain components of other expense (b)
Legal expense	$	259	$	665			$	504		$	1,261
FDIC-related expense	312		342				1,576			997
Operating losses (c)	397		310				1,019			913

(a) Includes depreciation expense associated with auto operating lease assets. Refer to Note 16 for additional information.

(b) Refer to Note 5 for additional information.

(d) Included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Note 5 for additional information.

Quarterly results

Compensation expense increased driven by:

• higher revenue-related compensation particularly in CIB and AWM, and

• growth in the number of employees, primarily in front office and technology.

Noncompensation expense decreased as a result of :

• lower legal expense, reflecting a decline in CIB, partially offset by an increase in AWM,

• lower indirect tax expense in CIB, and

• lower restructuring costs associated with First Republic,

partially offset by

• higher investments in the business, including marketing in CCB as well as in technology, and

• higher operating losses, predominantly in CCB.

Refer to Note 5 for additional information on other expense and Note 26 for additional information on the First Republic acquisition.

Year-to-date results

Compensation expense increased driven by:

• higher volume- and revenue-related compensation across the LOBs,

• growth in the number of employees, primarily in front office and technology, and

• the impact of First Republic, predominantly in CCB and Corporate, reflecting timing and the classification of the prior-year expense, which was recognized in other expense in Corporate as the individuals associated with First Republic were not employees of the Firm until July 2023.

Noncompensation expense increased as a result of :

• the $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024 in Corporate,

• the $725 million increase to the FDIC special assessment recognized in the first quarter of 2024 in Corporate,

• higher investments in technology, as well as marketing, predominantly in CCB,

• higher occupancy expense, which included the impact of net additions to the Firm's properties,

• the timing impact associated with First Republic, partially offset by the alignment of expense to compensation expense, as noted above, and

• higher distribution fees in AWM,

partially offset by

• lower legal expense, primarily reflecting the net impact of declines in CIB and Corporate, and an increase in AWM.

Refer to Notes 2 and 5 for additional information on Visa shares.


Income tax expense
(in millions)	Three months ended September 30,								Nine months ended September 30,
	2024			2023			Change		2024			2023			Change
Income before income tax expense	$	16,978		$	16,733		1	%	$	57,706		$	50,286		15	%
Income tax expense	4,080		(a)	3,582			14		13,240		(a)	10,041			32
Effective tax rate	24.0		%	21.4		%			22.9		%	20.0		%

(a) Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures guidance, the amortization of certain of the Firm’s alternative energy tax-oriented investments is now being recognized in income tax expense. Refer to Notes 1, 5 and 13 for additional information.

Quarterly results

The effective tax rate increased predominantly driven by the adoption of updates to the Accounting for Investments in Tax Credit Structures guidance on January 1, 2024, and changes in the level and mix of income and expenses subject to U.S. federal, state and local taxes.

Year-to-date results

The effective tax rate increased predominantly driven by:

• the adoption of updates to the Accounting for Investments in Tax Credit Structures guidance on January 1, 2024, and

• changes in the level and mix of income and expenses subject to U.S. federal, state and local taxes, which included the impact of the net gain on Visa shares and the contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024.

The prior year included 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.

CONSOLIDATED BALANCE SHEETS AND CASH FLOWS ANALYSIS

Consolidated balance sheets analysis

The following is a discussion of the significant changes between September 30, 2024 and December 31, 2023. 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
(in millions)	September 30, 2024		December 31, 2023		Change
Assets
Cash and due from banks	$	22,896	$	29,066	(21)	%
Deposits with banks	411,364		595,085		(31)
Federal funds sold and securities purchased under resale agreements	390,821		276,152		42
Securities borrowed	252,434		200,436		26
Trading assets	787,489		540,607		46
Available-for-sale securities	334,548		201,704		66
Held-to-maturity securities	299,954		369,848		(19)
Investment securities, net of allowance for credit losses	634,502		571,552		11
Loans	1,340,011		1,323,706		1
Allowance for loan losses	(23,949)		(22,420)		7
Loans, net of allowance for loan losses	1,316,062		1,301,286		1
Accrued interest and accounts receivable	122,565		107,363		14
Premises and equipment	31,525		30,157		5
Goodwill, MSRs and other intangible assets	64,455		64,381		—
Other assets	175,935		159,308		10
Total assets	$	4,210,048	$	3,875,393	9	%

Cash and due from banks and deposits with banks decreased driven by Markets activities in CIB, and cash deployment, including in investment securities, in Treasury and CIO.

Federal funds sold and securities purchased under resale agreements increased driven by Markets, reflecting higher client-driven market-making activities and higher demand for securities to cover short positions, as well as when compared with seasonally lower levels at year-end.

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

Refer to Note 10 for additional information on securities purchased under resale agreements and securities borrowed .

Trading assets increased due to higher levels of equity and debt instruments in Markets related to client-driven market-making activities, as well as when compared with seasonally lower levels at year-end; and to a lesser extent, an increase in short-term cash deployment in Treasury and CIO. Refer to Notes 2 and 4 for additional information.

Investment securities increased due to:

• higher available-for-sale ("AFS") securities, reflecting net purchases, primarily U.S. Treasuries and non-U.S. government debt securities, partially offset by maturities and paydowns, and

• lower HTM securities primarily driven by maturities and paydowns.

Refer to Corporate segment results on pages 40-42, Investment Portfolio Risk Management on page 76, and Notes 2 and 9 for additional information.

Loans increased, reflecting :

• higher wholesale loans in CIB,

• higher securities-based lending in AWM, and

• higher loans in Card Services driven by growth in new accounts and continued normalization of revolving balances,

partially offset by

• a decline in Home Lending as paydowns and loan sales outpaced originations.

The allowance for loan losses increased, reflecting a net addition to the allowance for loan losses of $1.5 billion in consumer , primarily in Card Services, due to loan growth, reflecting higher revolving balances, including the seasoning of newer vintages, and changes in certain macroeconomic variables, partially offset by a net reduction in Home Lending in the first quarter of 2024.

The wholesale allowance was flat as the net addition, including net downgrade activity, primarily in Real Estate, and the impact of incorporating the First Republic portfolio into the Firm’s modeled credit loss estimates in the second quarter of 2024, was offset by a net reduction, primarily due to the impact of changes in the loan portfolio and changes in certain macroeconomic variables.

There was also a $168 million net addition to 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 9–14 and pages 58-76, respectively, Critical Accounting Estimates Used by the Firm on pages 84-86, and Notes 2, 3, 11 and 12 for

additional information on loans and the total allowance for credit losses.

Accrued interest and accounts receivable increased primarily driven by higher client activities in Markets.

R efer to Note 14 for additional information on goodwill, MSRs and other intangible assets .

Other assets increased and included higher cash collateral placed with central counterparties ("CCP") in Markets, and the impact of the adoption of updates to the Accounting for Investments in Tax Credit Structures guidance on January 1, 2024.


Selected Consolidated balance sheets data (continued)
(in millions)	September 30, 2024		December 31, 2023		Change
Liabilities
Deposits	$	2,430,772	$	2,400,688	1	%
Federal funds purchased and securities loaned or sold under repurchase agreements	389,337		216,535		80
Short-term borrowings	50,638		44,712		13
Trading liabilities	243,258		180,428		35
Accounts payable and other liabilities	314,356		290,307		8
Beneficial interests issued by consolidated variable interest entities (“VIEs”)	25,694		23,020		12
Long-term debt	410,157		391,825		5
Total liabilities	3,864,212		3,547,515		9
Stockholders’ equity	345,836		327,878		5
Total liabilities and stockholders’ equity	$	4,210,048	$	3,875,393	9	%

Deposits in creased, reflecting the net impact of:

• an increase in CIB due to net inflows in Payments and Securities Services, partially offset by net maturities of structured notes in Markets,

• an increase in AWM driven by new and existing product offerings,

• higher balances in Corporate as a result of certain higher-yielding programs that were launched in the second quarter of 2024, associated with the Firm's international consumer initiatives, and

• a decline in CCB in existing accounts primarily due to increased customer spending and migration into higher-yielding investments, largely offset by new accounts.

Federal funds purchased and securities loaned or sold under repurchase agreements in creased driven by Markets, reflecting higher client-driven market-making activities and higher secured financing of trading assets, as well as when compared with seasonally lower levels at year-end.

Short-term borrowings increased primarily driven by higher net issuance of structured notes due to client demand in Markets.

Refer to Liquidity Risk Management on pages 50-57 for additional information on deposits, federal funds purchased and securities loaned or sold under repurchase agreements, and short-term borrowings; and Notes 2 and 15 for deposits; and Note 10 for federal funds purchased and securities loaned or sold under repurchase agreements.

Trading liabilities increased due to client-driven market-making activities primarily in Fixed Income Markets, which resulted in higher levels of short positions in debt instruments, as well as when compared with seasonally lower levels at year-end. Refer to Notes 2 and 4 for additional information.

Accounts payable and other liabilities increased predominantly due to higher client activities in Markets, and the impact of the adoption of updates to the Accounting for Investments in Tax Credit Structures guidance on January 1, 2024.

Beneficial interests issued by consolidated VIEs increased driven by the issuance of credit card securitizations in Treasury and CIO.

Refer to Liquidity Risk Management on pages 50-57 and Notes 13 and 22 for add itional information, specifically Firm-sponsored VIEs and loan securitization trusts.

Long-term debt increased, primarily driven by:

• net issuances of structured notes in CIB due to client demand, and

• net issuances of long-term debt, partially offset by lower FHLB advances in Treasury and CIO.

Refer to Liquidity Risk Management on pages 50-57; and Note 26 for additional information on the First Republic acquisition.

Stockholders’ equity increased reflecting net income and lower unrealized losses in AOCI, predominantly driven by the impact of lower interest rates on the AFS portfolio and cash flow hedges in Treasury and CIO, largely offset by the impact of capital actions, including repurchases of common shares, common and preferred stock dividend payments and net redemption of preferred stock. Refer to Consolidated statements of changes in stockholders’ equity on page 92, Capital Actions on page 48, and Note 19 for a dditional information.

Consolidated cash flows analysis

The following is a discussion of cash flow activities during the nine months ended September 30, 2024 and 2023.


(in millions)	Nine months ended September 30,
		2024		2023
Net cash provided by/(used in)
Operating activities		$	(189,770)	$	(47,257)
Investing activities		(181,023)		(12,239)
Financing activities		179,152		10,326
Effect of exchange rate changes on cash		1,750		(6,695)
Net decrease in cash and due from banks and deposits with banks		$	(189,891)	$	(55,865)

Operating activities

• In 2024, cash used resulted from higher trading assets, higher securities borrowed, higher accrued interest and accounts receivable, and net originations and purchases of loans held-for-sale, partially offset by higher trading liabilities and higher accounts payable and other liabilities.

• In 2023, cash used resulted from higher trading assets and lower accounts payable and other liabilities, partially offset by lower other assets and higher trading liabilities.

Investing activities

• In 2024, cash used resulted from higher securities purchased under resale agreements, net purchases of investment securities and net originations of loans.

• In 2023, cash used resulted from higher securities purchased under resale agreements, higher net loan originations, and net cash used in the First Republic acquisition, predominantly offset by proceeds from paydowns and maturities of investment securities and from sales and securitizations of loans held-for-investment.

Financing activities

• In 2024, cash provided reflected higher securities loaned or sold under repurchase agreements, higher deposits, and net proceeds from long-and short-term borrowings, partially offset by net redemption of preferred stock.

• In 2023, cash provided reflected higher securities loaned or sold under repurchase agreements and higher beneficial interests issued by consolidated VIEs, largely offset by net outflows in 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.

• For both periods, cash was used for repurchases of common stock and cash dividends on common and preferred stock.

* * *

Refer to Consolidated Balance Sheets Analysis on pages 15–16, Capital Risk Management on pages 44-49, and Liquidity Risk Management on pages 50-57, and the Consolidated Statements of Cash Flows on page 93 of this Form 10-Q, and pages 102–109 of JPMorgan Chase’s 2023 Form 10-K for a further discussion of the activities affecting the Firm’s cash flows.


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

The Firm prepares its Consolidated Financial Statements in accordance with U.S. GAAP and this presentation is referred to as “reported” basis; these financial statements appear on pages 89-93.

In addition to analyzing the Firm’s results on a reported basis, the Firm also reviews and uses certain non-GAAP financial measures at the Firmwide and segment level. These non-GAAP measures include:

• Firmwide “managed” basis results, including the overhead ratio, which include certain reclassifications to present total net revenue from investments that receive tax credits and tax-exempt securities on a basis comparable to taxable investments and securities (“FTE” basis). 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;

• Pre-provision profit, which represents total net revenue less total noninterest expense;

• Net interest income, net yield, and noninterest revenue excluding Markets;

• TCE, ROTCE, and TBVPS; and

• Adjusted expense, which represents noninterest expense excluding Firmwide legal expense.

Refer to Explanation and Reconciliation of the Firm’s Use Of Non-GAAP Financial Measures and Key Performance Measures on pages 62–64 of JPMorgan Chase’s 2023 Form 10-K for a further discussion of management’s use of non-GAAP financial measures.

The following summary tables provide a reconciliation from the Firm’s reported U.S. GAAP results to managed basis.


	Three months ended September 30,
	2024										2023
(in millions, except ratios)	Reported				Fully taxable-equivalent adjustments (b)			Managed basis			Reported			Fully taxable-equivalent adjustments (b)		Managed basis
Other income	$	960		(a)	$	541	(a)	$	1,501		$	614		$	682	$	1,296
Total noninterest revenue	19,249				541			19,790			17,148			682		17,830
Net interest income	23,405				120			23,525			22,726			130		22,856
Total net revenue	42,654				661			43,315			39,874			812		40,686
Total noninterest expense	22,565				NA			22,565			21,757			NA		21,757
Pre-provision profit	20,089				661			20,750			18,117			812		18,929
Provision for credit losses	3,111				NA			3,111			1,384			NA		1,384
Income before income tax expense	16,978				661			17,639			16,733			812		17,545
Income tax expense	4,080			(a)	661		(a)	4,741			3,582			812		4,394
Net income	$	12,898			NA			$	12,898		$	13,151		NA		$	13,151

Overhead ratio	53		%		NM			52		%	55		%	NM		53		%

	Nine months ended September 30,
	2024										2023
(in millions, except ratios)	Reported				Fully taxable-equivalent adjustments (b)			Managed basis			Reported			Fully taxable-equivalent adjustments (b)		Managed basis
Other income	$	11,237		(a)	$	1,711	(a)	$	12,948		$	4,913		$	2,539	$	7,452
Total noninterest revenue	65,555				1,711			67,266			54,314			2,539		56,853
Net interest income	69,233				356			69,589			65,216			354		65,570
Total net revenue	134,788				2,067			136,855			119,530			2,893		122,423
Total noninterest expense	69,035				NA			69,035			62,686			NA		62,686
Pre-provision profit	65,753				2,067			67,820			56,844			2,893		59,737
Provision for credit losses	8,047				NA			8,047			6,558			NA		6,558
Income before income tax expense	57,706				2,067			59,773			50,286			2,893		53,179
Income tax expense	13,240			(a)	2,067		(a)	15,307			10,041			2,893		12,934
Net Income	$	44,466			NA			$	44,466		$	40,245		NA		$	40,245

Overhead ratio	51		%		NM			50		%	52		%	NM		51		%

(a) Effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures guidance, under the modified retrospective method. Refer to Notes 1, 5 and 13 for additional information.

(b) Predominantly recognized in CIB and Corporate.

The following table provides information on net interest income, net yield, and noninterest revenue excluding Markets.



(in millions, except rates)	Three months ended September 30,								Nine months ended September 30,
	2024			2023			Change		2024			2023			Change
Net interest income – reported	$	23,405		$	22,726		3	%	$	69,233		$	65,216		6	%
Fully taxable-equivalent adjustments	120			130			(8)		356			354			1
Net interest income – managed basis (a)	$	23,525		$	22,856		3		$	69,589		$	65,570		6
Less: Markets net interest income (b)	78			(317)			NM		184			(909)			NM
Net interest income excluding Markets (a)	$	23,447		$	23,173		1		$	69,405		$	66,479		4

Average interest-earning assets	$	3,621,766		$	3,331,728		9		$	3,526,019		$	3,297,843		7
Less: Average Markets interest-earning assets (b)	1,206,085			970,789			24		1,118,326			985,703			13
Average interest-earning assets excluding Markets	$	2,415,681		$	2,360,939		2		$	2,407,693		$	2,312,140		4

Net yield on average interest-earning assets – managed basis	2.58		%	2.72		%			2.64		%	2.66		%
Net yield on average Markets interest-earning assets (b)	0.03			(0.13)					0.02			(0.12)
Net yield on average interest-earning assets excluding Markets	3.86		%	3.89		%			3.85		%	3.84		%

Noninterest revenue – reported (c)	$	19,249		$	17,148		12		$	65,555		$	54,314		21
Fully taxable-equivalent adjustments (c)	541			682			(21)		1,711			2,539			(33)
Noninterest revenue – managed basis	$	19,790		$	17,830		11		$	67,266		$	56,853		18
Less: Markets noninterest revenue (b)(d)	7,074			6,934			2		22,774			23,026			(1)
Noninterest revenue excluding Markets	$	12,716		$	10,896		17		$	44,492		$	33,827		32

Memo: Total Markets net revenue (b)	$	7,152		$	6,617		8		$	22,958		$	22,117		4

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

(b) Refer to page 33 for further information on Markets.

(c) Effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures guidance, under the modified retrospective method. Refer to Notes 1, 5 and 13 for additional information.

(d) Includes the markets-related revenues of the former Commercial Banking business segment. Prior-period amounts have been revised to conform with the current presentation.

The following summary table provides a reconciliation from the Firm’s common stockholders’ equity to TCE.



	Period-end				Average
(in millions, except per share and ratio data)	Sep 30, 2024		Dec 31, 2023		Three months ended September 30,						Nine months ended September 30,
					2024			2023			2024			2023
Common stockholders’ equity	$	324,186	$	300,474	$	321,894		$	284,798		$	310,353		$	278,010
Less: Goodwill	52,711		52,634		52,658			52,427			52,630			52,164
Less: Other intangible assets	2,991		3,225		3,007			3,511			3,083			2,342
Add: Certain deferred tax liabilities (a)	2,962		2,996		2,963			3,080			2,976			2,846
Tangible common equity	$	271,446	$	247,611	$	269,192		$	231,940		$	257,616		$	226,350

Return on tangible common equity	NA		NA		19		%	22		%	23		%	23		%
Tangible book value per share	$	96.42	$	86.08	NA			NA			NA			NA

(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.

BUSINESS SEGMENT RESULTS

The Firm is managed on an LOB basis. Effective in the second quarter of 2024, the Firm reorganized its reportable business segments by combining the former Corporate & Investment Bank and Commercial Banking business segments to form one reportable segment, the Commercial & Investment Bank (“CIB”). As a result of the reorganization, the Firm has three reportable business segments: Consumer & Community Banking, Commercial & Investment Bank, and Asset & Wealth Management. In addition, there is a Corporate segment.

The business segments are determined based on the products and services provided, or the type of customer served, and they reflect the manner in which financial information is currently evaluated by the Firm’s Operating Committee. Segment results are presented on a managed basis. Refer to Explanation and Reconciliation of the Firm’s use of Non-GAAP Financial Measures on pages 18-19 for a definition of managed basis.

The following table depicts the Firm’s reportable business segments.

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.

Revenue sharing

When business segments or businesses within each segment join efforts to sell products and services to the Firm’s clients and customers, the participating businesses 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 segments/businesses involved in the transaction. The segment and business results reflect these revenue-sharing agreements.

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.

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.

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 pages 77-82 for additional information.

Capital allocation

The amount of capital assigned to each business segment is referred to as equity. 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. Refer to Line of business equity on page 47, and page 98 of JPMorgan Chase’s 2023 Form 10-K for additional information on capital allocation.

Refer to Business Segment Results – Description of business segment reporting methodology on pages 65–85 and Note 32 of JPMorgan Chase’s 2023 Form 10-K for a further discussion of those methodologies.

Segment results – managed basis

The following tables summarize the Firm’s results by segment for the periods indicated.


Three months ended September 30,	Consumer & Community Banking								Commercial & Investment Bank								Asset & Wealth Management
(in millions, except ratios)	2024			2023			Change		2024			2023			Change		2024			2023			Change
Total net revenue	$	17,791		$	18,362		(3)	%	$	17,015		$	15,761		8	%	$	5,439		$	5,005		9	%
Total noninterest expense	9,586			9,105			5		8,751			8,818			(1)		3,639			3,138			16
Pre-provision profit/(loss)	8,205			9,257			(11)		8,264			6,943			19		1,800			1,867			(4)
Provision for credit losses	2,795			1,446			93		316			(95)			NM		4			(13)			NM
Net income/(loss)	4,046			5,895			(31)		5,691			5,027			13		1,351			1,417			(5)
Return on equity (“ROE”)	29		%	41		%			17		%	14		%			34		%	32		%


Three months ended September 30,	Corporate			Total
(in millions, except ratios)		2024		2023		Change		2024			2023			Change
Total net revenue		$	3,070	$	1,558	97	%	$	43,315		$	40,686		6	%
Total noninterest expense		589		696		(15)		22,565			21,757			4
Pre-provision profit/(loss)		2,481		862		188		20,750			18,929			10
Provision for credit losses		(4)		46		NM		3,111			1,384			125
Net income/(loss)		1,810		812		123		12,898			13,151			(2)
ROE		NM		NM				16		%	18		%


Nine months ended September 30,	Consumer & Community Banking								Commercial & Investment Bank									Asset & Wealth Management
(in millions, except ratios)	2024			2023			Change			2024			2023			Change			2024			2023			Change
Total net revenue	$	53,145		$	52,051		2	%		$	52,516		$	49,379		6	%		$	15,800		$	14,732		7	%
Total noninterest expense	28,308			25,483			11			26,641			25,803			3			10,642			9,392			13
Pre-provision profit/(loss)	24,837			26,568			(7)			25,875			23,576			10			5,158			5,340			(3)
Provision for credit losses	7,351			4,710			56			701			1,515			(54)			(33)			160			NM
Net income/(loss)	13,087			16,444			(20)			18,210			16,095			13			3,904			4,010			(3)
ROE	31		%	40		%				18		%	15		%				33		%	32		%


Nine months ended September 30,	Corporate				Total
(in millions, except ratios)		2024			2023		Change		2024				2023			Change
Total net revenue		$	15,394	(a)	$	6,261	146	%	$	136,855		(a)	$	122,423		12	%
Total noninterest expense		3,444		(b)	2,008		72		69,035			(b)	62,686			10
Pre-provision profit/(loss)		11,950			4,253		181		67,820				59,737			14
Provision for credit losses		28			173		(84)		8,047				6,558			23
Net income/(loss)		9,265			3,696		151		44,466				40,245			10
ROE		NM			NM				19		%		19		%

(a) Included a $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024. Refer to Notes 2 and 5 for additional information.

(b) Included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Note 5 for additional information.

The following sections provide a comparative discussion of the Firm’s results by segment as of or for the three and nine months ended September 30, 2024 and 2023, unless otherwise specified.

CONSUMER & COMMUNITY BANKING

Refer to pages 68-71 of JPMorgan Chase's 2023 Form 10-K and Line of Business Metrics on page 198 for a further discussion of the business profile of CCB.


Selected income statement data
	Three months ended September 30,								Nine months ended September 30,
(in millions, except ratios)	2024			2023			Change		2024			2023			Change
Revenue
Lending- and deposit-related fees	$	863		$	836		3	%	$	2,515		$	2,500		1	%
Asset management fees	1,022			891			15		2,947			2,383			24
Mortgage fees and related income	390			417			(6)		1,010			914			11
Card income	743			626			19		2,166			1,848			17
All other income (a)	1,196			1,212			(1)		3,517			3,503			—
Noninterest revenue	4,214			3,982			6		12,155			11,148			9
Net interest income	13,577			14,380			(6)		40,990			40,903			—
Total net revenue	17,791			18,362			(3)		53,145			52,051			2

Provision for credit losses	2,795			1,446			93		7,351			4,710			56

Noninterest expense
Compensation expense	4,275			3,975			8		12,744			11,148			14
Noncompensation expense (b)	5,311			5,130			4		15,564			14,335			9
Total noninterest expense	9,586			9,105			5		28,308		(d)	25,483			11
Income before income tax expense	5,410			7,811			(31)		17,486			21,858			(20)
Income tax expense	1,364			1,916			(29)		4,399			5,414			(19)
Net income	$	4,046		$	5,895		(31)		$	13,087		$	16,444		(20)

Revenue by business
Banking & Wealth Management	$	10,090		$	11,345		(11)		$	30,789		$	32,322		(5)
Home Lending	1,295			1,252			3		3,800			2,979			28
Card Services & Auto	6,406			5,765			11		18,556			16,750			11

Mortgage fees and related income details:
Production revenue	154			162			(5)		441			339			30
Net mortgage servicing revenue (c)	236			255			(7)		569			575			(1)
Mortgage fees and related income	$	390		$	417		(6)	%	$	1,010		$	914		11	%

Financial ratios
Return on equity	29		%	41		%			31		%	40		%
Overhead ratio	54			50					53			49

(a) Primarily includes operating lease income and commissions and other fees. Operating lease income was $699 million and $685 million for the three months ended September 30, 2024 and 2023, respectively, and $2.0 billion and $2.1 billion for the nine months ended September 30, 2024 and 2023, respectively.

(b) Included depreciation expense on leased assets of $387 million and $458 million for the three months ended September 30, 2024 and 2023, respectively, and $1.2 billion and $1.3 billion for the nine months ended September 30, 2024 and 2023, respectively.

(c) Included MSR risk management results of $100 million and $111 million for the three months ended September 30, 2024 and 2023, respectively, and $138 million and $124 million for the nine months ended September 30, 2024 and 2023, respectively.

(d) In the second quarter of 2023, substantially all of the expense associated with First Republic was reported in Corporate. Commencing in the third quarter of 2023, the expense has been aligned to the appropriate LOB.

Quarterly results

Net income was $4.0 billion, down 31%.

Net revenue was $17.8 billion, down 3%.

Net interest income was $13.6 billion, down 6%, driven by:

• lower NII in Banking & Wealth Management ("BWM"), reflecting deposit margin compression and lower average deposits,

partially offset by

• higher Card Services NII on higher revolving balances.

Noninterest revenue was $4.2 billion, up 6%, driven by:

• higher asset management fees reflecting higher average market levels, and

• higher card income, reflecting higher annual fees and higher net interchange on increased debit and credit card sales volume, partially offset by an increase in amortization related to new account origination costs.

Refer to Note 5 for additional information on card income, asset management fees, and commissions and other fees; and Critical Accounting Estimates on pages 84-86 for additional information on the credit card rewards liability.

Noninterest expense was $9.6 billion, up 5%, reflecting:

• higher compensation expense, predominantly driven by advisors, bankers, and technology employees, and

• higher noncompensation expense, driven by continued investments in marketing, and higher operating losses, partially offset by lower auto lease depreciation.

The provision for credit losses was $2.8 billion, reflecting:

• net charge-offs of $1.9 billion, up $520 million, driven by $541 million in Card Services, primarily due to the seasoning of newer vintages and continued credit normalization, and

• an $876 million net addition to the allowance for credit losses, primarily in Card Services, driven by growth in revolving balances and changes in certain macroeconomic variables.

The provision in the prior year was $1.4 billion, reflecting net charge-offs of $1.4 billion and a $47 million net addition to the allowance for credit losses.

Refer to Credit and Investment Risk Management on pages 58-76 and Allowance for Credit Losses on pages 73-75 for a further discussion of the credit portfolios and the allowance for credit losses.

Year-to-date results

Net income was $13.1 billion, down 20% .

Net revenue was $53.1 billion, up 2% .

Net interest income was $41.0 billion, flat when compared with the prior year, reflecting:

• higher Card Services NII on higher revolving balances, and

• the timing impact of First Republic in Home Lending,

offset by

• lower NII in BWM, reflecting deposit margin compression and lower average deposits.

Noninterest revenue was $12.2 billion, up 9% , predominantly driven by:

• higher asset management fees reflecting higher average market levels, including the timing impact of First Republic and, to a lesser extent, net inflows, as well as higher commissions from annuity sales in BWM,

• higher card income driven by higher net interchange on increased debit and credit card sales volume, as well as higher annual fees, partially offset by an increase in amortization related to new account origination costs, and

• higher production revenue in Home Lending, including the timing impact of First Republic.

Refer to Consolidated Results of Operations on pages 9–14 and Note 26 for additional information on First Republic.

Noninterest expense was $28.3 billion, up 11% , reflecting First Republic-related expense that was aligned to CCB from Corporate starting in the third quarter of 2023, impacting both compensation and noncompensation expense.

The increase in expense also reflected:

• higher compensation expense, largely driven by higher revenue-related compensation predominantly for advisors and bankers, and an increase in employees, including in technology, and

• higher noncompensation expense, largely driven by continued investments in marketing and technology, and higher operating losses.

The provision for credit losses was $7.4 billion, reflecting:

• net charge-offs of $5.9 billion, up $2.2 billion, including $2.0 billion in Card Services, reflecting the seasoning of newer vintages and continued credit normalization, and $98 million in Auto, driven by a decline in used vehicle valuations, and

• a $1.5 billion net addition to the allowance for credit losses, consisting of:

– $1.7 billion in Card Services, driven by loan growth, reflecting higher revolving balances, including the seasoning of newer vintages, and changes in certain macroeconomic variables,

partially offset by

– a $125 million net reduction in Home Lending, primarily due to improvements in the outlook for home prices in the first quarter of 2024.

The provision in the prior year was $4.7 billion, reflecting net charge-offs of $3.7 billion, a $1.0 billion net addition to the allowance for credit losses, predominantly driven by Card Services, and a $408 million net addition to the allowance for credit losses to establish the allowance for the First Republic loans and lending-related commitments in the second quarter of 2023.


Selected metrics
	As of or for the three months ended September 30,						As of or for the nine months ended September 30,
(in millions, except employees)	2024		2023		Change		2024		2023		Change
Selected balance sheet data (period-end)
Total assets	$	633,038	$	626,196	1	%	$	633,038	$	626,196	1	%
Loans:
Banking & Wealth Management	31,614		30,574		3		31,614		30,574		3
Home Lending (a)	247,663		261,858		(5)		247,663		261,858		(5)
Card Services	219,671		196,955		12		219,671		196,955		12
Auto	73,215		74,831		(2)		73,215		74,831		(2)
Total loans	572,163		564,218		1		572,163		564,218		1
Deposits (b)	1,054,027		1,136,884		(7)		1,054,027		1,136,884		(7)
Equity	54,500		55,500		(2)		54,500		55,500		(2)
Selected balance sheet data (average)
Total assets	$	631,117	$	622,760	1		$	629,252	$	569,076	11
Loans:
Banking & Wealth Management	30,910		30,686		1		31,189		29,947		4
Home Lending (c)	250,581		264,041		(5)		254,264		222,248		14
Card Services	217,327		195,245		11		210,740		187,629		12
Auto	73,675		74,358		(1)		75,575		71,416		6
Total loans	572,493		564,330		1		571,768		511,240		12
Deposits (b)	1,053,701		1,143,539		(8)		1,068,774		1,138,050		(6)
Equity	54,500		55,500		(2)		54,500		53,962		1

Employees	143,964		141,125		2	%	143,964		141,125		2	%

(a) At September 30, 2024 and 2023, Home Lending loans held-for-sale and loans at fair value were $6.9 billion and $4.1 billion, respectively.

(b) In the fourth quarter of 2023, CCB transferred approximately $18.8 billion of deposits associated with First Republic to AWM and CIB. Refer to page 67 of the Firm’s 2023 Form 10-K for additional information.

(c) Average Home Lending loans held-for sale and loans at fair value were $8.4 billion and $5.7 billion for the three months ended September 30, 2024 and 2023, respectively, and $6.9 billion and $4.8 billion for the nine months ended September 30, 2024 and 2023, respectively.


Selected metrics
	As of or for the three months ended September 30,								As of or for the nine months ended September 30,
(in millions, except ratio data)	2024			2023			Change		2024			2023			Change
Credit data and quality statistics
Nonaccrual loans (a)	$	3,252		$	3,690		(12)	%	$	3,252		$	3,690		(12)	%
Net charge-offs/(recoveries)
Banking & Wealth Management	82			88			(7)		337			259			30
Home Lending	(44)			(16)			(175)		(91)			(62)			(47)
Card Services	1,768			1,227			44		5,286			3,273			62
Auto	113			100			13		330			232			42
Total net charge-offs/(recoveries)	$	1,919		$	1,399		37		$	5,862		$	3,702		58

Net charge-off/(recovery) rate
Banking & Wealth Management	1.06		%	1.14		%			1.44		%	1.16		%
Home Lending	(0.07)			(0.02)					(0.05)			(0.04)
Card Services	3.24			2.49					3.35			2.33
Auto	0.62			0.53					0.59			0.43
Total net charge-off/(recovery) rate	1.35		%	0.99		%			1.39		%	0.98		%

30+ day delinquency rate
Home Lending (b)	0.77		%	0.59		%			0.77		%	0.59		%
Card Services	2.20			1.94					2.20			1.94
Auto	1.23			1.13					1.23			1.13

90+ day delinquency rate - Card Services	1.10		%	0.94		%			1.10		%	0.94		%

Allowance for loan losses
Banking & Wealth Management	$	709		$	686		3		$	709		$	686		3
Home Lending	447			573			(22)		447			573			(22)
Card Services	14,106			11,901			19		14,106			11,901			19
Auto	692			742			(7)		692			742			(7)
Total allowance for loan losses	$	15,954		$	13,902		15	%	$	15,954		$	13,902		15	%

(a) Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At September 30, 2024 and 2023, mortgage loans 90 or more days past due and insured by U.S. government agencies were $88 million and $123 million, respectively. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.

(b) At September 30, 2024 and 2023, excluded mortgage loans insured by U.S. government agencies of $126 million and $175 million, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.


Selected metrics
	As of or for the three months ended September 30,								As of or for the nine months ended September 30,
(in billions, except ratios and where otherwise noted)	2024			2023			Change		2024			2023			Change
Business Metrics
Number of branches	4,906			4,863			1	%	4,906			4,863			1	%
Active digital customers (in thousands) (a)	70,063			66,765			5		70,063			66,765			5
Active mobile customers (in thousands) (b)	56,985			53,221			7		56,985			53,221			7
Debit and credit card sales volume	$	453.4		$	426.3		6		$	1,327.8		$	1,237.6		7
Total payments transaction volume (in trillions) (c)	1.7			1.5			13		4.8			4.4			9

Banking & Wealth Management
Average deposits	$	1,038.0		$	1,127.8		(8)		$	1,054.1		$	1,123.1		(6)
Deposit margin	2.60		%	2.92		%			2.68		%	2.84		%
Business Banking average loans	$	19.5		$	19.5		—		$	19.5		$	19.7		(1)
Business banking origination volume	1.1			1.3			(17)		3.5			3.6			(2)
Client investment assets (d)	1,067.9			882.3			21		1,067.9			882.3			21
Number of client advisors	5,775			5,424			6		5,775			5,424			6

Home Lending
Mortgage origination volume by channel
Retail	$	6.5		$	6.8		(4)		$	17.8		$	17.7		1
Correspondent	4.9			4.2			17		10.9			10.2			7
Total mortgage origination volume (e)	$	11.4		$	11.0		4		$	28.7		$	27.9		3

Third-party mortgage loans serviced (period-end)	$	656.1		$	637.8		3		656.1			$	637.8		3
MSR carrying value (period-end)	8.7			9.1			(4)		8.7			9.1			(4)

Card Services
Sales volume, excluding commercial card	$	316.6		$	296.2		7		$	924.2		$	856.4		8
Net revenue rate	9.91		%	9.60		%			9.87		%	9.69		%
Net yield on average loans	9.71			9.54					9.69			9.58

Auto
Loan and lease origination volume	$	10.0		$	10.2		(2)		$	29.7		$	31.4		(5)
Average auto operating lease assets	11.2			10.7			5	%	10.8			11.1			(3)	%

(a) Users of all web and/or mobile platforms who have logged in within the past 90 days.

(b) Users of all mobile platforms who have logged in within the past 90 days.

(c) Total payments transaction volume includes debit and credit card sales volume and gross outflows of ACH, ATM, teller, wires, BillPay, PayChase, Zelle, person-to-person and checks.

(d) Includes assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager. Refer to AWM segment results on pages 35-39 for additional information.

(e) Firmwide mortgage origination volume was $13.3 billion and $13.0 billion for the three months ended September 30, 2024 and 2023, respectively, and $33.2 billion and $32.8 billion for the nine months ended September 30, 2024 and 2023, respectively.

COMMERCIAL & INVESTMENT BANK (a)


The Commercial & Investment Bank is comprised of the Banking & Payments and Markets & Securities Services businesses. These businesses offer investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. Banking & Payments offers products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt markets, and loan origination and syndication. Banking & Payments also provides services that enable clients to manage payments globally across liquidity and account solutions, commerce solutions, clearing, trade, and working capital. Markets & Securities Services includes Markets, which is a global market-maker across products, including cash and derivative instruments, and also offers sophisticated risk management solutions, lending, prime brokerage, clearing and research. Markets & Securities Services also includes Securities Services, a leading global custodian that provides custody, fund services, liquidity and trading services, and data solutions products.

(a) Reflects the reorganization of the Firm's business segments in the second quarter of 2024. Refer to Business Segment Results on pages 20-21 for additional information.

Refer to Line of Business Metrics on page 198 for a further discussion of the business profile of CIB.


Selected income statement data
	Three months ended September 30,								Nine months ended September 30,
(in millions, except ratios)	2024			2023			Change		2024			2023			Change
Revenue
Investment banking fees	$	2,267		$	1,729		31	%	$	6,637		$	4,964		34	%
Principal transactions	5,899			5,971			(1)		19,224			20,145			(5)
Lending- and deposit-related fees	997			966			3		2,894			2,514			15
Commissions and other fees	1,349			1,184			14		3,958			3,671			8
Card income	589			572			3		1,693			1,661			2
All other income	521			420			24		2,121			1,828			16
Noninterest revenue	11,622			10,842			7		36,527			34,783			5
Net interest income	5,393			4,919			10		15,989			14,596			10
Total net revenue (a)	17,015			15,761			8		52,516			49,379			6
Provision for credit losses	316			(95)			NM		701			1,515			(54)

Noninterest expense
Compensation expense	4,510			4,155			9		14,158			12,998			9
Noncompensation expense	4,241			4,663			(9)		12,483			12,805			(3)
Total noninterest expense	8,751			8,818			(1)		26,641			25,803			3
Income before income tax expense	7,948			7,038			13		25,174			22,061			14
Income tax expense	2,257			2,011			12		6,964			5,966			17
Net income	$	5,691		$	5,027		13	%	$	18,210		$	16,095		13	%
Financial ratios
Return on equity	17		%	14		%			18		%	15		%
Overhead ratio	51			56					51			52
Compensation expense as percentage of total net revenue	27			26					27			26

(a) Included tax equivalent adjustments primarily from income tax credits from investments in alternative energy, affordable housing and new markets, income from tax-exempt securities and loans, and the related amortization and other tax benefits of the investments in alternative energy and affordable housing of $607 million and $746 million for the three months ended September 30, 2024 and 2023, respectively, and $1.9 billion and $2.7 billion for the nine months ended September 30, 2024 and 2023, respectively. Effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance, under the modified retrospective method. Refer to Notes 1 , 5 and 13 for additional information.


Selected income statement data
	Three months ended September 30,						Nine months ended September 30,
(in millions)	2024		2023		Change		2024		2023		Change
Revenue by business
Investment Banking	$	2,354	$	1,818	29	%	$	7,034	$	5,293	33	%
Payments	4,370		4,217		4		13,382		13,362		—
Lending	1,894		1,934		(2)		5,554		5,133		8
Other	28		24		17		29		71		(59)
Total Banking & Payments	8,646		7,993		8		25,999		23,859		9
Fixed Income Markets	4,530		4,548		—		14,679		14,909		(2)
Equity Markets	2,622		2,069		27		8,279		7,208		15
Securities Services	1,326		1,212		9		3,770		3,581		5
Credit Adjustments & Other (a)	(109)		(61)		(79)		(211)		(178)		(19)
Total Markets & Securities Services	8,369		7,768		8		26,517		25,520		4
Total net revenue	$	17,015	$	15,761	8	%	$	52,516	$	49,379	6	%

(a) Consists primarily of centrally-managed credit valuation adjustments (“CVA”), funding valuation adjustments (“FVA”) on derivatives, other valuation adjustments, and certain components of fair value option elected liabilities, which are primarily reported in principal transactions revenue. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets. Refer to Notes 2, 3 and 19 for additional information.


Banking & Payments Revenue by Client Coverage Segment: (a) Global Corporate Banking & Global Investment Banking provides banking products and services generally to large corporations, financial institutions and merchants. Commercial Banking provides banking products and services generally to middle market clients, including start-ups, small and mid-sized companies, local governments, municipalities, and nonprofits, as well as to commercial real estate clients. Other includes amounts related to credit protection purchased against certain retained loans and lending-related commitments in Lending, the impact of equity investments in Payments and revenues not aligned with a primary client coverage segment. (a) Global Banking is a client coverage view within the Banking & Payments business and is comprised of the Global Corporate Banking, Global Investment Banking and Commercial Banking client coverage segments.


Selected income statement data
	Three months ended September 30,						Nine months ended September 30,
(in millions)	2024		2023		Change		2024		2023		Change
Banking & Payments revenue by client coverage segment
Global Corporate Banking & Global Investment Banking	$	6,139	$	5,469	12	%	$	18,100	$	16,285	11	%
Commercial Banking	2,891		2,874		1		8,588		8,101		6
Middle Market Banking	1,931		1,949		(1)		5,794		5,730		1
Commercial Real Estate Banking	960		925		4		2,794		2,371		18
Other	(384)		(350)		(10)		(689)		(527)		(31)
Total Banking & Payments revenue	$	8,646	$	7,993	8	%	$	25,999	$	23,859	9	%

Quarterly results

Net income was $5.7 billion, up 13%.

Net revenue was $17.0 billion, up 8%.

Banking & Payments revenue was $8.6 billion, up 8%.

• Investment Banking revenue was $2.4 billion, up 29%, driven by higher Investment Banking fees, up 31%, reflecting higher fees across products. The Firm ranked #1 for Global Investment Banking fees, according to Dealogic.

– Debt underwriting fees were $1.1 billion , up 56%, predominantly driven by higher industry-wide issuances in high-grade and high-yield bonds, as well as wallet share gains in investment-grade loans.

– Equity underwriting fees were $344 million, up 26% , driven by increased industry-wide fees in follow-on offerings and wallet share gains in convertible securities offerings.

– Advisory fees were $847 million, up 10%, predominantly driven by the closing of several large transactions.

• Payments revenue was $4.4 billion , up 4%, driven by fee growth on higher volumes and higher average deposits, largely offset by deposit margin compression, reflecting higher rates paid, and higher deposit-related client credits.

• Lending revenue was $1.9 billion, down 2%, driven by:

– additional amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic recorded in the prior year, and

– higher fair value losses on credit protection purchased against certain retained loans and lending-related commitments

largely offset by

– the impact of higher rates.

Markets & Securities Services revenue was $8.4 billion, up 8%. Markets revenue was $7.2 billion, up 8%.

• Equity Markets revenue was $2.6 billion, up 27%, reflecting strong performance across regions, largely driven by a favorable trading environment in the U.S. and increased late-quarter activity in Asia.

• Fixed Income Markets revenue was $4.5 billion, flat when compared to the prior year, and included strong performance in Currencies and Emerging Markets and lower revenue in Rates.

• Securities Services revenue was $1.3 billion, up 9%, largely driven by fee growth on higher market levels and volumes.

• Credit Adjustments & Other was a loss of $109 million, compared with a loss of $61 million in the prior year.

Noninterest expense was $8.8 billion, down 1%, driven by lower legal expense, offset by higher compensation, including revenue-related compensation and an increase in employees, as well as higher technology expense.

The provision for credit losses was $316 million, reflecting:

• a $160 million net addition to the allowance for credit losses, driven by the impact of changes in the loan and lending-related commitment portfolios, including in Markets, as well as net downgrade activity, primarily in Real Estate, partially offset by changes in certain macroeconomic variables, and

• net charge-offs of $156 million.

The provision in the prior year was a net benefit of $95 million, reflecting a $193 million net reduction in the allowance for credit losses and net charge-offs of $98 million.

Refer to Credit and Investment Risk Management on pages 58-76, Allowance for Credit Losses on pages 73-75, and Critical Accounting Estimates on pages 84-86 for a further discussion of the credit portfolios and the allowance for credit losses.

Year-to-date results

Net income of $18.2 billion , up 13%.

Net revenue was $52.5 billion, up 6% .

Banking & Payments revenue was $26.0 billion, up 9%.

• Investment Banking revenue was $7.0 billion, up 33%. Investment Banking fees were up 34%, driven by higher fees across products. The Firm ranked #1 for Global Investment Banking fees, according to Dealogic.

– Debt underwriting fees were $3.2 billion, up 55%, predominantly driven by higher industry-wide issuances in leveraged loans, high-grade and high-yield bonds.

– Equity underwriting fees were $1.2 billion, up 44%, driven by higher IPOs, follow-on and convertible securities offerings.

– Advisory fees were $2.2 billion, up 8%, predominantly driven by increased M&A activity.

• Payments revenue was $13.4 billion , flat when compared to the prior year, driven by fee growth on higher volumes and higher average deposits, offset by deposit margin compression, reflecting higher rates paid, and higher deposit-related client credits.

• Lending revenue was $5.6 billion, up 8%, driven by the impact of the First Republic acquisition and the impact of higher rates, partially offset by fair value losses on credit protection purchased against certain retained loans and lending-related commitments.

Markets & Securities Services revenue was $26.5 billion, up 4%. Markets revenue was $23.0 billion, up 4%.

• Equity Markets revenue was $8.3 billion, up 15%, predominantly driven by higher revenue in Equity Derivatives and Prime Finance.

• Fixed Income Markets revenue was $14.7 billion, down 2%, driven by lower revenues in Rates, largely offset by higher revenue in Securitized Products.

• Securities Services revenue was $3.8 billion, up 5%, predominantly driven by higher volumes and market levels.

• Credit Adjustments & Other was a loss of $211 million, compared with a loss of $178 million in the prior year.

Noninterest expense was $26.6 billion, up 3%, driven by higher compensation expense, including revenue-related compensation and an increase in employees, largely offset by lower legal expense.

The provision for credit losses was $701 million, reflecting:

• net charge-offs of $389 million, including in Real Estate, concentrated in Office, and

• a $312 million net addition to the allowance for credit losses, driven by

– net downgrade activity, primarily in Real Estate, and the impact of incorporating the First Republic portfolio into

the Firm's modeled credit loss estimates in the second quarter of 2024,

partially offset by

– changes in certain macroeconomic variables and the impact of changes in the loan and lending-related commitment portfolios.

The provision in the prior year was $1.5 billion , reflecting a $1.2 billion net addition to the allowance for credit losses, which included $608 million to establish the allowance for the First Republic loans and lending-related commitments in the second quarter of 2023, and net charge-offs of $341 million.


Selected metrics
(in millions, except employees)	As of or for the three months ended September 30,						As of or for the nine months ended September 30,
	2024		2023		Change		2024		2023		Change
Selected balance sheet data (period-end)
Total assets	$	2,047,022	$	1,746,598	17	%	$	2,047,022	$	1,746,598	17	%
Loans:
Loans retained	483,915		475,644		2		483,915		475,644		2
Loans held-for-sale and loans at fair value (a)	47,728		39,984		19		47,728		39,984		19
Total loans	531,643		515,628		3		531,643		515,628		3
Equity	132,000		138,000		(4)		132,000		138,000		(4)

Banking & Payments loans by client coverage segment (period-end) (b)
Global Corporate Banking & Global Investment Banking	$	134,487	$	130,133	3	%	$	134,487	$	130,133	3	%
Commercial Banking	218,733		222,368		(2)		218,733		222,368		(2)
Middle Market Banking	73,782		78,955		(7)		73,782		78,955		(7)
Commercial Real Estate Banking	144,951		143,413		1		144,951		143,413		1
Other	263		291		(10)		263		291		(10)
Total Banking & Payments loans	353,483		352,792		—		353,483		352,792		—

Selected balance sheet data (average)
Total assets	$	2,008,127	$	1,725,146	16		$	1,906,414	$	1,721,149	11
Trading assets-debt and equity instruments	663,302		522,843		27		627,689		515,036		22
Trading assets-derivative receivables	54,133		65,800		(18)		56,741		64,327		(12)
Loans:
Loans retained	$	476,256	$	475,285	—		$	473,113	$	452,497	5
Loans held-for-sale and loans at fair value (a)	44,868		40,605		10		43,762		41,051		7
Total loans	$	521,124	$	515,890	1		$	516,875	$	493,548	5
Deposits (c)	1,064,402		988,765		8		1,052,438		984,187		7
Equity	132,000		138,000		(4)		132,000		137,341		(4)

Banking & Payments loans by client coverage segment (average) (b)
Global Corporate Banking & Global Investment Banking	$	128,747	$	132,394	(3)	%	$	128,824	$	131,548	(2)	%
Commercial Banking	219,406		221,729		(1)		220,826		204,926		8
Middle Market Banking	74,660		78,774		(5)		76,411		76,634		—
Commercial Real Estate Banking	144,746		142,955		1		144,415		128,292		13
Other	277		435		(36)		408		291		40
Total Banking & Payments loans	$	348,430	$	354,558	(2)		$	350,058	$	336,765	4

Employees	93,754		92,181		2	%	93,754		92,181		2	%

(a) Loans held-for-sale and loans at fair value primarily reflect lending-related positions originated and purchased in Markets, including loans held for securitization.

(b) Refer to page 28 for a description of each of the client coverage segments.


Selected metrics
	As of or for the three months ended September 30,								As of or for the nine months ended September 30,
(in millions, except ratios)	2024			2023			Change		2024			2023			Change
Credit data and quality statistics
Net charge-offs/(recoveries)	$	156		$	98		59	%	$	389		$	341		14	%
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (a)	$	2,857		$	1,867		53		$	2,857		$	1,867		53
Nonaccrual loans held-for-sale and loans at fair value (b)	1,187			825			44		1,187			825			44
Total nonaccrual loans	4,044			2,692			50		4,044			2,692			50
Derivative receivables	210			293			(28)		210			293			(28)
Assets acquired in loan satisfactions	216			173			25		216			173			25
Total nonperforming assets	$	4,470		$	3,158		42		$	4,470		$	3,158		42
Allowance for credit losses:
Allowance for loan losses	$	7,427		$	7,135		4		$	7,427		$	7,135		4
Allowance for lending-related commitments	2,013			1,940			4		2,013			1,940			4
Total allowance for credit losses	$	9,440		$	9,075		4	%	$	9,440		$	9,075		4	%
Net charge-off/(recovery) rate (c)	0.13		%	0.08		%			0.11		%	0.10		%
Allowance for loan losses to period-end loans retained	1.53			1.50					1.53			1.50

Allowance for loan losses to nonaccrual loans retained (a)	260			382					260			382
Nonaccrual loans to total period-end loans	0.76		%	0.52		%			0.76		%	0.52		%

(a) Allowance for loan losses of $366 million and $346 million were held against these nonaccrual loans at September 30, 2024 and 2023, respectively.

(b) Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At September 30, 2024 and 2023, mortgage loans 90 or more days past due and insured by U.S. government agencies were $38 million and $65 million, respectively.


Investment banking fees
	Three months ended September 30,						Nine months ended September 30,
(in millions)	2024		2023		Change		2024		2023		Change
Advisory	$	847	$	767	10	%	$	2,230	$	2,063	8	%
Equity underwriting	344		274		26		1,194		827		44
Debt underwriting (a)	1,076		688		56		3,213		2,074		55
Total investment banking fees	$	2,267	$	1,729	31	%	$	6,637	$	4,964	34	%

(a) Represents long-term debt and loan syndications.


League table results – wallet share
	Three months ended September 30,								Nine months ended September 30,								Full-year 2023
	2024				2023				2024				2023
	Rank		Share		Rank		Share		Rank		Share		Rank		Share		Rank		Share
Based on fees (a)
M&A (b)
Global	#	2	8.8	%	#	2	10.1	%	#	2	9.2	%	#	2	9.3	%	#	2	9.0	%
U.S.	2		9.8		2		11.6		2		10.9		2		11.4		2		11.0
Equity and equity-related (c)
Global	2		10.0		2		7.5		1		10.9		1		7.2		1		7.7
U.S.	1		14.3		2		11.5		1		14.4		1		13.3		1		14.4
Long-term debt (d)
Global	1		7.4		1		7.1		1		7.7		1		6.7		1		7.0
U.S.	1		11.7		1		11.5		1		11.5		1		10.5		1		10.9
Loan syndications
Global	1		9.6		1		12.3		1		10.8		1		12.4		1		11.9
U.S.	2		10.5		1		14.3		1		12.6		1		15.8		1		15.1
Global investment banking fees (e)	#	1	8.6	%	#	1	9.2	%	#	1	9.1	%	#	1	8.5	%	#	1	8.6	%

(a) Source: Dealogic as of October 1, 2024. Reflects the ranking of revenue wallet and market share.

(b) Global M&A excludes any withdrawn transactions. U.S. M&A revenue wallet represents wallet from client parents based in the U.S.

(d) Long-term debt rankings include investment-grade, high-yield, supranationals, sovereigns, agencies, covered bonds, asset-backed securities (“ABS”) and mortgage-backed securities (“MBS”); and exclude money market, short-term debt and U.S. municipal securities.

(e) Global investment banking fees exclude money market, short-term debt and shelf securities.

Markets revenue

The following table summarizes selected income statement data for the Markets businesses. Markets includes both Fixed Income Markets and Equity Markets. Markets revenue consists of principal transactions, fees, commissions and other income, as well as net interest income. The Firm assesses its Markets business performance on a total revenue basis, as offsets generally occur across revenue line items. For example, securities that generate net interest income may be risk-managed by derivatives that

are reflected at fair value in principal transactions revenue. Refer to Notes 5 and 6 for a description of the composition of these income statement line items. Refer to Markets revenue on page 75 of JPMorgan Chase’s 2023 Form 10-K for further information.

For the periods presented below, the primary source of principal transactions revenue was the amount recognized upon executing new transactions.


	Three months ended September 30,						Three months ended September 30,
	2024						2023
(in millions)	Fixed Income Markets		Equity Markets		Total Markets		Fixed Income Markets		Equity Markets		Total Markets
Principal transactions	$	1,745	$	4,120	$	5,865	$	2,985	$	2,921	$	5,906
Lending- and deposit-related fees	79		31		110		81		10		91
Commissions and other fees	166		518		684		147		454		601
All other income	408		7		415		353		(17)		336
Noninterest revenue	2,398		4,676		7,074		3,566		3,368		6,934
Net interest income (a)	2,132		(2,054)		78		982		(1,299)		(317)
Total net revenue	$	4,530	$	2,622	$	7,152	$	4,548	$	2,069	$	6,617

	Nine months ended September 30,						Nine months ended September 30,
	2024						2023
(in millions)	Fixed Income Markets		Equity Markets		Total Markets		Fixed Income Markets		Equity Markets		Total Markets
Principal transactions	$	6,569	$	12,505	$	19,074	$	10,503	$	9,300	$	19,803
Lending- and deposit-related fees	282		71		353		227		24		251
Commissions and other fees	475		1,554		2,029		442		1,448		1,890
All other income	1,363		(45)		1,318		1,148		(66)		1,082
Noninterest revenue	8,689		14,085		22,774		12,320		10,706		23,026
Net interest income (a)	5,990		(5,806)		184		2,589		(3,498)		(909)
Total net revenue	$	14,679	$	8,279	$	22,958	$	14,909	$	7,208	$	22,117

(a) The decline in Equity Markets net interest income was driven by higher funding costs.


Selected metrics
(in millions, except where otherwise noted)	As of or for the three months ended September 30,						As of or for the nine months ended September 30,
	2024		2023		Change		2024		2023		Change
Assets under custody (“AUC”) by asset class (period-end) (in billions):
Fixed Income	$	16,696	$	14,397	16	%	$	16,696	$	14,397	16	%
Equity	15,000		11,633		29		15,000		11,633		29
Other (a)	4,136		3,695		12		4,136		3,695		12
Total AUC	$	35,832	$	29,725	21		$	35,832	$	29,725	21
Client deposits and other third-party liabilities (average) (b)	$	966,025	$	900,292	7	%	$	944,862	$	907,567	4	%

(a) Consists of mutual funds, unit investment trusts, currencies, annuities, insurance contracts, options and other contracts.

(b) Client deposits and other third-party liabilities pertain to the Payments and Securities Services businesses.


International metrics
(in millions, except where otherwise noted)	As of or for the three months ended September 30,						As of or for the nine months ended September 30,
	2024		2023		Change		2024		2023		Change
Total net revenue (a)
Europe/Middle East/Africa	$	3,260	$	3,343	(2)	%	$	11,701	$	11,756	—	%
Asia-Pacific	2,439		1,902		28		6,742		6,057		11
Latin America/Caribbean	615		573		7		1,889		1,711		10
Total international net revenue	6,314		5,818		9		20,332		19,524		4
North America	10,701		9,943		8		32,184		29,855		8
Total net revenue	$	17,015	$	15,761	8		$	52,516	$	49,379	6

Loans retained (period-end) (a)
Europe/Middle East/Africa	$	47,900	$	41,975	14		$	47,900	$	41,975	14
Asia-Pacific	16,066		15,548		3		16,066		15,548		3
Latin America/Caribbean	8,932		8,948		—		8,932		8,948		—
Total international loans	72,898		66,471		10		72,898		66,471		10
North America	411,017		409,173		—		411,017		409,173		—
Total loans retained	$	483,915	$	475,644	2		$	483,915	$	475,644	2

Client deposits and other third-party liabilities (average) (b)
Europe/Middle East/Africa	$	266,066	$	243,247	9		$	262,328	$	245,867	7
Asia-Pacific	139,563		133,819		4		137,707		134,675		2
Latin America/Caribbean	43,517		39,075		11		42,418		39,365		8
Total international	$	449,146	$	416,141	8		$	442,453	$	419,907	5
North America	516,879		484,151		7		502,409		487,660		3
Total client deposits and other third-party liabilities	$	966,025	$	900,292	7		$	944,862	$	907,567	4

AUC (period-end) (b) (in billions)
North America	$	23,960	$	20,049	20		$	23,960	$	20,049	20
All other regions	11,872		9,676		23		11,872		9,676		23
Total AUC	$	35,832	$	29,725	21	%	$	35,832	$	29,725	21	%

(a) Total net revenue and loans retained (excluding loans held-for-sale and loans at fair value) are based on the location of the trading desk, booking location, or domicile of the client, as applicable.

(b) Client deposits and other third-party liabilities pertaining to the Payments and Securities Services businesses, and AUC, are based on the domicile of the client or booking location, as applicable.

ASSET & WEALTH MANAGEMENT

Refer to pages 81–83 of JPMorgan Chase’s 2023 Form 10-K and Line of Business Metrics on page 199 for a discussion of the business profile of AWM.


Selected income statement data
(in millions, except ratios)	Three months ended September 30,									Nine months ended September 30,
	2024			2023				Change		2024			2023				Change
Revenue
Asset management fees	$	3,427		$	2,975		(a)	15	%	$	9,901		$	8,689		(a)	14	%
Commissions and other fees	224			190			(a)	18		649			544			(a)	19
All other income	148			266				(44)		396			889				(55)
Noninterest revenue	3,799			3,431				11		10,946			10,122				8
Net interest income	1,640			1,574				4		4,854			4,610				5
Total net revenue	5,439			5,005				9		15,800			14,732				7

Provision for credit losses	4			(13)				NM		(33)			160				NM

Noninterest expense
Compensation expense	1,994			1,777				12		5,926			5,258				13
Noncompensation expense	1,645			1,361				21		4,716			4,134				14
Total noninterest expense	3,639			3,138				16		10,642			9,392				13

Income before income tax expense	1,796			1,880				(4)		5,191			5,180				—
Income tax expense	445			463				(4)		1,287			1,170				10
Net income	$	1,351		$	1,417			(5)		$	3,904		$	4,010			(3)

Revenue by line of business
Asset Management	$	2,525		$	2,164			17		$	7,288		$	6,726			8
Global Private Bank	2,914			2,841				3		8,512			8,006				6
Total net revenue	$	5,439		$	5,005			9	%	$	15,800		$	14,732			7	%

Financial ratios
Return on equity	34		%	32		%				33		%	32		%
Overhead ratio	67			63						67			64
Pre-tax margin ratio:
Asset Management	32			29						30			31
Global Private Bank	34			44						35			38
Asset & Wealth Management	33			38						33			35

(a) Prior period amounts have been revised to conform with current presentation.

Quarterly results

Net income was $1.4 billion, down 5%.

Net revenue was $5.4 billion, up 9%. Net interest income was $1.6 billion, up 4%. Noninterest revenue was $3.8 billion, up 11%.

Revenue from Asset Management was $2.5 billion, up 17%, predominantly driven by:

• higher asset management fees reflecting higher average market levels and strong net inflows, and

• investment valuation gains compared with losses in the prior year.

Revenue from Global Private Bank was $2.9 billion, up 3%, driven by:

• higher net interest income, driven by higher average deposits predominantly associated with First Republic which were transferred to AWM from CCB in the fourth quarter of 2023, largely offset by deposit margin compression reflecting higher rates paid, and narrower loan spreads.

Noninterest revenue was relatively flat, reflecting higher management fees due to higher average market levels and strong net inflows, as well as higher brokerage fees, offset by the amortization of the purchase discount on certain acquired lending-related commitments associated with First Republic that have expired.

Noninterest expense was $3.6 billion, up 16%, predominantly driven by:

• higher compensation, primarily revenue-related compensation and continued growth in private banking advisor teams, and

• higher legal expense and distribution fees.

The provision for credit losses was $4 million.

The provision in the prior year was a net benefit of $13 million.

Refer to Note 5 for additional information on lending related fees.

Refer to Credit and Investment Risk Management on pages 58-76 and Allowance for Credit Losses on pages 73-75 for

further discussions of the credit portfolios and the allowance for credit losses.

Year-to-date results

Net income was $3.9 billion, down 3%.

Net revenue was $15.8 billion, up 7%. Net interest income was $4.9 billion, up 5%. Noninterest revenue was $10.9 billion, up 8%.

Revenue from Asset Management was $7.3 billion, up 8%, driven by:

• higher asset management fees reflecting higher average market levels and strong net inflows, and

• higher performance fees.

The prior year included a gain of $339 million on the original minority interest in CIFM upon the Firm's acquisition of the remaining 51% interest in the entity.

Revenue from Global Private Bank was $8.5 billion, up 6%, driven by:

• higher noninterest revenue, reflecting:

– higher management fees on strong net inflows and higher average market levels, as well as higher brokerage fees,

largely offset by

– the amortization of the purchase discount on certain acquired lending-related commitments associated with First Republic that have expired, and

• higher net interest income, predominantly driven by higher loans associated with First Republic and wider spreads on loans.

Deposit revenue was relatively flat as higher average deposits associated with First Republic which were transferred to AWM from CCB in the fourth quarter of 2023 were offset by margin compression reflecting higher rates paid.

Noninterest expense was $10.6 billion, up 13%, predominantly driven by:

• higher compensation, primarily revenue-related compensation, and continued growth in private banking advisor teams, and

• higher legal expense and distribution fees.

The provision for credit losses was a net benefit of $33 million.

The provision in the prior year was $160 million, reflecting a $146 million net addition to the allowance for credit losses to establish the allowance for the First Republic loans and lending-related commitments in the second quarter of 2023.


Selected metrics
	As of or for the three months ended September 30,								As of or for the nine months ended September 30,
(in millions, except ranking data, ratios and employees)	2024			2023			Change		2024			2023			Change
% of JPM mutual fund assets and ETFs rated as 4- or 5-star (a)	70		%	70		%			70		%	70		%
% of JPM mutual fund assets and ETFs ranked in 1 st or 2 nd quartile: (b)
1 year	70			39					70			39
3 years	75			67					75			67
5 years	73			81					73			81

Selected balance sheet data (period-end) (c)
Total assets	$	253,750		$	249,866		2	%	$	253,750		$	249,866		2	%
Loans	233,903			228,114			3		233,903			228,114			3
Deposits (d)	248,984			215,152			16		248,984			215,152			16
Equity	15,500			17,000			(9)		15,500			17,000			(9)

Selected balance sheet data (average) (c)
Total assets	$	247,768		$	245,616		1		$	243,784		$	237,870		2
Loans	229,299			223,760			2		225,630			218,278			3
Deposits (d)	236,470			201,975			17		230,560			212,652			8
Equity	15,500			17,000			(9)		15,500			16,560			(6)

Employees	29,112			28,083			4		29,112			28,083			4

Number of Global Private Bank client advisors	3,753			3,443			9		3,753			3,443			9

Credit data and quality statistics (c)
Net charge-offs/(recoveries)	$	12		$	1		NM		$	23		$	1		NM
Nonaccrual loans	764			621			23		764			621			23
Allowance for credit losses:
Allowance for loan losses	$	566		$	642		(12)		$	566		$	642		(12)
Allowance for lending-related commitments	38			32			19		38			32			19
Total allowance for credit losses	$	604		$	674		(10)		$	604		$	674		(10)
Net charge-off/(recovery) rate	0.02		%	—		%			0.01		%	—		%
Allowance for loan losses to period-end loans	0.24			0.28					0.24			0.28
Allowance for loan losses to nonaccrual loans	74			103					74			103
Nonaccrual loans to period-end loans	0.33			0.27					0.33			0.27

(a) Represents the Morningstar Rating for all domiciled funds except for Japan domiciled funds which use Nomura. Includes only Asset Management retail active open-ended mutual funds and active ETFs that have a rating. Excludes money market funds, Undiscovered Managers Fund, and Brazil domiciled funds.

(b) Quartile ranking sourced from Morningstar, Lipper and Nomura based on country of domicile. Includes only Asset Management retail active open-ended mutual funds and active ETFs that are ranked by the aforementioned sources. Excludes money market funds, Undiscovered Managers Fund, and Brazil domiciled funds. Prior-period amounts have been revised to conform with the current presentation.

(d) In the fourth quarter of 2023, certain deposits associated with First Republic were transferred to AWM from CCB.

Client assets

Assets under management of $3.9 trillion and client assets of $5.7 trillion were each up 23%, driven by higher market levels and continued net inflows.


Client assets
	As of September 30,
(in billions)	2024		2023		Change
Assets by asset class
Liquidity	$	983	$	867	13	%
Fixed income	854		707		21
Equity	1,094		780		40
Multi-asset	763		626		22
Alternatives	210		206		2
Total assets under management	3,904		3,186		23
Custody/brokerage/administration/deposits	1,817		1,458		25
Total client assets (a)	$	5,721	$	4,644	23

Assets by client segment
Private Banking	$	1,182	$	888	33
Global Institutional	1,622		1,424		14
Global Funds	1,100		874		26
Total assets under management	$	3,904	$	3,186	23

Private Banking	$	2,873	$	2,249	28
Global Institutional	1,739		1,514		15
Global Funds	1,109		881		26
Total client assets (a)	$	5,721	$	4,644	23	%

(a) Includes CCB client investment assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager.


Client assets (continued)
	Three months ended September 30,				Nine months ended September 30,
(in billions)	2024		2023		2024		2023
Assets under management rollforward
Beginning balance	$	3,682	$	3,188	$	3,422	$	2,766
Net asset flows:
Liquidity	34		40		46		193
Fixed income	37		1		73		64
Equity	21		16		73		58
Multi-asset	10		1		5		2
Alternatives	4		2		7		4
Market/performance/other impacts	116		(62)		278		99
Ending balance, September 30	$	3,904	$	3,186	$	3,904	$	3,186

Client assets rollforward
Beginning balance	$	5,387	$	4,558	$	5,012	$	4,048
Net asset flows	140		132		262		396
Market/performance/other impacts	194		(46)		447		200
Ending balance, September 30	$	5,721	$	4,644	$	5,721	$	4,644


Selected Firmwide Metrics - Wealth Management
	As of September 30,
	2024		2023		Change
Client assets (in billions) (a)	$	3,648	$	2,929	25	%
Number of client advisors	9,528		8,867		7

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


International
	Three months ended September 30,						Nine months ended September 30,
(in millions)	2024		2023		Change		2024		2023		Change
Total net revenue (a)
Europe/Middle East/Africa	$	882	$	807	9	%	$	2,587	$	2,507	3	%
Asia-Pacific	505		451		12		1,488		1,425		4
Latin America/Caribbean	267		260		3		798		747		7
Total international net revenue	1,654		1,518		9		4,873		4,679		4
North America	3,785		3,487		9		10,927		10,053		9
Total net revenue (a)	$	5,439	$	5,005	9	%	$	15,800	$	14,732	7	%

(a) Regional revenue is based on the domicile of the client.


	As of September 30,						As of September 30,
(in billions)	2024		2023		Change		2024		2023		Change
Assets under management
Europe/Middle East/Africa	$	597	$	510	17	%	$	597	$	510	17	%
Asia-Pacific	293		242		21		293		242		21
Latin America/Caribbean	106		80		33		106		80		33
Total international assets under management	996		832		20		996		832		20
North America	2,908		2,354		24		2,908		2,354		24
Total assets under management	$	3,904	$	3,186	23		$	3,904	$	3,186	23

Client assets
Europe/Middle East/Africa	$	838	$	681	23		$	838	$	681	23
Asia-Pacific	462		379		22		462		379		22
Latin America/Caribbean	257		218		18		257		218		18
Total international client assets	1,557		1,278		22		1,557		1,278		22
North America	4,164		3,366		24		4,164		3,366		24
Total client assets	$	5,721	$	4,644	23	%	$	5,721	$	4,644	23	%

CORPORATE

Refer to pages 84–85 of JPMorgan Chase’s 2023 Form 10-K for a discussion of Corporate.


Selected income statement and balance sheet data
	As of or for the three months ended September 30,						As of or for the nine months ended September 30,
(in millions, except employees)	2024		2023		Change		2024			2023			Change
Revenue
Principal transactions	$	(1)	$	128	NM		$	124		$	323		(62)	%
Investment securities losses	(16)		(669)		98	%	(928)			(2,437)			62
All other income	172		116		48		8,442		(c)	2,914		(f)	190
Noninterest revenue	155		(425)		NM		7,638			800			NM
Net interest income	2,915		1,983		47		7,756			5,461			42
Total net revenue (a)	3,070		1,558		97		15,394			6,261			146
Provision for credit losses	(4)		46		NM		28			173			(84)
Noninterest expense	589		696		(15)		3,444		(d)(e)	2,008		(g)	72
Income/(loss) before income tax expense/(benefit)	2,485		816		205		11,922			4,080			192
Income tax expense/(benefit)	675		4		NM		2,657			384		(h)	NM
Net income/(loss)	$	1,810	$	812	123		$	9,265		$	3,696		151
Total net revenue
Treasury and CIO	$	3,154	$	1,640	92		$	7,555		$	4,007		89
Other Corporate	(84)		(82)		(2)		7,839			2,254			248
Total net revenue	$	3,070	$	1,558	97		$	15,394		$	6,261		146
Net income/(loss)
Treasury and CIO	$	2,291	$	1,129	103		$	5,445		$	2,810		94
Other Corporate	(481)		(317)		(52)		3,820		(e)	886			331
Total net income/(loss)	$	1,810	$	812	123		$	9,265		$	3,696		151
Total assets (period-end)	$	1,276,238	$	1,275,673	—		$	1,276,238		$	1,275,673		—
Loans (period-end)	2,302		2,099		10		2,302			2,099			10
Deposits (period-end) (b)	30,170		20,363		48		30,170			20,363			48
Employees	49,213		47,280		4	%	49,213			47,280			4	%

(a) Included tax-equivalent adjustments, predominantly driven by tax-exempt income from municipal bonds, of $44 million and $57 million for the three months ended September 30, 2024 and 2023, respectively, and $138 million and $158 million for the nine months ended September 30, 2024 and 2023, respectively.

(b) Predominantly relates to the Firm's international consumer initiatives.

(c) Included the net gain related to Visa shares of $7.9 billion recorded in the second quarter of 2024. Refer to Notes 2 and 5 for additional information.

(d) Included a $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Note 5 for additional information.

(e) Includes the increase to the FDIC special assessment. Refer to Note 5 for additional information.

(f) Included the estimated bargain purchase gain of $2.8 billion for the nine months ended September 30, 2023 associated with First Republic acquisition. Refer to Notes 5 and 26 for additional information.

(g) In the second quarter of 2023, substantially all of the expense associated with First Republic was reported in Corporate. Commencing in the third quarter of 2023, the expense has been aligned to the appropriate LOBs.

(h) Income taxes associated with the First Republic acquisition were reflected in the estimated bargain purchase gain.

Quarterly results

Net income was $1.8 billion, compared with $812 million in the prior year.

Net revenue was $3.1 billion, compared with $1.6 billion in the prior year.

Net interest income was $2.9 billion, up 47%, predominantly driven by the impact of balance sheet mix and reinvestments in the investment securities portfolio.

Noninterest revenue was $155 million, compared with a loss of $425 million in the prior year, driven by:

• lower net investment securities losses associated with repositioning the investment securities portfolio in Treasury and CIO, and

• an increase associated with other equity investments, primarily driven by a net gain compared to a net loss in the prior year related to Visa shares,

partially offset by

• the absence of the prior-year adjustment to the estimated bargain purchase gain associated with the First Republic acquisition.

Noninterest expense was $589 million, down 15%, predominantly driven by lower restructuring costs associated with the First Republic.

The current period income tax expense was driven by changes in the level and mix of income and expenses

subject to U.S. federal and state and local taxes that also impacted the Firm's tax reserves.

Refer to Note 9 for additional information on the investment securities portfolio.

Year-to-date results

Net income was $9.3 billion, compared with $3.7 billion in the prior year.

Net revenue was $15.4 billion, compared with $6.3 billion in the prior year.

Net interest income was $7.8 billion, up 42%, primarily due to the impact of balance sheet mix, reinvestments in the investment securities portfolio, and higher rates.

Noninterest revenue was $7.6 billion, compared with $800 million in the prior year. Excluding the $7.9 billion net gain related to Visa shares recorded in the second quarter of 2024 and the prior-year $2.8 billion estimated bargain purchase gain associated with the First Republic acquisition, revenue was up $1.7 billion, driven by:

• lower investment securities losses on sales of U.S. Treasuries and U.S. GSE and government agency MBS, associated with repositioning the investment securities portfolio in Treasury and CIO, and

• higher revenue associated with the Firm's international consumer initiatives,

partially offset by

• lower principal transactions revenue in Treasury and CIO.

Noninterest expense was $3.4 billion, up 72%, driven by:

• the $1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024,

• the $725 million increase to the FDIC special assessment recognized in the first quarter of 2024, and

• higher costs associated with the Firm's international consumer initiatives,

partially offset by

• l ower expense associated with the First Republic acquisition as substantially all the expense was reported in Corporate in the second quarter of 2023 and subsequently aligned to the appropriate LOBs starting in the third quarter of 2023, and

• lower legal expense.

Refer to Note 5 for additional information on the FDIC special assessment.

The provision for credit losses was $28 million .

The provision in the prior year was $173 million , reflecting an addition to the allowance for credit losses related to a single name exposure.

Refer to Note 9 for additional information on the investment securities portfolio, and Note 12 for additional information on the allowance for credit losses.

The current period income tax expense was predominantly driven by changes in the level and mix of income and expenses subject to U.S. federal and state and local taxes, including the impact of the net gain on Visa shares and the contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024.

The prior year tax expense benefited from the income tax expense associated with the First Republic acquisition reflected in the estimated bargain purchase gain.

Other Corporate also reflects the Firm's international consumer initiatives, which includes Chase U.K., Nutmeg, and an ownership stake in C6 Bank.

Treasury and CIO overview

At September 30, 2024, the average credit rating of the Treasury and CIO investment securities comprising the portfolio in the table below was AA+ (based upon external ratings where available and, where not available, based primarily upon internal risk ratings). Refer to Note 9 for further information on the Firm’s investment securities portfolio and internal risk ratings.

Refer to Liquidity Risk Management on pages 50-57 for further information on liquidity and funding risk. Refer to Market Risk Management on pages 77-82 for information on interest rate and foreign exchange risks.


Selected income statement and balance sheet data
	As of or for the three months ended September 30,						As of or for the nine months ended September 30,
(in millions)	2024		2023		Change		2024		2023		Change
Investment securities losses	$	(16)	$	(669)	98	%	$	(928)	$	(2,437)	62	%
Available-for-sale securities (average)	$	306,244	$	201,875	52		$	259,003	$	201,087	29
Held-to-maturity securities (average)	313,898		402,816		(22)		332,932		410,200		(19)
Investment securities portfolio (average)	$	620,142	$	604,691	3		$	591,935	$	611,287	(3)
Available-for-sale securities (period-end)	$	331,715	$	195,200	70		$	331,715	$	195,200	70
Held-to-maturity securities (period-end)	299,954		388,261		(23)		299,954		388,261		(23)
Investment securities portfolio, net of allowance for credit losses (period-end) (a)	$	631,669	$	583,461	8	%	$	631,669	$	583,461	8	%

(a) As of September 30, 2024 and 2023, the allowance for credit losses on investment securities was $123 million and $87 million, respectively.

FIRMWIDE RISK MANAGEMENT

Risk is an inherent part of JPMorgan Chase’s business activities. When the Firm extends a consumer or wholesale loan, advises customers and clients on their investment decisions, makes markets in securities, or offers other products or services, the Firm takes on some degree of risk. The Firm’s overall objective is to manage its business, and the associated risks, in a manner that balances serving the interests of its clients, customers and investors, and protecting the safety and soundness of the Firm.

The Firm believes that effective risk management requires, among other things:

• Acceptance of responsibility, including identification and escalation of risks by all individuals within the Firm;

• Ownership of risk identification, assessment, data and management within each of the LOBs and Corporate; and

• A Firmwide risk governance and oversight structure.

The Firm follows a disciplined and balanced compensation framework with strong internal governance and independent oversight by the Board of Directors (the “Board”). The impact of risk and control issues is carefully considered in the Firm’s performance evaluation and incentive compensation processes.

Risk governance framework

The Firm’s risk governance framework involves understanding drivers of risks, types of risks, and impacts of risks.

Refer to pages 86–89 of JPMorgan Chase’s 2023 Form 10-K for a further discussion of Firmwide risk management governance and oversight.

Risk governance and oversight functions

The following sections of this Form 10-Q and the 2023 Form 10-K discuss the risk governance and oversight functions in place to manage the risks inherent in the Firm’s business activities.


Risk governance and oversight functions	Form 10-Q page reference	Form 10-K page reference
Strategic Risk		90
Capital Risk	44–49	91–101
Liquidity Risk	50–57	102-109
Reputation Risk		110
Consumer Credit Risk	60–63	114-119
Wholesale Credit Risk	64–72	120-130
Investment Portfolio Risk	76	134
Market Risk	77–82	135-143
Country Risk	83	144-145
Climate Risk		146
Operational Risk		147-150
Compliance Risk		151
Conduct Risk		152
Legal Risk		153
Estimations and Model Risk		154

CAPITAL RISK MANAGEMENT

Capital risk is the risk that the Firm has an insufficient level or composition of capital to support the Firm’s business activities and associated risks during normal economic environments and under stressed conditions.

Refer to pages 91-101 of JPMorgan Chase’s 2023 Form 10-K, Note 21 of this Form 10-Q and the Firm’s Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm’s website, for a further discussion of the Firm’s capital risk.

Basel III Overview

The capital rules under Basel III establish minimum capital ratios and overall capital adequacy standards for large and internationally active U.S. Bank Holding Companies (“BHCs”) and banks, including the Firm and JPMorgan Chase Bank, N.A. The minimum amount of regulatory capital that must be held by BHCs and banks is determined by calculating risk-weighted assets ("RWA"), which are on-balance sheet assets and off-balance sheet exposures, weighted according to risk. Under the rules currently in effect, two comprehensive approaches are prescribed for calculating RWA: a standardized approach (“Basel III Standardized”), and an advanced approach (“Basel III Advanced”).

For each of these risk-based capital ratios, the capital adequacy of the Firm is evaluated against the lower of the Standardized or Advanced approaches compared to their respective regulatory capital ratio requirements.

As of September 30, 2024, the Firm's most binding constraint among the Basel III risk-based ratios is the Advanced Total Capital ratio. With respect to the CET1 and Tier 1 risk-based ratios, the Standardized ratios are more binding than the Advanced ratios.

Additionally, Basel III requires that Advanced Approaches banking organizations, including the Firm, calculate their SLR.

Refer to page 47 of this Form 10-Q and page 98 of JPMorgan Chase's 2023 Form 10-K for additional information on SLR.

In July 2023, the Board of Governors of the Federal Reserve System (the "Federal Reserve"), the Office of the Comptroller of the Currency ("OCC"), and the FDIC released a proposal to amend the risk-based capital framework, entitled "Regulatory capital rule: Amendments applicable to large banking organizations and to banking organizations with significant trading activity", which is referred to in this Form 10-Q as the "U.S. Basel III proposal". Under the proposal, changes to the framework would include replacement of the Advanced approach with an expanded risk-based approach, which would not permit the use of internal models for the calculation of RWA, other than for market risk. In addition, the stress capital buffer requirement would be applicable to both the expanded risk-based approach and the Standardized approach. The

proposal would significantly revise risk-based capital requirements for all banks with assets of $100 billion or more, including the Firm and other U.S. global systemically important banks ("GSIBs"). The proposed effective date is July 1, 2025, with a three-year transition period applicable to the expanded risk-based approach. However, a speech given by the Federal Reserve’s Vice Chair for Supervision in September 2024 indicated that a revised proposal could be issued with a delayed implementation date.

Under the requirements of the U.S. Basel III proposal, the new expanded risk-based approach, when fully phased-in, would be the Firm's binding constraint. The Firm is managing its CET1 capital in anticipation of the finalization of the U.S. Basel III proposal.

Refer to page 92 of JPMorgan Chase’s 2023 Form 10-K for additional information on the U.S. Basel III proposal.

Refer to page 93 of JPMorgan Chase's 2023 Form 10-K for information on Other Key Regulatory Developments.

Selected capital and RWA data

The following tables present the Firm’s risk-based capital metrics under both the Basel III Standardized and Advanced approaches and leverage-based capital metrics. Refer to Capital Risk Management on pages 91-101 of JPMorgan Chase’s 2023 Form 10-K for a further discussion of these capital metrics. Refer to Note 21 for JPMorgan Chase Bank, N.A.’s risk-based and leverage-based capital metrics.


	Standardized								Advanced
(in millions, except ratios)	September 30, 2024			December 31, 2023			Capital ratio requirements (b)		September 30, 2024				December 31, 2023				Capital ratio requirements (b)
Risk-based capital metrics: (a)
CET1 capital	$	272,964		$	250,585				$	272,964			$	250,585
Tier 1 capital	292,333			277,306					292,333				277,306
Total capital	324,585			308,497					310,764			(c)	295,417			(c)
Risk-weighted assets	1,782,722			1,671,995					1,762,991			(c)	1,669,156			(c)
CET1 capital ratio	15.3		%	15.0		%	11.9	%	15.5		%		15.0		%		11.5	%
Tier 1 capital ratio	16.4			16.6			13.4		16.6				16.6				13.0
Total capital ratio	18.2			18.5			15.4		17.6				17.7				15.0

(a) The capital metrics reflect the CECL capital transition provisions. As of September 30, 2024, CET1 capital reflected the remaining $720 million CECL benefit and will be fully phased in as of January 1, 2025; as of December 31, 2023, CET1 capital reflected a $1.4 billion benefit. Refer to Note 21 for additional information.

(b) Represents minimum requirements and regulatory buffers applicable to the Firm for the period ended September 30, 2024. For the period ended December 31, 2023, the Basel III Standardized CET1, Tier 1, and Total capital ratio requirements applicable to the Firm were 11.4%, 12.9%, and 14.9%, respectively; the Basel III Advanced CET1, Tier 1, and Total capital ratio requirements applicable to the Firm were 11.0%, 12.5%, and 14.5%, respectively. Refer to Note 21 for additional information.

(c) Includes the impacts of certain assets associated with First Republic to which the Standardized approach has been applied as permitted by the transition provisions in the U.S. capital rules. Refer to Note 26 of this Form 10-Q and page 96 of JPMorgan Chase’s 2023 Form 10-K for additional information on First Republic.


Three months ended (in millions, except ratios)	September 30, 2024			December 31, 2023			Capital ratio requirements (c)
Leverage-based capital metrics: (a)
Adjusted average assets (b)	$	4,122,332		$	3,831,200
Tier 1 leverage ratio	7.1		%	7.2		%	4.0	%
Total leverage exposure	$	4,893,662		$	4,540,465
SLR	6.0		%	6.1		%	5.0	%

(a) The capital metrics reflect the CECL capital transition provisions. Refer to Note 21 for additional information.

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

(c) Represents minimum requirements and regulatory buffers applicable to the Firm. Refer to Note 21 for additional information.

Capital components

The following table presents reconciliations of total stockholders’ equity to Basel III CET1 capital, Tier 1 capital and Total capital as of September 30, 2024 and December 31, 2023.


(in millions)	September 30, 2024			December 31, 2023
Total stockholders’ equity	$	345,836		$	327,878
Less: Preferred stock	21,650			27,404
Common stockholders’ equity	324,186			300,474
Add:
Certain deferred tax liabilities (a)	2,962			2,996
Other CET1 capital adjustments (b)	2,872			4,717
Less:
Goodwill (c)	54,065			54,377
Other intangible assets	2,991			3,225

Standardized/Advanced CET1 capital	$	272,964		$	250,585
Add: Preferred stock	21,650			27,404
Less: Other Tier 1 adjustments	2,281		(g)	683
Standardized/Advanced Tier 1 capital	$	292,333		$	277,306
Long-term debt and other instruments qualifying as Tier 2 capital	$	11,626		$	11,779
Qualifying allowance for credit losses (d)	21,190			20,102
Other	(564)			(690)
Standardized Tier 2 capital	$	32,252		$	31,191
Standardized Total capital	$	324,585		$	308,497
Adjustment in qualifying allowance for credit losses for Advanced Tier 2 capital (e)(f)	(13,821)			(13,080)
Advanced Tier 2 capital	$	18,431		$	18,111
Advanced Total capital	$	310,764		$	295,417

(b) As of September 30, 2024 and December 31, 2023, included a net benefit associated with cash flow hedges and debit valuation adjustments ("DVA") related to structured notes recorded in AOCI of $3.2 billion and $4.3 billion and the benefit from the CECL capital transition provisions of $720 million and $1.4 billion, respectively.

(c) Goodwill deducted from capital includes goodwill associated with equity method investments in nonconsolidated financial institutions based on regulatory requirements. Refer to page 76 for additional information on principal investment risk.

(d) Represents the allowance for credit losses eligible for inclusion in Tier 2 capital up to 1.25% of credit risk RWA, including the impact of the CECL capital transition provision with any excess deducted from RWA. Refer to Note 21 for additional information on the CECL capital transition.

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

(f) As of September 30, 2024 and December 31, 2023, included an incremental $565 million and $655 million allowance for credit losses, respectively, on certain assets associated with First Republic to which the Standardized approach has been applied, as permitted by the transition provisions in the U.S. capital rules.

(g) As of September 30, 2024, for capital purposes, included $1.6 billion of preferred stock for which notice of redemption was issued during the third quarter and which was redeemed in the fourth quarter. Refer to Note 17 for additional information.

Capital rollforward

The following table presents the changes in Basel III CET1 capital, Tier 1 capital and Tier 2 capital for the nine months ended September 30, 2024.


Nine months ended September 30, (in millions)	2024
Standardized/Advanced CET1 capital at December 31, 2023	$	250,585
Net income applicable to common equity	43,466
Dividends declared on common stock	(10,240)
Net purchase of treasury stock	(13,522)
Changes in additional paid-in capital	510
Changes related to AOCI applicable to capital:
Unrealized gains/(losses) on investment securities	2,546
Translation adjustments, net of hedges (a)	29
Fair value hedges	(33)
Defined benefit pension and other postretirement employee benefit (“OPEB”) plans	(5)
Changes related to other CET1 capital adjustments (b)	(372)
Change in Standardized/Advanced CET1 capital	22,379
Standardized/Advanced CET1 capital at September 30, 2024	$	272,964
Standardized/Advanced Tier 1 capital at December 31, 2023	$	277,306
Change in CET1 capital (b)	22,379
Net redemptions of noncumulative perpetual preferred stock (c)	(7,354)
Other	2
Change in Standardized/Advanced Tier 1 capital	15,027
Standardized/Advanced Tier 1 capital at September 30, 2024	$	292,333
Standardized Tier 2 capital at December 31, 2023	$	31,191
Change in long-term debt and other instruments qualifying as Tier 2	(153)
Change in qualifying allowance for credit losses (b)	1,088
Other	126
Change in Standardized Tier 2 capital	1,061
Standardized Tier 2 capital at September 30, 2024	$	32,252
Standardized Total capital at September 30, 2024	$	324,585
Advanced Tier 2 capital at December 31, 2023	$	18,111
Change in long-term debt and other instruments qualifying as Tier 2	(153)
Change in qualifying allowance for credit losses (b)(d)	347
Other	126
Change in Advanced Tier 2 capital	320
Advanced Tier 2 capital at September 30, 2024	$	18,431
Advanced Total capital at September 30, 2024	$	310,764

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

(b) Includes the impact of the CECL capital transition provisions and the cumulative effect of changes in accounting principles. Refer to Note 1 for additional information on changes in accounting principles and Note 21 for additional information on the CECL capital transition.

(c) As of September 30, 2024, for capital purposes, included $1.6 billion of preferred stock for which notice of redemption was issued during the third quarter and which was redeemed in the fourth quarter. Refer to Note 17 for additional information.

(d) As of September 30, 2024 and December 31, 2023, included an incremental $565 million and $655 million allowance for credit losses, respectively, on certain assets associated with First Republic to which the Standardized approach has been applied, as permitted by the transition provisions in the U.S. capital rules.

RWA rollforward

The following table presents changes in the components of RWA under Basel III Standardized and Advanced approaches for the nine months ended September 30, 2024. The amounts in the rollforward categories are estimates, based on the predominant driver of the change.


	Standardized						Advanced
Nine months ended September 30, 2024 (in millions)	Credit risk RWA (c)		Market risk RWA		Total RWA		Credit risk RWA (c)(d)		Market risk RWA		Operational risk RWA		Total RWA
December 31, 2023	$	1,603,851	$	68,144	$	1,671,995	$	1,155,261	$	68,603	$	445,292	$	1,669,156
Model & data changes (a)	7,619		501		8,120		7,860		501		—		8,361
Movement in portfolio levels (b)	78,196		24,411		102,607		68,431		24,361		(7,318)		85,474
Changes in RWA	85,815		24,912		110,727		76,291		24,862		(7,318)		93,835
September 30, 2024	$	1,689,666	$	93,056	$	1,782,722	$	1,231,552	$	93,465	$	437,974	$	1,762,991

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

(b) Movement in portfolio levels (inclusive of rule changes) refers to: for Credit risk RWA, changes in book size, changes in composition and credit quality, market movements, and deductions for excess eligible allowances for credit losses not eligible for inclusion in Tier 2 capital; for Market risk RWA, changes in position, market movements, and changes in the Firm’s regulatory multiplier from Regulatory VaR backtesting exceptions; and for Operational risk RWA, updates to cumulative losses and macroeconomic model inputs.

(c) As of September 30, 2024 and December 31, 2023, the Basel III Standardized Credit risk RWA included wholesale and retail off balance-sheet RWA of $210.9 billion and $208.5 billion, respectively; and the Basel III Advanced Credit risk RWA included wholesale and retail off balance-sheet RWA of $194.5 billion and $188.5 billion, respectively.

(d) As of September 30, 2024 and December 31, 2023, Credit risk RWA reflected approximately $45.2 billion and $52.4 billion, respectively, of RWA calculated under the Standardized approach for certain assets associated with First Republic as permitted by the transition provisions in the U.S. capital rules.

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

Supplementary leverage ratio

Refer to Supplementary Leverage Ratio on page 98 of JPMorgan Chase’s 2023 Form 10-K for additional information.

The following table presents the components of the Firm’s SLR.


Three months ended (in millions, except ratio)	September 30, 2024			December 31, 2023
Tier 1 capital	$	292,333		$	277,306
Total average assets	4,177,008			3,885,632
Less: Regulatory capital adjustments (a)	54,676			54,432
Total adjusted average assets (b)	4,122,332			3,831,200
Add: Off-balance sheet exposures (c)	771,330			709,265
Total leverage exposure	$	4,893,662		$	4,540,465
SLR	6.0		%	6.1		%

(a) For purposes of calculating the SLR, includes quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill, inclusive of estimated equity method goodwill, other intangible assets and adjustments for the CECL capital transition provisions. Refer to Note 21 for additional information on the CECL capital transition.

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

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

Line of business equity

Each business segment is allocated capital by taking into consideration a variety of factors including capital levels of similarly rated peers and applicable regulatory capital requirements. The capital that the Firm has accumulated to meet the increased requirements of the U.S. Basel III proposal has generally been retained in Corporate. Refer to line of business equity on page 98 of JPMorgan Chase’s 2023 Form 10-K for additional information on capital allocation.

The following table presents the capital allocated to each business segment.


Line of business equity (Allocated capital)
(in billions)	September 30, 2024		December 31, 2023
Consumer & Community Banking	$	54.5	$	55.5
Commercial & Investment Bank	132.0		138.0
Asset & Wealth Management	15.5		17.0
Corporate	122.2		90.0
Total common stockholders’ equity	$	324.2	$	300.5

Capital actions

Common stock dividends

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

On September 17, 2024, the Firm announced that its Board of Directors had declared a quarterly common stock dividend of $1.25 per share, payable on October 31, 2024, an increase from the prior dividend of $1.15 per share. The Firm’s dividends are subject to approval by the Board of Directors on a quarterly basis.

Common stock

On June 28, 2024, the Firm announced that its Board of Directors had authorized a new $30 billion common share repurchase program, effective July 1, 2024. Through June 30, 2024, the Firm was authorized to purchase up to $30 billion of common shares under its previously-approved common share repurchase program that was announced on April 13, 2022.

The following table sets forth the Firm’s repurchases of common stock for the three and nine months ended September 30, 2024 and 2023.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2024		2023		2024		2023
Total number of shares of common stock repurchased	30.3		15.6		73.2		54.3
Aggregate purchase price of common stock repurchases (a)	$	6,361	$	2,364	$	14,528	$	7,597

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

The Board of Directors’ authorization to repurchase common shares is utilized at management’s discretion. The $30 billion common share repurchase program approved by the Board of Directors does not establish specific price targets or timetables. Management determines the amount and timing of common share repurchases based on various factors, including market conditions; legal and regulatory considerations affecting the amount and timing of repurchase activity; the Firm’s capital position (taking into account goodwill and intangibles); internal capital generation; current and proposed future capital requirements; and other investment opportunities. The amount of common shares that the Firm repurchases in any period may be substantially more or less than the amounts estimated or actually repurchased in prior periods, reflecting the dynamic nature of the decision-making process.

Refer to Capital actions on page 99 of JPMorgan Chase’s 2023 Form 10-K for additional information.

Refer to Part II, Item 2: Unregistered Sales of Equity Securities and Use of Proceeds and Part II, Item 5: Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities on pages

200–201 of this Form 10-Q and page 35 of JPMorgan Chase’s 2023 Form 10-K, respectively, for additional information regarding repurchases of the Firm’s equity securities.

Preferred stock

Preferred stock dividends were $286 million and $386 million, and $1.0 billion and $1.1 billion, for the three and nine months ended September 30, 2024 and 2023, respectively.

During the nine months ended and subsequent to September 30, 2024, the Firm issued and redeemed certain series of non-cumulative preferred stock. Refer to Note 17 of this Form 10-Q and Note 21 of JPMorgan Chase’s 2023 Form 10-K for additional information on the Firm’s preferred stock, including the issuance and redemption of preferred stock.

Subordinated Debt

Refer to Long-term funding on page 56 of this Form 10-Q and Note 20 of JPMorgan Chase’s 2023 Form 10-K for additional information on the Firm’s subordinated debt.

Capital planning and stress testing

Comprehensive Capital Analysis and Review

On June 28, 2024, the Firm announced that its preliminary Stress Capital Buffer ("SCB") requirement provided by the Federal Reserve is 3.3% (up from 2.9%), and the Firm’s Standardized CET1 capital ratio requirement, including regulatory buffers, is 12.3% (up from 11.9%). On August 28, 2024, the Federal Reserve affirmed these requirements. The SCB requirement became effective on October 1, 2024, and will remain in effect until September 30, 2025.

Refer to Capital planning and stress testing on pages 91-92 of JPMorgan Chase’s 2023 Form 10-K for additional information on CCAR.

Other capital requirements

Total Loss-Absorbing Capacity

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

The following table presents the eligible external TLAC and eligible LTD amounts, as well as a representation of these amounts as a percentage of the Firm’s total RWA and total leverage exposure applying the impact of the CECL capital transition provisions as of September 30, 2024 and December 31, 2023.


	September 30, 2024						December 31, 2023
(in billions, except ratio)	External TLAC			LTD			External TLAC			LTD
Total eligible amount	$	543.6		$	237.7		$	513.8		$	222.6
% of RWA	30.5		%	13.3		%	30.7		%	13.3		%
Regulatory requirements	23.0			10.5			23.0			10.0
Surplus/(shortfall)	$	133.6		$	50.5		$	129.2		$	55.4
% of total leverage exposure	11.1		%	4.9		%	11.3		%	4.9		%
Regulatory requirements	9.5			4.5			9.5			4.5
Surplus/(shortfall)	$	78.7		$	17.5		$	82.5		$	18.3

Effective January 1, 2024, the Firm's regulatory requirement for its eligible LTD to RWA ratio increased by 50 bps to 10.5%, due to the increase in the Firm’s GSIB Method 2 requirements. The Firm's regulatory requirement for its TLAC to RWA ratio remained at 23.0%. Refer to Risk-based Capital Regulatory Requirements on pages 94-95 of JPMorgan Chase’s 2023 Form 10-K for further information on the GSIB surcharge.

Refer to Liquidity Risk Management on pages 50-57 for further information on long-term debt issued by the Parent Company.

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

Refer to other capital requirements on page 100 of JPMorgan Chase’s 2023 Form 10-K for additional information on TLAC.

U.S. broker-dealer regulatory capital

J.P. Morgan Securities

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

The following table presents J.P. Morgan Securities’ net capital.


September 30, 2024
(in millions)	Actual		Minimum
Net Capital	$	23,932	$	5,981

Non-U.S. subsidiary regulatory capital

J.P. Morgan Securities plc

J.P. Morgan Securities plc is a wholly-owned subsidiary of JPMorgan Chase Bank, N.A. and has authority to engage in banking, investment banking and broker-dealer activities.

J.P. Morgan Securities plc is jointly regulated in the U.K. by the Prudential Regulation Authority (“PRA”) and the Financial Conduct Authority (“FCA”). J.P. Morgan Securities plc is subject to the European Union (“EU”) Capital Requirements Regulation (“CRR”), as adopted in the U.K., and the PRA capital rules, each of which have implemented Basel III and thereby subject J.P. Morgan Securities plc to its requirements.

The Bank of England requires that U.K. banks, including U.K. regulated subsidiaries of overseas groups, maintain minimum requirements for own funds and eligible liabilities (“MREL”). As of September 30, 2024, J.P. Morgan Securities plc was compliant with its MREL requirements.

The following table presents J.P. Morgan Securities plc’s risk-based and leverage-based capital metrics.


September 30, 2024	Estimated			Regulatory Minimum ratios (a)
(in millions, except ratios)
Total capital	$	52,859
CET1 capital ratio	15.4		%	4.5	%
Tier 1 capital ratio	19.9			6.0
Total capital ratio	24.2			8.0

Tier 1 leverage ratio	5.8			3.3	(b)

(a) Represents minimum Pillar 1 requirements specified by the PRA. J.P. Morgan Securities plc's capital ratios as of September 30, 2024 exceeded the minimum requirements, including the additional capital requirements specified by the PRA.

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

J.P. Morgan SE

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

JPMSE is required by the EU Single Resolution Board to maintain MREL. As of September 30, 2024, JPMSE was compliant with its MREL requirements.

The following table presents JPMSE’s risk-based and leverage-based capital metrics.


September 30, 2024	Estimated			Regulatory Minimum ratios (a)
(in millions, except ratios)
Total capital	$	46,550
CET1 capital ratio	19.0		%	4.5	%
Tier 1 capital ratio	19.0			6.0
Total capital ratio	32.8			8.0
Tier 1 leverage ratio	6.1			3.0

(a) Represents minimum Pillar 1 requirements specified by the EU CRR. J.P. Morgan SE’s capital and leverage ratios as of September 30, 2024 exceeded the minimum requirements, including the additional capital requirements specified by EU regulators.

Refer to U.S. broker-dealer and Non-U.S. subsidiary regulatory capital on page 101 of JPMorgan Chase’s 2023 Form 10-K for further information.

LIQUIDITY RISK MANAGEMENT

Liquidity risk is the risk that the Firm will be unable to meet its cash and collateral needs as they arise or that it does not have the appropriate amount, composition and tenor of funding and liquidity to support its assets and liabilities. Refer to pages 102–109 of JPMorgan Chase’s 2023 Form 10-K and the Firm’s U.S. LCR Disclosure reports, which are available on the Firm’s website, for a further discussion of the Firm’s liquidity risk.

LCR and HQLA

The LCR rule requires that the Firm and JPMorgan Chase Bank, N.A. maintain an amount of eligible HQLA that is sufficient to meet their respective estimated total net cash outflows over a prospective 30 calendar-day period of significant stress.

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

The following table summarizes the Firm and JPMorgan Chase Bank, N.A.’s average LCR for the three months ended September 30, 2024, June 30, 2024 and September 30, 2023 based on the Firm’s interpretation of the LCR framework.


	Three months ended
Average amount (in millions)	September 30, 2024			June 30, 2024			September 30, 2023
JPMorgan Chase & Co.:
HQLA
Eligible cash (a)	$	412,389		$	461,392		$	402,663
Eligible securities (b)(c)	453,899			356,815			378,702
Total HQLA (d)	$	866,288		$	818,207		$	781,365
Net cash outflows	$	762,072		$	732,179		$	696,668
LCR	114		%	112		%	112		%
Net excess eligible HQLA (d)	$	104,216		$	86,028		$	84,697
JPMorgan Chase Bank N.A.:
LCR	121		%	125		%	123		%
Net excess eligible HQLA	$	168,137		$	189,124		$	167,096

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

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

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

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

The Firm’s average LCR increased during the three months ended September 30, 2024, compared with the three months ended June 30, 2024, driven by a dividend payment from JPMorgan Chase Bank, N.A. to the Parent Company and long-term debt issuances, partially offset by common stock repurchases and common stock dividends paid.

The Firm's average LCR increased during the three months ended September 30, 2024, compared with three months ended September 30, 2023, driven by dividend payments from JPMorgan Chase Bank, N.A. to the Parent Company and long-term debt issuances, largely offset by common stock repurchases and common stock dividends paid.

JPMorgan Chase Bank, N.A.’s average LCR for the three months ended September 30, 2024 decreased compared with the three months ended June 30, 2024, primarily due to a dividend payment to the Parent Company, loan growth and a decline in deposits, partially offset by higher market values of HQLA-eligible investment securities.

JPMorgan Chase Bank, N.A.’s average LCR for the three months ended September 30, 2024 decreased compared with the three months ended September 30, 2023, primarily due to a decline in deposits and dividend payments to the Parent Company, offset by debt issuances and FHLB advances, a reduction in unencumbered non-HQLA AFS securities, and higher market values of HQLA-eligible investment securities.

Each of the Firm and JPMorgan Chase Bank, N.A.'s average LCR may fluctuate from period to period due to changes in their respective eligible HQLA and estimated net cash outflows as a result of ongoing business activity and from the impacts of Federal Reserve actions as well as other factors.

Refer to page 103 of JPMorgan Chase’s 2023 Form 10-K and the Firm’s U.S. LCR Disclosure reports for additional information on HQLA and net cash outflows.

Internal stress testing

The Firm conducts internal liquidity stress testing to monitor liquidity positions at the Firm and its material legal entities under a variety of adverse scenarios, including scenarios analyzed as part of the Firm’s resolution and recovery planning. Internal stress tests are produced on a regular basis, and other stress tests are performed in response to specific market events or concerns. Results of stress tests are considered in the formulation of the Firm’s funding plan and assessment of its liquidity position.

The Firm maintains liquidity at the Parent Company, the Intermediate Holding Company (“IHC”), and operating subsidiaries at levels sufficient to comply with liquidity risk tolerances and minimum liquidity requirements, and to manage through periods of stress when access to normal funding sources may be disrupted.

Liquidity sources

In addition to the assets reported in the Firm’s eligible HQLA discussed above, the Firm had unencumbered marketable securities, such as equity and debt securities, that the Firm believes would be available to raise liquidity. This includes excess eligible HQLA securities at JPMorgan Chase Bank, N.A. that are not transferable to non-bank affiliates. The fair value of these securities was approximately $608 billion and $649 billion as of September 30, 2024 and December 31, 2023, respectively, although the amount of liquidity that could be raised at any particular time would be dependent on prevailing market conditions. The decrease compared to December 31, 2023, was driven by decreases in excess eligible HQLA securities at JPMorgan Chase Bank, N.A. and in unencumbered AFS securities, largely offset by an increase in CIB trading assets.

The Firm had approximately $1.5 trillion and $1.4 trillion of available cash and securities as of September 30, 2024 and December 31, 2023, respectively, comprised of eligible end-of-period HQLA, excluding the impact of regulatory haircuts, of approximately $868 billion and $798 billion, respectively, and unencumbered marketable securities with a fair value of approximately $608 billion and $649 billion, respectively.

The Firm also had available borrowing capacity at the FHLB and the discount window at the Federal Reserve Banks as a result of collateral pledged by the Firm to such banks of approximately $386 billion and $340 billion as of September 30, 2024 and December 31, 2023, respectively. This borrowing capacity excludes the benefit of cash and securities reported in the Firm’s eligible HQLA or other unencumbered securities that are currently pledged at the Federal Reserve Banks discount window and other central banks. Available borrowing capacity increased from December 31, 2023 primarily due to a higher amount of commercial loans and credit card receivables pledged at the Federal Reserve Banks. Although available, the Firm does not view this borrowing capacity at the Federal Reserve Banks discount window and the other central banks as a primary source of liquidity.

NSFR

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

For the three months ended September 30, 2024, both the Firm and JPMorgan Chase Bank, N.A. were compliant with the 100% minimum NSFR requirement, based on the Firm's interpretation of the final NSFR rule. Refer to the Firm's U.S. NSFR Disclosure report for the quarterly periods ended June 30, 2024 and March 31, 2024 on the Firm’s website for additional information.

Funding

Sources of funds

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

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

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

Refer to Note 22 for additional information on off-balance sheet obligations.

Deposits

The table below summarizes, by LOB and Corporate, the period-end deposit balances as of September 30, 2024 and December 31, 2023, and the average deposit balances for the three and nine months ended September 30, 2024 and 2023, respectively.


	September 30, 2024		December 31, 2023		Average
					Three months ended September 30,				Nine months ended September 30,
(in millions)					2024		2023		2024		2023
Consumer & Community Banking (a)	$	1,054,027	$	1,094,738	$	1,053,701	$	1,143,539	$	1,068,774	$	1,138,050
Commercial & Investment Bank (a)	1,097,591		1,050,892		1,064,402		988,765		1,052,438		984,187
Asset & Wealth Management (a)	248,984		233,232		236,470		201,975		230,560		212,652
Corporate	30,170		21,826		28,737		21,462		24,680		19,785
Total Firm	$	2,430,772	$	2,400,688	$	2,383,310	$	2,355,741	$	2,376,452	$	2,354,674

(a) In the fourth quarter of 2023, CCB transferred certain deposits associated with First Republic to AWM and CIB. Refer to page 67 of JPMorgan Chase's 2023 Form 10-K for additional information.

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

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

The following discussion excludes the impact of the transfer of certain First Republic deposits in the fourth quarter of 2023 from CCB to the other LOBs as the transfers had no net impact on Firmwide deposits.

Average deposits increased for the three months ended September 30, 2024 compared to the three months ended September 30, 2023, reflecting the net impact of:

• an increase in CIB due to net inflows in Payments and Securities Services, and net issuances of structured notes as a result of client demand in Markets, partially offset by deposit attrition, which included actions taken to reduce certain deposits,

• an increase in AWM driven by new and existing product offerings, largely offset by continued migration into

higher-yielding investments,

• higher balances in Corporate as a result of certain higher-yielding programs that were launched in the second quarter of 2024, associated with the Firm's international consumer initiatives, and

• a decline in CCB in existing accounts primarily due to increased customer spending, partially offset by new accounts.

Average deposits increased for the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023, reflecting the net impact of:

• an increase in CIB due to net inflows predominantly in Payments and net issuances of structured notes as a result of client demand in Markets, partially offset by deposit attrition, which included actions taken to reduce certain deposits,

• the timing impact of First Republic,

• higher balances in Corporate as a result of certain higher-yielding programs that were launched in the second quarter of 2024, associated with the Firm's international consumer initiatives,

• an increase in AWM primarily driven by new and existing product offerings, predominantly offset by continued migration into higher-yielding investments, and

• a decline in CCB in existing accounts primarily due to increased customer spending, partially offset by new accounts.

Period-end deposits increased from December 31, 2023, reflecting the net impact of:

• an increase in CIB due to net inflows in Payments and Securities Services, partially offset by net maturities of structured notes in Markets,

• an increase in AWM driven by new and existing product offerings,

• higher balances in Corporate as a result of certain higher-yielding programs that were launched in the second quarter of 2024, associated with the Firm's international consumer initiatives, and

• a decline in CCB in existing accounts primarily due to increased customer spending and migration into higher-yielding investments, largely offset by new accounts.

Refer to the Firm’s Consolidated Balance Sheets Analysis and the Business Segment Results on pages 15–16 and pages 20-42, respectively, for further information on deposit and liability balance trends, as well as Consolidated Results of Operations on pages 9–14 and Note 26 for additional information on the First Republic acquisition. Refer to Note 3 for further information on structured notes.

Certain deposits are covered by insurance protection that provides additional funding stability and results in a benefit to the LCR. Deposit insurance protection may be available to depositors in the countries in which the deposits are placed. For example, the Federal Deposit Insurance Corporation (“FDIC”) provides deposit insurance protection for deposits placed in a U.S. depository institution. R efer to pages 105–106 of JPMorgan Chase's 2023 Form 10-K for additional information on the Firm's total uninsured deposits.

The table below presents an estimate of uninsured U.S. and non-U.S. time deposits, and their remaining maturities. The Firm’s estimates of its uninsured U.S. time deposits are based on data that the Firm calculates periodically under applicable FDIC regulations. For purposes of this presentation, all non-U.S. time deposits are deemed to be uninsured.


(in millions)	September 30, 2024				December 31, 2023
	U.S.		Non-U.S.		U.S.			Non-U.S.
Three months or less	$	119,054	$	85,138	$	98,606	(a)	$	77,466
Over three months but within 6 months	16,034		5,936		17,736			5,358
Over six months but within 12 months	8,437		3,826		10,294			4,820
Over 12 months	864		2,015		710			2,543
Total	$	144,389	$	96,915	$	127,346	(a)	$	90,187

(a) Prior-period amounts have been revised to include cash collateral for certain derivatives to align with a change in the methodology for calculating uninsured U.S. time deposits.

The table below shows the loan and deposit balances, the loans-to-deposits ratios, and deposits as a percentage of total liabilities, as of September 30, 2024 and December 31, 2023.


(in billions except ratios)	September 30, 2024			December 31, 2023
Deposits	$	2,430.8		$	2,400.7
Deposits as a % of total liabilities	63		%	68		%
Loans	$	1,340.0		$	1,323.7
Loans-to-deposits ratio	55		%	55		%

The following table provides a summary of the average balances and average interest rates of JPMorgan Chase’s deposits for the three and nine months ended September 30, 2024 and 2023.


(Unaudited) (in millions, except interest rates)	Average balances
	Three months ended				Nine months ended
	September 30, 2024		September 30, 2023			September 30, 2024		September 30, 2023
U.S. offices
Noninterest-bearing	$	605,498	$	636,730		$	617,539	$	636,079
Interest-bearing
Demand (a)	279,852		274,951			278,940		280,635
Savings (b)	789,805		855,846			798,176		876,671
Time	230,656		158,112			220,353		132,155
Total interest-bearing deposits	1,300,313		1,288,909			1,297,469		1,289,461
Total deposits in U.S. offices	1,905,811		1,925,639			1,915,008		1,925,540
Non-U.S. offices
Noninterest-bearing	28,459		24,253			26,069		25,007
Interest-bearing
Demand	351,368		317,003			342,477		319,339
Time	97,672		88,846			92,898		84,788
Total interest-bearing deposits	449,040		405,849			435,375		404,127
Total deposits in non-U.S. offices	477,499		430,102			461,444		429,134
Total deposits	$	2,383,310	$	2,355,741		$	2,376,452	$	2,354,674


(Unaudited)	Average interest rates
	Three months ended				Nine months ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
U.S. offices
Noninterest-bearing	NA		NA		NA		NA
Interest-bearing
Demand (a)	4.06	%	3.85	%	3.98	%	3.34	%
Savings (b)	1.47		1.19		1.40		1.04
Time	4.97		4.68		5.08		4.59
Total interest-bearing deposits	2.67		2.18		2.58		1.90
Total deposits in U.S. offices	1.79		1.47		1.75		1.27
Non-U.S. offices
Noninterest-bearing	NA		NA		NA		NA
Interest-bearing
Demand	3.18		2.90		3.23		2.55
Time	5.85		6.23		6.05		5.64
Total interest-bearing deposits	3.78		3.61		3.83		3.20
Total deposits in non-U.S. offices	3.54		3.41		3.62		3.01
Total deposits	2.15	%	1.83	%	2.11	%	1.59	%

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

(b) Includes Money Market Deposit Accounts.

Refer to Note 15 for additional information on deposits.

The following table summarizes short-term and long-term funding, excluding deposits, as of September 30, 2024 and December 31, 2023, and average balances for the three and nine months ended September 30, 2024 and 2023, respectively. Refer to the Consolidated Balance Sheets Analysis on pages 15–16 and Note 10 for additional information.

Sources of funds (excluding deposits)


	September 30, 2024		December 31, 2023			Average
					Three months ended September 30,						Nine months ended September 30,
(in millions)					2024			2023				2024			2023
Commercial paper	$	9,691	$	14,737		$	9,903		$	13,004			$	11,577		$	12,292
Other borrowed funds	12,335		8,200			13,026			9,250				11,606			9,701
Federal funds purchased	675		787			1,443			1,799				1,548			1,753
Total short-term unsecured funding	$	22,701	$	23,724		$	24,372		$	24,053			$	24,731		$	23,746
Securities sold under agreements to repurchase (a)	$	384,140	$	212,804		$	418,622		$	246,761			$	359,233		$	250,447
Securities loaned (a)	4,522		2,944			5,730			5,545				4,823			4,517
Other borrowed funds	28,612		21,775			27,847			22,110				24,788			22,071
Obligations of Firm-administered multi-seller conduits (b)	17,173		17,781			18,356			18,353				19,170			13,890
Total short-term secured funding	$	434,447	$	255,304		$	470,555		$	292,769			$	408,014		$	290,925
Senior notes	$	207,606	$	191,202		$	202,600		$	178,395			$	196,986		$	181,336
Subordinated debt	16,643		19,708			18,922			19,695				19,380			20,681
Structured notes (c)	100,325		86,056			96,379			77,182				91,489			75,347
Total long-term unsecured funding	$	324,574	$	296,966		$	317,901		$	275,272			$	307,855		$	277,364
Credit card securitization (b)	$	5,361	$	2,998		$	5,337		$	1,347			$	5,070		$	1,175

FHLB advances	32,042		41,246			34,063			36,040				37,357		(g)	25,275
Purchase Money Note (d)	49,152		48,989			49,116			48,901				49,062			27,394
Other long-term secured funding (e)	4,389		4,624			4,579			4,627				4,726			4,485
Total long-term secured funding	$	90,944	$	97,857		$	93,095		$	90,915			$	96,215		$	58,329
Preferred stock (f)	$	21,650	$	27,404		$	22,408		$	27,404			$	25,398		$	27,404
Common stockholders’ equity (f)	$	324,186	$	300,474		$	321,894		$	284,798			$	310,353		$	278,010

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

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

(d) Reflects the Purchase Money Note associated with the First Republic acquisition on May 1, 2023. Refer to Note 26 for additional information.

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

(f) Refer to Capital Risk Management on pages 44-49 and Consolidated statements of changes in stockholders’ equity on page 92 of this Form 10-Q, and Note 21 and Note 22 of JPMorgan Chase’s 2023 Form 10-K for additional information on preferred stock and common stockholders’ equity.

(g) Includes the timing impact of First Republic. Refer to Consolidated Results of Operations on pages 9–14 and Note 26 of this Form 10-Q, and pages 102-109 of JPMorgan Chase's 2023 Form 10-K for additional information.

Short-term funding

The Firm’s primary source of short-term secured funding is securities sold under agreements to repurchase. These instruments are secured predominantly by high-quality securities collateral, including government-issued debt and U.S. GSE and government agency MBS. Securities sold under agreements to repurchase increased at September 30, 2024, compared with December 31, 2023, driven by Markets, reflecting higher client-driven market-making activities and higher secured financing of trading assets, as well as when compared with seasonally lower levels at year-end.

The increase in secured other borrowed funds at September 30, 2024 from December 31, 2023 was predominantly due to higher financing requirements in Markets. For the average three months ended September 30, 2024 , compared to the prior year period, the increase was due to higher financing requirements in Markets, partially offset by maturities in Treasury and CIO.

The balances associated with securities loaned or sold under agreements to repurchase fluctuate over time due to

investment and financing activities of clients, the Firm’s demand for financing, the ongoing management of the mix of the Firm’s liabilities, including its secured and unsecured financing (for both the investment securities and market-making portfolios), and other market and portfolio factors.

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

The decrease in commercial paper at September 30, 2024 from December 31, 2023, and for the average three months ended September 30, 2024 compared to the prior year three-month period, was due to lower issuances primarily as a result of short-term liquidity management.

The increase in unsecured other borrowed funds at September 30, 2024 from December 31, 2023, and for the average three months ended September 30, 2024 compared to the prior year three-month period, was driven by higher net issuances of structured notes in CIB, due to client demand.

Long-term funding

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

Unsecured funding and issuance

The significant majority of the Firm’s total outstanding long-term debt has been issued by the Parent Company to provide flexibility in support of the funding needs of both bank and non-bank subsidiaries. The Parent Company advances substantially all net funding proceeds to its subsidiary, the IHC. The IHC does not issue debt to external counterparties. The increase in structured notes at September 30, 2024 from December 31, 2023, and the increase in averages for the three and nine months ended September 30, 2024 compared to the same prior year periods, were primarily driven by net issuances in Markets due to client demand.

The following table summarizes long-term unsecured issuance and maturities or redemptions for the three and nine months ended September 30, 2024 and 2023. Refer to Liquidity Risk Management on pages 102–109 and Note 20 of JPMorgan Chase’s 2023 Form 10-K for additional information on the IHC and long-term debt.


Long-term unsecured funding
	Three months ended September 30,				Nine months ended September 30,				Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023		2024		2023		2024		2023
(Notional in millions)	Parent Company								Subsidiaries
Issuance
Senior notes issued in the U.S. market	$	9,000	$	4,500	$	26,500	$	7,000	$	—	$	—	$	—	$	—
Senior notes issued in non-U.S. markets	—		—		4,079		—		—		—		—		—
Total senior notes	9,000		4,500		30,579		7,000		—		—		—		—

Structured notes (a)	1,126		755		2,728		2,199		14,339		10,028		42,207		25,693
Total long-term unsecured funding – issuance	$	10,126	$	5,255	$	33,307	$	9,199	$	14,339	$	10,028	$	42,207	$	25,693
Maturities/redemptions
Senior notes	$	1,320	$	4,535	$	17,989	$	17,968	$	—	$	—	$	65	$	67
Subordinated debt	3,062		41		3,097		2,068		—		—		—		—
Structured notes	197		499		707		1,270		12,060		7,282		35,468		21,263
Total long-term unsecured funding – maturities/redemptions	$	4,579	$	5,075	$	21,793	$	21,306	$	12,060	$	7,282	$	35,533	$	21,330

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

Secured funding and issuance

The Firm can also raise secured long-term funding through securitization of consumer credit card loans and FHLB advances. The following table summarizes the securitization issuance, the FHLB advances, and their respective maturities or redemptions, as applicable for the three and nine months ended September 30, 2024 and 2023, respectively.


Long-term secured funding
	Three months ended September 30,									Nine months ended September 30,
	2024		2023		2024			2023		2024		2023		2024			2023
(in millions)	Issuance				Maturities/Redemptions					Issuance				Maturities/Redemptions
Credit card securitization	$	—	$	1,998	$	—		$	—	$	2,348	$	1,998	$	—		$	1,000

FHLB advances	—		6,000		3,601		(c)	4,230		—		31,775		9,249		(c)	4,834
Purchase Money Note (a)	—		—		—			—		—		50,000		—			—
Other long-term secured funding (b)	386		177		427			164		1,106		919		797			276
Total long-term secured funding	$	386	$	8,175	$	4,028		$	4,394	$	3,454	$	84,692	$	10,046		$	6,110

(a) Reflects the Purchase Money Note associated with the First Republic acquisition. Refer to Note 26 for more information.

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

(c) Includes FHLB advances associated with the First Republic acquisition on May 1, 2023. Refer to Note 26 for more information.

The Firm’s wholesale businesses also securitize loans for client-driven transactions; those client-driven loan securitizations are not considered to be a source of funding for the Firm and are not included in the table above. Refer to Note 14 of JPMorgan Chase’s 2023 Form 10-K for a further description of client-driven loan securitizations.

Credit ratings

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

and stress testing metrics. The Firm believes that it maintains sufficient liquidity to withstand a potential decrease in funding capacity due to ratings downgrades.

Additionally, the Firm’s funding requirements for VIEs and other third-party commitments may be adversely affected by a decline in credit ratings. Refer to Notes 4 and 13 for additional information.

The credit ratings of the Parent Company and the Firm’s principal bank and non-bank subsidiaries as of September 30, 2024, were as follows:

JPMorgan Chase & Co.

JPMorgan Chase Bank, N.A.

J.P. Morgan Securities LLC
J.P. Morgan Securities plc
J.P. Morgan SE

September 30, 2024

Long-term issuer

Short-term issuer

Outlook

Long-term issuer

Short-term issuer

Outlook

Long-term issuer

Short-term issuer

Outlook

Moody’s Investors Service

P-1

Stable

Aa2

P-1

Negative

Aa3

P-1

Stable

Standard & Poor’s (a)

A-

A-2

Positive

A+

A-1

Positive

A+

A-1

Positive

Fitch Ratings

AA-

F1+

Stable

F1+

Stable

F1+

Stable

(a) On April 1, 2024, Standard & Poor's affirmed the credit ratings of the Parent Company and the Firm’s principal bank and non-bank subsidiaries, and revised the outlook from stable to positive for the entities listed above.

Refer to page 109 of JPMorgan Chase’s 2023 Form 10-K for a discussion of the factors that could affect the credit ratings of the Parent Company and the Firm’s principal bank and non-bank subsidiaries.

CREDIT AND INVESTMENT RISK MANAGEMENT

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

wholesale credit risk, and investment portfolio risk. Refer to Consumer Credit Portfolio, Wholesale Credit Portfolio and

Allowance for Credit Losses on pages 60-75 for a further discussion of Credit Risk.

Refer to page 76 for a further discussion of Investment Portfolio Risk. Refer to Credit and Investment Risk Management on pages 111–134 of JPMorgan Chase’s 2023 Form 10-K for a further discussion of the Firm’s Credit and Investment Risk Management framework.

CREDIT PORTFOLIO

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

In the following tables, total loans include loans retained (i.e., held-for-investment); loans held-for-sale; and certain loans accounted for at fair value. The following tables do not include loans which the Firm accounts for at fair value and classifies as trading assets; refer to Notes 2 and 3 for further information regarding these loans. Refer to Notes 11, 22 and 4 for additional information on the Firm’s loans, lending-related commitments and derivative receivables.

Refer to Note 9 for information regarding the credit risk inherent in the Firm’s investment securities portfolio; and refer to Note 10 for information regarding credit risk inherent in the securities financing portfolio. Refer to Consumer Credit Portfolio on pages 60-63 and Note 11 for further discussions of the consumer credit environment, consumer loans and nonperforming exposure. Refer to Wholesale Credit Portfolio on pages 64-72 and Note 11 for further discussions of the wholesale credit environment, wholesale loans and nonperforming exposure.


Total credit portfolio
	Credit exposure				Nonperforming (c)
(in millions)	Sep 30, 2024		Dec 31, 2023		Sep 30, 2024		Dec 31, 2023
Loans retained	$	1,285,370	$	1,280,870	$	6,833	$	5,989
Loans held-for-sale	12,504		3,985		126		184
Loans at fair value	42,137		38,851		1,116		744
Total loans	1,340,011		1,323,706		8,075		6,917
Derivative receivables	52,561		54,864		210		364
Receivables from customers (a)	53,270		47,625		—		—
Total credit-related assets	1,445,842		1,426,195		8,285		7,281
Assets acquired in loan satisfactions
Real estate owned	NA		NA		292		274
Other	NA		NA		51		42
Total assets acquired in loan satisfactions	NA		NA		343		316
Lending-related commitments	1,576,476		1,497,847		619		464
Total credit portfolio	$	3,022,318	$	2,924,042	$	9,247	$	8,061
Credit derivatives and credit-related notes used in credit portfolio management activities (b)	$	(40,841)	$	(37,779)	$	—	$	—
Liquid securities and other cash collateral held against derivatives	(23,082)		(22,461)		NA		NA

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

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

(c) Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At September 30, 2024 and December 31, 2023, mortgage loans 90 or more days past due and insured by U.S. government agencies were $126 million and $182 million, respectively. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.

The following table provides information about the Firm’s net charge-offs and recoveries.


(in millions, except ratios)	Three months ended September 30,						Nine months ended September 30,
	2024			2023			2024			2023
Net charge-offs	$	2,087		$	1,497		$	6,274		$	4,045
Average retained loans	1,271,602			1,259,845			1,265,652			1,179,419
Net charge-off rates	0.65		%	0.47		%	0.66		%	0.46		%

CONSUMER CREDIT PORTFOLIO

The Firm’s retained consumer portfolio consists primarily of loans and lending-related commitments for residential real estate, credit card, and scored auto and business banking. The consumer credit portfolio also includes loans at fair value, predominantly in residential real estate. The Firm’s focus is on serving primarily the prime segment of the consumer credit market. Refer to Note 11 of this Form 10-Q; and Consumer Credit Portfolio on pages 114–119 and Note 12 of JPMorgan Chase's 2023 Form 10-K for further information on consumer loans, as well as the Firm’s nonaccrual and charge-off accounting policies. Refer to Note 22 of this Form 10-Q and Note 28 of JPMorgan Chase's 2023 Form 10-K for further information on lending-related commitments.

The following tables present consumer credit-related information with respect to the scored credit portfolios held in CCB, AWM, CIB and Corporate.


Consumer credit portfolio
(in millions)	Credit exposure				Nonaccrual loans (i)
	Sep 30, 2024		Dec 31, 2023		Sep 30, 2024		Dec 31, 2023
Consumer, excluding credit card
Residential real estate (a)	$	311,338	$	326,409	$	3,083	$	3,466
Auto and other (b)(c)	66,600		70,866		233		177
Total loans – retained	377,938		397,275		3,316		3,643
Loans held-for-sale	1,101		487		50		95
Loans at fair value (d)	15,906		12,331		347		465
Total consumer, excluding credit card loans	394,945		410,093		3,713		4,203
Lending-related commitments (e)	45,322		45,403
Total consumer exposure, excluding credit card	440,267		455,496
Credit card
Loans retained (f)	219,542		211,123		NA		NA

Total credit card loans	219,542		211,123		NA		NA
Lending-related commitments (e)(g)	989,594		915,658
Total credit card exposure	1,209,136		1,126,781
Total consumer credit portfolio	$	1,649,403	$	1,582,277	$	3,713	$	4,203
Credit-related notes used in credit portfolio management activities (h)	$	(544)	$	(790)


	Three months ended September 30,
(in millions, except ratios)	Net charge-offs/(recoveries)				Average loans - retained				Net charge-off/(recovery) rate (j)
	2024		2023		2024		2023		2024		2023
Consumer, excluding credit card
Residential real estate	$	(40)	$	(16)	$	312,953	$	327,826	(0.05)	%	(0.02)	%
Auto and other	203		183		66,506		68,962		1.21		1.05
Total consumer, excluding credit card - retained	163		167		379,459		396,788		0.17		0.17
Credit card - retained	1,766		1,227		217,204		195,232		3.23		2.49
Total consumer - retained	$	1,929	$	1,394	$	596,663	$	592,020	1.29	%	0.93	%


	Nine months ended September 30,
(in millions, except ratios)	Net charge-offs/(recoveries)				Average loans - retained				Net charge-off/(recovery) rate (j)
	2024		2023		2024		2023		2024		2023
Consumer, excluding credit card
Residential real estate	$	(83)	$	(61)	$	317,944	$	286,239	(0.03)	%	(0.03)	%
Auto and other	564		482		68,415		66,431		1.10		0.97
Total consumer, excluding credit card - retained	481		421		386,359		352,670		0.17		0.16
Credit card - retained	5,282		3,273		210,645		187,624		3.35		2.33
Total consumer - retained	$	5,763	$	3,694	$	597,004	$	540,294	1.29	%	0.91	%

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

(b) At September 30, 2024 and December 31, 2023, excluded operating lease assets of $11.5 billion and $10.4 billion, respectively. These operating lease assets are included in other assets on the Firm’s Consolidated balance sheets. Refer to Note 16 for further information.

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

(e) Credit card, home equity and certain business banking lending-related commitments represent the total available lines of credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit would be used at the same time. For credit card commitments, and if certain conditions are met, home equity commitments and certain business banking commitments, the Firm can reduce or cancel these lines of credit by providing the borrower notice or, in some cases as permitted by law, without notice. Refer to Note 22 for further information.

(f) Includes billed interest and fees.

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

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

(i) Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At September 30, 2024 and December 31, 2023, mortgage loans 90 or more days past due and insured by U.S. government agencies were $126 million and $182 million, respectively. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status, as permitted by regulatory guidance.

(j) Average consumer loans held-for-sale and loans at fair value were $18.7 billion and $14.4 billion for the three months ended September 30, 2024 and 2023, respectively, and $17.0 billion and $12.9 billion for the nine months ended September 30, 2024 and 2023, respectively. These amounts were excluded when calculating net charge-off/(recovery) rates.

Consumer, excluding credit card

Portfolio analysis

Loans decreased from December 31, 2023 driven by retained residential real estate loans.

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

Retained loans decreased compared to December 31, 2023, predominantly driven by paydowns and loan sales, net of originations. R etained nonaccrual loans decreased compared to December 31, 2023, predominantly driven by loan sales. Net recoveries were higher for the three and nine months ended September 30, 2024 compared to the same period in the prior year, driven by loan sales.

Loans held-for-sale increased from December 31, 2023, predominantly driven by a transfer of certain retained loans in anticipation of securitization. Nonaccrual loans held-for-sale decreased compared to December 31, 2023, driven by loan sales.

Loans at fair value increased compared to December 31, 2023, driven by higher Home Lending loans as originations outpaced warehouse loan sales, and higher CIB loans as purchases outpaced sales. Nonaccrual loans at fair value decreased compared to December 31, 2023, driven by net sales in CIB.

At September 30, 2024 and December 31, 2023, the carrying value of interest-only residential mortgage loans was $89.4 billion and $90.6 billion, respectively. These loans have an interest-only payment period generally followed by an adjustable-rate or fixed-rate fully amortizing payment period to maturity and are typically originated as higher-balance loans to higher-income borrowers. The credit performance of this portfolio is comparable to the performance of the broader prime mortgage portfolio.

The carrying value of home equity lines of credit outstanding was $14.5 billion at September 30, 2024. The carrying value of home equity lines of credit outstanding included $3.9 billion of HELOCs that have recast from interest-only to fully amortizing payments or have been modified, and $3.8 billion of interest-only balloon HELOCs, which primarily mature after 2030. The Firm manages the risk of HELOCs during their revolving period by closing or reducing the undrawn line to the extent permitted by law when borrowers are exhibiting a material deterioration in their credit risk profile.

The following table provides a summary of the Firm’s residential mortgage portfolio insured and/or guaranteed by U.S. government agencies, predominantly loans held-for-sale and loans at fair value. The Firm monitors its exposure to certain potential unrecoverable claim payments related to government-insured loans and considers this exposure in estimating the allowance for loan losses.


(in millions)	September 30, 2024		December 31, 2023
Current	$	600	$	446
30-89 days past due	72		102
90 or more days past due	126		182
Total government guaranteed loans	$	798	$	730

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

Refer to Note 11 for information on the geographic composition and current estimated LTVs of the Firm’s residential real estate loans.

Modified residential real estate loans

For the three and nine months ended September 30, 2024, residential real estate financial difficulty modifications ("FDMs") were $74 million and $188 million, respectively, and $43 million and $110 million for the three and nine months ended September 30, 2023, respectively. Loans subject to trial modification where the terms of the loans have not been permanently modified, and loans subject to discharge under Chapter 7 bankruptcy proceedings ("Chapter 7 loans"), were not material for the three and nine months ended September 30, 2024 and 2023. Refer to Note 1 of JPMorgan Chase’s 2023 Form 10-K and Note 11 of this Form 10-Q for further information.

Auto and other: The auto and other loan portfolio, including loans at fair value, generally consists of prime-quality scored auto and business banking loans, other consumer unsecured loans, and overdrafts. The portfolio decreased when compared to December 31, 2023, predominantly due to loan securitizations. Net charge-offs increased for the nine months ended September 30, 2024 compared to the same period in the prior year, predominantly due to higher scored auto net charge-offs of $100 million, reflecting a decline in used vehicle valuations. Refer to Note 13 for further information on securitization activity.

Nonperforming assets

The following table presents information as of September 30, 2024 and December 31, 2023, about consumer, excluding credit card, nonperforming assets.


Nonperforming assets (a)
(in millions)	September 30, 2024		December 31, 2023
Nonaccrual loans
Residential real estate	$	3,464	$	4,015
Auto and other	249		188
Total nonaccrual loans	3,713		4,203
Assets acquired in loan satisfactions
Real estate owned	81		120
Other	51		42
Total assets acquired in loan satisfactions	132		162
Total nonperforming assets	$	3,845	$	4,365

(a) Excludes mortgage loans past due and insured by U.S. government agencies, which are primarily 90 or more days past due. These loans have been excluded based upon the government guarantee. At September 30, 2024 and December 31, 2023, mortgage loans 90 or more days past due and insured by U.S. government agencies were $126 million and $182 million, respectively.

Nonaccrual loans

The following table presents changes in consumer, excluding credit card, nonaccrual loans for the nine months ended September 30, 2024 and 2023.


Nonaccrual loan activity
Nine months ended September 30, (in millions)	2024		2023
Beginning balance	$	4,203	$	4,325
Additions	2,245		2,038
Reductions:
Principal payments and other	697		755
Sales	716		179
Charge-offs	453		329
Returned to performing status	724		795
Foreclosures and other liquidations	145		131
Total reductions	2,735		2,189
Net changes	(490)		(151)
Ending balance	$	3,713	$	4,174

Refer to Note 11 for further information about the consumer credit portfolio, including information about delinquencies, other credit quality indicators, loan modifications and loans that were in the process of active or suspended foreclosure.

Credit card

Total credit card loans increased from December 31, 2023 reflecting growth from new accounts and revolving balances. The September 30, 2024 30+ and 90+ day delinquency rates of 2.20% and 1.10%, respectively, increased compared to the December 31, 2023 30+ and 90+ delinquency rates of 2.14% and 1.05%, respectively, in line with expectations. Net charge-offs increased for the three and nine months ended September 30, 2024 compared to the same periods in the prior year reflecting the seasoning of newer vintages and continued credit normalization.

Consistent with the Firm’s policy, all credit card loans typically remain on accrual status until charged off. However, the Firm’s allowance for loan losses includes the estimated uncollectible portion of accrued and billed interest and fee income. Refer to Note 11 for further information about this portfolio, including information about delinquencies.

Geographic and FICO composition of credit card loans

Refer to Note 11 for information on the geographic and FICO composition of the Firm’s credit card loans.

Modified credit card loans

For the three and nine months ended September 30, 2024, credit card FDMs were $272 million and $714 million, respectively, and $197 million and $489 million for the three and nine months ended September 30, 2023, respectively. FDMs increased for the three and nine months ended September 30, 2024 compared to the same periods in the prior year due to higher delinquencies, reflecting growth in the portfolio.

Refer to Note 1 of JPMorgan Chase’s 2023 Form 10-K and Note 11 of this Form 10-Q for further information.

WHOLESALE CREDIT PORTFOLIO

In its wholesale businesses, the Firm is exposed to credit risk primarily through its underwriting, lending, market-making, and hedging activities with and for clients and counterparties, as well as through various operating services (such as cash management and clearing activities), securities financing activities and cash placed with banks. A portion of the loans originated or acquired by the Firm’s wholesale businesses is generally retained on the balance sheet. The Firm distributes a significant percentage of the loans that it originates into the market as part of its syndicated loan business and to manage portfolio concentrations and credit risk. The wholesale portfolio is actively managed, in part by conducting ongoing, in-depth reviews of client credit quality and transaction structure inclusive of collateral where applicable, and of industry, product and client concentrations. Refer to the industry discussion on pages 66-69 for further information.

The Firm’s wholesale credit portfolio includes exposure held in CIB, AWM and Corporate, and risk-rated exposure held in CCB, for which the wholesale methodology is applied when determining the allowance for loan losses. The Firm continues to convert certain operations, and to integrate clients, products and services, associated with First Republic. Accordingly, reporting classifications and internal risk rating profiles in the wholesale portfolio may change in future periods. Refer to Business Developments on page 8 for additional information.

As of September 30, 2024, loans increased $23 billion, driven by higher loans in CIB and higher securities based lending in AWM. Lending-related commitments increased by $4.8 billion, driven by Technology, Media & Telecommunications and Consumer & Retail, including held-for-sale commitments, largely offset by decreases in Asset Managers and Individuals.

As of September 30, 2024, nonperforming exposure increased by $1.7 billion, predominantly driven by Real Estate, concentrated in Office, and Technology, Media & Telecommunications, resulting from downgrades. For the nine months ended September 30, 2024, wholesale net charge-offs were $511 million, predominantly in Real Estate, concentrated in Office, Individuals, Consumer & Retail and Industrials.


Wholesale credit portfolio
	Credit exposure				Nonperforming
(in millions)	Sep 30, 2024		Dec 31, 2023		Sep 30, 2024		Dec 31, 2023
Loans retained	$	687,890	$	672,472	$	3,517	$	2,346
Loans held-for-sale	11,403		3,498		76		89
Loans at fair value	26,231		26,520		769		279
Loans	725,524		702,490		4,362		2,714
Derivative receivables	52,561		54,864		210		364
Receivables from customers (a)	53,270		47,625		—		—
Total wholesale credit-related assets	831,355		804,979		4,572		3,078
Assets acquired in loan satisfactions
Real estate owned	NA		NA		211		154
Other	NA		NA		—		—
Total assets acquired in loan satisfactions	NA		NA		211		154
Lending-related commitments	541,560		536,786		619		464
Total wholesale credit portfolio	$	1,372,915	$	1,341,765	$	5,402	$	3,696
Credit derivatives and credit-related notes used in credit portfolio management activities (b)	$	(40,297)	$	(36,989)	$	—	$	—
Liquid securities and other cash collateral held against derivatives	(23,082)		(22,461)		NA		NA

(b) Represents the net notional amount of protection purchased and sold through credit derivatives and credit-related notes used to manage both performing and nonperforming wholesale credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. Refer to Credit derivatives on page 72 and Note 4 for additional information.

Wholesale credit exposure – maturity and ratings profile

The following tables present the maturity and internal risk ratings profiles of the wholesale credit portfolio as of September 30, 2024 and December 31, 2023. The Firm generally considers internal ratings with qualitative characteristics equivalent to BBB-/Baa3 or higher as investment grade, and takes into consideration collateral and structural support when determining the internal risk rating for each credit facility. Refer to Note 12 of JPMorgan Chase's 2023 Form 10-K for further information on internal risk ratings.



	Maturity profile (d)								Ratings profile
	1 year or less		After 1 year through 5 years		After 5 years		Total		Investment-grade		Noninvestment-grade		Total		Total % of IG
September 30, 2024 (in millions, except ratios)
Loans retained	$	226,137	$	285,469	$	176,284	$	687,890	$	467,006	$	220,884	$	687,890	68	%
Derivative receivables							52,561						52,561
Less: Liquid securities and other cash collateral held against derivatives							(23,082)						(23,082)
Total derivative receivables, net of collateral	7,765		7,396		14,318		29,479		20,782		8,697		29,479		70
Lending-related commitments	127,476		389,014		25,070		541,560		356,950		184,610		541,560		66
Subtotal	361,378		681,879		215,672		1,258,929		844,738		414,191		1,258,929		67
Loans held-for-sale and loans at fair value (a)							37,634						37,634
Receivables from customers							53,270						53,270
Total exposure – net of liquid securities and other cash collateral held against derivatives							$	1,349,833					$	1,349,833
Credit derivatives and credit-related notes used in credit portfolio management activities (b)(c)	$	(5,066)	$	(29,087)	$	(6,144)	$	(40,297)	$	(32,444)	$	(7,853)	$	(40,297)	81	%



	Maturity profile (d)								Ratings profile
	1 year or less		After 1 year through 5 years		After 5 years		Total		Investment-grade		Noninvestment-grade		Total		Total % of IG
December 31, 2023 (in millions, except ratios)
Loans retained	$	211,104	$	280,821	$	180,547	$	672,472	$	458,838	$	213,634	$	672,472	68	%
Derivative receivables							54,864						54,864
Less: Liquid securities and other cash collateral held against derivatives							(22,461)						(22,461)
Total derivative receivables, net of collateral	8,007		8,970		15,426		32,403		24,919		7,484		32,403		77
Lending-related commitments	143,337		368,646		24,803		536,786		341,611		195,175		536,786		64
Subtotal	362,448		658,437		220,776		1,241,661		825,368		416,293		1,241,661		66
Loans held-for-sale and loans at fair value (a)							30,018						30,018
Receivables from customers							47,625						47,625
Total exposure – net of liquid securities and other cash collateral held against derivatives							$	1,319,304					$	1,319,304
Credit derivatives and credit-related notes used in credit portfolio management activities (b)(c)	$	(3,311)	$	(28,353)	$	(5,325)	$	(36,989)	$	(28,869)	$	(8,120)	$	(36,989)	78	%

(a) Loans held-for-sale are primarily related to syndicated loans and loans transferred from the retained portfolio.

(b) These derivatives do not qualify for hedge accounting under U.S. GAAP.

(c) The notional amounts are presented on a net basis by underlying reference entity and the ratings profile shown is based on the ratings of the reference entity on which protection has been purchased. Predominantly all of the credit derivatives entered into by the Firm where it has purchased protection used in credit portfolio management activities are executed with investment-grade counterparties. In addition, the Firm obtains credit protection against certain loans in the retained loan portfolio through the issuance of credit-related notes.

(d) The maturity profile of retained loans, lending-related commitments and derivative receivables is generally based on remaining contractual maturity. Derivative contracts that are in a receivable position at September 30, 2024, may become payable prior to maturity based on their cash flow profile or changes in market conditions.

Wholesale credit exposure – industry exposures

The Firm focuses on the management and diversification of its industry exposures, and pays particular attention to industries with actual or potential credit concerns.

Exposures that are deemed to be criticized align with the U.S. banking regulators’ definition of criticized exposures, which consist of the special mention, substandard and doubtful categories. Total criticized exposure, excluding loans held-for-sale and loans at fair value, was $47.1 billion and $41.4 billion as of September 30, 2024 and December 31, 2023, representing approximately 3.7% and 3.3% of total wholesale credit exposure, respectively; of the $47.1 billion, $42.7 billion was performing. The increase in criticized exposure was predominantly driven by Real Estate, concentrated in Multifamily and Office, reflecting net downgrades, and held-for-sale commitments in Technology and Media, partially offset by a decrease in Consumer & Retail.

The table below summarizes by industry the Firm’s exposures as of September 30, 2024 and December 31, 2023. The industry of risk category is generally based on the client or counterparty’s primary business activity. Refer to Note 4 of JPMorgan Chase's 2023 Form 10-K for additional information on industry concentrations.


Wholesale credit exposure – industries (a)
											Selected metrics
											30 days or more past due and accruing loans		Net charge-offs/ (recoveries)		Credit derivative and credit-related notes (h)		Liquid securities and other cash collateral held against derivative receivables
					Noninvestment-grade
As of or for the nine months ended	Credit exposure (f)(g)		Investment- grade		Noncriticized		Criticized performing		Criticized nonperforming
September 30, 2024
(in millions)
Real Estate	$	208,590	$	143,833	$	51,794	$	11,666	$	1,297	$	660	$	141	$	(606)	$	—
Individuals and Individual Entities (b)	140,526		114,207		25,536		261		522		975		114		—		—
Consumer & Retail	135,082		66,456		61,790		6,271		565		276		89		(4,362)		—
Asset Managers	129,475		90,452		38,928		91		4		87		2		—		(7,485)
Technology, Media & Telecommunications	85,714		46,578		26,629		11,862		645		133		37		(4,860)		—
Industrials	71,677		36,451		31,239		3,701		286		162		76		(2,357)		—
Healthcare	63,259		42,734		17,228		2,690		607		47		39		(3,346)		—
Banks & Finance Companies	62,358		38,251		23,962		139		6		13		—		(813)		(351)
Utilities	38,147		26,322		10,544		1,160		121		2		—		(2,704)		—
State & Municipal Govt (c)	36,060		34,185		1,850		15		10		188		—		(4)		(10)
Automotive	34,147		22,462		10,888		775		22		53		1		(1,023)		—
Oil & Gas	30,699		18,968		11,521		204		6		—		(2)		(1,835)		(3)
Insurance	21,449		14,596		6,635		193		25		8		—		(1,118)		(6,951)
Chemicals & Plastics	21,065		10,849		8,810		1,295		111		12		14		(1,208)		—
Transportation	16,851		9,662		6,710		442		37		20		(7)		(558)		—
Metals & Mining	16,656		8,174		7,139		1,299		44		—		—		(220)		(7)
Central Govt	14,762		14,398		230		134		—		—		—		(1,674)		(1,545)
Securities Firms	10,202		4,943		5,255		4		—		93		—		(14)		(2,606)
Financial Markets Infrastructure	5,206		4,711		495		—		—		—		—		—		—
All other (d)	140,086		118,262		21,248		538		38		98		7		(13,595)		(4,124)
Subtotal	$	1,282,011	$	866,494	$	368,431	$	42,740	$	4,346	$	2,827	$	511	$	(40,297)	$	(23,082)
Loans held-for-sale and loans at fair value	37,634
Receivables from customers	53,270
Total (e)	$	1,372,915


(continued from previous page)
											Selected metrics
											30 days or more past due and accruing loans		Net charge-offs/ (recoveries)		Credit derivative and credit-related notes (h)		Liquid securities and other cash collateral held against derivative receivables
					Noninvestment-grade
As of or for the year ended	Credit exposure (f)(g)		Investment- grade		Noncriticized		Criticized performing		Criticized nonperforming
December 31, 2023
(in millions)
Real Estate	$	208,261	$	148,866	$	50,190	$	8,558	$	647	$	717	$	275	$	(574)	$	—
Individuals and Individual Entities (b)	145,849		110,673		34,261		334		581		861		10		—		—
Consumer & Retail	127,086		60,168		58,606		7,863		449		318		161		(4,204)		—
Asset Managers	129,574		83,857		45,623		90		4		201		1		—		(7,209)
Technology, Media & Telecommunications	77,296		40,468		27,094		9,388		346		36		81		(4,287)		—
Industrials	75,092		40,951		30,586		3,419		136		213		31		(2,949)		—
Healthcare	65,025		43,163		18,396		3,005		461		130		17		(3,070)		—
Banks & Finance Companies	57,177		33,881		22,744		545		7		9		277		(511)		(412)
Utilities	36,061		25,242		9,929		765		125		1		(3)		(2,373)		—
State & Municipal Govt (c)	35,986		33,561		2,390		27		8		31		—		(4)		—
Automotive	33,977		23,152		10,060		640		125		59		—		(653)		—
Oil & Gas	34,475		18,276		16,076		111		12		45		11		(1,927)		(5)
Insurance	20,501		14,503		5,700		298		—		2		—		(961)		(6,898)
Chemicals & Plastics	20,773		11,353		8,352		916		152		106		2		(1,045)		—
Transportation	16,060		8,865		5,943		1,196		56		23		(26)		(574)		—
Metals & Mining	15,508		8,403		6,514		536		55		12		44		(229)		—
Central Govt	17,704		17,264		312		127		1		—		—		(3,490)		(2,085)
Securities Firms	8,689		4,570		4,118		1		—		—		—		(14)		(2,765)
Financial Markets Infrastructure	4,251		4,052		199		—		—		—		—		—		—
All other (d)	134,777		115,711		18,618		439		9		21		(2)		(10,124)		(3,087)
Subtotal	$	1,264,122	$	846,979	$	375,711	$	38,258	$	3,174	$	2,785	$	879	$	(36,989)	$	(22,461)
Loans held-for-sale and loans at fair value	30,018
Receivables from customers	47,625
Total (e)	$	1,341,765

(a) The industry rankings presented in the table as of December 31, 2023, are based on the industry rankings of the corresponding exposures as of September 30, 2024, not actual rankings of such exposures as of December 31, 2023.

(b) Individuals and Individual Entities predominantly consists of Global Private Bank clients within AWM and J.P. Morgan Wealth Management within CCB, and includes exposure to personal investment companies and personal and testamentary trusts.

(c) In addition to the credit risk exposure to states and municipal governments (both U.S. and non-U.S.) at September 30, 2024 and December 31, 2023 noted above, the Firm held: $5.7 billion and $5.9 billion, respectively, of trading assets; $18.2 billion and $21.4 billion, respectively, of AFS securities; and $9.4 billion and $9.9 billion, respectively, of HTM securities, issued by U.S. state and municipal governments. Refer to Notes 2 and 9 for further information.

(d) All other includes: SPEs and Private education and civic organizations, representing approximately 94% and 6%, respectively, at both September 30, 2024 and December 31, 2023. Refer to Note 13 for more information on exposures to SPEs.

(e) Excludes cash placed with banks of $426.0 billion and $614.1 billion, at September 30, 2024 and December 31, 2023, respectively, which is predominantly placed with various central banks, primarily Federal Reserve Banks.

(f) Credit exposure is net of risk participations and excludes the benefit of credit derivatives and credit-related notes used in credit portfolio management activities held against derivative receivables or loans and liquid securities and other cash collateral held against derivative receivables.

(g) Credit exposure includes held-for-sale and fair value option elected lending-related commitments.

(h) Represents the net notional amounts of protection purchased and sold through credit derivatives and credit-related notes used to manage the credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. The All other category includes purchased credit protection on certain credit indices.

Presented below is additional detail on certain of the Firm’s industry exposures.

Real Estate

Real Estate exposure was $208.6 billion as of September 30, 2024. Criticized exposure increased by $3.8 billion from $9.2 billion at December 31, 2023 to $13.0 billion at September 30, 2024, predominantly driven by Multifamily and Office, resulting from downgrades.


	September 30, 2024
(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure		% Investment-grade		% Drawn (d)
Multifamily (a)	$	125,368	$	42	$	125,410	77	%	91	%
Industrial	19,252		30		19,282		66		74
Office	16,875		51		16,926		48		81
Other Income Producing Properties (b)	14,750		261		15,011		51		67
Services and Non Income Producing	14,484		73		14,557		58		51
Retail	12,788		53		12,841		72		69
Lodging	4,538		25		4,563		27		55
Total Real Estate Exposure (c)	$	208,055	$	535	$	208,590	69	%	82	%

	December 31, 2023
(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure		% Investment- grade		% Drawn (d)
Multifamily (a)	$	121,946	$	21	$	121,967	79	%	90	%
Industrial	20,254		18		20,272		70		72
Office	16,462		32		16,494		51		81
Other Income Producing Properties (b)	15,542		208		15,750		55		63
Services and Non Income Producing	16,145		74		16,219		62		46
Retail	12,763		48		12,811		75		73
Lodging	4,729		19		4,748		30		48
Total Real Estate Exposure	$	207,841	$	420	$	208,261	71	%	80	%

(a) Multifamily exposure is largely in California.

(b) Other Income Producing Properties consists of clients with diversified property types or other property types outside of categories listed in the table above.

(c) Real Estate exposure is approximately 83% secured; unsecured exposure is largely investment-grade primarily to Real Estate Investment Trusts (“REITs”) and Real Estate Operating Companies (“REOCs”) whose underlying assets are generally diversified.

(d) Represents drawn exposure as a percentage of credit exposure.

Consumer & Retail

Consumer & Retail exposure was $135.1 billion as of September 30, 2024. Criticized exposure decreased by $1.5 billion to $6.8 billion at September 30, 2024 from $8.3 billion at December 31, 2023, driven by net portfolio activity, partially offset by net downgrades.


	September 30, 2024
(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure		% Investment-grade		% Drawn (d)
Food and Beverage	$	37,706	$	586	$	38,292	64	%	32	%
Business and Consumer Services	36,180		445		36,625		41		38
Retail (a)	35,593		475		36,068		51		32
Consumer Hard Goods	13,902		228		14,130		45		32
Leisure (b)	9,850		117		9,967		22		45
Total Consumer & Retail (c)	$	133,231	$	1,851	$	135,082	49	%	34	%

	December 31, 2023
(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure		% Investment- grade		% Drawn (d)
Food and Beverage	$	32,256	$	930	$	33,186	57	%	36	%
Business and Consumer Services	34,822		392		35,214		42		42
Retail (a)	36,042		334		36,376		51		30
Consumer Hard Goods	13,169		197		13,366		43		33
Leisure (b)	8,784		160		8,944		25		47
Total Consumer & Retail	$	125,073	$	2,013	$	127,086	47	%	36	%

(a) Retail consists of Home Improvement & Specialty Retailers, Restaurants, Supermarkets, Discount & Drug Stores, Specialty Apparel and Department Stores.

(b) Leisure consists of Gaming, Arts & Culture, Travel Services and Sports & Recreation. As of September 30, 2024, approximately 89% of the noninvestment-grade Leisure portfolio is secured.

(d) Represents drawn exposure as a percent of credit exposure.

Oil & Gas

Oil & Gas exposure was $30.7 billion as of September 30, 2024. Criticized exposure was $210 million at September 30, 2024 and $123 million at December 31, 2023.


	September 30, 2024
(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure		% Investment-grade		% Drawn (c)
Exploration & Production (“E&P”) and Oil field Services	$	14,788	$	387	$	15,175	60	%	28	%
Other Oil & Gas (a)	15,378		146		15,524		64		21
Total Oil & Gas (b)	$	30,166	$	533	$	30,699	62	%	25	%

	December 31, 2023
(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure		% Investment- grade		% Drawn (c)
Exploration & Production (“E&P”) and Oil field Services	$	18,121	$	536	$	18,657	51	%	26	%
Other Oil & Gas (a)	15,649		169		15,818		55		22
Total Oil & Gas	$	33,770	$	705	$	34,475	53	%	25	%

(a) Other Oil & Gas includes Integrated Oil & Gas companies, Midstream/Oil Pipeline companies and refineries.

(b) Oil & Gas exposure is approximately 34% secured, approximately half of which is reserve-based lending to the Exploration & Production sub-sector; unsecured exposure is approximately 72% investment-grade.

Loans

In its wholesale businesses, the Firm provides loans to a variety of clients, ranging from large corporate and institutional clients to high-net-worth individuals. Refer to Note 11 for a further discussion on loans, including information about delinquencies, loan modifications and other credit quality indicators.

The following table presents the change in the nonaccrual loan portfolio for the nine months ended September 30, 2024 and 2023. Since September 30, 2023, nonaccrual loan exposure increased by $1.0 billion, driven by Real Estate, concentrated in Office, Technology, Media & Telecommunications, and Healthcare, resulting from downgrades, partially offset by a single name in Banks & Finance Companies.


Wholesale nonaccrual loan activity
Nine months ended September 30, (in millions)	2024		2023
Beginning balance	$	2,714	$	2,395
Additions	3,937		2,843
Reductions:
Paydowns and other	1,381		783
Gross charge-offs	640		414
Returned to performing status	208		550
Sales	60		145
Total reductions	2,289		1,892
Net changes	1,648		951
Ending balance	$	4,362	$	3,346

The following table presents net charge-offs/recoveries, which are defined as gross charge-offs less recoveries, for the three and nine months ended September 30, 2024 and 2023. The amounts in the table below do not include gains or losses from sales of nonaccrual loans recognized in noninterest revenue.


Wholesale net charge-offs/(recoveries)
(in millions, except ratios)	Three months ended September 30,						Nine months ended September 30,
	2024			2023			2024			2023
Loans
Average loans retained	$	674,939		$	667,825		$	668,648		$	639,125
Gross charge-offs	211			141			659			435
Gross recoveries collected	(53)			(38)			(148)			(84)
Net charge-offs/(recoveries)	158			103			511			351
Net charge-off/(recovery) rate	0.09		%	0.06		%	0.10		%	0.07		%

Modified wholesale loans

The amortized cost of wholesale FDMs for the three and nine months ended September 30, 2024 was $1.2 billion and $2.0 billion, respectively, of which $325 million and $572 million, respectively, was nonaccrual loan exposure. The amortized cost of wholesale FDMs for the three and nine months ended September 30, 2023 was $1.4 billion and $2.0 billion, respectively, of which $752 million and $884 million, respectively, was nonaccrual loan exposure. Refer to Note 1 of JPMorgan Chase’s 2023 Form 10-K and Note 11 of this Form 10-Q for further information.

Lending-related commitments

The Firm uses lending-related financial instruments, such as commitments (including revolving credit facilities) and guarantees, to address the financing needs of its clients. The contractual amounts of these financial instruments represent the maximum possible credit risk should the clients draw down on these commitments or when the Firm fulfills its obligations under these guarantees, and the clients subsequently fail to perform according to the terms of these contracts. Most of these commitments and guarantees have historically been refinanced, extended, cancelled, or expired without being drawn upon or a default occurring. As a result, the Firm does not believe that the total contractual amount of these wholesale lending-related commitments is representative of the Firm’s expected future credit exposure or funding requirements. Refer to Note 22 for further information on wholesale lending-related commitments.

Receivables from customers

Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM that are collateralized by assets maintained in the clients’ brokerage accounts (including cash on deposit, and primarily liquid and readily marketable debt or equity securities). To manage its credit risk, the Firm establishes margin requirements and monitors the required margin levels on an ongoing basis, and requires clients to deposit additional cash or other collateral, or to reduce positions, when appropriate. Credit risk arising from lending activities subject to collateral maintenance requirements is generally mitigated by factors such as the short-term nature of the activity, the fair value of collateral held and the Firm’s right to call for, and the borrower’s obligation to provide, additional margin when the fair value of the collateral declines. Because of these mitigating factors, these receivables generally do not require an allowance for credit losses. However, if in management’s judgment, an allowance for credit losses is required, the Firm estimates expected credit losses based on the value of the collateral and probability of borrower default. These receivables are reported within accrued interest and accounts receivable on the Firm’s Consolidated balance sheets.

Refer to Note 13 of JPMorgan Chase's 2023 Form 10-K for further information on the Firm’s accounting policies for the allowance for credit losses.

Derivative contracts

Derivatives enable clients and counterparties to manage risk, including credit risk and risks arising from fluctuations in interest rates, foreign exchange and equities and commodities prices. The Firm makes markets in derivatives in order to meet these needs and uses derivatives to manage certain risks associated with net open risk positions from its market-making activities, including the counterparty credit risk arising from derivative receivables. The Firm also uses derivative instruments to manage its own credit risk and other market risk exposure. The nature of the counterparty and the settlement mechanism of the

derivative affect the credit risk to which the Firm is exposed. For over-the-counter ("OTC") derivatives, the Firm is exposed to the credit risk of the derivative counterparty. For exchange-traded derivatives (“ETD”), such as futures and options, and cleared over-the-counter (“OTC-cleared”) derivatives, the Firm can also be exposed to the credit risk of the relevant CCP. Where possible, the Firm seeks to mitigate its credit risk exposures arising from derivative contracts through the use of legally enforceable master netting arrangements and collateral agreements. The percentage of the Firm’s OTC derivative transactions subject to collateral agreements — excluding foreign exchange spot trades, which are not typically covered by collateral agreements due to their short maturity and centrally cleared trades that are settled daily — was approximately 87% at both September 30, 2024 and December 31, 2023. Refer to Note 4 for additional information on the Firm’s use of collateral agreements and for a further discussion of derivative contracts, counterparties and settlement types.

The fair value of derivative receivables reported on the Consolidated balance sheets was $52.6 billion and $54.9 billion at September 30, 2024 and December 31, 2023, respectively. The decrease was primarily as a result of market movements. Derivative receivables represent the fair value of the derivative contracts after giving effect to legally enforceable master netting agreements and the related cash collateral held by the Firm.

In addition, the Firm holds liquid securities and other cash collateral that may be used as security when the fair value of the client’s exposure is in the Firm’s favor. For these purposes, the definition of liquid securities is consistent with the definition of high quality liquid assets as defined in the LCR rule.

In management’s view, the appropriate measure of current credit risk should also take into consideration other collateral, which generally represents securities that do not qualify as high quality liquid assets under the LCR rule. The benefits of these additional collateral amounts for each counterparty are subject to a legally enforceable master netting agreement and limited to the net amount of the derivative receivables for each counterparty.

The Firm also holds additional collateral (primarily cash, G7 government securities, other liquid government agency and guaranteed securities, and corporate debt and equity securities) delivered by clients at the initiation of transactions, as well as collateral related to contracts that have a non-daily call frequency and collateral that the Firm has agreed to return but has not yet settled as of the reporting date. Although this collateral does not reduce the receivables balances and is not included in the tables below, it is available as security against potential exposure that could arise should the fair value of the client’s derivative contracts move in the Firm’s favor. Refer to Note 4 for additional information on the Firm’s use of collateral agreements for derivative transactions.

The following tables summarize the net derivative receivables and the internal ratings profile for the periods presented.


Derivative receivables
(in millions)	September 30, 2024		December 31, 2023
Total, net of cash collateral	$	52,561	$	54,864
Liquid securities and other cash collateral held against derivative receivables	(23,082)		(22,461)
Total, net of liquid securities and other cash collateral	$	29,479	$	32,403
Other collateral held against derivative receivables	(1,258)		(993)
Total, net of collateral	$	28,221	$	31,410


Ratings profile of derivative receivables
	September 30, 2024				December 31, 2023
(in millions, except ratios)	Exposure net of collateral		% of exposure net of collateral		Exposure net of collateral			% of exposure net of collateral
Investment-grade	$	19,621	70	%	$	24,004		76	%
Noninvestment-grade	8,600		30		7,406		(a)	24
Total	$	28,221	100	%	$	31,410		100	%

Credit portfolio management activities

The Firm uses credit derivatives for two primary purposes: first, in its capacity as a market-maker, and second, as an end-user, to manage the Firm’s own credit risk associated with traditional lending activities (loans and lending-related commitments) and derivatives counterparty exposure in the Firm’s wholesale businesses. In addition, the Firm obtains credit protection against certain loans in the retained wholesale portfolio through the issuance of credit-related notes. Information on credit portfolio management activities is provided in the table below.


Credit derivatives and credit-related notes used in credit portfolio management activities
	Notional amount of protection purchased and sold (a)
(in millions)	September 30, 2024		December 31, 2023
Credit derivatives and credit-related notes used to manage:
Loans and lending-related commitments	$	26,214	$	24,157
Derivative receivables	14,083		12,832
Credit derivatives and credit-related notes used in credit portfolio management activities	$	40,297	$	36,989

(a) Amounts are presented net, considering the Firm’s net protection purchased or sold with respect to each underlying reference entity or index.

Refer to Credit derivatives in Note 4 of this Form 10-Q and Note 5 of JPMorgan Chase’s 2023 Form 10-K for further information on credit derivatives and derivatives used in credit portfolio management activities.

ALLOWANCE FOR CREDIT LOSSES

The Firm’s allowance for credit losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's financial assets measured at amortized cost and certain off-balance sheet lending-related commitments. The Firm's allowance for credit losses generally consists of :

• the allowance for loan losses, which covers the Firm’s retained loan portfolios (scored and risk-rated) and is presented separately on the Consolidated balance sheets,

• the allowance for lending-related commitments, which is reflected in accounts payable and other liabilities on the Consolidated balance sheets, and

• the allowance for credit losses on investment securities, which is reflected in investment securities on the Consolidated balance sheets.

Discussion of changes in the allowance

The allowance for credit losses as of September 30, 2024 was $26.5 billion , reflecting a net addition of $1.8 billion from December 31, 2023.

The net addition to the allowance for credit losses included:

• $1.5 billion in consumer , reflecting:

– a $1.7 billion net addition in Card Services, due to loan growth, reflecting higher revolving balances, including the seasoning of newer vintages, and changes in certain macroeconomic variables,

partially offset by

– a $125 million net reduction in Home Lending in the first quarter of 2024, and

• $196 million in wholesale , reflecting:

– net downgrade activity, primarily in Real Estate, and the impact of incorporating the First Republic portfolio into the Firm’s modeled credit loss estimates in the second quarter of 2024,

partially offset by

– changes in certain macroeconomic variables and the impact of changes in the loan and lending-related commitment portfolios .

T he Firm has maintained the additional weight placed on the adverse scenarios in the first quarter of 2023 to reflect ongoing uncertainties and downside risks related to the geopolitical and macroeconomic environment.

The Firm's allowance for credit losses is estimated using a weighted average of five internally developed macroeconomic scenarios. The adverse scenarios incorporate more punitive macroeconomic factors than the central case assumptions provided in the table below, resulting in a weighted average U.S. unemployment rate peaking at 5.6% in the third quarter of 2025, and a weighted average U.S. real GDP level that is 1.9% lower than the central case at the end of the fourth quarter of 2025.

The following table presents the Firm’s central case assumptions for the periods presented:


	Central case assumptions at September 30, 2024
	4Q24		2Q25		4Q25
U.S. unemployment rate (a)	4.5	%	4.6	%	4.4	%
YoY growth in U.S. real GDP (b)	1.6	%	1.6	%	1.9	%

	Central case assumptions at December 31, 2023
	2Q24		4Q24		2Q25
U.S. unemployment rate (a)	4.1	%	4.4	%	4.1	%
YoY growth in U.S. real GDP (b)	1.8	%	0.7	%	1.0	%

(a) Reflects quarterly average of forecasted U.S. unemployment rate.

(b) The year over year growth in U.S. real GDP in the forecast horizon of the central scenario is calculated as the percentage change in U.S. real GDP levels from the prior year.

Subsequent changes to this forecast and related estimates will be reflected in the provision for credit losses in future periods.

Refer to Note 13 and Note 10 of JPMorgan Chase's 2023 Form 10-K for a description of the policies, methodologies and judgments used to determine the Firm’s allowance for credit losses on loans, lending-related commitments, and investment securities .

Refer to Consumer Credit Portfolio on pages 60-63, Wholesale Credit Portfolio on pages 64-72 and Note 11 for additional information on the consumer and wholesale credit portfolios.

Refer to Critical Accounting Estimates Used by the Firm on pages 84-86 for further information on the allowance for credit losses and related management judgments.


Allowance for credit losses and related information
	2024												2023
Nine months ended September 30,	Consumer, excluding credit card			Credit card			Wholesale			Total			Consumer, excluding credit card			Credit card			Wholesale			Total
(in millions, except ratios)
Allowance for loan losses
Beginning balance at January 1,	$	1,856		$	12,450		$	8,114		$	22,420		$	2,040		$	11,200		$	6,486		$	19,726
Cumulative effect of a change in accounting principle (a)	—			—			—			—			(489)			(100)			2			(587)
Gross charge-offs	971			6,044			659			7,674			809			3,852			435			5,096
Gross recoveries collected	(490)			(762)			(148)			(1,400)			(388)			(579)			(84)			(1,051)
Net charge-offs	481			5,282			511			6,274			421			3,273			351			4,045
Provision for loan losses	360			6,932			506			7,798			723			4,073			2,047			6,843
Other	—			—			5			5			1			—			8			9
Ending balance at September 30,	$	1,735		$	14,100		$	8,114		$	23,949		$	1,854		$	11,900		$	8,192		$	21,946

Allowance for lending-related commitments
Beginning balance at January 1,	$	75		$	—		$	1,899		$	1,974		$	76		$	—		$	2,306		$	2,382
Provision for lending-related commitments	6			—			162			168			5			—			(313)			(308)
Other	—			—			—			—			—			—			1			1
Ending balance at September 30,	$	81		$	—		$	2,061		$	2,142		$	81		$	—		$	1,994		$	2,075

Impairment methodology
Asset-specific (b)	$	(756)		$	—		$	499		$	(257)		$	(942)		$	—		$	732		$	(210)
Portfolio-based	2,491			14,100			7,615			24,206			2,796			11,900			7,460			22,156
Total allowance for loan losses	$	1,735		$	14,100		$	8,114		$	23,949		$	1,854		$	11,900		$	8,192		$	21,946

Impairment methodology
Asset-specific	$	—		$	—		$	93		$	93		$	—		$	—		$	61		$	61
Portfolio-based	81			—			1,968			2,049			81			—			1,933			2,014
Total allowance for lending-related commitments	$	81		$	—		$	2,061		$	2,142		$	81		$	—		$	1,994		$	2,075
Total allowance for investment securities	NA			NA			NA			$	175		NA			NA			NA			$	117
Total allowance for credit losses (c)	$	1,816		$	14,100		$	10,175		$	26,266		$	1,935		$	11,900		$	10,186		$	24,138

Memo:
Retained loans, end-of-period	$	377,938		$	219,542		$	687,890		$	1,285,370		$	397,054		$	196,935		$	671,952		$	1,265,941
Retained loans, average	386,359			210,645			668,648			1,265,652			352,670			187,624			639,125			1,179,419
Credit ratios
Allowance for loan losses to retained loans	0.46		%	6.42		%	1.18		%	1.86		%	0.47		%	6.04		%	1.22		%	1.73		%
Allowance for loan losses to retained nonaccrual loans (d)	52			NA			231			350			49			NA			282			329
Allowance for loan losses to retained nonaccrual loans excluding credit card	52			NA			231			144			49			NA			282			151
Net charge-off/(recovery) rates	0.17			3.35			0.10			0.66			0.16			2.33			0.07			0.46

(a) Represents the impact to the allowance for loan losses upon the Firm's adoption of changes to the TDR accounting guidance on January 1, 2023. Refer to Note 1 of JPMorgan Chase’s 2023 Form 10-K for further information.

(b) Includes collateral-dependent loans, including those for which foreclosure is deemed probable, and nonaccrual risk-rated loans.

(c) At September 30, 2024 and 2023, in addition to the allowance for credit losses in the table above, the Firm also had an allowance for credit losses of $277 million and $17 million, respectively, associated with certain accounts receivable in CIB.

(d) The Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.

Allocation of allowance for loan losses

The table below presents a breakdown of the allowance for loan losses by loan class. Refer to Note 11 for further information on loan classes.


	September 30, 2024				December 31, 2023
(in millions, except ratios)	Allowance for loan losses		Percent of retained loans to total retained loans		Allowance for loan losses		Percent of retained loans to total retained loans
Residential real estate	$	656	24	%	$	817	25	%
Auto and other	1,079		5		1,039		6
Consumer, excluding credit card	1,735		29		1,856		31
Credit card	14,100		17		12,450		16
Total consumer	15,835		46		14,306		47
Secured by real estate	3,027		13		2,997		13
Commercial and industrial	3,285		13		3,519		13
Other	1,802		27		1,598		27
Total wholesale	8,114		54		8,114		53
Total	$	23,949	100	%	$	22,420	100	%

INVESTMENT PORTFOLIO RISK MANAGEMENT

Investment portfolio risk is the risk associated with the loss of principal or a reduction in expected returns on investments arising from the investment securities portfolio or from principal investments. The investment securities portfolio is predominantly held by Treasury and CIO in connection with the Firm’s balance sheet and asset-liability management objectives. Principal investments are predominantly privately-held financial instruments and are managed in the LOBs and Corporate. Investments are typically intended to be held over extended periods and, accordingly, the Firm has no expectation for short-term realized gains with respect to these investments.

Investment securities risk

Investment securities risk includes the exposure associated with a default in the payment of principal and interest. This risk is mitigated given that the investment securities portfolio held by Treasury and CIO predominantly consists of high-quality securities. At September 30, 2024, the Treasury and CIO investment securities portfolio, net of the allowance for credit losses, was $631.7 billion, and the average credit rating of the securities comprising the portfolio was AA+ (based upon external ratings where available, and where not available, based primarily upon internal risk ratings). Refer to Corporate segment results on pages 40-42 and Note 9 for further information on the investment securities portfolio and internal risk ratings. Refer to Liquidity Risk Management on pages 50-57 for further information on related liquidity risk. Refer to Market Risk Management on pages 77-82 for further information on the market risk inherent in the portfolio.

Principal investment risk

Principal investments are typically privately-held financial instruments representing ownership interests or other forms of junior capital. In general, principal investments include tax-oriented investments and investments made to enhance or accelerate the Firm’s business strategies and exclude those that are consolidated on the Firm's balance sheets. These investments are made by dedicated investing businesses or as part of a broader business strategy. The Firm’s principal investments are managed by the LOBs and Corporate and are reflected within their respective financial results. The Firm’s investments will continue to evolve based on market circumstances and in line with its strategic initiatives, including the Firm’s environmental and social goals.

The table below presents the aggregate carrying values of the principal investment portfolios as of September 30, 2024 and December 31, 2023.


(in billions)	September 30, 2024		December 31, 2023
Tax-oriented investments, primarily in alternative energy and affordable housing (a)	$	33.2	$	28.8
Private equity, various debt and equity instruments, and real assets	9.2		10.5
Total carrying value	$	42.4	$	39.3

(a) Effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures guidance. Refer to Note 13 for additional information.

Refer to page 134 of JPMorgan Chase’s 2023 Form 10-K for a discussion of the Firm’s Investment Portfolio Risk Management governance and oversight.

MARKET RISK MANAGEMENT

Market risk is the risk associated with the effect of changes in market factors such as interest and foreign exchange rates, equity and commodity prices, credit spreads or implied volatilities, on the value of assets and liabilities held for both the short and long term. Refer to Market Risk Management on pages 135–143 of JPMorgan Chase’s 2023 Form 10-K for a discussion of the Firm’s Market Risk Management organization, market risk measurement, risk monitoring and control, and predominant business activities that give rise to market risk.

Models used to measure market risk are inherently imprecise and are limited in their ability to measure certain risks or to predict losses. This imprecision may be heightened when sudden or severe shifts in market conditions occur. For additional discussion on model uncertainty refer to Estimations and Model Risk Management on page 154 of JPMorgan Chase’s 2023 Form 10-K.

Market Risk Management periodically reviews the Firm’s existing market risk measures to identify opportunities for enhancement, and to the extent appropriate, will calibrate those measures accordingly over time.

Value-at-risk

JPMorgan Chase utilizes value-at-risk (“VaR”), a statistical risk measure, to estimate the potential loss from adverse market moves in the current market environment. The Firm has a single VaR framework used as a basis for calculating Risk Management VaR and Regulatory VaR.

The Firm’s Risk Management VaR is calculated assuming a one-day holding period and an expected tail-loss methodology which approximates a 95% confidence level. For risk management purposes, the Firm believes this methodology provides a daily measure of risk that is closely aligned to risk management decisions made by the LOBs and Corporate and, along with other market risk measures, provides the appropriate information needed to respond to risk events. The Firm calculates separately a daily aggregated VaR in accordance with regulatory rules (“Regulatory VaR”), which is used to derive the Firm’s regulatory VaR-based capital requirements under Basel III.

The Firm’s VaR model calculations are periodically evaluated and enhanced in response to changes in the composition of the Firm’s portfolios, changes in market conditions, improvements in the Firm’s modeling techniques and measurements, and other factors. Such changes may affect historical comparisons of VaR results. Refer to Estimations and Model Risk Management on page 154 of JPMorgan Chase’s 2023 Form 10-K for information regarding model reviews and approvals.

Refer to page 137 of JPMorgan Chase’s 2023 Form 10-K for further information regarding VaR, including the inherent limitations, and the key differences between Risk Management VaR and Regulatory VaR. Refer to JPMorgan Chase’s Basel III Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm’s website, f or additional information on Regulatory VaR and the other components of market risk regulatory capital for the Firm (e.g., VaR-based measure, stressed VaR-based measure and the respective backtesting) . Refer to Other risk measures on pages 140–143 of JPMorgan Chase’s 2023 Form 10-K for further information regarding nonstatistical market risk measures used by the Firm.

The table below shows the results of the Firm’s Risk Management VaR measure using a 95% confidence level. VaR can vary significantly as positions change, market volatility fluctuates, and diversification benefits change.


Total VaR
	Three months ended
	September 30, 2024						June 30, 2024						September 30, 2023
(in millions)	Avg.		Min		Max		Avg.		Min		Max		Avg.		Min		Max
CIB trading VaR by risk type (a)
Fixed income	$	37	$	28	$	53	$	31	$	26	$	37	$	49	$	34	$	63
Foreign exchange	15		12		21		18		15		23		17		9		26
Equities	8		5		15		7		5		11		7		5		11
Commodities and other	8		6		9		9		7		11		10		8		13
Diversification benefit to CIB trading VaR (b)	(33)		NM		NM		(32)		NM		NM		(48)		NM		NM
CIB trading VaR	35		31		42		33		28		37		35		27		44
Credit Portfolio VaR (c)	21		18		23		21		18		25		15		12		18
Diversification benefit to CIB VaR (b)	(14)		NM		NM		(16)		NM		NM		(12)		NM		NM
CIB VaR	42		34		51		38		33		43		38		30		47
CCB VaR	4		2		6		2		1		4		5		2		9
AWM VaR (d)	9		8		9		8		7		9		NM		NM		NM
Corporate VaR (d)(e)	25		9		43		48		7		102		11		9		13
Diversification benefit to other VaR (b)	(13)		NM		NM		(9)		NM		NM		(4)		NM		NM
Other VaR	25		10		42		49		10		101		12		9		15
Diversification benefit to CIB and other VaR (b)	(22)		NM		NM		(31)		NM		NM		(9)		NM		NM
Total VaR	$	45	$	38	$	56	$	56	$	39	$	91	$	41	$	32	$	52

(a) The impact of the business segment reorganization in the second quarter of 2024 was not material to Total CIB VaR. Prior periods have not been revised. Refer to Business Segment Results on pages 20-21 for additional information.

(b) Divers ification benefit represents the difference between the portfolio VaR and the sum of its individual components. This reflects the non-additive nature of VaR due to imperfect correlation across LOBs, Corporate, and risk types. For maximum and minimum VaR, diversification benefit is not meaningful as the maximum and minimum VaR for each portfolio may have occurred on different trading days than the components.

(c) Includes the derivative CVA, hedges of the CVA and credit protection purchased against certain retained loans and lending-related commitments, which are reported in principal transactions revenue. This VaR does not include the retained loan portfolio, which is not reported at fair value. In line with the Firm's internal model governance, the credit risk component of CVA related to certain counterparties was removed from Credit Portfolio VaR due to the widening of the credit spreads for those counterparties to elevated levels. The related hedges were also removed to maintain consistency. This exposure is now reflected in other sensitivity-based measures.

(d) In the second quarter of 2024, the presentation of Corporate and other LOB VaR was updated to disaggregate AWM VaR due to the increase associated with credit protection purchased against certain retained loans and lending-related commitments. The VaR does not include the retained loan portfolio, which is not reported at fair value.

(e) Includes a legacy private equity position which is publicly traded, as well as Visa C shares which the Firm disposed of in the second and third quarters of 2024. Refer to Consolidated Results of Operations on pages 9–14 for additional information.

Quarter over quarter results

Average total VaR for the three months ended September 30, 2024 decreased by $11 million, when compared with June 30, 2024, driven by decreases in Visa C share exposure in Corporate VaR, partially offset by increased risk exposure in fixed income.

Year over year results

Average total VaR for the three months ended September 30, 2024 increased by $4 million, compared with the same period in the prior year primarily due to increases associated with credit protection purchased against certain retained loans and lending-related commitments within Credit Portfolio VaR and AWM VaR, as well as the impact of Visa C shares to Corporate VaR, largely offset by volatility rolling out of the one-year historical look-back period impacting fixed income.

The following graph presents daily Risk Management VaR for the five trailing quarters. The increase in VaR and subsequent decline observed in the second quarter of 2024 was primarily driven by changes in Visa C share exposure in the Firm's Corporate VaR.

Daily Risk Management VaR

Third Quarter
2023

Fourth Quarter
2023

First Quarter
2023

Second Quarter
2024

Third Quarter
2024

VaR backtesting

The Firm performs daily VaR model backtesting, which compares the daily Risk Management VaR results with the daily gains and losses that are utilized for VaR backtesting purposes. The gains and losses depicted in the chart below do not reflect the Firm’s reported revenue as they exclude certain components of total net revenue, such as those associated with the execution of new transactions (i.e., intraday client-driven trading and intraday risk management activities), fees, commissions, other valuation adjustments and net interest income. These excluded components of total net revenue may more than offset the backtesting gain or loss on a particular day. The definition of backtesting gains and losses above is consistent with the requirements for backtesting under Basel III capital rules.

A backtesting exception occurs when the daily backtesting loss exceeds the daily Risk Management VaR for the prior day. Under the Firm’s Risk Management VaR methodology, assuming current changes in market values are consistent with the historical changes used in the simulation, the Firm would expect to incur VaR backtesting exceptions five times every 100 trading days on average. The number of VaR backtesting exceptions observed can differ from the statistically expected number of backtesting exceptions if the current level of market volatility is materially different from the level of market volatility during the 12 months of historical data used in the VaR calculation.

For the 12 months ended September 30, 2024, the Firm posted backtesting gains on 162 of the 259 days, and observed 13 VaR backtesting exceptions. For the three months ended September 30, 2024, the Firm posted backtesting gains on 46 of the 66 days, and did not observe any VaR backtesting exceptions.

The following chart presents the distribution of Firmwide daily backtesting gains and losses for the trailing 12 months and three months ended September 30, 2024. The daily backtesting losses are displayed as a percentage of the corresponding daily Risk Management VaR. The count of days with backtesting losses are shown in aggregate, in fifty percentage point intervals. Backtesting exceptions are displayed within the intervals that are greater than one hundred percent. The results in the chart below differ from the results of backtesting disclosed in the Market Risk section of the Firm’s Basel III Pillar 3 Regulatory Capital Disclosures reports, which are based on Regulatory VaR applied to the Firm’s covered positions.

Distribution of Daily Backtesting Gains and Losses

Structural interest rate risk management

The effect of interest rate exposure on the Firm’s reported net income is important as interest rate risk represents one of the Firm’s significant market risks. Interest rate risk arises not only from trading activities which are included in VaR, but also from the Firm’s traditional banking activities, which include extension of loans and credit facilities, taking deposits, issuing debt, as well as the investment securities portfolio, and associated derivative instruments.

Refer to the table on page 136 of JPMorgan Chase’s 2023 Form 10-K for a summary by LOB and Corporate identifying positions included in earnings-at-risk.

Earnings-at-Risk

One way that the Firm evaluates its structural interest rate risk is through earnings-at-risk. Earnings-at-risk estimates the Firm’s interest rate exposure for a given interest rate scenario. It is presented as a sensitivity to a baseline, which includes net interest income and certain interest rate sensitive fees. The baseline uses market interest rates and, in the case of deposits, pricing assumptions. The Firm conducts simulations of changes to this baseline for interest rate-sensitive assets and liabilities denominated in U.S. dollars and other currencies (“non-U.S. dollar” currencies). These simulations primarily include retained loans, deposits, deposits with banks, investment securities, long-term debt and any related interest rate hedges, and funds transfer pricing of other positions in risk management VaR and other sensitivity-based measures as described on page 136 of JPMorgan Chase’s 2023 Form 10-K. These simulations exclude hedges of exposure from non-U.S. dollar foreign exchange risk arising from the Firm’s capital investments. The inclusion of the hedges in these simulations would increase U.S. dollar sensitivities and decrease non-U.S. dollar sensitivities. Refer to non-U.S. dollar foreign exchange risk on page 143 of JPMorgan Chase’s 2023 Form 10-K for more information.

Earnings-at-risk scenarios estimate the potential change to a net interest income baseline, over the following 12 months utilizing multiple assumptions. These scenarios include a parallel shift involving changes to both short-term and long-term rates by an equal amount; a steeper yield curve involving holding short-term rates constant and increasing long-term rates; and a flatter yield curve involving increasing short-term rates and holding long-term rates constant or holding short-term rates constant and decreasing long-term rates. These scenarios consider many different factors, including:

• The impact on exposures as a result of instantaneous changes in interest rates from baseline rates.

• Forecasted balance sheet, as well as modeled prepayment and reinvestment behavior, but excluding assumptions about actions that could be taken by the Firm or its clients and customers in response to instantaneous rate changes. Mortgage prepayment assumptions are based on the interest rates used in the scenarios compared with underlying contractual rates, the time since origination, and other factors which are updated periodically based on historical experience. Deposit forecasts are a key assumption in the Firm's earnings-at-risk. The baseline reflects certain assumptions relating to the reversal of Quantitative Easing that are highly uncertain and require management judgment. Therefore, the actual amount of deposits held by the Firm, at any particular time, could be impacted by actions the Federal Reserve may take as part of monetary policy, including through the use of the Reverse Repurchase Facility. In addition, there are other factors that impact the amount of deposits held at the Firm such as the level of loans across the industry and competition for deposits.

• The pricing sensitivity of deposits, known as deposit betas, represent the amount by which deposit rates paid could change upon a given change in market interest rates. Actual deposit rates paid may differ from the modeled assumptions, primarily due to customer behavior and competition for deposits.

The Firm performs sensitivity analyses of the assumptions used in earnings-at-risk scenarios, including with respect to deposit betas and forecasts of deposit balances, both of which are especially significant in the case of consumer deposits. The results of these sensitivity analyses are reported to the CTC Risk Committee and the Board Risk Committee.

The Firm’s earnings-at-risk scenarios are periodically evaluated and enhanced in response to changes in the composition of the Firm’s balance sheet, changes in market conditions, improvements in the Firm’s simulation and other factors. In the second quarter of 2024, the Firm updated certain deposit rates paid assumptions which take into account observed pricing and client and customer behavior during the most recent economic cycle. These updated deposit rates paid assumptions impacted the U.S. dollar scenarios, resulting in an increase in positive sensitivity in higher interest rate scenarios, and an increase in negative sensitivity in lower interest rate scenarios. While a relevant measure of the Firm’s interest rate exposure, the earnings-at-risk analysis does not represent a forecast of the Firm’s net interest income (Refer to Outlook on page 8 for additional information).

The Firm’s U.S. dollar and non-U.S. dollar sensitivities are presented in the table below.


(In billions)	September 30, 2024		December 31, 2023
U.S. dollar:
Parallel shift: (a)
+100 bps shift in rates	$	2.1	$	2.4
-100 bps shift in rates	(2.1)		(2.1)
+200 bps shift in rates	4.5		4.8
-200 bps shift in rates	(4.8)		(4.6)
Steeper yield curve:
+100 bps shift in long-term rates	1.5		0.6
-100 bps shift in short-term rates	(0.7)		(1.5)
Flatter yield curve:
+100 bps shift in short-term rates	0.6		1.8
-100 bps shift in long-term rates	(1.4)		(0.5)
Non-U.S. dollar:
Parallel shift: (a)
+100 bps shift in rates	$	0.7	$	0.7
-100 bps shift in rates	(0.8)		(0.7)

(a) Reflects the simultaneous shift of U.S. dollar and non-U.S. dollar rates.

The change in the Firm’s U.S. dollar sensitivities as of September 30, 2024 compared to December 31, 2023, reflected the impact of changes in the Firm’s actual and forecasted balance sheet and the update in the second quarter of 2024 of the deposit rates paid assumptions for certain consumer and wholesale deposit products based upon observed pricing and client and customer behavior during the most recent economic cycle. In the absence of this update, the Firm’s U.S. dollar sensitivities as of September 30, 2024, would have been lower by approximately $1.0 billion and $1.9 billion to the +100 basis points and +200 basis points shifts, respectively, in short-term and parallel rate scenarios and higher by approximately $900 million and $1.5 billion to the -100 basis points and -200 basis points shifts, respectively, in short-term and parallel rate scenarios.

Economic Value Sensitivity

In addition to earnings-at-risk, which is measured as a sensitivity to a baseline of earnings over the next 12 months, the Firm also measures Economic Value Sensitivity (“EVS”). EVS stress tests the longer-term economic value of equity by measuring the sensitivity of the Firm’s current balance sheet, primarily retained loans, deposits, debt and investment securities as well as related hedges, under various interest rate scenarios. The Firm's pricing and cash flow assumptions associated with deposits, as well as prepayment assumptions for loans and securities, are significant factors in the EVS measure. In accordance with the CTC interest rate risk management policy, the Firm has established limits on EVS as a percentage of TCE.

Certain assumptions used in the EVS measure may differ from those required in the fair value disclosure. For example, certain assets and liabilities with no stated maturity, such as credit card receivables and deposits, have longer assumed durations in the EVS measure. Additional information on long-term debt and held to maturity investment securities is disclosed on page 110 in Note 2 financial instruments that are not carried at fair value on the Consolidated balance sheets.

Other sensitivity-based measures

The Firm quantifies the market risk of certain debt and equity and credit and funding-related exposures by assessing the potential impact on net revenue, other comprehensive income (“OCI”) and noninterest expense due to changes in relevant market variables. Refer to the predominant business activities that give rise to market risk on page 136 of JPMorgan Chase’s 2023 Form 10-K for additional information on the positions captured in other sensitivity-based measures.

The table below represents the potential impact to net revenue, OCI or noninterest expense for market risk-sensitive instruments that are not included in VaR or earnings-at-risk. Where appropriate, instruments used for hedging purposes are reported net of the positions being hedged. The sensitivities disclosed in the table below may not be representative of the actual gain or loss that would have been realized at September 30, 2024 and December 31, 2023, as the movement in market parameters across maturities may vary and are not intended to imply management’s expectation of future changes in these sensitivities.

Gain/(loss) (in millions)

September 30, 2024

December 31, 2023

Activity

Description

Sensitivity measure

Debt and equity (a)

Asset Management activities

Consists of seed capital and related hedges; fund co-investments (c) ; and certain deferred compensation and related hedges (d)

10% decline in market value

(60)

(61)

Other debt and equity

Consists of certain real estate-related fair value option elected loans, privately held equity and other investments held at fair value (c)

10% decline in market value

(1,007)

(1,044)

Credit- and funding-related exposures

Non-USD LTD cross-currency basis

Represents the basis risk on derivatives used to hedge the foreign exchange risk on the non-USD LTD (e)

1 basis point parallel tightening of cross currency basis

(12)

Non-USD LTD hedges foreign currency (“FX”) exposure

Primarily represents the foreign exchange revaluation on the fair value of the derivative hedges (e)

10% depreciation of currency

Derivatives – funding spread risk

Impact of changes in the spread related to derivatives FVA (c)

1 basis point parallel increase in spread

(2)

(3)

CVA - counterparty credit risk (b)

Credit risk component of CVA and associated hedges

10% credit spread widening

—

Fair value option elected liabilities – funding spread risk

Impact of changes in the spread related to fair value option elected liabilities DVA (e)

1 basis point parallel increase in spread

Fair value option elected liabilities – interest rate sensitivity

Interest rate sensitivity on fair value option elected liabilities resulting from a change in the Firm’s own credit spread (e)

1 basis point parallel increase in spread

—

Interest rate sensitivity related to risk management of changes in the Firm’s own credit spread on the fair value option elected liabilities noted above (c)

1 basis point parallel increase in spread

—

(a) Excludes equity securities without readily determinable fair values that are measured under the measurement alternative. Refer to Note 2 for additional information.

(b) In line with the Firm's internal model governance, the credit risk component of CVA related to certain counterparties was removed from Credit Portfolio VaR due to the widening of the credit spreads for those counterparties to elevated levels. The related hedges were also removed to maintain consistency. This exposure is now reflected in other sensitivity-based measures.

(d) Impact recognized through noninterest expense.

(e) Impact recognized through OCI.

COUNTRY RISK MANAGEMENT

The Firm, through its LOBs and Corporate, may be exposed to country risk resulting from financial, economic, political or other significant developments which adversely affect the value of the Firm’s exposures related to a particular country or set of countries. The Country Risk Management group actively monitors the various portfolios which may be impacted by these developments and measures the extent to which the Firm’s exposures are diversified given the Firm’s strategy and risk tolerance relative to a country.

Refer to pages 144–145 of JPMorgan Chase’s 2023 Form 10-K for a further discussion of the Firm’s country risk management.

Risk Reporting

The following table presents the Firm’s top 20 exposures by country (excluding the U.S.) as of September 30, 2024 and their comparative exposures as of December 31, 2023. The top 20 country exposures represent the Firm’s largest total exposures by individual country. Country exposures may fluctuate from period to period due to a variety of factors, including client activity, market flows and liquidity management activities undertaken by the Firm.

The increase in exposure to Germany when compared to December 31, 2023, was predominantly driven by an increase in cash placed with the central bank of Germany due to higher client deposits and client-driven market-making activities.

The Firm continues to monitor its exposure to Russia, which corresponds to cash placed with the central bank, but which excludes deposits placed on behalf of clients at the Deposit Insurance Agency of Russia. The Firm currently believes that its remaining exposure to Russia is not material. Refer to Note 24 on pages 181–182 for information concerning Russian litigation.


Top 20 country exposures (excluding the U.S.) (a)
(in billions)	September 30, 2024										December 31, 2023 (f)
	Deposits with banks (b)		Lending (c)		Trading and investing (d)		Other (e)		Total exposure		Total exposure
Germany	$	92.0	$	12.4	$	6.7	$	0.9	$	112.0	$	84.8
United Kingdom	26.8		22.8		34.5		2.0		86.1		77.1
Japan	35.1		3.1		6.6		0.5		45.3		36.0
Australia	9.1		7.6		3.6		—		20.3		18.3
France	0.5		12.3		4.5		0.8		18.1		10.1
Canada	2.3		10.9		4.1		0.2		17.5		16.0
Brazil	5.2		4.2		7.4		—		16.8		16.7
Switzerland	6.3		4.4		0.9		2.8		14.4		10.9
China	3.7		5.7		4.1		—		13.5		14.0
India	1.1		5.2		5.8		1.2		13.3		9.7
South Korea	1.1		3.4		8.3		0.3		13.1		7.8
Saudi Arabia	0.9		5.4		3.2		—		9.5		7.7
Italy	0.1		8.6		0.1		0.3		9.1		6.0
Singapore	1.4		1.9		4.7		0.6		8.6		9.8
Spain	0.3		5.6		2.3		—		8.2		6.3
Belgium	5.0		2.5		(0.4)		—		7.1		8.0
Mexico	0.8		3.7		1.5		—		6.0		8.2
Netherlands	0.1		5.4		(0.8)		0.2		4.9		5.6
Hong Kong SAR	2.7		0.7		0.9		0.2		4.5		3.6
Luxembourg	1.0		2.4		0.9		—		4.3		4.0

(a) Country exposures presented in the table reflect 90% and 88% of total Firmwide non-U.S. exposure, where exposure is attributed to an individual country based on the Firm’s internal country risk management approach, at September 30, 2024 and December 31, 2023, respectively.

(b) Predominantly represents cash placed with central banks.

(c) Includes loans and accrued interest receivable, lending-related commitments (net of eligible collateral and the allowance for credit losses). Excludes intra-day and operating exposures, such as those from settlement and clearing activities.

(d) Includes market-making positions and hedging, investment securities, and counterparty exposure on derivative and securities financings net of eligible collateral. Market-making positions and hedging includes exposure from single reference entity (“single-name”), index and other multiple reference entity transactions for which one or more of the underlying reference entities is in a country listed in the above table.

(e) Includes physical commodities inventory and clearing house guarantee funds.

(f) The country rankings presented in the table as of December 31, 2023, are based on the country rankings of the corresponding exposures at September 30, 2024 , not actual rankings of such exposures at December 31, 2023.

CRITICAL ACCOUNTING ESTIMATES USED BY THE FIRM

JPMorgan Chase’s accounting policies and use of estimates are integral to understanding its reported results. The Firm’s most complex accounting estimates require management’s judgment to ascertain the appropriate carrying value of assets and liabilities. The Firm has established policies and control procedures intended to ensure that estimation methods, including any judgments made as part of such methods, are well-controlled, independently reviewed and applied consistently from period to period. The methods used and judgments made reflect, among other factors, the nature of the assets or liabilities and the related business and risk management strategies, which may vary across the Firm’s businesses and portfolios. In addition, the policies and procedures are intended to ensure that the process for changing methodologies occurs in an appropriate manner. The Firm believes its estimates for determining the carrying value of its assets and liabilities are appropriate. The following is a brief description of the Firm’s critical accounting estimates involving significant judgments.

Allowance for credit losses

The Firm’s allowance for credit losses represents management’s estimate of expected credit losses over the remaining expected life of the Firm’s financial assets measured at amortized cost and certain off-balance sheet lending-related commitments. The allowance for credit losses generally comprises:

• The allowance for loan losses, which covers the Firm’s retained loan portfolios (scored and risk-rated),

• The allowance for lending-related commitments, and

• The allowance for credit losses on investment securities.

The allowance for credit losses involves significant judgment on a number of matters including development and weighting of macroeconomic forecasts, incorporation of historical loss experience, assessment of risk characteristics, assignment of risk ratings, valuation of collateral, and the determination of remaining expected life. Refer to Note 10 and Note 13 of JPMorgan Chase's 2023 Form 10-K for further information on these judgments as well as the Firm’s policies and methodologies used to determine the Firm’s allowance for credit losses, and Allowance for credit losses on pages 73-75 and Note 12 of this Form 10-Q for further information.

One of the most significant judgments involved in estimating the Firm’s allowance for credit losses relates to the macroeconomic forecasts used to estimate credit losses over the eight-quarter forecast period within the Firm’s methodology. The eight-quarter forecast incorporates hundreds of macroeconomic variables ("MEVs") that are relevant for exposures across the Firm, with modeled credit losses being driven primarily by a subset of less than twenty variables. The specific variables that have the greatest effect on the modeled losses vary by portfolio and geography.

• Key MEVs for the consumer portfolio include regional U.S. unemployment rates and U.S. HPI.

• Key MEVs for the wholesale portfolio include U.S. unemployment, U.S. real GDP, U.S. equity prices, U.S. interest rates, U.S. corporate credit spreads, oil prices, U.S. commercial real estate prices and U.S. HPI.

Changes in the Firm’s assumptions and forecasts of economic conditions could significantly affect its estimate of expected credit losses in the portfolio at the balance sheet date or lead to significant changes in the estimate from one reporting period to the next.

As a result of the First Republic acquisition, the Firm recorded an allowance for credit losses for the loans acquired and lending-related commitments assumed as of May 1, 2023. Due to differences in risk rating methodologies for the First Republic portfolio and the ongoing integration of products and systems, the allowance for credit losses for the acquired wholesale portfolio was initially measured based on similar risk characteristics from other facilities underwritten by the Firm. Starting in the second quarter of 2024, the acquired portfolio was incorporated into the Firm's modeled credit loss estimates and is now reflected in the wholesale sensitivity analysis below. Refer to Note 26 for additional information on the First Republic acquisition.

It is difficult to estimate how potential changes in any one factor or input might affect the overall allowance for credit losses because management considers a wide variety of factors and inputs in estimating the allowance for credit losses. Changes in the factors and inputs considered may not occur at the same rate and may not be consistent across all geographies or product types, and changes in factors and inputs may be directionally inconsistent, such that improvement in one factor or input may offset deterioration in others.

To consider the impact of a hypothetical alternate macroeconomic forecast, the Firm compared the modeled credit losses determined using its central and relative adverse macroeconomic scenarios, which are two of the five scenarios considered in estimating the allowances for loan losses and lending-related commitments. The central and relative adverse scenarios each included a full suite of MEVs, but differed in the levels, paths and peaks/troughs of those variables over the eight-quarter forecast period.

For example, compared to the Firm’s central scenario shown on page 73 and in Note 12, the Firm’s relative adverse scenario assumes an elevated U.S. unemployment rate, averaging approximately 1.9% higher over the eight-quarter forecast, with a peak difference of approximately 2.7% in the third quarter of 2025.

This analysis is not intended to estimate expected future changes in the allowance for credit losses, for a number of reasons, including:

• The allowance as of September 30, 2024, reflects credit losses beyond those estimated under the central scenario due to the weight placed on the adverse scenarios.

• The impacts of changes in many MEVs are both interrelated and nonlinear, so the results of this analysis cannot be simply extrapolated for more severe changes in macroeconomic variables.

• Expectations of future changes in portfolio composition and borrower behavior can significantly affect the allowance for credit losses.

To demonstrate the sensitivity of credit loss estimates to macroeconomic forecasts as of September 30, 2024, the Firm compared the modeled estimates under its relative adverse scenario to its central scenario. Without considering offsetting or correlated effects in other qualitative components of the Firm’s allowance for credit losses, the comparison between these two scenarios for the exposures below reflect the following differences:

• An increase of approximately $850 million for residential real estate loans and lending-related commitments

• An increase of approximately $3.6 billion for credit card loans

▪ An increase of approximately $4.2 billion for wholesale loans and lending-related commitments

This analysis relates only to the modeled credit loss estimates and is not intended to estimate changes in the overall allowance for credit losses as it does not reflect any potential changes in other adjustments to the quantitative calculation, which would also be influenced by the judgment management applies to the modeled lifetime loss estimates to reflect the uncertainty and imprecision of these modeled lifetime loss estimates based on then-current circumstances and conditions.

Recognizing that forecasts of macroeconomic conditions are inherently uncertain, the Firm believes that its process to consider the available information and associated risks and uncertainties is appropriately governed and that its estimates of expected credit losses were reasonable and appropriate for the period ended September 30, 2024.

Fair value

JPMorgan Chase carries a portion of its assets and liabilities at fair value. The majority of such assets and liabilities are measured at fair value on a recurring basis, including derivatives, structured note products and certain securities financing agreements. Certain assets and liabilities are measured at fair value on a nonrecurring basis, including certain mortgage, home equity and other loans, where the carrying value is based on the fair value of the underlying collateral.

Assets measured at fair value

The following table includes the Firm’s assets measured at fair value and the portion of such assets that are classified within level 3 of the fair value hierarchy. Refer to Note 2 for further information.


September 30, 2024 (in millions, except ratios)	Total assets at fair value		Total level 3 assets
Federal funds sold and securities purchased under resale agreements	$	368,964	$	—
Securities borrowed	107,599		—
Trading assets:
Trading–debt and equity instruments	734,928		2,437
Derivative receivables (a)	52,561		10,710
Total trading assets	787,489		13,147
AFS securities	334,548		—
Loans	42,137		2,487
MSRs	8,753		8,753
Other	13,367		1,186
Total assets measured at fair value on a recurring basis	1,662,857		25,573
Total assets measured at fair value on a nonrecurring basis	2,512		1,841
Total assets measured at fair value	$	1,665,369	$	27,414
Total Firm assets	$	4,210,048
Level 3 assets at fair value as a percentage of total Firm assets (a)			1		%
Level 3 assets at fair value as a percentage of total Firm assets at fair value (a)			2		%

(a) For purposes of the table above, the derivative receivables total reflects the impact of netting adjustments; however, the $10.7 billion of derivative receivables classified as level 3 does not reflect the netting adjustment as such netting is not relevant to a presentation based on the transparency of inputs to the valuation of an asset. The level 3 balances would be reduced if netting were applied, including the netting benefit associated with cash collateral.

Valuation

Estimating fair value requires the application of judgment. The type and level of judgment required is largely dependent on the amount of observable market information available to the Firm. For instruments valued using internally developed valuation models and other valuation techniques that use significant unobservable inputs and are therefore classified within level 3 of the fair value hierarchy, judgments used to estimate fair value are more significant than those required when estimating the fair value of instruments classified within levels 1 and 2.

In arriving at an estimate of fair value for an instrument within level 3, management must first determine the appropriate valuation model or other valuation technique to use. Second, the lack of observability of certain significant inputs requires management to assess relevant empirical data in deriving valuation inputs including, for example, transaction details, yield curves, interest rates, prepayment speeds, default rates, volatilities, correlations, prices (such as commodity, equity or debt prices), valuations of comparable instruments, foreign exchange rates and credit curves. Refer to Note 2 for a further discussion of the valuation of level 3 instruments, including unobservable inputs used.

For instruments classified in levels 2 and 3, management judgment must be applied to assess the appropriate level of valuation adjustments to reflect counterparty credit quality, the Firm’s creditworthiness, market funding rates, liquidity considerations, unobservable parameters, and for portfolios that meet specified criteria, the size of the net open risk position. The judgments made are typically affected by the type of product and its specific contractual terms, and the level of liquidity for the product or within the market as a whole. In periods of heightened market volatility and uncertainty judgments are further affected by the wider variation of reasonable valuation estimates, particularly for positions that are less liquid. Refer to Note 2 for a further discussion of valuation adjustments applied by the Firm.

Imprecision in estimating unobservable market inputs or other factors can affect the amount of gain or loss recorded for a particular position. Furthermore, while the Firm believes its valuation methods are appropriate and consistent with those of other market participants, the methods and assumptions used reflect management judgment and may vary across the Firm’s businesses and portfolios.

The Firm uses various methodologies and assumptions in the determination of fair value. The use of methodologies or assumptions different than those used by the Firm could result in a different estimate of fair value at the reporting date. Refer to Note 2 for a detailed discussion of the Firm’s valuation process and hierarchy, and its determination of fair value for individual financial instruments.

Credit card rewards liability

The credit card rewards liability was $14.3 billion and $13.2 billion at September 30, 2024 and December 31, 2023, respectively, and is recorded in accounts payable and other liabilities on the Consolidated balance sheets. Refer to pages 157-158 of JPMorgan Chase’s 2023 Form 10-K for a description of the significant assumptions and sensitivities, associated with the Firm’s credit card rewards liability.

Income taxes

Refer to Income taxes on page 158 of JPMorgan Chase’s 2023 Form 10-K for a description of the significant assumptions, judgments and interpretations associated with the accounting for income taxes.

Goodwill impairment

Management applies significant judgment when testing goodwill for impairment. Refer to Goodwill impairment on page 157 of JPMorgan Chase’s 2023 Form 10-K for a description of the significant valuation judgments associated with goodwill impairment.

Refer to Note 14 for additional information on goodwill, including the goodwill impairment assessment as of September 30, 2024.

Litigation reserves

Refer to Note 24 of this Form 10-Q, and Note 30 of JPMorgan Chase’s 2023 Form 10-K for a description of the significant estimates and judgments associated with establishing litigation reserves.

ACCOUNTING AND REPORTING DEVELOPMENTS


FASB Standards Adopted since January 1, 2024
Standard	Summary of guidance	Effects on financial statements
Fair Value Measurement: Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions Issued June 2022	• Clarifies that a contractual sale restriction is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. • Requires disclosure for investments in equity securities subject to contractual sale restrictions, including: 1) fair value of these investments, 2) nature and remaining duration of the restriction(s) and 3) circumstances that could cause a lapse in the restriction(s).	• Adopted prospectively on January 1, 2024, with no impact to the Firm’s consolidated financial statements.
Investments - Equity Method and Joint Ventures: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Issued March 2023	• Expands the ability to elect proportional amortization on a program-by-program basis, for additional types of tax-oriented investments (beyond affordable housing tax credit investments). • May be adopted using a full retrospective method, or a modified retrospective method wherein the effect of adoption is reflected as an adjustment to retained earnings at the effective date.	• Adopted under the modified retrospective method on January 1, 2024. • Refer to Note 1 for further information.
FASB Standards Issued but not yet Adopted
Standard	Summary of guidance	Effects on financial statements
Segment Reporting: Improvements to Reportable Segment Disclosures Issued November 2023	• Requires disclosure of significant segment expenses that are readily provided to the chief operating decision maker (“CODM”) and included in segment profit or loss. • Requires disclosure of the composition and aggregate amount of other segment items, which represent the difference between profit or loss and segment revenues less significant segment expenses. • Requires disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported segment measures in assessing segment performance and deciding how to allocate resources.	• Required effective date: Annual financial statements for the year ending December 31, 2024 and for interim financial statements thereafter. (a) • The Firm is currently assessing the potential impact on its segment disclosures.
Income Taxes: Improvements to Income Tax Disclosures Issued December 2023	• Requires disclosure of income taxes paid disaggregated by 1) federal, state, and foreign taxes and 2) individual jurisdiction on the basis of a quantitative threshold of equal to or greater than 5 percent of total income taxes paid (net of refunds received). • Requires disclosure of the effective tax rate reconciliation by specific categories, at a minimum, with accompanying qualitative disclosures, and separate disclosure of reconciling items based on quantitative thresholds. • Requires categories within the effective tax rate reconciliation to be further disaggregated if quantitative thresholds are met.	• Required effective date: Annual financial statements for the year ending December 31, 2025. (a) • The guidance can be applied on a prospective basis with the option to apply the standard retrospectively. • The Firm is evaluating the potential impact on the Consolidated Financial Statements disclosures, as well as the Firm’s planned date of adoption.

(a) Early adoption is permitted.

FORWARD-LOOKING STATEMENTS

From time to time, the Firm has made and will make forward-looking statements. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “anticipate,” “target,” “expect,” “estimate,” “intend,” “plan,” “goal,” “believe,” or other words of similar meaning. Forward-looking statements provide JPMorgan Chase’s current expectations or forecasts of future events, circumstances, results or aspirations. JPMorgan Chase’s disclosures in this Form 10-Q contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Firm also may make forward-looking statements in its other documents filed or furnished with the SEC. In addition, the Firm’s senior management may make forward-looking statements orally to investors, analysts, representatives of the media and others.

All forward-looking statements are, by their nature, subject to risks and uncertainties, many of which are beyond the Firm’s control. JPMorgan Chase’s actual future results may differ materially from those set forth in its forward-looking statements. While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ from those in the forward-looking statements:

• Local, regional and global business, economic and political conditions and geopolitical events, including geopolitical tensions and hostilities;

• Changes in laws, rules and regulatory requirements, including capital and liquidity requirements affecting the Firm’s businesses, and the ability of the Firm to address those requirements;

• Heightened regulatory and governmental oversight and scrutiny of JPMorgan Chase’s business practices, including dealings with retail customers;

• Changes in trade, monetary and fiscal policies and laws;

• Changes in the level of inflation;

• Changes in income tax laws, rules and regulations;

• Changes in FDIC assessments;

• Securities and capital markets behavior, including changes in market liquidity and volatility;

• Changes in investor sentiment or consumer spending or savings behavior;

• Ability of the Firm to manage effectively its capital and liquidity;

• Changes in credit ratings assigned to the Firm or its subsidiaries;

• Damage to the Firm’s reputation;

• Ability of the Firm to appropriately address social, environmental and sustainability concerns that may arise, including from its business activities;

• Ability of the Firm to deal effectively with an economic slowdown or other economic or market disruption, including, but not limited to, in the interest rate environment;

• Technology changes instituted by the Firm, its counterparties or competitors;

• The effectiveness of the Firm’s control agenda;

• Ability of the Firm to develop or discontinue products and services, and the extent to which products or services previously sold by the Firm require the Firm to incur liabilities or absorb losses not contemplated at their initiation or origination;

• Acceptance of the Firm’s new and existing products and services by the marketplace and the ability of the Firm to innovate and to increase market share;

• Ability of the Firm to attract and retain qualified and diverse employees;

• Ability of the Firm to control expenses;

• Competitive pressures;

• Changes in the credit quality of the Firm’s clients, customers and counterparties;

• Adequacy of the Firm’s risk management framework, disclosure controls and procedures and internal control over financial reporting;

• Adverse judicial or regulatory proceedings;

• Ability of the Firm to determine accurate values of certain assets and liabilities;

• Occurrence of natural or man-made disasters or calamities, including health emergencies, the spread of infectious diseases, epidemics or pandemics, an outbreak or escalation of hostilities or other geopolitical instabilities, the effects of climate change or extraordinary events beyond the Firm's control, and the Firm’s ability to deal effectively with disruptions caused by the foregoing;

• Ability of the Firm to maintain the security of its financial, accounting, technology, data processing and other operational systems and facilities;

• Ability of the Firm to withstand disruptions that may be caused by any failure of its operational systems or those of third parties;

• Ability of the Firm to effectively defend itself against cyber attacks and other attempts by unauthorized parties to access information of the Firm or its customers or to disrupt the Firm’s systems; and

• The other risks and uncertainties detailed in Part I, Item 1A: Risk Factors in JPMorgan Chase’s 2023 Form 10-K.

Any forward-looking statements made by or on behalf of the Firm speak only as of the date they are made, and JPMorgan Chase does not undertake to update any forward-looking statements. The reader should, however, consult any further disclosures of a forward-looking nature the Firm may make in any subsequent Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.

JPMorgan Chase & Co.

Consolidated statements of income (unaudited)


	Three months ended September 30,				Nine months ended September 30,
(in millions, except per share data)	2024		2023		2024		2023
Revenue
Investment banking fees	$	2,231	$	1,722	$	6,489	$	4,884
Principal transactions	5,988		6,210		19,592		20,735
Lending- and deposit-related fees	1,924		2,039		5,654		5,487
Asset management fees	4,479		3,904		12,927		11,143
Commissions and other fees	1,936		1,705		5,665		5,139

Investment securities losses	( 16 )		( 669 )		( 929 )		( 2,437 )
Mortgage fees and related income	402		414		1,025		913
Card income	1,345		1,209		3,895		3,537
Other income	960		614		11,237		4,913
Noninterest revenue	19,249		17,148		65,555		54,314
Interest income	50,416		44,556		146,367		123,204
Interest expense	27,011		21,830		77,134		57,988
Net interest income	23,405		22,726		69,233		65,216
Total net revenue	42,654		39,874		134,788		119,530

Provision for credit losses	3,111		1,384		8,047		6,558

Noninterest expense
Compensation expense	12,817		11,726		38,888		34,618
Occupancy expense	1,258		1,197		3,717		3,382
Technology, communications and equipment expense	2,447		2,386		7,315		6,837
Professional and outside services	2,780		2,620		8,050		7,629
Marketing	1,258		1,126		3,639		3,293
Other expense	2,005		2,702		7,426		6,927
Total noninterest expense	22,565		21,757		69,035		62,686
Income before income tax expense	16,978		16,733		57,706		50,286
Income tax expense	4,080		3,582		13,240		10,041
Net income	$	12,898	$	13,151	$	44,466	$	40,245
Net income applicable to common stockholders	$	12,537	$	12,685	$	43,199	$	38,889
Net income per common share data
Basic earnings per share	$	4.38	$	4.33	$	14.97	$	13.20
Diluted earnings per share	4.37		4.33		14.94		13.18

Weighted-average basic shares	2,860.6		2,927.5		2,886.2		2,946.6
Weighted-average diluted shares	2,865.9		2,932.1		2,891.2		2,951.0

The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.

JPMorgan Chase & Co.

Consolidated statements of comprehensive income (unaudited)


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2024		2023		2024		2023
Net income	$	12,898	$	13,151	$	44,466	$	40,245
Other comprehensive income/(loss), after–tax
Unrealized gains/(losses) on investment securities	2,297		( 1,950 )		2,546		1,019
Translation adjustments, net of hedges	389		( 340 )		29		( 73 )
Fair value hedges	( 20 )		( 5 )		( 33 )		( 15 )
Cash flow hedges	2,265		( 583 )		1,354		( 282 )
Defined benefit pension and OPEB plans	( 28 )		( 21 )		( 5 )		( 82 )
DVA on fair value option elected liabilities	( 349 )		85		( 232 )		( 330 )
Total other comprehensive income/(loss), after–tax	4,554		( 2,814 )		3,659		237
Comprehensive income	$	17,452	$	10,337	$	48,125	$	40,482

The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.

JPMorgan Chase & Co.

Consolidated balance sheets (unaudited)


(in millions, except share data)	September 30, 2024		December 31, 2023
Assets
Cash and due from banks	$	22,896	$	29,066
Deposits with banks	411,364		595,085
Federal funds sold and securities purchased under resale agreements (included $ 368,964 and $ 259,813 at fair value)	390,821		276,152
Securities borrowed (included $ 107,599 and $ 70,086 at fair value)	252,434		200,436
Trading assets (included assets pledged of $ 163,427 and $ 128,994 )	787,489		540,607
Available-for-sale securities (amortized cost of $ 335,251 and $ 205,456 ; included assets pledged of $ 11,084 and $ 9,219 )	334,548		201,704
Held-to-maturity securities	299,954		369,848
Investment securities, net of allowance for credit losses	634,502		571,552
Loans (included $ 42,137 and $ 38,851 at fair value)	1,340,011		1,323,706
Allowance for loan losses	( 23,949 )		( 22,420 )
Loans, net of allowance for loan losses	1,316,062		1,301,286
Accrued interest and accounts receivable	122,565		107,363
Premises and equipment	31,525		30,157
Goodwill, MSRs and other intangible assets	64,455		64,381
Other assets (included $ 14,169 and $ 12,306 at fair value and assets pledged of $ 6,994 and $ 6,764 )	175,935		159,308
Total assets (a)	$	4,210,048	$	3,875,393
Liabilities
Deposits (included $ 51,284 and $ 78,384 at fair value)	$	2,430,772	$	2,400,688
Federal funds purchased and securities loaned or sold under repurchase agreements (included $ 320,406 and $ 169,003 at fair value)	389,337		216,535
Short-term borrowings (included $ 28,307 and $ 20,042 at fair value)	50,638		44,712
Trading liabilities	243,258		180,428
Accounts payable and other liabilities (included $ 5,865 and $ 5,637 at fair value)	314,356		290,307
Beneficial interests issued by consolidated VIEs (included $ 1 and $ 1 at fair value)	25,694		23,020
Long-term debt (included $ 102,129 and $ 87,924 at fair value)	410,157		391,825
Total liabilities (a)	3,864,212		3,547,515
Commitments and contingencies (refer to Notes 22, 23 and 24)
Stockholders’ equity
Preferred stock ($ 1 par value; authorized 200,000,000 shares; issued 2,165,375 and 2,740,375 shares)	21,650		27,404
Common stock ($ 1 par value; authorized 9,000,000,000 shares; issued 4,104,933,895 shares)	4,105		4,105
Additional paid-in capital	90,638		90,128
Retained earnings	365,966		332,901
Accumulated other comprehensive losses	( 6,784 )		( 10,443 )
Treasury stock, at cost ( 1,289,593,473 and 1,228,275,301 shares)	( 129,739 )		( 116,217 )
Total stockholders’ equity	345,836		327,878
Total liabilities and stockholders’ equity	$	4,210,048	$	3,875,393

(a) The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at September 30, 2024 and December 31, 2023. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests generally do not have recourse to the general credit of JPMorgan Chase. The assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation. Refer to Note 13 for a further discussion.


(in millions)	September 30, 2024		December 31, 2023
Assets
Trading assets	$	3,443	$	2,170
Loans	35,028		37,611
All other assets	647		591
Total assets	$	39,118	$	40,372
Liabilities
Beneficial interests issued by consolidated VIEs	$	25,694	$	23,020
All other liabilities	421		263
Total liabilities	$	26,115	$	23,283

The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.

JPMorgan Chase & Co.

Consolidated statements of changes in stockholders’ equity (unaudited)


	Three months ended September 30,				Nine months ended September 30,
(in millions, except per share data)	2024		2023		2024		2023
Preferred stock
Balance at the beginning of the period	$	23,900	$	27,404	$	27,404	$	27,404
Issuance	—		—		2,496		—
Redemption	( 2,250 )		—		( 8,250 )		—
Balance at September 30	21,650		27,404		21,650		27,404

Common stock
Balance at the beginning and end of the period	4,105		4,105		4,105		4,105

Additional paid-in capital
Balance at the beginning of the period	90,328		89,578		90,128		89,044
Shares issued and commitments to issue common stock for employee share-based compensation awards, and related tax effects	307		321		496		855
Other	3		—		14		—
Balance at September 30	90,638		89,899		90,638		89,899

Retained earnings
Balance at the beginning of the period	356,924		317,359		332,901		296,456
Cumulative effect of change in accounting principles	—		—		( 161 )		449
Net income	12,898		13,151		44,466		40,245

Preferred stock dividends	( 286 )		( 386 )		( 1,000 )		( 1,115 )
Common stock dividends ( $ 1.25 and $ 1.05 per share and $ 3.55 and $ 3.05 per share, respectively)	( 3,570 )		( 3,080 )		( 10,240 )		( 8,991 )
Balance at September 30	365,966		327,044		365,966		327,044

Accumulated other comprehensive income/(loss)
Balance at the beginning of the period	( 11,338 )		( 14,290 )		( 10,443 )		( 17,341 )
Other comprehensive income/(loss), after-tax	4,554		( 2,814 )		3,659		237
Balance at September 30	( 6,784 )		( 17,104 )		( 6,784 )		( 17,104 )

Treasury stock, at cost
Balance at the beginning of the period	( 123,367 )		( 111,640 )		( 116,217 )		( 107,336 )
Repurchase	( 6,423 )		( 2,387 )		( 14,652 )		( 7,658 )
Reissuance	51		50		1,130		1,017
Balance at September 30	( 129,739 )		( 113,977 )		( 129,739 )		( 113,977 )

Total stockholders’ equity	$	345,836	$	317,371	$	345,836	$	317,371

The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.

JPMorgan Chase & Co.

Consolidated statements of cash flows (unaudited)


	Nine months ended September 30,
(in millions)	2024		2023
Operating activities
Net income	$	44,466	$	40,245
Adjustments to reconcile net income to net cash used in operating activities:
Provision for credit losses	8,047		6,558
Depreciation and amortization	5,973		4,175
Deferred tax benefit	( 243 )		( 4,544 )
Estimated bargain purchase gain associated with the First Republic acquisition	( 103 )		( 2,812 )
Initial gain on the Visa share exchange	( 7,990 )		—
Other	1,716		3,611
Originations and purchases of loans held-for-sale	( 160,573 )		( 83,534 )
Proceeds from sales, securitizations and paydowns of loans held-for-sale	148,287		83,169
Net change in:
Trading assets	( 237,756 )		( 151,151 )
Securities borrowed	( 51,688 )		( 2,852 )
Accrued interest and accounts receivable	( 15,491 )		( 166 )
Other assets	( 1,470 )		39,371
Trading liabilities	53,495		30,787
Accounts payable and other liabilities	17,399		( 11,955 )
Other operating adjustments	6,161		1,841
Net cash (used in) operating activities	( 189,770 )		( 47,257 )
Investing activities
Net change in:
Federal funds sold and securities purchased under resale agreements	( 114,402 )		( 34,101 )
Held-to-maturity securities:
Proceeds from paydowns and maturities	72,354		34,152
Purchases	( 2,358 )		( 4,141 )
Available-for-sale securities:
Proceeds from paydowns and maturities	22,409		39,160
Proceeds from sales	84,394		82,922
Purchases	( 233,063 )		( 82,075 )
Proceeds from sales and securitizations of loans held-for-investment	43,793		34,541
Other changes in loans, net	( 52,997 )		( 60,094 )


Net cash used in the First Republic acquisition	( 2,362 )		( 9,920 )
All other investing activities, net	1,209		( 12,683 )
Net cash (used in) investing activities	( 181,023 )		( 12,239 )
Financing activities
Net change in:
Deposits	22,266		( 43,083 )
Federal funds purchased and securities loaned or sold under repurchase agreements	172,755		66,050
Short-term borrowings	5,355		1,303
Beneficial interests issued by consolidated VIEs	( 3 )		10,823
Proceeds from long-term borrowings	78,949		42,817
Payments of long-term borrowings	( 67,380 )		( 48,757 )
Proceeds from issuance of preferred stock	2,500		—
Redemption of preferred stock	( 8,250 )		—
Treasury stock repurchased	( 14,529 )		( 7,549 )
Dividends paid	( 10,925 )		( 10,037 )
All other financing activities, net	( 1,586 )		( 1,241 )
Net cash provided by financing activities	179,152		10,326
Effect of exchange rate changes on cash and due from banks and deposits with banks	1,750		( 6,695 )
Net decrease in cash and due from banks and deposits with banks	( 189,891 )		( 55,865 )
Cash and due from banks and deposits with banks at the beginning of the period	624,151		567,234
Cash and due from banks and deposits with banks at the end of the period	$	434,260	$	511,369
Cash interest paid	$	74,794	$	55,775
Cash income taxes paid, net	8,870		5,541

The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.

Refer to the Glossary of Terms and Acronyms on pages 192–197 for definitions of terms and acronyms used throughout the Notes to Consolidated Financial Statements.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Note 1 – Basis of presentation

JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”), a financial holding company incorporated under Delaware law in 1968, is a leading financial services firm based in the U.S., with operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Refer to Note 25 for further discussion of the Firm's business segments.

On May 1, 2023, JPMorgan Chase acquired certain assets and assumed certain liabilities of First Republic Bank (the “First Republic acquisition”) from the FDIC. 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. Accordingly, reporting classification and internal risk rating profiles in the wholesale portfolio may change in future periods. Refer to Note 26 for additional information on the First Republic acquisition.

The accounting and financial reporting policies of JPMorgan Chase and its subsidiaries conform to U.S. GAAP. Additionally, where applicable, the policies conform to the accounting and reporting guidelines prescribed by regulatory authorities.

The unaudited Consolidated Financial Statements prepared in conformity with U.S. GAAP require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expense, and the disclosures of contingent assets and liabilities. Actual results could be different from these estimates. In the opinion of management, all normal, recurring adjustments have been included such that this interim financial information is fairly stated.

These unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements, and related notes thereto, included in JPMorgan Chase’s 2023 Form 10-K.

Consolidation

The Consolidated Financial Statements include the accounts of JPMorgan Chase and other entities in which the Firm has a controlling financial interest. All material intercompany balances and transactions have been eliminated.

Assets held for clients in an agency or fiduciary capacity by the Firm are not assets of JPMorgan Chase and are not included on the Consolidated balance sheets.

The Firm determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity.

Refer to Notes 1 and 14 of JPMorgan Chase’s 2023 Form 10-K for a further description of JPMorgan Chase’s accounting policies regarding consolidation.

Offsetting assets and liabilities

U.S. GAAP permits entities to present derivative receivables and derivative payables with the same counterparty and the related cash collateral receivables and payables on a net basis on the Consolidated balance sheets when a legally enforceable master netting agreement exists. U.S. GAAP also permits securities financing balances to be presented on a net basis when specified conditions are met, including the existence of a legally enforceable master netting agreement. The Firm has elected to net such balances where it has determined that the specified conditions are met. Refer to Note 1 of JPMorgan Chase’s 2023 Form 10-K for further information on offsetting assets and liabilities.

Accounting standard adopted January 1, 2024

Equity Method and Joint Ventures: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method

The guidance expanded the types of tax-oriented investments, beyond affordable housing tax credit investments, that the Firm can elect on a program by program basis, to be accounted for using the proportional amortization method. This method requires the cost of eligible investments, within an elected program, to be amortized in proportion to the tax benefits received with the resulting amortization reported directly in income tax expense, which aligns with the associated tax credits and other tax benefits. Eligible investments must meet certain criteria, including that substantially all of the return is from income tax credits and other income tax benefits.

This guidance was adopted on January 1, 2024 under the modified retrospective method. The adoption of this guidance resulted in a change to the classification and timing of the amortization associated with certain of the Firm's alternative energy tax-oriented investments. As a result of the adoption, the amortization of these investments that was previously recognized in other income is now being recognized in income tax expense. The change in accounting resulted in a decrease to retained earnings of $ 161 million and increased the Firm’s income tax expense and the effective tax rate by approximately $ 450 million and two percentage points, respectively, in the first quarter of 2024, with no material impact to net income.

The guidance requires additional disclosure for all investments that generate income tax credits and other income tax benefits from a tax-oriented investment program for which the Firm has elected to apply the proportional amortization method. The guidance also requires a reevaluation of eligible investments when significant modifications or events occur that result in a change in the nature of the investment or a change in the Firm's relationship with the underlying project.

Refer to Notes 5 and 13 for additional information.

Note 2 – Fair value measurement

Refer to Note 2 of JPMorgan Chase’s 2023 Form 10-K for a discussion of the Firm’s valuation methodologies for assets, liabilities and lending-related commitments measured at fair value and the fair value hierarchy.

The following table presents the assets and liabilities reported at fair value as of September 30, 2024 and December 31, 2023, by major product category and fair value hierarchy.


Assets and liabilities measured at fair value on a recurring basis
	Fair value hierarchy						Derivative netting adjustments (f)

September 30, 2024 (in millions)	Level 1		Level 2		Level 3				Total fair value
Federal funds sold and securities purchased under resale agreements	$	—	$	368,964	$	—	$	—	$	368,964
Securities borrowed	—		107,599		—		—		107,599
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. GSEs and government agencies (a)	—		136,594		691		—		137,285
Residential – nonagency	—		2,051		5		—		2,056
Commercial – nonagency	—		1,268		11		—		1,279
Total mortgage-backed securities	—		139,913		707		—		140,620
U.S. Treasury, GSEs and government agencies (a)	148,160		13,781		—		—		161,941
Obligations of U.S. states and municipalities	—		5,645		7		—		5,652
Certificates of deposit, bankers’ acceptances and commercial paper	—		2,851		—		—		2,851
Non-U.S. government debt securities	50,041		69,339		173		—		119,553
Corporate debt securities	—		43,744		435		—		44,179
Loans	—		9,203		819		—		10,022
Asset-backed securities	—		2,814		2		—		2,816
Total debt instruments	198,201		287,290		2,143		—		487,634
Equity securities	223,651		1,436		101		—		225,188
Physical commodities (b)	2,171		1,008		10		—		3,189
Other	—		18,734		183		—		18,917
Total debt and equity instruments (c)	424,023		308,468		2,437		—		734,928
Derivative receivables:
Interest rate	2,073		298,544		5,635		( 282,118 )		24,134
Credit	—		9,567		955		( 9,913 )		609
Foreign exchange	326		195,081		1,066		( 179,484 )		16,989
Equity	—		96,107		2,738		( 93,494 )		5,351
Commodity	—		21,328		316		( 16,166 )		5,478
Total derivative receivables	2,399		620,627		10,710		( 581,175 )		52,561
Total trading assets (d)	426,422		929,095		13,147		( 581,175 )		787,489
Available-for-sale securities:
Mortgage-backed securities:
U.S. GSEs and government agencies (a)	—		81,863		—		—		81,863
Residential – nonagency	—		4,057		—		—		4,057
Commercial – nonagency	—		3,609		—		—		3,609
Total mortgage-backed securities	—		89,529		—		—		89,529
U.S. Treasury and government agencies	171,878		304		—		—		172,182
Obligations of U.S. states and municipalities	—		18,205		—		—		18,205
Non-U.S. government debt securities	19,925		22,628		—		—		42,553
Corporate debt securities	—		61		—		—		61
Asset-backed securities:
Collateralized loan obligations	—		9,682		—		—		9,682
Other (a)	—		2,336		—		—		2,336
Total available-for-sale securities	191,803		142,745		—		—		334,548
Loans (e)	—		39,650		2,487		—		42,137
Mortgage servicing rights	—		—		8,753		—		8,753
Other assets (d)	7,178		5,003		1,186		—		13,367
Total assets measured at fair value on a recurring basis	$	625,403	$	1,593,056	$	25,573	$	( 581,175 )	$	1,662,857
Deposits	$	—	$	49,065	$	2,219	$	—	$	51,284
Federal funds purchased and securities loaned or sold under repurchase agreements	—		320,406		—		—		320,406
Short-term borrowings	—		24,660		3,647		—		28,307
Trading liabilities:
Debt and equity instruments (c)	166,655		37,866		72		—		204,593
Derivative payables:
Interest rate	2,873		283,166		2,806		( 280,237 )		8,608
Credit	—		12,919		1,054		( 12,247 )		1,726
Foreign exchange	335		198,635		1,026		( 187,348 )		12,648
Equity	—		105,111		6,548		( 101,049 )		10,610
Commodity	—		18,724		688		( 14,339 )		5,073
Total derivative payables	3,208		618,555		12,122		( 595,220 )		38,665
Total trading liabilities	169,863		656,421		12,194		( 595,220 )		243,258
Accounts payable and other liabilities	4,256		1,567		42		—		5,865
Beneficial interests issued by consolidated VIEs	—		1		—		—		1
Long-term debt	—		68,656		33,473		—		102,129
Total liabilities measured at fair value on a recurring basis	$	174,119	$	1,120,776	$	51,575	$	( 595,220 )	$	751,250


	Fair value hierarchy						Derivative netting adjustments (f)

December 31, 2023 (in millions)	Level 1		Level 2		Level 3				Total fair value
Federal funds sold and securities purchased under resale agreements	$	—	$	259,813	$	—	$	—	$	259,813
Securities borrowed	—		70,086		—		—		70,086
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. GSEs and government agencies (a)	—		73,840		758		—		74,598
Residential – nonagency	—		1,921		5		—		1,926
Commercial – nonagency	—		1,362		12		—		1,374
Total mortgage-backed securities	—		77,123		775		—		77,898
U.S. Treasury, GSEs and government agencies (a)	133,997		9,998		—		—		143,995
Obligations of U.S. states and municipalities	—		5,858		10		—		5,868
Certificates of deposit, bankers’ acceptances and commercial paper	—		756		—		—		756
Non-U.S. government debt securities	24,846		55,557		179		—		80,582
Corporate debt securities	—		32,854		484		—		33,338
Loans	—		7,872		684		—		8,556
Asset-backed securities	—		2,199		6		—		2,205
Total debt instruments	158,843		192,217		2,138		—		353,198
Equity securities	107,926		679		127		—		108,732
Physical commodities (b)	2,479		3,305		7		—		5,791
Other	—		17,879		101		—		17,980
Total debt and equity instruments (c)	269,248		214,080		2,373		—		485,701
Derivative receivables:
Interest rate	2,815		243,578		4,298		( 224,367 )		26,324
Credit	—		8,644		1,010		( 9,103 )		551
Foreign exchange	149		204,737		889		( 187,756 )		18,019
Equity	—		55,167		2,522		( 52,761 )		4,928
Commodity	—		15,234		205		( 10,397 )		5,042
Total derivative receivables	2,964		527,360		8,924		( 484,384 )		54,864
Total trading assets (d)	272,212		741,440		11,297		( 484,384 )		540,565
Available-for-sale securities:
Mortgage-backed securities:
U.S. GSEs and government agencies (a)	—		85,170		—		—		85,170
Residential – nonagency	—		3,639		—		—		3,639
Commercial – nonagency	—		2,803		—		—		2,803
Total mortgage-backed securities	—		91,612		—		—		91,612
U.S. Treasury and government agencies	57,683		122		—		—		57,805
Obligations of U.S. states and municipalities	—		21,367		—		—		21,367
Non-U.S. government debt securities	13,095		8,187		—		—		21,282
Corporate debt securities	—		100		—		—		100
Asset-backed securities:
Collateralized loan obligations	—		6,752		—		—		6,752
Other (a)	—		2,786		—		—		2,786
Total available-for-sale securities	70,778		130,926		—		—		201,704
Loans (e)	—		35,772		3,079		—		38,851
Mortgage servicing rights	—		—		8,522		—		8,522
Other assets (d)	6,635		3,929		758		—		11,322
Total assets measured at fair value on a recurring basis	$	349,625	$	1,241,966	$	23,656	$	( 484,384 )	$	1,130,863
Deposits	$	—	$	76,551	$	1,833	$	—	$	78,384
Federal funds purchased and securities loaned or sold under repurchase agreements	—		169,003		—		—		169,003
Short-term borrowings	—		18,284		1,758		—		20,042
Trading liabilities:
Debt and equity instruments (c)	107,292		32,252		37		—		139,581
Derivative payables:
Interest rate	4,409		232,277		3,796		( 228,586 )		11,896
Credit	—		11,293		745		( 10,949 )		1,089
Foreign exchange	147		211,289		827		( 199,643 )		12,620
Equity	—		60,887		4,924		( 56,443 )		9,368
Commodity	—		15,894		484		( 10,504 )		5,874
Total derivative payables	4,556		531,640		10,776		( 506,125 )		40,847
Total trading liabilities	111,848		563,892		10,813		( 506,125 )		180,428
Accounts payable and other liabilities	3,968		1,617		52		—		5,637
Beneficial interests issued by consolidated VIEs	—		1		—		—		1
Long-term debt	—		60,198		27,726		—		87,924
Total liabilities measured at fair value on a recurring basis	$	115,816	$	889,546	$	42,182	$	( 506,125 )	$	541,419

(a) At September 30, 2024 and December 31, 2023, included total U.S. GSE obligations of $ 144.2 billion and $ 78.5 billion, respectively, which were mortgage-related.

(b) Physical commodities inventories are generally accounted for at the lower of cost or net realizable value. “Net realizable value” is a term defined in U.S. GAAP as not exceeding fair value less costs to sell (“transaction costs”). Transaction costs for the Firm’s physical commodities inventories are either not applicable or immaterial to the value of the inventory. Therefore, net realizable value approximates fair value for the Firm’s physical commodities inventories. When fair value hedging has been applied (or when net realizable value is below cost), the carrying value of physical commodities approximates fair value, because under fair value hedge accounting, the cost basis is adjusted for changes in fair value. Refer to Note 4 for a further discussion of the Firm’s hedge accounting relationships. To provide consistent fair value disclosure information, all physical commodities inventories have been included in each period presented.

(c) Balances reflect the reduction of securities owned (long positions) by the amount of identical securities sold but not yet purchased (short positions).

(d) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not required to be classified in the fair value hierarchy. At September 30, 2024 and December 31, 2023, the fair values of these investments, which include certain hedge funds, private equity funds, real estate and other funds, were $ 802 million and $ 1.0 billion, respectively, primarily reported in other assets.

(e) At September 30, 2024 and December 31, 2023, included $ 13.3 billion and $ 10.2 billion, respectively, of residential first-lien mortgages, and $ 6.0 billion of commercial first-lien mortgages at both periods. Residential mortgage loans include conforming mortgage loans originated with the intent to sell to U.S. GSEs and government agencies of $ 5.8 billion and $ 2.9 billion, respectively.

(f) As permitted under U.S. GAAP, the Firm has elected to net derivative receivables and derivative payables and the related cash collateral received and paid when a legally enforceable master netting agreement exists. The level 3 balances would be reduced if netting were applied, including the netting benefit associated with cash collateral.

Level 3 valuations

Refer to Note 2 of JPMorgan Chase’s 2023 Form 10-K for further information on the Firm’s valuation process and a detailed discussion of the determination of fair value for individual financial instruments.

The following table presents the Firm’s primary level 3 financial instruments, the valuation techniques used to measure the fair value of those financial instruments, the significant unobservable inputs, the range of values for those inputs and the weighted or arithmetic averages of such inputs. While the determination to classify an instrument within level 3 is based on the significance of the unobservable inputs to the overall fair value measurement, level 3 financial instruments typically include observable components (that is, components that are actively quoted and can be validated to external sources) in addition to the unobservable components. The level 1 and/or level 2 inputs are not included in the table. In addition, the Firm manages the risk of the observable components of level 3 financial instruments using securities and derivative positions that are classified within levels 1 or 2 of the fair value hierarchy.

The range of values presented in the table is representative of the highest and lowest level input used to value the significant groups of instruments within a product/instrument classification. Where provided, the weighted averages of the input values presented in the table are calculated based on the fair value of the instruments that the input is being used to value.

In the Firm’s view, the input range, weighted and arithmetic average values do not reflect the degree of input uncertainty or an assessment of the reasonableness of the Firm’s estimates and assumptions. Rather, they reflect the characteristics of the various instruments held by the Firm and the relative distribution of instruments within the range

of characteristics. For example, two option contracts may have similar levels of market risk exposure and valuation uncertainty, but may have significantly different implied volatility levels because the option contracts have different underlyings, tenors, or strike prices. The input range and weighted and arithmetic average values will therefore vary from period-to-period and parameter-to-parameter based on the characteristics of the instruments held by the Firm at each balance sheet date.


Level 3 inputs (a)
September 30, 2024
Product/Instrument	Fair value (in millions)		Principal valuation technique	Unobservable inputs (g)	Range of input values		Average (i)
Residential mortgage-backed securities and loans (b)	$	1,078	Discounted cash flows	Yield	0 %	89 %		7 %
				Prepayment speed	3 %	14 %		8 %
				Conditional default rate	0 %	6 %		0 %
				Loss severity	0 %	110 %		5 %
Commercial mortgage-backed securities and loans (c)	1,495		Market comparables	Price	$ 0	$ 90		$ 82
Corporate debt securities	435		Market comparables	Price	$ 0	$ 175		$ 85
Loans (d)	1,440		Market comparables	Price	$ 0	$ 115		$ 80
Non-U.S. government debt securities	173		Market comparables	Price	$ 0	$ 104		$ 96
Net interest rate derivatives	2,821		Option pricing	Interest rate volatility	7 bps	555 bps		111 bps
				Interest rate spread volatility	37 bps	77 bps		65 bps
				Bermudan switch value	0 %	52 %		17 %
				Interest rate correlation	( 85 )%	97 %		63 %
				IR-FX correlation	( 35 )%	60 %		5 %
	8		Discounted cash flows	Prepayment speed	0 %	21 %		7 %
Net credit derivatives	( 130 )		Discounted cash flows	Credit correlation	30 %	69 %		48 %
				Credit spread	0 bps	2,999 bps		341 bps
				Recovery rate	10 %	90 %		57 %
	31		Market comparables	Price	$ 0	$ 115		$ 73
Net foreign exchange derivatives	89		Option pricing	IR-FX correlation	( 40 )%	60 %		21 %
	( 49 )		Discounted cash flows	Prepayment speed	11 %			11 %
				Interest rate curve	2 %	49 %		8 %
Net equity derivatives	( 3,810 )		Option pricing	Forward equity price (h)	80 %	144 %		101 %
				Equity volatility	4 %	143 %		32 %
				Equity correlation	17 %	100 %		56 %
				Equity-FX correlation	( 80 )%	65 %		( 32 )%
				Equity-IR correlation	10 %	18 %		14 %
Net commodity derivatives	( 372 )		Option pricing	Oil commodity forward	$ 82 / BBL	$ 266 / BBL		$ 150 / BBL
				Natural gas commodity forward	$ 1 / MMBTU	$ 7 / MMBTU		$ 3 / MMBTU
				Commodity volatility	2 %	47 %		5 %
				Commodity correlation	( 35 )%	98 %		( 8 )%
MSRs	8,753		Discounted cash flows	Refer to Note 14
Long-term debt, short-term borrowings, and deposits (e)	38,445		Option pricing	Interest rate volatility	7 bps	555 bps		111 bps
				Bermudan switch value	0 %	52 %		17 %
				Interest rate correlation	( 85 )%	97 %		63 %
				IR-FX correlation	( 35 )%	60 %		5 %
				Equity volatility	2 %	140 %		28 %
				Equity correlation	17 %	100 %		56 %
				Equity-FX correlation	( 80 )%	65 %		( 32 )%
				Equity-IR correlation	10 %	18 %		14 %
	894		Discounted cash flows	Credit correlation	30 %	69 %		48 %
				Credit spread	1 bps	270 bps		81 bps
				Recovery rate	20 %	40 %		37 %
				Yield	5 %	20 %		10 %
				Loss severity	0 %	100 %		50 %
Other level 3 assets and liabilities, net (f)	1,375

(a) The categories presented in the table have been aggregated based upon the product type, which may differ from their classification on the Consolidated balance sheets. Furthermore, the inputs presented for each valuation technique in the table are, in some cases, not applicable to every instrument valued using the technique as the characteristics of the instruments can differ.

(b) Comprises U.S. GSE and government agency securities of $ 691 million, nonagency securities of $ 5 million and non-trading loans of $ 382 million.

(c) Comprises nonagency securities of $ 11 million, trading loans of $ 65 million and non-trading loans of $ 1.4 billion.

(d) Comprises trading loans of $ 754 million and non-trading loans of $ 686 million.

(e) Long-term debt, short-term borrowings and deposits include structured notes issued by the Firm that are financial instruments that typically contain embedded derivatives. The estimation of the fair value of structured notes includes the derivative features embedded within the instrument. The significant unobservable inputs are broadly consistent with those presented for derivative receivables.

(f) Includes equity securities of $ 737 million including $ 636 million in Other assets, for which quoted prices are not readily available and the fair value is generally based on internal valuation techniques such as EBITDA multiples and comparable analysis. All other level 3 assets and liabilities are insignificant both individually and in aggregate.

(g) Price is a significant unobservable input for certain instruments. When quoted market prices are not readily available, reliance is generally placed on price-based internal valuation techniques. The price input is expressed assuming a par value of $ 100 .

(h) Forward equity price is expressed as a percentage of the current equity price.

(i) Amounts represent weighted averages except for derivative related inputs where arithmetic averages are used.

100

Changes in and ranges of unobservable inputs

Refer to Note 2 of JPMorgan Chase’s 2023 Form 10-K for a discussion of the impact on fair value of changes in unobservable inputs and the relationships between unobservable inputs as well as a description of attributes of the underlying instruments and external market factors that affect the range of inputs used in the valuation of the Firm’s positions.

Changes in level 3 recurring fair value measurements

The following tables include a rollforward of the Consolidated balance sheets amounts (including changes in fair value) for financial instruments classified by the Firm within level 3 of the fair value hierarchy for the three and nine months ended September 30, 2024 and 2023. When a determination is made to classify a financial instrument within level 3, the determination is based on the significance of the unobservable inputs to the overall fair value measurement. However, level 3 financial instruments typically include, in addition to the unobservable or level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources); accordingly, the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology. The Firm risk-manages the observable components of level 3 financial instruments using securities and derivative positions that are classified within level 1 or 2 of the fair value hierarchy; as these level 1 and level 2 risk management instruments are not included below, the gains or losses in the following tables do not reflect the effect of the Firm’s risk management activities related to such level 3 instruments.

101


	Fair value measurements using significant unobservable inputs
Three months ended September 30, 2024 (in millions)	Fair value at July 1, 2024		Total realized/unrealized gains/(losses)											Transfers into level 3		Transfers (out of) level 3		Fair value at September 30, 2024			Change in unrealized gains/(losses) related to financial instruments held at September 30, 2024
						Purchases (g)		Sales				Settlements (h)
Assets: (a)
Federal funds sold and securities purchased under resale agreements	$	—	$	—		$	—	$	—			$	—	$	—	$	—		$	—	$	—
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. GSEs and government agencies	708		3			—		—				( 20 )		—		—			691		3
Residential – nonagency	5		1			—		—				( 1 )		—		—			5		—
Commercial – nonagency	11		—			—		—				—		—		—			11		—
Total mortgage-backed securities	724		4			—		—				( 21 )		—		—			707		3
Obligations of U.S. states and municipalities	7		—			—		—				—		—		—			7		—
Non-U.S. government debt securities	193		( 4 )			53		( 65 )				—		7		( 11 )			173		( 2 )
Corporate debt securities	408		21			86		( 62 )				—		5		( 23 )			435		20
Loans	691		12			125		( 108 )				( 22 )		321		( 200 )			819		12
Asset-backed securities	2		—			—		—				—		—		—			2		—
Total debt instruments	2,025		33			264		( 235 )				( 43 )		333		( 234 )			2,143		33
Equity securities	122		( 4 )			16		( 18 )				( 1 )		31		( 45 )			101		—
Physical commodities	10		—			—		—				—		—		—			10		—
Other	144		20			4		—				( 9 )		24		—			183		23
Total trading assets – debt and equity instruments	2,301		49		(c)	284		( 253 )				( 53 )		388		( 279 )			2,437		56		(c)
Net derivative receivables: (b)
Interest rate	1,301		1,528			90		( 38 )				98		( 106 )		( 44 )			2,829		1,373
Credit	180		( 209 )			—		—				( 114 )		25		19			( 99 )		( 198 )
Foreign exchange	168		( 31 )			59		( 105 )				71		3		( 125 )			40		( 5 )
Equity	( 2,991 )		( 21 )			112		( 821 )				24		( 285 )		172			( 3,810 )		( 215 )
Commodity	( 472 )		( 74 )			4		( 35 )				201		7		( 3 )			( 372 )		( 107 )
Total net derivative receivables	( 1,814 )		1,193		(c)	265		( 999 )				280		( 356 )		19			( 1,412 )		848		(c)
Available-for-sale securities:
Corporate debt securities	—		—			—		—				—		—		—			—		—
Total available-for-sale securities	—		—		(d)	—		—				—		—		—			—		—		(d)
Loans	2,993		157		(c)	95		( 479 )				( 210 )		61		( 130 )			2,487		114		(c)
Mortgage servicing rights	8,847		( 181 )		(e)	357		2				( 272 )		—		—			8,753		( 181 )		(e)
Other assets	1,202		34		(c)	24		( 32 )				( 20 )		—		( 22 )			1,186		34		(c)

	Fair value measurements using significant unobservable inputs
Three months ended September 30, 2024 (in millions)	Fair value at July 1, 2024		Total realized/unrealized (gains)/losses											Transfers into level 3		Transfers (out of) level 3		Fair value at September 30, 2024			Change in unrealized (gains)/losses related to financial instruments held at September 30, 2024
						Purchases		Sales		Issuances		Settlements (h)
Liabilities: (a)
Deposits	$	1,923	$	105	(c)(f)	$	—	$	—	$	512	$	( 299 )	$	—	$	( 22 )		$	2,219	$	104	(c)(f)
Short-term borrowings	2,726		74		(c)(f)	—		—		2,283		( 1,435 )		1		( 2 )			3,647		56		(c)(f)
Trading liabilities – debt and equity instruments	68		( 1 )		(c)	( 20 )		5		—		—		25		( 5 )			72		( 1 )		(c)
Accounts payable and other liabilities	70		5		(c)	( 30 )		—		—		—		—		( 3 )			42		5		(c)
Long-term debt	31,286		1,632		(c)(f)	—		—		6,073		( 5,258 )		23		( 283 )			33,473		1,783		(c)(f)

102


	Fair value measurements using significant unobservable inputs
Three months ended September 30, 2023 (in millions)	Fair value at July 1, 2023		Total realized/unrealized gains/(losses)											Transfers into level 3		Transfers (out of) level 3		Fair value at September 30, 2023			Change in unrealized gains/(losses) related to financial instruments held at September 30, 2023
						Purchases (g)		Sales				Settlements (h)
Assets: (a)
Federal funds sold and securities purchased under resale agreements	$	—	$	—		$	—	$	—			$	—	$	—	$	—		$	—	$	—
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. GSEs and government agencies	706		( 4 )			118		( 20 )				( 21 )		—		—			779		( 4 )
Residential – nonagency	5		—			—		—				—		—		—			5		—
Commercial – nonagency	6		6			1		—				—		—		—			13		7
Total mortgage-backed securities	717		2			119		( 20 )				( 21 )		—		—			797		3
Obligations of U.S. states and municipalities	6		—			—		—				—		3		—			9		—
Non-U.S. government debt securities	199		9			16		( 53 )				—		—		( 20 )			151		18
Corporate debt securities	522		15			191		( 56 )				( 1 )		8		( 27 )			652		4
Loans	1,105		( 56 )			161		( 172 )				( 12 )		108		( 86 )			1,048		( 56 )
Asset-backed securities	14		1			—		( 8 )				—		—		( 1 )			6		1
Total debt instruments	2,563		( 29 )			487		( 309 )				( 34 )		119		( 134 )			2,663		( 30 )
Equity securities	631		2			26		( 100 )				( 442 )		41		( 7 )			151		7
Physical commodities	6		( 2 )			1		—				—		—		—			5		( 2 )
Other	113		( 3 )			9		—				( 15 )		—		( 1 )			103		( 2 )
Total trading assets – debt and equity instruments	3,313		( 32 )		(c)	523		( 409 )				( 491 )		160		( 142 )			2,922		( 27 )		(c)
Net derivative receivables: (b)
Interest rate	( 1,122 )		( 162 )			79		( 127 )				349		( 56 )		( 72 )			( 1,111 )		( 267 )
Credit	689		11			2		—				( 150 )		( 4 )		3			551		11
Foreign exchange	389		88			55		( 18 )				( 5 )		7		( 3 )			513		51
Equity	( 1,881 )		1,013			145		( 222 )				( 385 )		70		( 39 )			( 1,299 )		1,060
Commodity	( 353 )		113			3		( 101 )				31		—		184			( 123 )		104
Total net derivative receivables	( 2,278 )		1,063		(c)	284		( 468 )				( 160 )		17		73			( 1,469 )		959		(c)
Available-for-sale securities:
Corporate debt securities	267		( 4 )			—		( 165 )				—		—		( 38 )			60		( 3 )
Total available-for-sale securities	267		( 4 )		(d)	—		( 165 )				—		—		( 38 )			60		( 3 )		(d)
Loans	3,808		110		(c)	24		( 34 )				( 442 )		276		( 59 )			3,683		25		(c)
Mortgage servicing rights	8,229		596		(e)	650		( 101 )				( 265 )		—		—			9,109		596		(e)
Other assets	417		( 1 )		(c)	498		( 11 )				( 14 )		—		( 1 )			888		( 1 )		(c)

	Fair value measurements using significant unobservable inputs
Three months ended September 30, 2023 (in millions)	Fair value at July 1, 2023		Total realized/unrealized (gains)/losses											Transfers into level 3		Transfers (out of) level 3		Fair value at September 30, 2023			Change in unrealized (gains)/losses related to financial instruments held at September 30, 2023
						Purchases		Sales		Issuances		Settlements (h)
Liabilities: (a)
Deposits	$	2,053	$	( 34 )	(c)(f)	$	—	$	—	$	341	$	( 468 )	$	—	$	( 40 )		$	1,852	$	( 34 )	(c)(f)
Short-term borrowings	1,704		22		(c)(f)	—		—		1,371		( 1,150 )		—		( 2 )			1,945		2		(c)(f)
Trading liabilities – debt and equity instruments	63		( 5 )		(c)	( 2 )		2		—		( 2 )		—		( 15 )			41		—
Accounts payable and other liabilities	68		( 7 )		(c)	( 11 )		13		—		—		—		—			63		( 7 )		(c)
Long-term debt	25,425		( 764 )		(c)(f)	—		—		3,380		( 3,130 )		18		( 82 )			24,847		( 774 )		(c)(f)

103


	Fair value measurements using significant unobservable inputs
Nine months ended September 30, 2024 (in millions)	Fair value at Jan 1, 2024		Total realized/unrealized gains/(losses)											Transfers into level 3		Transfers (out of) level 3		Fair value at September 30, 2024			Change in unrealized gains/(losses) related to financial instruments held at September 30, 2024
						Purchases (g)		Sales				Settlements (h)
Assets: (a)
Federal funds sold and securities purchased under resale agreements	$	—	$	—		$	—	$	—			$	—	$	—	$	—		$	—	$	—
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. GSEs and government agencies	758		3			45		( 61 )				( 61 )		7		—			691		3
Residential – nonagency	5		1			—		—				( 1 )		4		( 4 )			5		( 1 )
Commercial – nonagency	12		( 2 )			1		—				—		—		—			11		( 1 )
Total mortgage-backed securities	775		2			46		( 61 )				( 62 )		11		( 4 )			707		1
Obligations of U.S. states and municipalities	10		—			—		—				( 2 )		—		( 1 )			7		—
Non-U.S. government debt securities	179		( 2 )			145		( 137 )				—		14		( 26 )			173		4
Corporate debt securities	484		28			386		( 229 )				( 181 )		13		( 66 )			435		27
Loans	684		20			446		( 438 )				( 67 )		645		( 471 )			819		8
Asset-backed securities	6		—			1		( 5 )				( 7 )		7		—			2		—
Total debt instruments	2,138		48			1,024		( 870 )				( 319 )		690		( 568 )			2,143		40
Equity securities	127		( 23 )			130		( 99 )				( 1 )		74		( 107 )			101		( 33 )
Physical Commodities	7		2			4		—				( 3 )		—		—			10		2
Other	101		64			46		—				( 52 )		25		( 1 )			183		71
Total trading assets – debt and equity instruments	2,373		91		(c)	1,204		( 969 )				( 375 )		789		( 676 )			2,437		80		(c)
Net derivative receivables: (b)
Interest rate	502		1,246			282		( 122 )				981		81		( 141 )			2,829		892
Credit	265		( 143 )			—		( 16 )				( 253 )		( 13 )		61			( 99 )		( 68 )
Foreign exchange	62		100			136		( 230 )				( 16 )		( 26 )		14			40		105
Equity	( 2,402 )		( 545 )			680		( 2,020 )				246		( 296 )		527			( 3,810 )		104
Commodity	( 279 )		( 196 )			22		( 155 )				228		6		2			( 372 )		( 182 )
Total net derivative receivables	( 1,852 )		462		(c)	1,120		( 2,543 )				1,186		( 248 )		463			( 1,412 )		851		(c)
Available-for-sale securities:
Corporate debt securities	—		—			—		—				—		—		—			—		—
Total available-for-sale securities	—		—		(d)	—		—				—		—		—			—		—		(d)
Loans	3,079		266		(c)	304		( 684 )				( 855 )		730		( 353 )			2,487		207		(c)
Mortgage servicing rights	8,522		216		(e)	835		( 25 )				( 795 )		—		—			8,753		216		(e)
Other assets	758		100		(c)	444		( 54 )				( 45 )		5		( 22 )			1,186		94		(c)

	Fair value measurements using significant unobservable inputs
Nine months ended September 30, 2024 (in millions)	Fair value at Jan 1, 2024		Total realized/unrealized (gains)/losses											Transfers into level 3		Transfers (out of) level 3		Fair value at September 30, 2024			Change in unrealized (gains)/losses related to financial instruments held at September 30, 2024
						Purchases		Sales		Issuances		Settlements (h)
Liabilities: (a)
Deposits	$	1,833	$	90	(c)(f)	$	—	$	—	$	1,304	$	( 909 )	$	34	$	( 133 )		$	2,219	$	78	(c)(f)
Short-term borrowings	1,758		143		(c)(f)	—		—		5,742		( 3,992 )		2		( 6 )			3,647		78		(c)(f)
Trading liabilities – debt and equity instruments	37		( 41 )		(c)	( 26 )		62		—		—		46		( 6 )			72		( 3 )		(c)
Accounts payable and other liabilities	52		( 7 )		(c)	( 36 )		31		—		—		5		( 3 )			42		( 7 )		(c)
Long-term debt	27,726		2,147		(c)(f)	—		—		17,049		( 13,230 )		466		( 685 )			33,473		1,895		(c)(f)

104


	Fair value measurements using significant unobservable inputs
Nine months ended September 30, 2023 (in millions)	Fair value at Jan 1, 2023		Total realized/unrealized gains/(losses)											Transfers into level 3		Transfers (out of) level 3		Fair value at September 30, 2023			Change in unrealized gains/(losses) related to financial instruments held at September 30, 2023
						Purchases (g)		Sales				Settlements (h)
Assets: (a)
Federal funds sold and securities purchased under resale agreements	$	—	$	—		$	—	$	—			$	—	$	—	$	—		$	—	$	—
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. GSEs and government agencies	759		3			249		( 133 )				( 85 )		—		( 14 )			779		3
Residential – nonagency	5		7			—		( 6 )				( 2 )		1		—			5		—
Commercial – nonagency	7		6			1		—				( 1 )		8		( 8 )			13		5
Total mortgage-backed securities	771		16			250		( 139 )				( 88 )		9		( 22 )			797		8
Obligations of U.S. states and municipalities	7		—			—		( 1 )				—		3		—			9		—
Non-U.S. government debt securities	155		49			116		( 149 )				—		—		( 20 )			151		86
Corporate debt securities	463		39			301		( 116 )				( 3 )		38		( 70 )			652		34
Loans	759		( 54 )			843		( 299 )				( 125 )		233		( 309 )			1,048		( 28 )
Asset-backed securities	23		1			5		( 11 )				( 1 )		5		( 16 )			6		( 1 )
Total debt instruments	2,178		51			1,515		( 715 )				( 217 )		288		( 437 )			2,663		99
Equity securities	665		( 45 )			134		( 207 )				( 442 )		181		( 135 )			151		( 28 )
Physical commodities	2		( 2 )			7		—				( 2 )		—		—			5		5
Other	64		( 43 )			105		—				( 19 )		1		( 5 )			103		( 25 )
Total trading assets – debt and equity instruments	2,909		( 39 )		(c)	1,761		( 922 )				( 680 )		470		( 577 )			2,922		51		(c)
Net derivative receivables: (b)
Interest rate	701		( 859 )			174		( 219 )				376		( 1,135 )		( 149 )			( 1,111 )		( 789 )
Credit	13		485			5		( 4 )				52		22		( 22 )			551		487
Foreign exchange	489		140			134		( 126 )				( 206 )		126		( 44 )			513		114
Equity	( 384 )		1,036			758		( 1,584 )				( 1,111 )		530		( 544 )			( 1,299 )		936
Commodity	( 146 )		71			42		( 219 )				( 80 )		( 11 )		220			( 123 )		57
Total net derivative receivables	673		873		(c)	1,113		( 2,152 )				( 969 )		( 468 )		( 539 )			( 1,469 )		805		(c)
Available-for-sale securities:
Corporate debt securities	239		24			—		( 165 )				—		—		( 38 )			60		22
Total available-for-sale securities	239		24		(d)	—		( 165 )				—		—		( 38 )			60		22		(d)
Loans	1,418		133		(c)	2,309		( 107 )				( 1,027 )		1,193		( 236 )			3,683		29		(c)
Mortgage servicing rights	7,973		860		(e)	1,227		( 191 )				( 760 )		—		—			9,109		860		(e)
Other assets	405		20		(c)	515		( 13 )				( 44 )		8		( 3 )			888		56		(c)

	Fair value measurements using significant unobservable inputs
Nine months ended September 30, 2023 (in millions)	Fair value at Jan 1, 2023		Total realized/unrealized (gains)/losses											Transfers into level 3		Transfers (out of) level 3		Fair value at September 30, 2023			Change in unrealized (gains)/losses related to financial instruments held at September 30, 2023
						Purchases		Sales		Issuances		Settlements (h)
Liabilities: (a)
Deposits	$	2,162	$	( 37 )	(c)(f)	$	—	$	—	$	608	$	( 716 )	$	—	$	( 165 )		$	1,852	$	( 41 )	(c)(f)
Short-term borrowings	1,401		162		(c)(f)	—		—		3,613		( 3,209 )		2		( 24 )			1,945		12		(c)(f)
Trading liabilities – debt and equity instruments	84		( 18 )		(c)	( 29 )		8		—		( 4 )		18		( 18 )			41		3		(c)
Accounts payable and other liabilities	53		( 3 )		(c)	( 13 )		20		—		—		8		( 2 )			63		( 3 )		(c)
Long-term debt	24,092		917		(c)(f)	—		—		8,780		( 8,655 )		222		( 509 )			24,847		667		(c)(f)

105

(a) Level 3 assets at fair value as a percentage of total Firm assets at fair value (including assets measured at fair value on a nonrecurring basis) were 2 % at both September 30, 2024 and December 31, 2023. Level 3 liabilities at fair value as a percentage of total Firm liabilities at fair value (including liabilities measured at fair value on a nonrecurring basis) were 7 % and 8 % at September 30, 2024 and December 31, 2023, respectively.

(b) All level 3 derivatives are presented on a net basis, irrespective of the underlying counterparty.

(c) Predominantly reported in principal transactions revenue, except for changes in fair value for CCB mortgage loans and lending-related commitments originated with the intent to sell, and mortgage loan purchase commitments, which are reported in mortgage fees and related income.

(d) Realized gains/(losses) on AFS securities are reported in investment securities gains/(losses). Unrealized gains/(losses) are reported in OCI. Realized and unrealized gains/(losses) recorded on level 3 AFS securities were not material both for the three and nine months ended September 30, 2024 and 2023.

(e) Changes in fair value for MSRs are reported in mortgage fees and related income.

(f) Realized (gains)/losses due to DVA for fair value option elected liabilities are reported in principal transactions revenue, and were not material both for the three and nine months ended September 30, 2024 and 2023. Unrealized (gains)/losses are reported in OCI, and were no t material for the three months ended September 30, 2024 and 2023, and were $( 37 ) million and $( 277 ) million for the nine months ended September 30, 2024 and 2023, respectively.

(g) Loan originations are included in purchases.

(h) Includes financial assets and liabilities that have matured, been partially or fully repaid, impacts of modifications, deconsolidations associated with beneficial interests in VIEs and other items.

Level 3 analysis

Consolidated balance sheets changes

The following describes significant changes to level 3 assets since December 31, 2023, for those items measured at fair value on a recurring basis. Refer to Assets and liabilities measured at fair value on a nonrecurring basis on page 108 for further information on changes impacting items measured at fair value on a nonrecurring basis.

Three and nine months ended September 30, 2024

Level 3 assets were $ 25.6 billion at September 30, 2024, flat when compared to June 30, 2024, and reflecting an increase of $ 1.9 billion from December 31, 2023.

The increase for the nine months ended September 30, 2024 was predominantly driven by higher:

• Gross derivative receivables of $ 1.8 billion due to gains, purchases and net transfers largely offset by settlements.

Refer to the sections below for additional information.

Transfers between levels for instruments carried at fair value on a recurring basis

For the three months ended September 30, 2024, there were no significant transfers from level 2 into level 3 or from level 3 into level 2.

For the nine months ended September 30, 2024, significant transfers from level 2 into level 3 included the following:

• $ 841 million and $ 1.1 billion of gross equity derivative receivables and gross equity derivative payables, respectively, as a result of a decrease in observability and an increase in the significance of unobservable inputs.

For the nine months ended September 30, 2024, significant transfers from level 3 into level 2 included the following:

• $ 765 million and $ 1.3 billion of gross equity derivative receivables and gross equity derivative payables, respectively, as a result of an increase in observability and a decrease in the significance of unobservable inputs.

For the three months ended September 30, 2023, there were no significant transfers from level 2 into level 3 or from level 3 into level 2.

For the nine months ended September 30, 2023, significant transfers from level 2 into level 3 included the following:

• $ 1.8 billion of gross interest rate derivative payables as a result of transition to term SOFR for certain interest rate options.

• $ 1.2 billion of gross equity derivative receivables as a result of a decrease in observability and an increase in the significance of unobservable inputs.

• $ 1.2 billion of non-trading loans driven by a decrease in observability.

For the nine months ended September 30, 2023, significant transfers from level 3 into level 2 included the following:

• $ 1.7 billion and $ 1.2 billion of gross equity derivative receivables and gross equity derivative payables, respectively, as a result of an increase in observability and a decrease in the significance of unobservable inputs.

All transfers are based on changes in the observability and/or significance of the valuation inputs and are assumed to occur at the beginning of the quarterly reporting period in which they occur.

106

Gains and losses

The following describes significant components of total realized/unrealized gains/(losses) for instruments measured at fair value on a recurring basis for the periods indicated. These amounts exclude any effects of the Firm’s risk management activities where the financial instruments are classified as level 1 and 2 of the fair value hierarchy. Refer to Changes in level 3 recurring fair value measurements rollforward tables on pages 101–106 for further information on these instruments.

Three months ended September 30, 2024

• $ 1.3 billion of net gains on assets, predominantly driven by gains in net derivative receivables due to market movements.

• $ 1.8 billion of net losses on liabilities, predominantly driven by losses in long-term debt due to market movements.

Three months ended September 30, 2023

• $ 1.7 billion of net gains on assets, predominantly driven by gains in net equity derivative receivables due to market movements and gains in MSRs reflecting lower prepayment speeds on higher rates.

• $ 788 million of net gains on liabilities, driven by gains in long-term debt due to market movements.

Nine months ended September 30, 2024

• $ 1.1 billion of net gains on assets, predominantly driven by gains in net derivative receivables and loans due to market movements as well as MSRs reflecting lower prepayment speeds on higher rates.

• $ 2.3 billion of net losses on liabilities, predominantly driven by losses in long-term debt due to market movements.

Nine months ended September 30, 2023

• $ 1.9 billion of net gains on assets, driven by gains in net equity derivative receivables due to market movements and gains in MSRs reflecting lower prepayment speeds on higher rates.

• $ 1.0 billion of net losses on liabilities, predominantly driven by losses in long-term debt due to market movements.

Refer to Note 14 for information on MSRs.

Credit and funding adjustments — derivatives

The following table provides the impact of credit and funding adjustments on principal transactions revenue in the respective periods, excluding the effect of any associated hedging activities. The FVA presented below includes the impact of the Firm’s own credit quality on the inception value of liabilities as well as the impact of changes in the Firm’s own credit quality over time.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2024		2023		2024		2023
Credit and funding adjustments:
Derivatives CVA	$	( 17 )	$	90	$	3	$	211
Derivatives FVA	( 5 )		56		32		111

Refer to Note 2 of JPMorgan Chase’s 2023 Form 10-K for further information about both credit and funding adjustments, as well as information about valuation adjustments on fair value option elected liabilities.

107

Assets and liabilities measured at fair value on a nonrecurring basis

The following tables present the assets and liabilities held as of September 30, 2024 and 2023 , for which nonrecurring fair value adjustments were recorded during the nine months ended September 30, 2024 and 2023 , by major product category and fair value hierarchy.


	Fair value hierarchy						Total fair value
September 30, 2024 (in millions)	Level 1		Level 2		Level 3
Loans	$	—	$	663	$	896	$	1,559
Other assets (a)	—		8		945		953
Total assets measured at fair value on a nonrecurring basis	$	—	$	671	$	1,841	$	2,512
Accounts payable and other liabilities	—		—		—		—
Total liabilities measured at fair value on a nonrecurring basis	$	—	$	—	$	—	$	—


	Fair value hierarchy						Total fair value
September 30, 2023 (in millions)	Level 1		Level 2		Level 3
Loans	$	—	$	666	$	1,014	$	1,680
Other assets	—		37		1,276		1,313
Total assets measured at fair value on a nonrecurring basis	$	—	$	703	$	2,290	$	2,993
Accounts payable and other liabilities	—		—		—		—
Total liabilities measured at fair value on a nonrecurring basis	$	—	$	—	$	—	$	—

(a) Included equity securities without readily determinable fair values that were adjusted based on observable price changes in orderly transactions from an identical or similar investment of the same issuer (measurement alternative). Of the $ 945 million in level 3 assets measured at fair value on a nonrecurring basis as of September 30, 2024, $ 590 million related to equity securities adjusted based on the measurement alternative. These equity securities are classified as level 3 due to the infrequency of the observable prices and/or the restrictions on the shares. Also, included impairments on certain equity method investments.

Nonrecurring fair value changes

The following table presents the total change in value of assets and liabilities for which fair value adjustments have been recognized for the three and nine months ended September 30, 2024 and 2023 , related to assets and liabilities held at those dates.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2024		2023		2024		2023
Loans	$	( 32 )	$	( 75 )	$	( 98 )	$	( 200 )
Other assets (a)	( 323 )		( 376 )		( 529 )		( 536 )
Accounts payable and other liabilities	—		—		—		—
Total nonrecurring fair value gains/(losses)	$	( 355 )	$	( 451 )	$	( 627 )	$	( 736 )

(a) Included $( 30 ) million and $ 33 million for the three months ended September 30, 2024 and 2023, respectively, and $( 176 ) million and $( 60 ) million for the nine months ended September 30, 2024 and 2023, respectively, of net gains/(losses) as a result of the measurement alternative. The current period also included impairments on certain equity method investments.

108

Equity securities without readily determinable fair values

The Firm measures certain equity securities without readily determinable fair values at cost less impairment (if any), plus or minus observable price changes from an identical or similar investment of the same issuer (i.e., measurement alternative), with such changes recognized in other income.

In its determination of the new carrying values upon observable price changes, the Firm may adjust the prices if deemed necessary to arrive at the Firm’s estimated fair values. Such adjustments may include adjustments to reflect the different rights and obligations of similar securities, and other adjustments that are consistent with the Firm’s valuation techniques for private equity direct investments.

The following table presents the carrying value of equity securities without readily determinable fair values held as of September 30, 2024 and 2023 , that are measured under the measurement alternative and the related adjustments recorded during the periods presented for those securities with observable price changes. These securities are included in the nonrecurring fair value tables when applicable price changes are observable.


	Three months ended September 30,				Nine months ended September 30,
As of or for the period ended, (in millions)	2024		2023		2024		2023
Other assets
Carrying value (a)	$	3,660	$	4,499	$	3,660	$	4,499
Upward carrying value changes (b)	42		50		72		90
Downward carrying value changes/impairment (c)	( 72 )		( 17 )		( 248 )		( 150 )

(a) The carrying value as of December 31, 2023 was $ 4.5 billion. The period-end carrying values reflect cumulative purchases and sales in addition to upward and downward carrying value changes.

(b) The cumulative upward carrying value changes between January 1, 2018 and September 30, 2024 were $ 1.1 billion.

(c) The cumulative downward carrying value changes/impairment between January 1, 2018 and September 30, 2024 were $( 1.5 ) billion.

Included in other assets above is the Firm’s interest in approximately 18.6 million Visa Class B-2 common shares ("Visa B-2 shares") and 37.2 million Visa Class B common shares reflected in the Firm's principal investment portfolio as of September 30, 2024 and September 30, 2023, respectively.

The Visa Class B common shares were redenominated to Visa Class B-1 common shares (“Visa B-1 shares”) on January 24, 2024. On April 8, 2024, Visa commenced an initial exchange offer for any and all outstanding Visa B-1 shares. On May 6, 2024, the Firm announced that Visa had accepted the Firm’s tender of its 37.2 million Visa B-1 shares in exchange for a combination of Visa B-2 shares and Visa Class C common shares (“Visa C shares”). As of September 30, 2024, the Firm had disposed of all of its Visa C shares through sales and through a donation to the Firm's Foundation.

The Visa B-2 shares are subject to certain transfer restrictions and are convertible into Visa Class A common shares (“Visa A shares”) at a specified conversion rate upon final resolution of certain litigation matters involving Visa. On October 11, 2024 Visa filed a Current Report on Form 8-K with the SEC indicating that the conversion rate of Visa B-2 shares to Visa A shares decreased from 1.5875 to 1.5430 effective September 26, 2024 and may be adjusted by Visa depending on developments related to the litigation matters. The outcome of those litigation matters, and the effect that the resolution of those matters may have on the conversion rate, is unknown. Accordingly, as of September 30, 2024, there is significant uncertainty regarding when the transfer restrictions on Visa B-2 shares may be terminated and what the final conversion rate for the Visa B-2 shares will be. As a result of these considerations, as well as differences in voting rights, Visa B-2 shares are not considered to be similar to Visa A shares, and are held at their nominal carryover basis.

In connection with prior sales of Visa Class B common shares prior to the redenomination to Visa B-1 shares, the Firm has entered into derivative instruments with the purchasers of the shares under which the Firm retains the risk associated with changes in the conversion rate. The notional amount of shares associated with those derivative instruments has been adjusted as a result of the Visa exchange offer. Refer to page 194 of JPMorgan Chase’s 2023 Form 10-K for further information.

109

Additional disclosures about the fair value of financial instruments that are not carried on the Consolidated balance sheets at fair value

The following table presents, by fair value hierarchy classification, the carrying values and estimated fair values at September 30, 2024 and December 31, 2023, of financial assets and liabilities, excluding financial instruments that are carried at fair value on a recurring basis, and their classification within the fair value hierarchy.


	September 30, 2024										December 31, 2023
			Estimated fair value hierarchy										Estimated fair value hierarchy
(in billions)	Carrying value		Level 1		Level 2		Level 3		Total estimated fair value		Carrying value		Level 1		Level 2		Level 3		Total estimated fair value
Financial assets
Cash and due from banks	$	22.9	$	22.9	$	—	$	—	$	22.9	$	29.1	$	29.1	$	—	$	—	$	29.1
Deposits with banks	411.4		411.3		0.1		—		411.4		595.1		594.6		0.5		—		595.1
Accrued interest and accounts receivable	122.3		—		122.2		0.1		122.3		107.1		—		107.0		0.1		107.1
Federal funds sold and securities purchased under resale agreements	21.9		—		21.9		—		21.9		16.3		—		16.3		—		16.3
Securities borrowed	144.8		—		144.8		—		144.8		130.3		—		130.3		—		130.3
Investment securities, held-to-maturity	300.0		114.2		165.4		—		279.6		369.8		160.6		182.2		—		342.8
Loans, net of allowance for loan losses (a)	1,273.9		—		284.4		995.2		1,279.6		1,262.5		—		285.6		964.6		1,250.2
Other	85.2		—		83.8		1.6		85.4		76.1		—		74.9		1.4		76.3
Financial liabilities
Deposits	$	2,379.5	$	—	$	2,380.0	$	—	$	2,380.0	$	2,322.3	$	—	$	2,322.6	$	—	$	2,322.6
Federal funds purchased and securities loaned or sold under repurchase agreements	68.9		—		68.9		—		68.9		47.5		—		47.5		—		47.5
Short-term borrowings	22.3		—		22.4		—		22.4		24.7		—		24.7		—		24.7
Accounts payable and other liabilities (b)	268.3		—		255.0		12.4		267.4		241.8		—		233.3		8.1		241.4
Beneficial interests issued by consolidated VIEs	25.7		—		25.8		—		25.8		23.0		—		23.0		—		23.0
Long-term debt	308.0		—		259.8		51.9		311.7		303.9		—		252.2		51.3		303.5

(a) Fair value is typically estimated using a discounted cash flow model that incorporates the characteristics of the underlying loans (including principal, contractual interest rate and contractual fees) and other key inputs, including expected lifetime credit losses, interest rates, prepayment rates, and primary origination or secondary market spreads. For certain loans, the fair value is measured based on the value of the underlying collateral. Carrying value of the loan takes into account the loan’s allowance for loan losses, which represents the loan’s expected credit losses over its remaining expected life. The difference between the estimated fair value and carrying value of a loan is generally attributable to changes in market interest rates, including credit spreads, market liquidity premiums and other factors that affect the fair value of a loan but do not affect its carrying value.

(b) Excludes lending-related commitments disclosed in the table below.

The majority of the Firm’s lending-related commitments are not carried at fair value on a recurring basis on the Consolidated balance sheets. The carrying value and the estimated fair value of these wholesale lending-related commitments were as follows for the periods indicated.


	September 30, 2024										December 31, 2023
			Estimated fair value hierarchy										Estimated fair value hierarchy
(in billions)	Carrying value (a)(b)(c)		Level 1		Level 2		Level 3		Total estimated fair value		Carrying value (a)(b)(c)		Level 1		Level 2		Level 3		Total estimated fair value
Wholesale lending-related commitments	$	2.8	$	—	$	—	$	4.5	$	4.5	$	3.0	$	—	$	—	$	4.8	$	4.8

(a) Excludes the current carrying values of the guarantee liability and the offsetting asset, each of which is recognized at fair value at the inception of the guarantees.

(b) Includes the wholesale allowance for lending-related commitments.

(c) As of September 30, 2024 and December 31, 2023, includes fair value adjustments associated with First Republic for other unfunded commitments to extend credit totaling $ 769 million and $ 1.1 billion, respectively, recorded in accounts payable and other liabilities on the Consolidated balance sheets. Refer to Notes 22 and 26 for additional information.

The Firm does not estimate the fair value of consumer off-balance sheet lending-related commitments. In many cases, the Firm can reduce or cancel these commitments by providing the borrower notice or, in some cases as permitted by law, without notice. Refer to page 177 of JPMorgan Chase’s 2023 Form 10-K for a further discussion of the valuation of lending-related commitments.

110

Note 3 – Fair value option

The fair value option provides an option to elect fair value for selected financial assets, financial liabilities, unrecognized firm commitments, and written loan commitments.

The Firm has elected to measure certain instruments at fair value for several reasons including to mitigate income statement volatility caused by the differences between the measurement basis of elected instruments (e.g., certain instruments that otherwise would be accounted for on an accrual basis) and the associated risk management arrangements that are accounted for on a fair value basis, as well as to better reflect those instruments that are managed on a fair value basis.

The Firm’s election of fair value includes the following instruments:

• Loans purchased or originated as part of securitization warehousing activity, subject to bifurcation accounting, or managed on a fair value basis, including lending-related commitments

• Certain securities financing agreements

• Owned beneficial interests in securitized financial assets that contain embedded credit derivatives, which would otherwise be required to be separately accounted for as a derivative instrument

• Structured notes and other hybrid instruments, which are predominantly financial instruments that contain embedded derivatives, that are issued or transacted as part of client-driven activities

• Certain long-term beneficial interests issued by CIB’s consolidated securitization trusts where the underlying assets are carried at fair value

Changes in fair value under the fair value option election

The following table presents the changes in fair value included in the Consolidated statements of income for the three and nine months ended September 30, 2024 and 2023, for items for which the fair value option was elected. The profit and loss information presented below only includes the financial instruments that were elected to be measured at fair value; related risk management instruments, which are required to be measured at fair value, are not included in the table.


	Three months ended September 30,
	2024							2023
(in millions)	Principal transactions		All other income			Total changes in fair value recorded (e)		Principal transactions		All other income			Total changes in fair value recorded (e)
Federal funds sold and securities purchased under resale agreements	$	219	$	—		$	219	$	146	$	—		$	146
Securities borrowed	95		—			95		29		—			29
Trading assets:
Debt and equity instruments, excluding loans	1,576		—			1,576		200		—			200
Loans reported as trading assets:
Changes in instrument-specific credit risk	75		—			75		17		—			17
Other changes in fair value	( 1 )		3		(c)	2		4		—			4
Loans:
Changes in instrument-specific credit risk	238		—			238		31		4		(c)	35
Other changes in fair value	190		284		(c)	474		( 74 )		( 78 )		(c)	( 152 )
Other assets	75		—			75		32		( 1 )		(d)	31
Deposits (a)	( 1,209 )		—			( 1,209 )		( 454 )		—			( 454 )
Federal funds purchased and securities loaned or sold under repurchase agreements	( 57 )		—			( 57 )		( 17 )		—			( 17 )
Short-term borrowings (a)	( 301 )		—			( 301 )		( 130 )		—			( 130 )
Trading liabilities	3		—			3		4		—			4
Beneficial interests issued by consolidated VIEs	—		—			—		—		—			—
Other liabilities	( 4 )		—			( 4 )		( 2 )		—			( 2 )
Long-term debt (a)(b)	( 3,308 )		2		(c)(d)	( 3,306 )		2,606		( 14 )		(c)(d)	2,592

111


	Nine months ended September 30,
	2024							2023
(in millions)	Principal transactions		All other income			Total changes in fair value recorded (e)		Principal transactions		All other income			Total changes in fair value recorded (e)
Federal funds sold and securities purchased under resale agreements	$	268	$	—		$	268	$	366	$	—		$	366
Securities borrowed	309		—			309		57		—			57
Trading assets:
Debt and equity instruments, excluding loans	4,385		—			4,385		2,955		—			2,955
Loans reported as trading assets:
Changes in instrument-specific credit risk	273		—			273		248		—			248
Other changes in fair value	18		4		(c)	22		9		2		(c)	11
Loans:
Changes in instrument-specific credit risk	508		( 5 )		(c)	503		102		—			102
Other changes in fair value	172		439		(c)	611		45		26		(c)	71
Other assets	93		—			93		46		( 2 )		(d)	44
Deposits (a)	( 3,167 )		—			( 3,167 )		( 1,322 )		—			( 1,322 )
Federal funds purchased and securities loaned or sold under repurchase agreements	( 47 )		—			( 47 )		( 86 )		—			( 86 )
Short-term borrowings (a)	( 751 )		—			( 751 )		( 399 )		—			( 399 )
Trading liabilities	1		—			1		( 26 )		—			( 26 )
Beneficial interests issued by consolidated VIEs	—		—			—		—		—			—
Other liabilities	( 6 )		—			( 6 )		( 3 )		—			( 3 )
Long-term debt (a)(b)	( 4,244 )		( 8 )		(c)(d)	( 4,252 )		( 855 )		( 42 )		(c)(d)	( 897 )

(a) Unrealized gains/(losses) due to instrument-specific credit risk (DVA) for liabilities for which the fair value option has been elected are recorded in OCI, while realized gains/(losses) are recorded in principal transactions revenue. Realized gains/(losses) due to instrument-specific credit risk recorded in principal transactions revenue were not material both for the three and nine months ended September 30, 2024 and 2023.

(b) Long-term debt measured at fair value predominantly relates to structured notes. Although the risk associated with the structured notes is actively managed, the gains/(losses) reported in this table do not include the income statement impact of the risk management instruments used to manage such risk.

(d) Reported in other income.

(e) Changes in fair value exclude contractual interest, which is included in interest income and interest expense for all instruments other than certain hybrid financial instruments in CIB. Refer to Note 6 for further information regarding interest income and interest expense.

112

Difference between aggregate fair value and aggregate remaining contractual principal balance outstanding

The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of September 30, 2024 and December 31, 2023, for loans, long-term debt and long-term beneficial interests for which the fair value option has been elected.


	September 30, 2024							December 31, 2023
(in millions)	Contractual principal outstanding			Fair value		Fair value over/(under) contractual principal outstanding		Contractual principal outstanding			Fair value		Fair value over/(under) contractual principal outstanding
Loans
Nonaccrual loans
Loans reported as trading assets	$	3,521		$	471	$	( 3,050 )	$	2,987		$	588	$	( 2,399 )
Loans	1,267			1,072		( 195 )		838			732		( 106 )
Subtotal	4,788			1,543		( 3,245 )		3,825			1,320		( 2,505 )
90 or more days past due and government guaranteed
Loans (a)	42			38		( 4 )		65			59		( 6 )
All other performing loans (b)
Loans reported as trading assets	10,522			9,551		( 971 )		9,547			7,968		( 1,579 )
Loans	41,577			41,027		( 550 )		38,948			38,060		( 888 )
Subtotal	52,099			50,578		( 1,521 )		48,495			46,028		( 2,467 )
Total loans	$	56,929		$	52,159	$	( 4,770 )	$	52,385		$	47,407	$	( 4,978 )
Long-term debt
Principal-protected debt	$	56,592	(d)	$	48,246	$	( 8,346 )	$	47,768	(d)	$	38,882	$	( 8,886 )
Nonprincipal-protected debt (c)	NA			53,883		NA		NA			49,042		NA
Total long-term debt	NA			$	102,129	NA		NA			$	87,924	NA
Long-term beneficial interests
Nonprincipal-protected debt (c)	NA			$	1	NA		NA			$	1	NA
Total long-term beneficial interests	NA			$	1	NA		NA			$	1	NA

(a) These balances are excluded from nonaccrual loans as the loans are insured and/or guaranteed by U.S. government agencies.

(b) There were no performing loans that were ninety days or more past due as of September 30, 2024 and December 31, 2023.

(c) Remaining contractual principal is not applicable to nonprincipal-protected structured notes and long-term beneficial interests. Unlike principal-protected structured notes and long-term beneficial interests, for which the Firm is obligated to return a stated amount of principal at maturity, nonprincipal-protected structured notes and long-term beneficial interests do not obligate the Firm to return a stated amount of principal at maturity, but for structured notes to return an amount based on the performance of an underlying variable or derivative feature embedded in the note. However, investors are exposed to the credit risk of the Firm as issuer for both nonprincipal-protected and principal-protected notes.

(d) Where the Firm issues principal-protected zero-coupon or discount notes, the balance reflects the contractual principal payment at maturity or, if applicable, the contractual principal payment at the Firm’s next call date.

At September 30, 2024 and December 31, 2023, the contractual amount of lending-related commitments for which the fair value option was elected was $ 10.2 billion and $ 9.7 billion, respectively, with a corresponding fair value of $ 37 million and $ 97 million, respectively. Refer to Note 28 of JPMorgan Chase’s 2023 Form 10-K, and Note 22 of this Form 10-Q for further information regarding off-balance sheet lending-related financial instruments.

113

Structured note products by balance sheet classification and risk component

The following table presents the fair value of structured notes, by balance sheet classification and the primary risk type.


	September 30, 2024									December 31, 2023
(in millions)	Long-term debt		Short-term borrowings		Deposits			Total		Long-term debt		Short-term borrowings		Deposits			Total
Risk exposure
Interest rate	$	47,231	$	844	$	47,593		$	95,668	$	38,604	$	654	$	74,526		$	113,784
Credit	5,726		987		—			6,713		5,444		350		—			5,794
Foreign exchange	2,504		917		341			3,762		2,605		941		187			3,733
Equity	44,632		8,038		3,064			55,734		38,685		5,483		2,905			47,073
Commodity	1,421		64		1		(a)	1,486		1,862		11		1		(a)	1,874
Total structured notes	$	101,514	$	10,850	$	50,999		$	163,363	$	87,200	$	7,439	$	77,619		$	172,258

(a) Excludes deposits linked to precious metals for which the fair value option has not been elected of $ 859 million and $ 627 million for the periods ended September 30, 2024 and December 31, 2023, respectively.

114

Note 4 – Derivative instruments

JPMorgan Chase makes markets in derivatives for clients and also uses derivatives to hedge or manage its own risk exposures. Refer to Note 5 of JPMorgan Chase’s 2023 Form 10-K for a further discussion of the Firm’s use of and accounting policies regarding derivative instruments.

The Firm’s disclosures are based on the accounting treatment and purpose of these derivatives. A limited number of the Firm’s derivatives are designated in hedge

accounting relationships and are disclosed according to the type of hedge (fair value hedge, cash flow hedge, or net investment hedge). Derivatives not designated in hedge accounting relationships include certain derivatives that are used to manage risks associated with specified assets and liabilities (“specified risk management” positions) as well as derivatives used in the Firm’s market-making businesses or for other purposes.

The following table outlines the Firm’s primary uses of derivatives and the related hedge accounting designation or disclosure category.

Type of Derivative

Use of Derivative

Designation and disclosure

Affected
segment or unit

10-Q page reference

Manage specifically identified risk exposures in qualifying hedge accounting relationships:

• Interest rate

Hedge fixed rate assets and liabilities

Fair value hedge

Corporate

121-122

• Interest rate

Hedge floating-rate assets and liabilities

Cash flow hedge

Corporate

123

• Foreign exchange

Hedge foreign currency-denominated assets and liabilities

Fair value hedge

Corporate

121-122

• Foreign exchange

Hedge foreign currency-denominated forecasted revenue and expense

Cash flow hedge

Corporate

123

• Foreign exchange

Hedge the value of the Firm’s investments in non-U.S. dollar functional currency entities

Net investment hedge

Corporate

124

• Commodity

Hedge commodity inventory

Fair value hedge

CIB, AWM

121-122

Manage specifically identified risk exposures not designated in qualifying hedge accounting relationships:

• Interest rate

Manage the risk associated with mortgage commitments, warehouse loans and MSRs

Specified risk management

CCB

125

• Credit

Manage the credit risk associated with wholesale lending exposures

Specified risk management

CIB, AWM

125

• Interest rate and foreign exchange

Manage the risk associated with certain other specified assets and liabilities

Specified risk management

Corporate, CIB

125

Market-making derivatives and other activities:

• Various

Market-making and related risk management

Market-making and other

CIB

125

• Various

Other derivatives

Market-making and other

CIB, AWM, Corporate

125

115

Notional amount of derivative contracts

The following table summarizes the notional amount of free-standing derivative contracts outstanding as of September 30, 2024 and December 31, 2023.


	Notional amounts (b)
(in billions)	September 30, 2024		December 31, 2023
Interest rate contracts
Swaps	$	27,623	$	23,251
Futures and forwards	4,439		2,690
Written options	3,439		3,370
Purchased options	3,455		3,362
Total interest rate contracts	38,956		32,673
Credit derivatives (a)	1,523		1,045
Foreign exchange contracts
Cross-currency swaps	5,002		4,721
Spot, futures and forwards	9,495		6,957
Written options	1,047		830
Purchased options	1,027		798
Total foreign exchange contracts	16,571		13,306
Equity contracts
Swaps	856		639
Futures and forwards	187		157
Written options	1,016		778
Purchased options	888		698
Total equity contracts	2,947		2,272
Commodity contracts
Swaps	134		115
Spot, futures and forwards	211		157
Written options	159		130
Purchased options	135		115
Total commodity contracts	639		517
Total derivative notional amounts	$	60,636	$	49,813

(a) Refer to the Credit derivatives discussion on page 126 for more information on volumes and types of credit derivative contracts.

(b) Represents the sum of gross long and gross short third-party notional derivative contracts.

While the notional amounts disclosed above give an indication of the volume of the Firm’s derivatives activity, the notional amounts significantly exceed, in the Firm’s view, the possible losses that could arise from such transactions. For most derivative contracts, the notional amount is not exchanged; it is simply a reference amount used to calculate payments.

116

Impact of derivatives on the Consolidated balance sheets

The following table summarizes information on derivative receivables and payables (before and after netting adjustments) that are reflected on the Firm’s Consolidated balance sheets as of September 30, 2024 and December 31, 2023, by accounting designation (e.g., whether the derivatives were designated in qualifying hedge accounting relationships or not) and contract type.


Free-standing derivative receivables and payables (a)
	Gross derivative receivables								Gross derivative payables
September 30, 2024 (in millions)	Not designated as hedges		Designated as hedges		Total derivative receivables		Net derivative receivables (b)		Not designated as hedges		Designated as hedges		Total derivative payables		Net derivative payables (b)
Trading assets and liabilities
Interest rate	$	306,252	$	—	$	306,252	$	24,134	$	288,844	$	1	$	288,845	$	8,608
Credit	10,522		—		10,522		609		13,973		—		13,973		1,726
Foreign exchange	195,917		556		196,473		16,989		198,116		1,880		199,996		12,648
Equity	98,845		—		98,845		5,351		111,659		—		111,659		10,610
Commodity	21,619		25		21,644		5,478		19,327		85		19,412		5,073
Total fair value of trading assets and liabilities	$	633,155	$	581	$	633,736	$	52,561	$	631,919	$	1,966	$	633,885	$	38,665

	Gross derivative receivables								Gross derivative payables
December 31, 2023 (in millions)	Not designated as hedges		Designated as hedges		Total derivative receivables		Net derivative receivables (b)		Not designated as hedges		Designated as hedges		Total derivative payables		Net derivative payables (b)
Trading assets and liabilities
Interest rate	$	250,689	$	2	$	250,691	$	26,324	$	240,482	$	—	$	240,482	$	11,896
Credit	9,654		—		9,654		551		12,038		—		12,038		1,089
Foreign exchange	205,010		765		205,775		18,019		210,623		1,640		212,263		12,620
Equity	57,689		—		57,689		4,928		65,811		—		65,811		9,368
Commodity	15,228		211		15,439		5,042		16,286		92		16,378		5,874
Total fair value of trading assets and liabilities	$	538,270	$	978	$	539,248	$	54,864	$	545,240	$	1,732	$	546,972	$	40,847

(a) Balances exclude structured notes for which the fair value option has been elected. Refer to Note 3 for further information.

(b) As permitted under U.S. GAAP, the Firm has elected to net derivative receivables and derivative payables and the related cash collateral receivables and payables when a legally enforceable master netting agreement exists.

117

Derivatives netting

The following tables present, as of September 30, 2024 and December 31, 2023, gross and net derivative receivables and payables by contract and settlement type. Derivative receivables and payables, as well as the related cash collateral from the same counterparty, have been netted on the Consolidated balance sheets where the Firm has obtained an appropriate legal opinion with respect to the master netting agreement. Where such a legal opinion has not been either sought or obtained, amounts are not eligible for netting on the Consolidated balance sheets, and those derivative receivables and payables are shown separately in the tables below.

In addition to the cash collateral received and transferred that is presented on a net basis with derivative receivables and payables, the Firm receives and transfers additional collateral (financial instruments and cash). These amounts mitigate counterparty credit risk associated with the Firm’s derivative instruments, but are not eligible for net presentation:

• collateral that consists of liquid securities and other cash collateral held at third-party custodians, which are shown separately as “Collateral not nettable on the Consolidated balance sheets” in the tables below, up to the fair value exposure amount. For the purpose of this disclosure, the definition of liquid securities is consistent with the definition of high quality liquid assets as defined in the LCR rule;

• the amount of collateral held or transferred that exceeds the fair value exposure at the individual counterparty level, as of the date presented, which is excluded from the tables below; and

• collateral held or transferred that relates to derivative receivables or payables where an appropriate legal opinion has not been either sought or obtained with respect to the master netting agreement, which is excluded from the tables below.


	September 30, 2024							December 31, 2023
(in millions)	Gross derivative receivables		Amounts netted on the Consolidated balance sheets		Net derivative receivables			Gross derivative receivables		Amounts netted on the Consolidated balance sheets		Net derivative receivables
U.S. GAAP nettable derivative receivables
Interest rate contracts:
Over-the-counter (“OTC”)	$	166,047	$	( 143,724 )	$	22,323		$	176,901	$	( 152,703 )	$	24,198
OTC–cleared	138,294		( 138,158 )		136			71,419		( 71,275 )		144
Exchange-traded (a)	241		( 236 )		5			402		( 389 )		13
Total interest rate contracts	304,582		( 282,118 )		22,464			248,722		( 224,367 )		24,355
Credit contracts:
OTC	7,735		( 7,393 )		342			7,637		( 7,226 )		411
OTC–cleared	2,684		( 2,520 )		164			1,904		( 1,877 )		27
Total credit contracts	10,419		( 9,913 )		506			9,541		( 9,103 )		438
Foreign exchange contracts:
OTC	194,493		( 179,201 )		15,292			203,624		( 187,295 )		16,329
OTC–cleared	314		( 283 )		31			469		( 459 )		10
Exchange-traded (a)	21		—		21			6		( 2 )		4
Total foreign exchange contracts	194,828		( 179,484 )		15,344			204,099		( 187,756 )		16,343
Equity contracts:
OTC	38,268		( 35,837 )		2,431			25,001		( 23,677 )		1,324
Exchange-traded (a)	59,463		( 57,657 )		1,806			30,462		( 29,084 )		1,378
Total equity contracts	97,731		( 93,494 )		4,237			55,463		( 52,761 )		2,702
Commodity contracts:
OTC	11,045		( 8,206 )		2,839			8,049		( 5,084 )		2,965
OTC–cleared	106		( 80 )		26			133		( 123 )		10
Exchange-traded (a)	8,296		( 7,880 )		416			5,214		( 5,190 )		24
Total commodity contracts	19,447		( 16,166 )		3,281			13,396		( 10,397 )		2,999
Derivative receivables with appropriate legal opinion	627,007		( 581,175 )		45,832		(d)	531,221		( 484,384 )		46,837		(d)
Derivative receivables where an appropriate legal opinion has not been either sought or obtained	6,729				6,729			8,027				8,027
Total derivative receivables recognized on the Consolidated balance sheets	$	633,736			$	52,561		$	539,248			$	54,864
Collateral not nettable on the Consolidated balance sheets (b)(c)					( 23,082 )							( 22,461 )
Net amounts					$	29,479						$	32,403

118


	September 30, 2024							December 31, 2023
(in millions)	Gross derivative payables		Amounts netted on the Consolidated balance sheets		Net derivative payables			Gross derivative payables		Amounts netted on the Consolidated balance sheets		Net derivative payables
U.S. GAAP nettable derivative payables
Interest rate contracts:
OTC	$	144,408	$	( 137,394 )	$	7,014		$	161,901	$	( 152,467 )	$	9,434
OTC–cleared	142,941		( 142,409 )		532			76,007		( 75,729 )		278
Exchange-traded (a)	436		( 434 )		2			436		( 390 )		46
Total interest rate contracts	287,785		( 280,237 )		7,548			238,344		( 228,586 )		9,758
Credit contracts:
OTC	11,419		( 10,083 )		1,336			10,332		( 9,313 )		1,019
OTC–cleared	2,334		( 2,164 )		170			1,639		( 1,636 )		3
Total credit contracts	13,753		( 12,247 )		1,506			11,971		( 10,949 )		1,022
Foreign exchange contracts:
OTC	197,375		( 187,064 )		10,311			209,386		( 199,173 )		10,213
OTC–cleared	306		( 284 )		22			552		( 470 )		82
Exchange-traded (a)	17		—		17			6		—		6
Total foreign exchange contracts	197,698		( 187,348 )		10,350			209,944		( 199,643 )		10,301
Equity contracts:
OTC	51,106		( 43,393 )		7,713			29,999		( 27,360 )		2,639
Exchange-traded (a)	58,200		( 57,656 )		544			33,137		( 29,083 )		4,054
Total equity contracts	109,306		( 101,049 )		8,257			63,136		( 56,443 )		6,693
Commodity contracts:
OTC	9,066		( 6,577 )		2,489			8,788		( 5,192 )		3,596
OTC–cleared	80		( 80 )		—			120		( 120 )		—
Exchange-traded (a)	7,682		( 7,682 )		—			5,376		( 5,192 )		184
Total commodity contracts	16,828		( 14,339 )		2,489			14,284		( 10,504 )		3,780
Derivative payables with appropriate legal opinion	625,370		( 595,220 )		30,150		(d)	537,679		( 506,125 )		31,554		(d)
Derivative payables where an appropriate legal opinion has not been either sought or obtained	8,515				8,515			9,293				9,293
Total derivative payables recognized on the Consolidated balance sheets	$	633,885			$	38,665		$	546,972			$	40,847
Collateral not nettable on the Consolidated balance sheets (b)(c)					( 9,522 )							( 4,547 )
Net amounts					$	29,143						$	36,300

(a) Exchange-traded derivative balances that relate to futures contracts are settled daily.

(b) Includes liquid securities and other cash collateral held at third-party custodians related to derivative instruments where an appropriate legal opinion has been obtained. For some counterparties, the collateral amounts of financial instruments may exceed the derivative receivables and derivative payables balances. Where this is the case, the total amount reported is limited to the net derivative receivables and net derivative payables balances with that counterparty.

(d) Net derivatives receivable included cash collateral netted of $ 44.7 billion and $ 48.3 billion at September 30, 2024 and December 31, 2023. Net derivatives payable included cash collateral netted of $ 58.8 billion and $ 70.0 billion at September 30, 2024 and December 31, 2023, respectively. Derivative cash collateral relates to OTC and OTC-cleared derivative instruments.

119

Liquidity risk and credit-related contingent features

Refer to Note 5 of JPMorgan Chase’s 2023 Form 10-K for a more detailed discussion of liquidity risk and credit-related contingent features related to the Firm’s derivative contracts.

The following table shows the aggregate fair value of net derivative payables related to OTC and OTC-cleared derivatives that contain contingent collateral or termination features that may be triggered upon a ratings downgrade, and the associated collateral the Firm has posted in the normal course of business, at September 30, 2024 and December 31, 2023.


OTC and OTC-cleared derivative payables containing downgrade triggers
(in millions)	September 30, 2024			December 31, 2023
Aggregate fair value of net derivative payables		$	15,954		$	14,655
Collateral posted		15,871			14,673

The following table shows the impact of a single-notch and two-notch downgrade of the long-term issuer ratings of JPMorgan Chase & Co. and its subsidiaries, predominantly JPMorgan Chase Bank, N.A., at September 30, 2024 and December 31, 2023, related to OTC and OTC-cleared derivative contracts with contingent collateral or termination features that may be triggered upon a ratings downgrade. Derivatives contracts generally require additional collateral to be posted or terminations to be triggered when the predefined rating threshold is breached. A downgrade by a single rating agency that does not result in a rating lower than a preexisting corresponding rating provided by another major rating agency will generally not result in additional collateral (except in certain instances in which additional initial margin may be required upon a ratings downgrade), nor in termination payment requirements. The liquidity impact in the table is calculated based upon a downgrade below the lowest current rating of the rating agencies referred to in the derivative contract.


Liquidity impact of downgrade triggers on OTC and OTC-cleared derivatives
	September 30, 2024				December 31, 2023
(in millions)	Single-notch downgrade		Two-notch downgrade		Single-notch downgrade		Two-notch downgrade
Amount of additional collateral to be posted upon downgrade (a)	$	65	$	1,056	$	75	$	1,153
Amount required to settle contracts with termination triggers upon downgrade (b)	85		576		93		592

(a) Includes the additional collateral to be posted for initial margin.

(b) Amounts represent fair values of derivative payables, and do not reflect collateral posted.

Derivatives executed in contemplation of a sale of the underlying financial asset

In certain instances the Firm enters into transactions in which it transfers financial assets but maintains the economic exposure to the transferred assets by entering into a derivative with the same counterparty in contemplation of the initial transfer. The Firm generally accounts for such transfers as collateralized financing transactions as described in Note 10, but in limited circumstances they may qualify to be accounted for as a sale and a derivative under U.S. GAAP. The amount of such transfers accounted for as a sale where the associated derivative was outstanding was not material at September 30, 2024 and December 31, 2023.

120

Impact of derivatives on the Consolidated statements of income

The following tables provide information related to gains and losses recorded on derivatives based on their hedge accounting designation or purpose.

Fair value hedge gains and losses

The following tables present derivative instruments, by contract type, used in fair value hedge accounting relationships, as well as pre-tax gains/(losses) recorded on such derivatives and the related hedged items for the three and nine months ended September 30, 2024 and 2023, respectively. The Firm includes gains/(losses) on the hedging derivative in the same line item in the Consolidated statements of income as the related hedged item.


	Gains/(losses) recorded in income						Income statement impact of excluded components (e)				OCI impact
Three months ended September 30, 2024 (in millions)	Derivatives		Hedged items		Income statement impact		Amortization approach		Changes in fair value		Derivatives - Gains/(losses) recorded in OCI (f)
Contract type
Interest rate (a)(b)	$	353	$	( 91 )	$	262	$	—	$	195	$	—
Foreign exchange (c)	( 668 )		744		76		( 147 )		76		( 27 )
Commodity (d)	( 37 )		84		47		—		47		—
Total	$	( 352 )	$	737	$	385	$	( 147 )	$	318	$	( 27 )


	Gains/(losses) recorded in income						Income statement impact of excluded components (e)				OCI impact
Three months ended September 30, 2023 (in millions)	Derivatives		Hedged items		Income statement impact		Amortization approach		Changes in fair value		Derivatives - Gains/(losses) recorded in OCI (f)
Contract type
Interest rate (a)(b)	$	620	$	( 577 )	$	43	$	—	$	61	$	—
Foreign exchange (c)	( 18 )		71		53		( 145 )		53		( 7 )
Commodity (d)	938		( 799 )		139		—		145		—
Total	$	1,540	$	( 1,305 )	$	235	$	( 145 )	$	259	$	( 7 )


	Gains/(losses) recorded in income						Income statement impact of excluded components (e)				OCI impact
Nine months ended September 30, 2024 (in millions)	Derivatives		Hedged items		Income statement impact		Amortization approach		Changes in fair value		Derivatives - Gains/(losses) recorded in OCI (f)
Contract type
Interest rate (a)(b)	$	831	$	( 353 )	$	478	$	—	$	428	$	—
Foreign exchange (c)	( 863 )		1,044		181		( 394 )		181		( 43 )
Commodity (d)	165		( 63 )		102		—		99		—
Total	$	133	$	628	$	761	$	( 394 )	$	708	$	( 43 )


	Gains/(losses) recorded in income						Income statement impact of excluded components (e)				OCI impact
Nine months ended September 30, 2023 (in millions)	Derivatives		Hedged items		Income statement impact		Amortization approach		Changes in fair value		Derivatives - Gains/(losses) recorded in OCI (f)
Contract type
Interest rate (a)(b)	$	1,641	$	( 1,516 )	$	125	$	—	$	75	$	—
Foreign exchange (c)	394		( 211 )		183		( 474 )		183		( 20 )
Commodity (d)	( 180 )		536		356		—		362		—
Total	$	1,855	$	( 1,191 )	$	664	$	( 474 )	$	620	$	( 20 )

(a) Primarily consists of hedges of the benchmark (e.g., Secured Overnight Financing Rate (“SOFR”)) interest rate risk of fixed-rate long-term debt and AFS securities. Gains and losses were recorded in net interest income.

(b) Includes the amortization of income/expense associated with the inception hedge accounting adjustment applied to the hedged item. Excludes the accrual of interest on interest rate swaps and the related hedged items.

(c) Primarily consists of hedges of the foreign currency risk of long-term debt and AFS securities for changes in spot foreign currency rates. Gains and losses related to the derivatives and the hedged items due to changes in foreign currency rates and the income statement impact of excluded components were recorded primarily in principal transactions revenue and net interest income.

(d) Consists of overall fair value hedges of physical commodities inventories that are generally carried at the lower of cost or net realizable value (net realizable value approximates fair value). Gains and losses were recorded in principal transactions revenue.

(e) The assessment of hedge effectiveness excludes certain components of the changes in fair values of the derivatives and hedged items such as forward points on foreign exchange forward contracts, time values and cross-currency basis spreads. Excluded components may impact earnings either through amortization of the initial amount over the life of the derivative, or through fair value changes recognized in the current period.

(f) Represents the change in value of amounts excluded from the assessment of effectiveness under the amortization approach, predominantly cross-currency basis spreads. The amount excluded at inception of the hedge is recognized in earnings over the life of the derivative.

121

As of September 30, 2024 and December 31, 2023, the following amounts were recorded on the Consolidated balance sheets related to certain cumulative fair value hedge basis adjustments that are expected to reverse through the income statement in future periods as an adjustment to yield.


	Carrying amount of the hedged items (a)(b)			Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items:
September 30, 2024 (in millions)				Active hedging relationships (d)		Discontinued hedging relationships (d)(e)		Total
Assets
Investment securities - AFS	$	179,277	(c)	$	3,001	$	( 1,815 )	$	1,186
Liabilities
Long-term debt	215,891			1,204		( 9,493 )		( 8,289 )
Beneficial interests issued by consolidated VIEs	2,363			20		( 6 )		14

	Carrying amount of the hedged items (a)(b)			Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items:
December 31, 2023 (in millions)				Active hedging relationships (d)		Discontinued hedging relationships (d)(e)		Total
Assets
Investment securities - AFS	$	151,752	(c)	$	549	$	( 2,010 )	$	( 1,461 )
Liabilities
Long-term debt	195,455			( 2,042 )		( 9,727 )		( 11,769 )
Beneficial interests issued by consolidated VIEs	—			—		—		—

(a) Excludes physical commodities with a carrying value of $ 3.1 billion and $ 5.6 billion at September 30, 2024 and December 31, 2023, respectively, to which the Firm applies fair value hedge accounting. As a result of the application of hedge accounting, these inventories are carried at fair value, thus recognizing unrealized gains and losses in current periods. Since the Firm exits these positions at fair value, there is no incremental impact to net income in future periods.

(b) Excludes hedged items where only foreign currency risk is the designated hedged risk, as basis adjustments related to foreign currency hedges will not reverse through the income statement in future periods. At September 30, 2024 and December 31, 2023, the carrying amount excluded for AFS securities was $ 34.5 billion and $ 19.3 billion, respectively. At September 30, 2024 and December 31, 2023, the carrying amount excluded for long-term debt was $ 556 million and zero , respectively.

(c) Carrying amount represents the amortized cost, net of allowance if applicable. At September 30, 2024 and December 31, 2023, the amortized cost of the portfolio layer method closed portfolios was $ 61.3 billion and $ 83.9 billion, of which $ 56.2 billion and $ 68.0 billion was designated as hedged, respectively. The amount designated as hedged is the sum of the notional amounts of all outstanding layers in each portfolio, which includes both spot starting and forward starting layers. At September 30, 2024 and December 31, 2023, the cumulative amount of basis adjustments was $ 328 million and $( 165 ) million, which is comprised of $ 694 million and $ 73 million for active hedging relationships, and $( 366 ) million and $( 238 ) million for discontinued hedging relationships, respectively. Refer to Note 9 for additional information.

(d) Positive (negative) amounts related to assets represent cumulative fair value hedge basis adjustments that will reduce (increase) net interest income in future periods. Positive (negative) amounts related to liabilities represent cumulative fair value hedge basis adjustments that will increase (reduce) net interest income in future periods.

(e) Represents basis adjustments existing on the balance sheet date associated with hedged items that have been de-designated from qualifying fair value hedging relationships.

122

Cash flow hedge gains and losses

The following tables present derivative instruments, by contract type, used in cash flow hedge accounting relationships, and the pre-tax gains/(losses) recorded on such derivatives, for the three and nine months ended September 30, 2024 and 2023, respectively. The Firm includes the gains/(losses) on the hedging derivative in the same line item in the Consolidated statements of income as the change in cash flows on the related hedged item.


	Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)
Three months ended September 30, 2024 (in millions)	Amounts reclassified from AOCI to income		Amounts recorded in OCI		Total change in OCI for period
Contract type
Interest rate (a)	$	( 716 )	$	2,071	$	2,787
Foreign exchange (b)	43		242		199
Total	$	( 673 )	$	2,313	$	2,986

	Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)
Three months ended September 30, 2023 (in millions)	Amounts reclassified from AOCI to income		Amounts recorded in OCI		Total change in OCI for period
Contract type
Interest rate (a)	$	( 514 )	$	( 1,087 )	$	( 573 )
Foreign exchange (b)	71		( 122 )		( 193 )
Total	$	( 443 )	$	( 1,209 )	$	( 766 )

	Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)
Nine months ended September 30, 2024 (in millions)	Amounts reclassified from AOCI to income		Amounts recorded in OCI		Total change in OCI for period
Contract type
Interest rate (a)	$	( 1,998 )	$	( 330 )	$	1,668
Foreign exchange (b)	81		198		117
Total	$	( 1,917 )	$	( 132 )	$	1,785

	Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)
Nine months ended September 30, 2023 (in millions)	Amounts reclassified from AOCI to income		Amounts recorded in OCI		Total change in OCI for period
Contract type
Interest rate (a)	$	( 1,416 )	$	( 1,825 )	$	( 409 )
Foreign exchange (b)	25		64		39
Total	$	( 1,391 )	$	( 1,761 )	$	( 370 )

(a) Primarily consists of hedges of SOFR-indexed floating-rate assets. Gains and losses were recorded in net interest income.

(b) Primarily consists of hedges of the foreign currency risk of non-U.S. dollar-denominated revenue and expense. The income statement classification of gains and losses follows the hedged item – primarily noninterest revenue and compensation expense.

The Firm did not experience any forecasted transactions that failed to occur for the three and nine months ended September 30, 2024 and 2023.

Over the next 12 months, the Firm expects that approximately $( 1.2 ) billion (after-tax) of net losses recorded in AOCI at September 30, 2024, related to cash flow hedges will be recognized in income. For cash flow hedges that have been terminated, the maximum length of time over which the derivative results recorded in AOCI will be recognized in earnings is approximately six years , corresponding to the timing of the originally hedged forecasted cash flows. For open cash flow hedges, the maximum length of time over which forecasted transactions are hedged is approximately seven years . The Firm’s longer-dated forecasted transactions relate to core lending and borrowing activities.

123

Net investment hedge gains and losses

The following table presents hedging instruments, by contract type, that were used in net investment hedge accounting relationships, and the pre-tax gains/(losses) recorded on such instruments for the three and nine months ended September 30, 2024 and 2023.


	Gains/(losses) recorded in income and other comprehensive income/(loss)
	2024					2023
Three months ended September 30, (in millions)	Amounts recorded in income (a)(b)			Amounts recorded in OCI		Amounts recorded in income (a)(b)			Amounts recorded in OCI
Foreign exchange derivatives		$	151	$	( 2,487 )		$	26	$	1,650

	Gains/(losses) recorded in income and other comprehensive income/(loss)
	2024					2023
Nine months ended September 30, (in millions)	Amounts recorded in income (a)(b)			Amounts recorded in OCI		Amounts recorded in income (a)(b)			Amounts recorded in OCI
Foreign exchange derivatives		$	344	$	( 83 )		$	231	$	558

(a) Certain components of hedging derivatives are permitted to be excluded from the assessment of hedge effectiveness, such as forward points on foreign exchange forward contracts. The Firm elects to record changes in fair value of these amounts directly in other income.

(b) Excludes amounts reclassified from AOCI to income associated with net investment hedges. The Firm reclassified a net pre-tax gain of $ 36 million and $ 46 million to other income/expense during the three and nine months ended September 30, 2024, respectively. During the nine months ended September 30, 2023, the Firm reclassified a pre-tax loss of $( 38 ) million to other income/expense predominantly related to the acquisition of CIFM. The amounts reclassified for the three months ended September 30, 2023 were no t material. Refer to Note 19 for further information.

124

Gains and losses on derivatives used for specified risk management purposes

The following table presents pre-tax gains/(losses) recorded on a limited number of derivatives, not designated in hedge accounting relationships, that are used to manage risks associated with certain specified assets and liabilities, including certain risks arising from mortgage commitments, warehouse loans, MSRs, wholesale lending exposures, and foreign currency-denominated assets and liabilities.


	Derivatives gains/(losses) recorded in income
	Three months ended September 30,				Nine months ended September 30,
(in millions)	2024		2023		2024		2023
Contract type
Interest rate (a)	$	122	$	( 259 )	$	( 123 )	$	( 385 )
Credit (b)	( 143 )		( 39 )		( 424 )		( 202 )
Foreign exchange (c)	4		( 22 )		32		21
Total	$	( 17 )	$	( 320 )	$	( 515 )	$	( 566 )

(a) Primarily represents interest rate derivatives used to hedge the interest rate risk inherent in mortgage commitments, warehouse loans and MSRs, as well as written commitments to originate warehouse loans. Gains and losses were recorded predominantly in mortgage fees and related income.

(b) Relates to credit derivatives used to mitigate credit risk associated with lending exposures in the Firm’s wholesale businesses. These derivatives do not include credit derivatives used to mitigate counterparty credit risk arising from derivative receivables, which is included in gains and losses on derivatives related to market-making activities and other derivatives. Gains and losses were recorded in principal transactions revenue.

(c) Primarily relates to derivatives used to mitigate foreign exchange risk of specified foreign currency-denominated assets and liabilities. Gains and losses were recorded in principal transactions revenue.

Gains and losses on derivatives related to market-making activities and other derivatives

The Firm makes markets in derivatives in order to meet the needs of customers and uses derivatives to manage certain risks associated with net open risk positions from its market-making activities, including the counterparty credit risk arising from derivative receivables. All derivatives not included in the hedge accounting or specified risk management categories above are included in this category. Gains and losses on these derivatives are primarily recorded in principal transactions revenue. Refer to Note 5 for information on principal transactions revenue.

125

Credit derivatives

Refer to Note 5 of JPMorgan Chase’s 2023 Form 10-K for a more detailed discussion of credit derivatives. The following tables present a summary of the notional amounts of credit derivatives and credit-related notes the Firm sold and purchased as of September 30, 2024 and December 31, 2023. The Firm does not use notional amounts of credit derivatives as the primary measure of risk management for such derivatives, because the notional amount does not take into account the probability of the occurrence of a credit event, the recovery value of the reference obligation, or related cash instruments and economic hedges, each of which reduces, in the Firm’s view, the risks associated with such derivatives.

Total credit derivatives and credit-related notes


	Maximum payout/Notional amount
September 30, 2024 (in millions)	Protection sold		Protection purchased with identical underlyings (c)			Net protection (sold)/purchased (d)		Other protection purchased (e)
Credit derivatives
Credit default swaps	$	( 599,707 )		$	611,107	$	11,400	$	5,328
Other credit derivatives (a)	( 133,344 )			162,202		28,858		10,972
Total credit derivatives	( 733,051 )			773,309		40,258		16,300
Credit-related notes (b)	—			—		—		11,481
Total	$	( 733,051 )		$	773,309	$	40,258	$	27,781

	Maximum payout/Notional amount
December 31, 2023 (in millions)	Protection sold		Protection purchased with identical underlyings (c)			Net protection (sold)/purchased (d)		Other protection purchased (e)
Credit derivatives
Credit default swaps	$	( 450,172 )		$	473,823	$	23,651	$	7,517
Other credit derivatives (a)	( 38,846 )			45,416		6,570		29,206
Total credit derivatives	( 489,018 )			519,239		30,221		36,723
Credit-related notes (b)	—			—		—		9,788
Total	$	( 489,018 )		$	519,239	$	30,221	$	46,511

(a) Other credit derivatives predominantly consist of credit swap options and total return swaps.

(b) Predominantly represents Other protection purchased by CIB.

(c) Represents the total notional amount of protection purchased where the underlying reference instrument is identical to the reference instrument on protection sold; the notional amount of protection purchased for each individual identical underlying reference instrument may be greater or lower than the notional amount of protection sold.

(d) Does not take into account the fair value of the reference obligation at the time of settlement, which would generally reduce the amount the seller of protection pays to the buyer of protection in determining settlement value.

(e) Represents protection purchased by the Firm on referenced instruments (single-name, portfolio or index) where the Firm has not sold any protection on the identical reference instrument. Also includes credit protection against certain loans and lending-related commitments in the retained lending portfolio through the issuance of credit derivatives and credit-related notes.

The following tables summarize the notional amounts by the ratings, maturity profile, and total fair value, of credit derivatives as of September 30, 2024 and December 31, 2023, where JPMorgan Chase is the seller of protection. The maturity profile is based on the remaining contractual maturity of the credit derivative contracts. The ratings profile is based on the rating of the reference entity on which the credit derivative contract is based. The ratings and maturity profile of credit derivatives where JPMorgan Chase is the purchaser of protection are comparable to the profile reflected below.


Protection sold — credit derivatives ratings (a) /maturity profile
September 30, 2024 (in millions)	<1 year		1–5 years		>5 years		Total notional amount		Fair value of receivables (b)		Fair value of payables (b)		Net fair value
Risk rating of reference entity
Investment-grade	$	( 180,831 )	$	( 300,486 )	$	( 101,657 )	$	( 582,974 )	$	4,886	$	( 1,709 )	$	3,177
Noninvestment-grade	( 41,966 )		( 84,700 )		( 23,411 )		( 150,077 )		2,480		( 1,211 )		1,269
Total	$	( 222,797 )	$	( 385,186 )	$	( 125,068 )	$	( 733,051 )	$	7,366	$	( 2,920 )	$	4,446


December 31, 2023 (in millions)	<1 year		1–5 years		>5 years		Total notional amount		Fair value of receivables (b)		Fair value of payables (b)		Net fair value
Risk rating of reference entity
Investment-grade	$	( 89,981 )	$	( 263,834 )	$	( 29,470 )	$	( 383,285 )	$	3,659	$	( 1,144 )	$	2,515
Noninvestment-grade	( 31,419 )		( 69,515 )		( 4,799 )		( 105,733 )		2,466		( 1,583 )		883
Total	$	( 121,400 )	$	( 333,349 )	$	( 34,269 )	$	( 489,018 )	$	6,125	$	( 2,727 )	$	3,398

(a) The ratings scale is primarily based on external credit ratings defined by S&P and Moody’s.

(b) Amounts are shown on a gross basis, before the benefit of legally enforceable master netting agreements including cash collateral netting.

126

Note 5 – Noninterest revenue and noninterest expense

Noninterest revenue

Refer to Note 6 of JPMorgan Chase’s 2023 Form 10-K for a discussion of the components of and accounting policies for the Firm’s noninterest revenue.

Investment banking fees

The following table presents the components of investment banking fees.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2024		2023		2024		2023
Underwriting
Equity	$	344	$	274	$	1,192	$	824
Debt	1,040		677		3,073		2,053
Total underwriting	1,384		951		4,265		2,877
Advisory	847		771		2,224		2,007
Total investment banking fees	$	2,231	$	1,722	$	6,489	$	4,884

Principal transactions

The following table presents all realized and unrealized gains and losses recorded in principal transactions revenue. This table excludes interest income and interest expense on trading assets and liabilities, which are an integral part of the overall performance of the Firm’s client-driven market-making activities in CIB and fund deployment activities in Treasury and CIO. Refer to Note 6 for further information on interest income and interest expense.

Trading revenue is presented primarily by instrument type. The Firm’s client-driven market-making businesses generally utilize a variety of instrument types in connection with their market-making and related risk-management activities; accordingly, the trading revenue presented in the table below is not representative of the total revenue of any individual LOB.


	Three months ended September 30,		Nine months ended September 30,
(in millions)	2024		2023		2024		2023
Trading revenue by instrument type
Interest rate (a)	$	711	$	1,383	$	2,717	$	4,950
Credit (b)	319		487		1,457		1,540
Foreign exchange	1,259		1,219		3,872		4,205
Equity	3,342		2,677		10,720		8,311
Commodity	359		450		805		1,744
Total trading revenue	5,990		6,216		19,571		20,750
Private equity gains/(losses)	( 2 )		( 6 )		21		( 15 )
Principal transactions	$	5,988	$	6,210	$	19,592	$	20,735

(a) Includes the impact of changes in funding valuation adjustments on derivatives.

(b) Includes the impact of changes in credit valuation adjustments on derivatives, net of the associated hedging activities.

Lending- and deposit-related fees

The following table presents the components of lending- and deposit-related fees.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2024		2023		2024		2023
Lending-related fees (a)	$	542	$	777	$	1,663	$	1,736
Deposit-related fees	1,382		1,262		3,991		3,751
Total lending- and deposit-related fees	$	1,924	$	2,039	$	5,654	$	5,487

(a) Includes the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic, predominantly in AWM and CIB. The discount is deferred in other liabilities and recognized on a straight-line basis over the commitment period and was largely recognized in the prior year as the commitments are generally short term. Refer to Note 26 for additional information.

Deposit-related fees include the impact of credits earned by clients that reduce such fees.

Asset management fees

The following table presents the components of asset management fees.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2024		2023		2024		2023
Asset management fees
Investment management fees	$	4,381	$	3,825	$	12,650	$	10,910
All other asset management fees	98		79		277		233
Total asset management fees	$	4,479	$	3,904	$	12,927	$	11,143

Commissions and other fees

The following table presents the components of commissions and other fees.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2024		2023		2024		2023
Commissions and other fees
Brokerage commissions and fees	$	785	$	692	$	2,336	$	2,161
Administration fees	660		589		1,874		1,721
All other commissions and fees (a)	491		424		1,455		1,257
Total commissions and other fees	$	1,936	$	1,705	$	5,665	$	5,139

(a) Includes travel-related and annuity sales commissions, depositary receipt-related service fees, as well as other service fees, which are recognized as revenue when the services are rendered.

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Card income

The following table presents the components of card income.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2024		2023		2024		2023
Interchange and merchant processing income	$	8,543	$	7,914	$	24,894	$	22,938
Rewards costs and partner payments	( 6,833 )		( 6,283 )		( 19,793 )		( 18,184 )
Other card income (a)	( 365 )		( 422 )		( 1,206 )		( 1,217 )
Total card income	$	1,345	$	1,209	$	3,895	$	3,537

(a) Predominantly represents the amortization of account origination costs and annual fees, which are deferred and recognized on a straight-line basis over a 12-month period.

Refer to Note 14 for further information on mortgage fees and related income.

Other i ncome

The following table presents certain components of other income.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2024		2023		2024			2023
Operating lease income	$	706	$	695	$	2,067		$	2,166
Losses on tax-oriented investments	( 78 )		( 316 )		( 115 )			( 1,190 )
Estimated bargain purchase gain associated with the First Republic acquisition	—		100		103			2,812

Gain related to the acquisition of CIFM (a)	—		—		—			339
Initial gain on the Visa share exchange	—		—		7,990		(b)	—

(a) Gain on the original minority interest in CIFM upon the Firm's acquisition of the remaining 51 % of the entity.

(b) Relates to the initial gain recognized on May 6, 2024. Refer to Note 2 for additional information.

Refer to Note 16 for information on operating lease income included within other income.

Proportional Amortization Method : Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance, the amortization of certain of the Firm's alternative energy tax-oriented investments that was previously recognized in other income is now being recognized in income tax expense, which aligns with the associated tax credits and other tax benefits. Refer to Notes 1 and 13 for additional information.

Noninterest expense

Other expense

Other expense on the Firm’s Consolidated statements of income includes the following:


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2024		2023		2024			2023
Legal expense	$	259	$	665	$	504		$	1,261


FDIC-related expense	312		342		1,576		(d)	997
Operating losses (a)	397		310		1,019			913
Contribution of Visa shares (b)	—		—		1,000			—
First Republic-related expense (c)	142		244		615			843

(a) Predominantly fraud losses in CCB associated with customer deposit accounts, credit and debit cards.

(b) Represents the contribution of a portion of Visa C shares to the JPMorgan Chase Foundation. Refer to Note 2 for additional information.

(c) Reflects the expenses classified within other expense, including $ 78 million and $ 394 million of restructuring and integration costs associated with First Republic in the three and nine months ended September 30, 2024, respectively. Additionally, the second quarter of 2023 Included payments to the FDIC for the First Republic individuals who were not employees of the Firm until July 2, 2023. Refer to Note 26 for additional information on the First Republic acquisition.

(d) The first quarter of 2024 included an increase of $ 725 million to the FDIC special assessment reflecting the FDIC's revised estimate of Deposit Insurance Fund losses.

128

Note 6 – Interest income and Interest expense

Refer to Note 7 of JPMorgan Chase’s 2023 Form 10-K for a description of JPMorgan Chase’s accounting policies regarding interest income and interest expense.

The following table presents the components of interest income and interest expense.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2024		2023		2024		2023
Interest income
Loans (a)	$	23,509	$	22,311	$	69,281	$	60,325
Taxable securities	5,849		4,513		15,844		12,674
Non-taxable securities (b)	298		360		923		951
Total investment securities (a)	6,147		4,873		16,767		13,625
Trading assets - debt instruments	5,613		4,164		15,198		11,823
Federal funds sold and securities purchased under resale agreements	5,226		3,951		14,262		10,849
Securities borrowed	2,478		2,085		6,821		5,667
Deposits with banks	5,366		5,270		17,811		15,278
All other interest-earning assets (c)	2,077		1,902		6,227		5,637
Total interest income	$	50,416	$	44,556	$	146,367	$	123,204
Interest expense
Interest-bearing deposits	$	12,914	$	10,796	$	37,569	$	28,024
Federal funds purchased and securities loaned or sold under repurchase agreements	5,733		3,523		14,810		9,727
Short-term borrowings	542		512		1,579		1,361
Trading liabilities – debt and all other interest-bearing liabilities (d)	2,632		2,463		7,872		6,807
Long-term debt	4,838		4,239		14,236		11,428
Beneficial interest issued by consolidated VIEs	352		297		1,068		641
Total interest expense	$	27,011	$	21,830	$	77,134	$	57,988
Net interest income	$	23,405	$	22,726	$	69,233	$	65,216
Provision for credit losses	3,111		1,384		8,047		6,558
Net interest income after provision for credit losses	$	20,294	$	21,342	$	61,186	$	58,658

(a) Includes the amortization and accretion of purchase premiums and discounts, as well as net deferred fees and costs on loans.

(b) Represents securities which are tax-exempt for U.S. federal income tax purposes.

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

(d) All other interest-bearing liabilities includes interest expense on brokerage-related customer payables.

129

Note 7 – Pension and other postretirement employee benefit plans

Refer to Note 8 of JPMorgan Chase’s 2023 Form 10-K for a discussion of JPMorgan Chase’s pension and OPEB plans.

The following table presents the net periodic benefit costs reported in the Consolidated statements of income for the Firm’s defined benefit pension, defined contribution and OPEB plans.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2024		2023			2024		2023
Total net periodic defined benefit plan cost/(credit)	$	( 114 )	$	( 104 )		$	( 342 )	$	( 292 )
Total defined contribution plans	461		403			1,292		1,165
Total pension and OPEB cost included in noninterest expense	$	347	$	299		$	950	$	873

As of September 30, 2024 and December 31, 2023, the fair values of plan assets for the Firm’s significant defined benefit pension and OPEB plans were $ 23.2 billion and $ 22.0 billion, respectively.

130

Note 8 – Employee share-based incentives

Refer to Note 9 of JPMorgan Chase’s 2023 Form 10-K for a discussion of the accounting policies and other information relating to employee share-based incentives.

The Firm recognized the following noncash compensation expense related to its various employee share-based incentive plans in its Consolidated statements of income.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2024		2023		2024		2023
Cost of prior grants of restricted stock units (“RSUs”), performance share units (“PSUs”) and stock appreciation rights (“SARs”) that are amortized over their applicable vesting periods	$	359	$	363	$	1,224	$	1,169
Accrual of estimated costs of share-based awards to be granted in future periods, predominantly those to full-career eligible employees	490		419		1,507		1,317
Total noncash compensation expense related to employee share-based incentive plans	$	849	$	782	$	2,731	$	2,486

In the first quarter of 2024, in connection with its annual incentive grant for the 2023 performance year, the Firm granted 17 million RSUs and 726 thousand PSUs with weighted-average grant date fair values of $ 164.42 per RSU and $ 165.62 per PSU.

131

Note 9 – Investment securities

Investment securities consist of debt securities that are classified as AFS or HTM. Debt securities classified as trading assets are discussed in Note 2. Predominantly all of the Firm’s AFS and HTM securities are held by Treasury and CIO in connection with its asset-liability management activities. At September 30, 2024, the investment securities portfolio consisted of debt securities with an

average credit rating of AA+ (based upon external ratings where available, and where not available, based primarily upon internal risk ratings).

Refer to Note 10 of JPMorgan Chase’s 2023 Form 10-K for additional information regarding the investment securities portfolio.

The amortized costs and estimated fair values of the investment securities portfolio were as follows for the dates indicated.


	September 30, 2024								December 31, 2023
(in millions)	Amortized cost (d)(e)		Gross unrealized gains		Gross unrealized losses		Fair value		Amortized cost (d)(e)		Gross unrealized gains		Gross unrealized losses		Fair value
Available-for-sale securities
Mortgage-backed securities:
U.S. GSEs and government agencies	$	83,081	$	1,280	$	2,498	$	81,863	$	88,377	$	870	$	4,077	$	85,170
Residential:
U.S.	3,321		33		33		3,321		2,086		10		68		2,028
Non-U.S.	733		3		—		736		1,608		4		1		1,611
Commercial	3,651		32		74		3,609		2,930		12		139		2,803
Total mortgage-backed securities	90,786		1,348		2,605		89,529		95,001		896		4,285		91,612
U.S. Treasury and government agencies	170,989		1,433		240		172,182		58,051		276		522		57,805
Obligations of U.S. states and municipalities	18,112		340		247		18,205		21,243		390		266		21,367
Non-U.S. government debt securities	42,627		229		303		42,553		21,387		254		359		21,282
Corporate debt securities	70		—		9		61		128		—		28		100
Asset-backed securities:
Collateralized loan obligations	9,655		32		5		9,682		6,769		11		28		6,752
Other	2,318		26		8		2,336		2,804		8		26		2,786
Unallocated portfolio layer fair value basis adjustments (a)	694		( 694 )		—		NA		73		( 73 )		—		NA
Total available-for-sale securities	335,251		2,714		3,417		334,548		205,456		1,762		5,514		201,704
Held-to-maturity securities (b)
Mortgage-backed securities:
U.S. GSEs and government agencies	99,328		94		9,641		89,781		105,614		39		11,643		94,010
U.S. Residential	8,874		11		688		8,197		9,709		4		970		8,743
Commercial	9,324		48		315		9,057		10,534		13		581		9,966
Total mortgage-backed securities	117,526		153		10,644		107,035		125,857		56		13,194		112,719
U.S. Treasury and government agencies	123,504		—		9,343		114,161		173,666		—		13,074		160,592
Obligations of U.S. states and municipalities	9,426		54		542		8,938		9,945		74		591		9,428
Asset-backed securities:
Collateralized loan obligations	47,999		68		24		48,043		58,565		47		352		58,260
Other	1,499		2		37		1,464		1,815		1		61		1,755
Total held-to-maturity securities (c)	299,954		277		20,590		279,641		369,848		178		27,272		342,754
Total investment securities, net of allowance for credit losses	$	635,205	$	2,991	$	24,007	$	614,189	$	575,304	$	1,940	$	32,786	$	544,458

(a) Represents the amount of portfolio layer method basis adjustments related to AFS securities hedged in a closed portfolio. Under U.S. GAAP portfolio layer method basis adjustments are not allocated to individual securities, however the amounts impact the unrealized gains or losses in the table for the types of securities being hedged. Refer to Note 4 for additional information.

(b) The Firm purchased $ 1.4 billion and $ 2.4 billion of HTM securities for the three and nine months ended September 30, 2024, respectively, and $ 4.1 billion for the nine months ended September 30, 2023; there were no purchases of HTM securities for the three months ended September 30, 2023.

(c) Effective January 1, 2023, the Firm adopted the portfolio layer method hedge accounting guidance which permitted a transfer of HTM securities to AFS upon adoption. The Firm transferred obligations of U.S. states and municipalities with a carrying value of $ 7.1 billion resulting in the recognition of $ 38 million net pre-tax unrealized losses in AOCI. This transfer was a non-cash transaction. Refer to Note 19 of this Form 10-Q and Note 1 of JPMorgan Chase’s 2023 Form 10-K for additional information.

(d) The amortized cost of investment securities is reported net of allowance for credit losses of $ 175 million and $ 128 million at September 30, 2024 and December 31, 2023, respectively.

(e) Excludes $ 3.7 billion and $ 2.8 billion of accrued interest receivable at September 30, 2024 and December 31, 2023, respectively. The Firm did no t reverse through interest income any accrued interest receivable for the three and nine months ended September 30, 2024 and 2023. Refer to Note 10 of JPMorgan Chase’s 2023 Form 10-K for further discussion of accounting policies for accrued interest receivable on investment securities.

132

AFS securities impairment

The following tables present the fair value and gross unrealized losses by aging category for AFS securities at September 30, 2024 and December 31, 2023. The tables exclude U.S. Treasury and government agency securities and U.S. GSE and government agency MBS with unrealized losses of $ 2.7 billion and $ 4.6 billion, at September 30, 2024 and December 31, 2023, respectively; changes in the value of these securities are generally driven by changes in interest rates rather than changes in their credit profile given the explicit or implicit guarantees provided by the U.S. government.


	Available-for-sale securities with gross unrealized losses
	Less than 12 months				12 months or more
September 30, 2024 (in millions)	Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Total fair value		Total gross unrealized losses
Available-for-sale securities
Mortgage-backed securities:
Residential:
U.S.	$	110	$	—	$	975	$	33	$	1,085	$	33
Non-U.S.	—		—		—		—		—		—
Commercial	164		2		1,304		72		1,468		74
Total mortgage-backed securities	274		2		2,279		105		2,553		107
Obligations of U.S. states and municipalities	1,931		19		2,337		228		4,268		247
Non-U.S. government debt securities	6,510		41		4,500		262		11,010		303
Corporate debt securities	—		—		17		9		17		9
Asset-backed securities:
Collateralized loan obligations	395		—		516		5		911		5
Other	119		—		316		8		435		8
Total available-for-sale securities with gross unrealized losses	$	9,229	$	62	$	9,965	$	617	$	19,194	$	679


	Available-for-sale securities with gross unrealized losses
	Less than 12 months				12 months or more
December 31, 2023 (in millions)	Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Total fair value		Total gross unrealized losses
Available-for-sale securities
Mortgage-backed securities:
Residential:
U.S.	$	81	$	—	$	1,160	$	68	$	1,241	$	68
Non-U.S.	—		—		722		1		722		1
Commercial	228		3		1,775		136		2,003		139
Total mortgage-backed securities	309		3		3,657		205		3,966		208
Obligations of U.S. states and municipalities	2,134		20		2,278		246		4,412		266
Non-U.S. government debt securities	7,145		23		4,987		336		12,132		359
Corporate debt securities	9		—		79		28		88		28
Asset-backed securities:
Collateralized loan obligations	932		2		3,744		26		4,676		28
Other	208		1		1,288		25		1,496		26
Total available-for-sale securities with gross unrealized losses	$	10,737	$	49	$	16,033	$	866	$	26,770	$	915

133

HTM securities – credit risk

Credit quality indicator

The primary credit quality indicator for HTM securities is the risk rating assigned to each security. At both September 30, 2024 and December 31, 2023, all HTM securities were rated investment grade and were current and accruing, with approximately 99 % rated at least AA+ (based upon external ratings where available, and where not available, based primarily upon internal risk ratings).

Allowance for credit losses on investment securities

The allowance for credit losses on investment securities was $ 175 million and $ 117 million as of September 30, 2024 and 2023, respectively, which included a cumulative-effect adjustment to retained earnings related to the transfer of HTM securities to AFS for the nine months ended September 30, 2023.

Refer to Note 10 of JPMorgan Chase’s 2023 Form 10-K for further discussion of accounting policies for AFS and HTM securities.

Selected impacts of investment securities on the Consolidated statements of income


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2024		2023		2024		2023
Realized gains	$	298	$	16	$	535	$	345
Realized losses	( 314 )		( 685 )		( 1,464 )		( 2,782 )
Investment securities losses	$	( 16 )	$	( 669 )	$	( 929 )	$	( 2,437 )
Provision for credit losses	$	( 2 )	$	13	$	47	$	27

134

Contractual maturities and yields

The following table presents the amortized cost and estimated fair value at September 30, 2024, of JPMorgan Chase’s investment securities portfolio by contractual maturity.


By remaining maturity September 30, 2024 (in millions)	Due in one year or less			Due after one year through five years			Due after five years through 10 years			Due after 10 years (c)			Total
Available-for-sale securities
Mortgage-backed securities
Amortized cost	$	3		$	6,666		$	4,501		$	79,616		$	90,786
Fair value	3			6,674			4,557			78,295			89,529
Average yield (a)	4.65		%	4.80		%	5.54		%	4.91		%	4.94		%
U.S. Treasury and government agencies
Amortized cost	$	—		$	124,332		$	39,682		$	6,975		$	170,989
Fair value	—			125,501			39,785			6,896			172,182
Average yield (a)	—		%	4.90		%	5.40		%	5.79		%	5.05		%
Obligations of U.S. states and municipalities
Amortized cost	$	9		$	14		$	66		$	18,023		$	18,112
Fair value	9			13			66			18,117			18,205
Average yield (a)	1.47		%	3.19		%	4.25		%	5.82		%	5.81		%
Non-U.S. government debt securities
Amortized cost	$	19,745		$	10,621		$	6,796		$	5,465		$	42,627
Fair value	19,753			10,615			6,685			5,500			42,553
Average yield (a)	4.64		%	4.45		%	2.85		%	3.86		%	4.21		%
Corporate debt securities
Amortized cost	$	108		$	9		$	5		$	—		$	122
Fair value	47			9			5			—			61
Average yield (a)	13.80		%	4.06		%	4.19		%	—		%	12.70		%
Asset-backed securities
Amortized cost	$	5		$	342		$	2,248		$	9,378		$	11,973
Fair value	5			343			2,259			9,411			12,018
Average yield (a)	6.16		%	5.91		%	6.36		%	6.51		%	6.47		%

Total available-for-sale securities
Amortized cost (b)	$	19,870		$	141,984		$	53,298		$	119,457		$	334,609
Fair value	19,817			143,155			53,357			118,219			334,548
Average yield (a)	4.69		%	4.86		%	5.12		%	5.18		%	5.02		%
Held-to-maturity securities
Mortgage-backed securities
Amortized cost	$	—		$	7,383		$	6,988		$	103,255		$	117,626
Fair value	—			7,034			6,387			93,614			107,035
Average yield (a)	—		%	2.63		%	2.61		%	2.99		%	2.94		%
U.S. Treasury and government agencies
Amortized cost	$	18,840		$	56,638		$	48,026		$	—		$	123,504
Fair value	18,652			53,670			41,839			—			114,161
Average yield (a)	0.84		%	0.99		%	1.25		%	—		%	1.07		%
Obligations of U.S. states and municipalities
Amortized cost	$	—		$	—		$	304		$	9,145		$	9,449
Fair value	—			—			278			8,660			8,938
Average yield (a)	—		%	—		%	3.29		%	3.94		%	3.92		%
Asset-backed securities
Amortized cost	$	—		$	125		$	20,626		$	28,747		$	49,498
Fair value	—			125			20,645			28,737			49,507
Average yield (a)	—		%	6.52		%	6.05		%	6.51		%	6.32		%
Total held-to-maturity securities
Amortized cost (b)	$	18,840		$	64,146		$	75,944		$	141,147		$	300,077
Fair value	18,652			60,829			69,149			131,011			279,641
Average yield (a)	0.84		%	1.19		%	2.69		%	3.77		%	2.76		%

(a) Average yield is computed using the effective yield of each security owned at the end of the period, weighted based on the amortized cost of each security. The effective yield considers the contractual coupon, amortization of premiums and accretion of discounts, and the effect of related hedging derivatives, including closed portfolio hedges. Taxable-equivalent amounts are used where applicable. The effective yield excludes unscheduled principal prepayments; and accordingly, actual maturities of securities may differ from their contractual or expected maturities as certain securities may be prepaid. However, for certain callable debt securities, the average yield is calculated to the earliest call date.

(b) For purposes of this table, the amortized cost of available-for-sale securities excludes the allowance for credit losses of $ 52 million and the portfolio layer fair value hedge basis adjustments of $ 694 million at September 30, 2024. The amortized cost of held-to-maturity securities also excludes the allowance for credit losses of $ 123 million at September 30, 2024.

(c) Substantially all of the Firm’s U.S. residential MBS and collateralized mortgage obligations are due in 10 years or more, based on contractual maturity. The estimated weighted-average life, which reflects anticipated future prepayments, is approximately seven years for agency residential MBS, six years for agency residential collateralized mortgage obligations, and five years for nonagency residential collateralized mortgage obligations.

135

Note 10 – Securities financing activities

Refer to Note 11 of JPMorgan Chase’s 2023 Form 10-K for a discussion of accounting policies relating to securities financing activities. Refer to Note 3 for further information regarding securities financing agreements for which the fair value option has been elected. Refer to Note 23 for further information regarding assets pledged and collateral received in securities financing agreements.

The table below summarizes the gross and net amounts of the Firm’s securities financing agreements as of September 30, 2024 and December 31, 2023. When the Firm has obtained an appropriate legal opinion with respect to a master netting agreement with a counterparty and where other relevant netting criteria under U.S. GAAP are met, the Firm nets, on the Consolidated balance sheets, the balances outstanding under its securities financing agreements with the same counterparty. In addition, the Firm exchanges securities and/or cash collateral with its counterparty to reduce the economic exposure with the counterparty, but such collateral is not eligible for net

Consolidated balance sheet presentation. Where the Firm has obtained an appropriate legal opinion with respect to the counterparty master netting agreement, such collateral, along with securities financing balances that do not meet all these relevant netting criteria under U.S. GAAP, is presented in the table below as “Amounts not nettable on the Consolidated balance sheets,” and reduces the “Net amounts” presented. Where a legal opinion has not been either sought or obtained, the securities financing balances are presented gross in the “Net amounts” below. In transactions where the Firm is acting as the lender in a securities-for-securities lending agreement and receives securities that can be pledged or sold as collateral, the Firm recognizes the securities received at fair value within other assets and the obligation to return those securities within accounts payable and other liabilities on the Consolidated balance sheets.


	September 30, 2024
(in millions)	Gross amounts		Amounts netted on the Consolidated balance sheets		Amounts presented on the Consolidated balance sheets		Amounts not nettable on the Consolidated balance sheets (b)		Net amounts (c)
Assets
Securities purchased under resale agreements	$	695,230	$	( 304,409 )	$	390,821	$	( 376,898 )		$	13,923
Securities borrowed	305,198		( 52,764 )		252,434		( 191,878 )			60,556
Liabilities
Securities sold under repurchase agreements	$	688,549	$	( 304,409 )	$	384,140	$	( 339,430 )		$	44,710
Securities loaned and other (a)	63,109		( 52,764 )		10,345		( 10,230 )			115


	December 31, 2023
(in millions)	Gross amounts		Amounts netted on the Consolidated balance sheets		Amounts presented on the Consolidated balance sheets		Amounts not nettable on the Consolidated balance sheets (b)		Net amounts (c)
Assets
Securities purchased under resale agreements	$	523,308	$	( 247,181 )	$	276,127	$	( 267,582 )		$	8,545
Securities borrowed	244,046		( 43,610 )		200,436		( 144,543 )			55,893
Liabilities
Securities sold under repurchase agreements	$	459,985	$	( 247,181 )	$	212,804	$	( 182,011 )		$	30,793
Securities loaned and other (a)	52,142		( 43,610 )		8,532		( 8,501 )			31

(a) Includes securities-for-securities lending agreements of $ 5.8 billion and $ 5.6 billion at September 30, 2024 and December 31, 2023, respectively, accounted for at fair value, where the Firm is acting as lender.

(b) In some cases, collateral exchanged with a counterparty exceeds the net asset or liability balance with that counterparty. In such cases, the amounts reported in this column are limited to the related net asset or liability with that counterparty.

(c) Includes securities financing agreements that provide collateral rights, but where an appropriate legal opinion with respect to the master netting agreement has not been either sought or obtained. At September 30, 2024 and December 31, 2023, included $ 10.8 billion and $ 7.1 billion, respectively, of securities purchased under resale agreements; $ 53.3 billion and $ 50.7 billion, respectively, of securities borrowed; $ 43.9 billion and $ 30.0 billion, respectively, of securities sold under repurchase agreements; and securities loaned and other which were not material at both September 30, 2024 and December 31, 2023.

136

The tables below present as of September 30, 2024 and December 31, 2023 the types of financial assets pledged in securities financing agreements and the remaining contractual maturity of the securities financing agreements.


	Gross liability balance
	September 30, 2024				December 31, 2023
(in millions)	Securities sold under repurchase agreements		Securities loaned and other		Securities sold under repurchase agreements		Securities loaned and other
Mortgage-backed securities
U.S. GSEs and government agencies	$	85,012	$	—	$	71,064	$	—
Residential - nonagency	2,487		—		2,292		—
Commercial - nonagency	2,142		—		2,669		—
U.S. Treasury, GSEs and government agencies	343,191		651		216,467		1,034
Obligations of U.S. states and municipalities	2,061		—		2,323		—
Non-U.S. government debt	156,594		1,251		97,400		1,455
Corporate debt securities	49,049		1,785		39,247		2,025
Asset-backed securities	4,352		—		2,703		—
Equity securities	43,661		59,422		25,820		47,628
Total	$	688,549	$	63,109	$	459,985	$	52,142


	Remaining contractual maturity of the agreements
	Overnight and continuous						Greater than 90 days
September 30, 2024 (in millions)			Up to 30 days		30 – 90 days				Total
Total securities sold under repurchase agreements	$	344,955	$	206,101	$	35,302	$	102,191	$	688,549
Total securities loaned and other	59,993		—		6		3,110		63,109


	Remaining contractual maturity of the agreements
	Overnight and continuous						Greater than 90 days
December 31, 2023 (in millions)			Up to 30 days		30 – 90 days				Total
Total securities sold under repurchase agreements	$	259,048	$	102,941	$	20,960	$	77,036	$	459,985
Total securities loaned and other	49,610		1,544		—		988		52,142

Transfers not qualifying for sale accounting

At September 30, 2024 and December 31, 2023, the Firm held $ 617 million and $ 505 million, respectively, of financial assets for which the rights have been transferred to third parties; however, the transfers did not qualify as a sale in accordance with U.S. GAAP. These transfers have been recognized as collateralized financing transactions. The transferred assets are recorded in trading assets and loans, and the corresponding liabilities are recorded primarily in short-term borrowings and long-term debt on the Consolidated balance sheets.

137

Note 11 – Loans

Loan accounting framework

The accounting for a loan depends on management’s strategy for the loan. The Firm accounts for loans based on the following categories:

• Originated or purchased loans held-for-investment (i.e., “retained”)

• Loans held-for-sale

• Loans at fair value

Refer to Note 12 of JPMorgan Chase's 2023 Form 10-K for a detailed discussion of loans, including accounting policies. Refer to Note 3 of this Form 10-Q for further information on the Firm's elections of fair value accounting under the fair value option. Refer to Note 2 of this Form 10-Q for information on loans carried at fair value and classified as trading assets.

Loan portfolio

The Firm’s loan portfolio is divided into three portfolio segments, which are the same segments used by the Firm to determine the allowance for loan losses: Consumer, excluding credit card; Credit card; and Wholesale. Within each portfolio segment the Firm monitors and assesses the credit risk in the following classes of loans, based on the risk characteristics of each loan class.

Consumer, excluding
credit card

Credit card

Wholesale (c)(d)

• Residential real estate (a)

• Auto and other (b)

• Credit card loans

• Secured by real estate

• Commercial and industrial

• Other (e)

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

(b) Includes scored auto, business banking and consumer unsecured loans as well as overdrafts, primarily in CCB.

(c) Includes loans held in CIB, AWM, Corporate, and risk-rated exposure held in CCB, for which the wholesale methodology is applied when determining the allowance for loan losses.

(d) The wholesale portfolio segment's classes align with loan classifications as defined by the bank regulatory agencies, based on the loan's collateral, purpose, and type of borrower.

(e) Includes loans to SPEs, financial institutions, personal investment companies and trusts, individuals and individual entities (predominantly Global Private Bank clients within AWM and J.P. Morgan Wealth Management within CCB), states and political subdivisions, as well as loans to nonprofits. Refer to Note 14 of JPMorgan Chase’s 2023 Form 10-K for more information on SPEs.

The following tables summarize the Firm’s loan balances by portfolio segment.


September 30, 2024	Consumer, excluding credit card		Credit card		Wholesale		Total (a)(b)
(in millions)
Retained	$	377,938	$	219,542	$	687,890	$	1,285,370
Held-for-sale	1,101		—		11,403		12,504
At fair value	15,906		—		26,231		42,137
Total	$	394,945	$	219,542	$	725,524	$	1,340,011

December 31, 2023	Consumer, excluding credit card		Credit card		Wholesale		Total (a)(b)
(in millions)
Retained	$	397,275	$	211,123	$	672,472	$	1,280,870
Held-for-sale	487		—		3,498		3,985
At fair value	12,331		—		26,520		38,851
Total	$	410,093	$	211,123	$	702,490	$	1,323,706

(a) Excludes $ 6.7 billion and $ 6.8 billion of accrued interest receivables as of September 30, 2024 and December 31, 2023, respectively. Accrued interest receivables written off were not material for the three and nine months ended September 30, 2024 and 2023.

(b) Loans (other than those for which the fair value option has been elected) are presented net of unamortized discounts and premiums and net deferred loan fees or costs. These amounts were not material as of September 30, 2024 and December 31, 2023. For the discount associated with First Republic loans, refer to Note 26 on pages 186–188.

138

The following tables provide information about the carrying value of retained loans purchased, sold and reclassified to held-for-sale during the periods indicated. Loans that were reclassified to held-for-sale and sold in a subsequent period are excluded from the sales line of this table.


	2024									2023
Three months ended September 30, (in millions)	Consumer, excluding credit card			Credit card		Wholesale		Total		Consumer, excluding credit card			Credit card		Wholesale			Total
Purchases	$	180	(b)(c)	$	—	$	668	$	848	$	62	(b)(c)	$	—	$	539		$	601
Sales	2,474			—		10,488		12,962		1,318			—		13,076			14,394
Retained loans reclassified to held-for-sale (a)	330			—		131		461		33			—		194			227

	2024									2023
Nine months ended September 30, (in millions)	Consumer, excluding credit card			Credit card		Wholesale		Total		Consumer, excluding credit card			Credit card		Wholesale			Total
Purchases	$	536	(b)(c)	$	—	$	1,022	$	1,558	$	92,143	(b)(c)(d)	$	—	$	59,100	(d)	$	151,243
Sales	10,440			—		31,024		41,464		1,756			—		31,956			33,712
Retained loans reclassified to held-for-sale (a)	1,499			—		679		2,178		157			—		1,279			1,436

(a) Reclassifications of loans to held-for-sale are non-cash transactions.

(b) Includes purchases of residential real estate loans, including the Firm’s voluntary repurchases of certain delinquent loans from loan pools as permitted by Government National Mortgage Association (“Ginnie Mae”) guidelines for the three and nine months ended September 30, 2024 and 2023. The Firm typically elects to repurchase these delinquent loans as it continues to service them and/or manage the foreclosure process in accordance with applicable requirements of Ginnie Mae, FHA, RHS, and/or VA.

(c) Excludes purchases of retained loans of $ 181 million and $ 1.9 billion for the three months ended September 30, 2024 and 2023, respectively, and $ 465 million and $ 4.2 billion for the nine months ended September 30, 2024 and 2023, respectively, which are predominantly sourced through the correspondent origination channel and underwritten in accordance with the Firm’s standards.

(d) Includes loans acquired in the First Republic acquisition consisting of $ 91.9 billion in Consumer, excluding credit card and $ 58.4 billion in Wholesale.

Gains and losses on sales of loans

Net gains/(losses) on sales of loans and lending-related commitments (including adjustments to record loans and lending-related commitments held-for-sale at the lower of cost or fair value) recognized in noninterest revenue for the three and nine months ended September 30, 2024 were $ 65 million and $ 125 million, respectively, of which $ 47 million and $ 80 million, respectively, were related to loans. Net gains/(losses) on sales of loans and lending-related commitments for the three and nine months ended September 30, 2023 were $ 9 million and $ 46 million, respectively, of which $ 9 million and $ 52 million, respectively, were related to loans. In addition, the sale of loans may also result in write downs, recoveries or changes in the allowance recognized in the provision for credit losses.

139

Consumer, excluding credit card loan portfolio

Consumer loans, excluding credit card loans, consist primarily of scored residential mortgages, home equity loans and lines of credit, auto and business banking loans, with a focus on serving the prime consumer credit market. These loans include home equity loans secured by junior liens, prime mortgage loans with an interest-only payment period, and certain payment-option loans that may result in negative amortization.

The following table provides information about retained consumer loans, excluding credit card, by class.


(in millions)	September 30, 2024		December 31, 2023
Residential real estate	$	311,338	$	326,409
Auto and other	66,600		70,866
Total retained loans	$	377,938	$	397,275

Delinquency rates are the primary credit quality indicator for consumer loans. Refer to Note 12 of JPMorgan Chase's 2023 Form 10-K for further information on consumer credit quality indicators.

140

Residential real estate

Delinquency is the primary credit quality indicator for retained residential real estate loans. The following tables provide information on delinquency and gross charge-offs.


(in millions, except ratios)	September 30, 2024
	Term loans by origination year (c)																		Revolving loans						Total
	2024			2023			2022			2021			2020			Prior to 2020			Within the revolving period			Converted to term loans
Loan delinquency (a)
Current	$	8,330		$	18,007		$	62,087		$	80,903		$	53,025		$	72,660		$	6,776		$	7,331		$	309,119
30–149 days past due	2			18			155			114			53			749			59			199			1,349
150 or more days past due	—			5			62			56			43			551			8			145			870
Total retained loans	$	8,332		$	18,030		$	62,304		$	81,073		$	53,121		$	73,960		$	6,843		$	7,675		$	311,338
% of 30+ days past due to total retained loans (b)	0.02		%	0.13		%	0.35		%	0.21		%	0.18		%	1.74		%	0.98		%	4.48		%	0.71		%
Gross charge-offs	$	—		$	—		$	1		$	1		$	—		$	149		$	14		$	4		$	169


(in millions, except ratios)	December 31, 2023
	Term loans by origination year (c)																		Revolving loans						Total
	2023			2022			2021			2020			2019			Prior to 2019			Within the revolving period			Converted to term loans
Loan delinquency (a)
Current	$	23,216		$	64,366		$	84,496		$	55,546		$	21,530		$	59,563		$	7,479		$	8,151		$	324,347
30–149 days past due	33			74			89			70			41			801			49			223			1,380
150 or more days past due	1			10			17			8			21			456			5			164			682
Total retained loans	$	23,250		$	64,450		$	84,602		$	55,624		$	21,592		$	60,820		$	7,533		$	8,538		$	326,409
% of 30+ days past due to total retained loans (b)	0.15		%	0.13		%	0.13		%	0.14		%	0.29		%	2.04		%	0.72		%	4.53		%	0.63		%
Gross charge-offs	$	—		$	—		$	—		$	—		$	4		$	167		$	26		$	7		$	204

(a) Individual delinquency classifications include mortgage loans insured by U.S. government agencies which were not material at September 30, 2024 and December 31, 2023.

(b) Excludes mortgage loans that are 30 or more days past due insured by U.S. government agencies which were not material at September 30, 2024 and December 31, 2023. These amounts have been excluded based upon the government guarantee.

Approximately 37 % of the total revolving loans are senior lien loans; the remaining balance are junior lien loans. The lien position the Firm holds is considered in the Firm’s allowance for credit losses. Revolving loans that have been converted to term loans have higher delinquency rates than those that are still within the revolving period. That is primarily because the fully-amortizing payment that is generally required for those products is higher than the minimum payment options available for revolving loans within the revolving period.

141

Nonaccrual loans and other credit quality indicators

The following table provides information on nonaccrual and other credit quality indicators for retained residential real estate loans.


(in millions, except weighted-average data)	September 30, 2024			December 31, 2023
Nonaccrual loans (a)(b)(c)(d)	$	3,083		$	3,466

Current estimated LTV ratios (e)(f)(g)
Greater than 125% and refreshed FICO scores:
Equal to or greater than 660	$	72		$	72
Less than 660	—			—
101% to 125% and refreshed FICO scores:
Equal to or greater than 660	146			223
Less than 660	5			4
80% to 100% and refreshed FICO scores:
Equal to or greater than 660	4,949			6,491
Less than 660	75			102
Less than 80% and refreshed FICO scores:
Equal to or greater than 660	296,443			309,251
Less than 660	8,818			9,277
No FICO/LTV available (h)	830			989
Total retained loans	$	311,338		$	326,409

Weighted-average LTV ratio (e)(i)	47		%	49		%
Weighted-average FICO (f)(i)	774			770

Geographic region (h)(j)
California	$	121,688		$	127,072
New York	47,198			48,815
Florida	21,834			22,778
Texas	14,638			15,506
Massachusetts	13,619			14,213
Colorado	10,450			10,800
Illinois	10,033			10,856
Washington	9,415			9,923
New Jersey	7,609			8,050
Connecticut	6,879			7,163
All other	47,975			51,233
Total retained loans	$	311,338		$	326,409

(a) I ncludes collateral-dependent residential real estate loans that are charged down to the fair value of the underlying collateral less costs to sell. The Firm reports, in accordance with regulatory guidance, residential real estate loans that have been discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower (“Chapter 7 loans”) as collateral-dependent nonaccrual loans, regardless of their delinquency status. At September 30, 2024, approximately 9 % of Chapter 7 residential real estate loans were 30 days or more past due.

(b) Mortgage loans insured by U.S. government agencies excluded from nonaccrual loans were not material at September 30, 2024 and December 31, 2023.

(c) Generally, all consumer nonaccrual loans have an allowance. In accordance with regulatory guidance, certain nonaccrual loans that are considered collateral-dependent have been charged down to the lower of amortized cost or the fair value of their underlying collateral less costs to sell. If the value of the underlying collateral improves subsequent to charge down, the related allowance may be negative.

(d) Interest income on nonaccrual loans recognized on a cash basis was $ 38 million and $ 44 million and $ 123 million and $ 133 million for the three and nine months ended September 30, 2024 and 2023, respectively.

(e) Represents the aggregate unpaid principal balance of loans divided by the estimated current property value. Current property values are estimated, at a minimum, quarterly, based on home valuation models using nationally recognized home price index valuation estimates incorporating actual data to the extent available and forecasted data where actual data is not available. Current estimated combined LTV for junior lien home equity loans considers all available lien positions, as well as unused lines, related to the property.

(f) Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis.

(g) Includes residential real estate loans, primarily held in LLCs in AWM that did not have a refreshed FICO score. These loans have been included in a FICO band based on management’s estimation of the borrower’s credit quality.

(h) Included U.S. government-guaranteed loans as of September 30, 2024 and December 31, 2023.

(i) Excludes loans with no FICO and/or LTV data available.

(j) The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at September 30, 2024.

142

Loan modifications

The Firm grants certain modifications of residential real estate loans to borrowers experiencing financial difficulty. The Firm's proprietary modification programs as well as government programs, including U.S. GSE programs, that generally provide various modifications to borrowers experiencing financial difficulty including, but not limited to, interest rate reductions, term extensions, other-than-insignificant payment deferral and principal forgiveness that would otherwise have been required under the terms of the original agreement, are considered FDMs. Refer to Note 12 of JPMorgan Chase's 2023 Form 10-K for further information.

Financial effects of FDMs

For the three and nine months ended September 30, 2024, residential real estate FDMs were $ 74 million and $ 188 million, respectively. The financial effects of the FDMs, which were predominantly in the form of term extensions and interest rate reductions, included extending the weighted-average life of the loans by 8 years for both periods, and reducing the weighted-average contractual interest rate from 7.78 % to 5.78 % and 7.81 % to 5.37 % for the three and nine months ended September 30, 2024, respectively.

For the three and nine months ended September 30, 2023, residential real estate FDMs were $ 43 million and $ 110 million, respectively. The financial effects of the FDMs, which were predominantly in the form of term extensions and interest rate reductions, included extending the weighted-average life of the loans by 22 years and 19 years, and reducing the weighted-average contractual interest rate from 7.22 % to 4.63 % and 7.04 % to 4.24 % for the three and nine months ended September 30, 2023, respectively.

As of September 30, 2024 and December 31, 2023, there were no additional commitments to lend to borrowers experiencing financial difficulty whose loans have been modified as FDMs.

For the three and nine months ended September 30, 2024 and 2023, loans subject to a trial modification, where the terms of the loans have not been permanently modified, and Chapter 7 loans were not material.

Payment status of FDMs

The following table provides information on the payment status of FDMs during the twelve months ended September 30, 2024 and the nine months ended September 30, 2023.


(in millions)	Amortized cost basis
	Twelve months ended Sep 30,		Nine months ended Sep 30,
	2024		2023
Current	$	143	$	90
30-149 days past due	45		13
150 or more days past due	23		7
Total	$	211	$	110

Defaults of FDMs

FDMs that defaulted in the three and nine months ended September 30, 2024 and were reported as FDMs in the twelve months prior to the default were $ 44 million and $ 74 million, respectively. FDMs that defaulted in the three and nine months ended September 30, 2023 and were reported as FDMs on or after January 1, 2023, the date that the Firm adopted the changes to the TDR accounting guidance were no t material. Refer to Note 1 of JPMorgan Chase's 2023 Form 10-K for further information.

Active and suspended foreclosure

At September 30, 2024 and December 31, 2023, the Firm had retained residential real estate loans, excluding those insured by U.S. government agencies, with a carrying value of $ 618 million and $ 566 million, respectively, that were not included in REO, but were in the process of active or suspended foreclosure.

143

Auto and other

Delinquency is the primary credit quality indicator for retained auto and other loans. The following tables provide information on delinquency and gross charge-offs.


	September 30, 2024
(in millions, except ratios)	Term loans by origination year																		Revolving loans
	2024			2023			2022			2021			2020			Prior to 2020			Within the revolving period			Converted to term loans			Total
Loan delinquency
Current	$	20,542		$	17,877		$	10,524		$	8,347		$	3,703		$	903		$	3,531		$	131		$	65,558
30–119 days past due	151			258			250			187			55			29			33			34			997
120 or more days past due	1			1			—			4			7			1			1			30			45
Total retained loans	$	20,694		$	18,136		$	10,774		$	8,538		$	3,765		$	933		$	3,565		$	195		$	66,600
% of 30+ days past due to total retained loans	0.73		%	1.43		%	2.32		%	2.24		%	1.65		%	3.22		%	0.95		%	32.82		%	1.56		%
Gross charge-offs	$	169		$	268		$	171		$	96		$	30		$	64		$	—		$	4		$	802


	December 31, 2023
(in millions, except ratios)	Term loans by origination year																		Revolving loans
	2023			2022			2021			2020			2019			Prior to 2019			Within the revolving period			Converted to term loans			Total
Loan delinquency
Current	$	30,328		$	14,797		$	12,825		$	6,538		$	1,777		$	511		$	2,984		$	102		$	69,862
30–119 days past due	276			279			231			78			43			17			19			24			967
120 or more days past due	1			1			7			8			—			—			3			17			37
Total retained loans	$	30,605		$	15,077		$	13,063		$	6,624		$	1,820		$	528		$	3,006		$	143		$	70,866
% of 30+ days past due to total retained loans	0.91		%	1.86		%	1.75		%	1.15		%	2.36		%	3.22		%	0.73		%	28.67		%	1.39		%
Gross charge-offs	$	333		$	297		$	161		$	53		$	35		$	64		$	—		$	4		$	947

144

Nonaccrual and other credit quality indicators

The following table provides information on nonaccrual and geographic region as a credit quality indicator for retained auto and other consumer loans.


(in millions)	Total Auto and other
	September 30, 2024		December 31, 2023
Nonaccrual loans (a)(b)	$	233	$	177

Geographic region (c)
California	$	10,281	$	10,959
Texas	7,738		8,502
Florida	5,391		5,684
New York	4,892		4,938
Illinois	2,903		3,147
New Jersey	2,475		2,609
Pennsylvania	1,983		1,900
Georgia	1,725		1,912
Arizona	1,635		1,779
North Carolina	1,593		1,714
All other	25,984		27,722
Total retained loans	$	66,600	$	70,866

(a) Generally, all consumer nonaccrual loans have an allowance. In accordance with regulatory guidance, certain nonaccrual loans that are considered collateral-dependent have been charged down to the lower of amortized cost or the fair value of their underlying collateral less costs to sell. If the value of the underlying collateral improves subsequent to charge down, the related allowance may be negative.

(b) Interest income on nonaccrual loans recognized on a cash basis was not material for the three and nine months ended September 30, 2024 and 2023 .

(c) The geographic regions presented in this table are ordered based on the magnitude of the corresponding loan balances at September 30, 2024.

Loan modifications

The Firm grants certain modifications of auto and other loans to borrowers experiencing financial difficulty.

For the three and nine months ended September 30, 2024 and 2023, auto and other FDMs were not material.

As of September 30, 2024 and December 31, 2023, there were no additional commitments to lend to borrowers modified as FDMs.

145

Credit card loan portfolio

The credit card portfolio segment includes credit card loans originated and purchased by the Firm. Delinquency rates are the primary credit quality indicator for credit card loans.

Refer to Note 12 of JPMorgan Chase's 2023 Form 10-K for further information on the credit card loan portfolio, including credit quality indicators.

The following tables provide information on delinquency and gross charge-offs.


(in millions, except ratios)	September 30, 2024
	Within the revolving period			Converted to term loans			Total
Loan delinquency
Current and less than 30 days past due and still accruing	$	213,537		$	1,181		$	214,718
30–89 days past due and still accruing	2,305			103			2,408
90 or more days past due and still accruing	2,364			52			2,416
Total retained loans	$	218,206		$	1,336		$	219,542
Loan delinquency ratios
% of 30+ days past due to total retained loans	2.14		%	11.60		%	2.20		%
% of 90+ days past due to total retained loans	1.08			3.89			1.10
Gross charge-offs	$	5,868		$	176		$	6,044


(in millions, except ratios)	December 31, 2023
	Within the revolving period			Converted to term loans			Total
Loan delinquency
Current and less than 30 days past due and still accruing	$	205,731		$	882		$	206,613
30–89 days past due and still accruing	2,217			84			2,301
90 or more days past due and still accruing	2,169			40			2,209
Total retained loans	$	210,117		$	1,006		$	211,123
Loan delinquency ratios
% of 30+ days past due to total retained loans	2.09		%	12.33		%	2.14		%
% of 90+ days past due to total retained loans	1.03			3.98			1.05
Gross charge-offs	$	5,325		$	166		$	5,491

Other credit quality indicators

The following table provides information on other credit quality indicators for retained credit card loans.


(in millions, except ratios)	September 30, 2024			December 31, 2023
Geographic region (a)
California	$	34,251		$	32,652
Texas	23,119			22,086
New York	17,751			16,915
Florida	16,029			15,103
Illinois	11,817			11,364
New Jersey	9,152			8,688
Colorado	6,673			6,307
Ohio	6,533			6,424
Pennsylvania	6,150			6,088
Arizona	5,469			5,209
All other	82,598			80,287
Total retained loans	$	219,542		$	211,123
Percentage of portfolio based on carrying value with estimated refreshed FICO scores
Equal to or greater than 660	85.1		%	85.8		%
Less than 660	14.7			14.0
No FICO available	0.2			0.2

(a) The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at September 30, 2024.

146

Loan modifications

The Firm grants certain modifications of credit card loans to borrowers experiencing financial difficulty. These modifications may involve placing the customer’s credit card account on a fixed payment plan, generally for 60 months, which typically includes reducing the interest rate on the credit card account. If the borrower does not make the contractual payments when due under the modified payment terms, the credit card loan continues to age and will be charged-off in accordance with the Firm's standard charge-off policy. In most cases, the Firm does not reinstate the borrower's line of credit.

Financial effects of FDMs

The following tables provide information on credit card loan modifications considered FDMs.


	Loan modifications
	Three months ended September 30,						Nine months ended September 30,
(in millions)	2024			2023			2024			2023
Term extension and interest rate reduction (a)(b)
Amortized cost basis	$	272		$	197		$	714		$	489
% of total modifications to total retained credit card loans	0.12		%	0.10		%	0.33		%	0.25		%
Financial effect of loan modifications	Term extension with a reduction in the weighted average contractual interest rate from 23.77 % to 3.03 %			Term extension with a reduction in the weighted average contractual interest rate from 23.48 % to 3.67 %			Term extension with a reduction in the weighted average contractual interest rate from 23.89 % to 3.12 %			Term extension with a reduction in the weighted average contractual interest rate from 23.15 % to 3.58 %

(a) Term extension includes credit card loans whose terms have been modified under long-term programs by placing the customer's credit card account on a fixed payment plan.

(b) Interest rates represents the weighted average at the time of modification.

Payment status of FDMs

The following table provides information on the payment status of FDMs during the twelve months ended September 30, 2024 and the nine months ended September 30, 2023.


(in millions)	Amortized cost basis
	Twelve months ended Sep 30,		Nine months ended Sep 30,
	2024		2023
Current and less than 30 days past due and still accruing	$	757	$	414
30-89 days past due and still accruing	70		47
90 or more days past due and still accruing	41		28
Total	$	868	$	489

Defaults of FDMs

FDMs that defaulted in the three and nine months ended September 30, 2024 and were reported as FDMs in the twelve months prior to the default were not material. FDMs that defaulted in the three and nine months ended September 30, 2023 and were reported as FDMs on or after January 1, 2023, the date that the Firm adopted the changes to the TDR accounting guidance were not material. Refer to Note 1 of JPMorgan Chase's 2023 Form 10-K for further information.

For credit card loans modified as FDMs, payment default is deemed to have occurred when the borrower misses two consecutive contractual payments. Defaulted modified credit card loans remain in the modification program and continue to be charged off in accordance with the Firm's standard charge-off policy.

147

Wholesale loan portfolio

Wholesale loans include loans made to a variety of clients, ranging from large corporate and institutional clients, to small businesses and high-net-worth individuals. The primary credit quality indicator for wholesale loans is the internal risk rating assigned to each loan. Refer to Note 12 of JPMorgan Chase’s 2023 Form 10-K for further information on these risk ratings.

Internal risk rating is the primary credit quality indicator for retained wholesale loans. The following tables provide information on internal risk rating and gross charge-offs.


	Secured by real estate						Commercial and industrial						Other (a)							Total retained loans
(in millions, except ratios)	Sep 30, 2024			Dec 31, 2023			Sep 30, 2024			Dec 31, 2023				Sep 30, 2024			Dec 31, 2023				Sep 30, 2024			Dec 31, 2023
Loans by risk ratings
Investment-grade	$	115,015		$	120,405		$	67,984		$	72,624			$	284,007		$	265,809			$	467,006		$	458,838
Noninvestment-grade:
Noncriticized	37,383			34,241			83,494			80,637				73,998			75,178				194,875			190,056
Criticized performing	10,019			7,291			11,037			12,684				1,436			1,257				22,492			21,232
Criticized nonaccrual	974			401			1,733			1,221				810			724				3,517			2,346
Total noninvestment-grade	48,376			41,933			96,264			94,542				76,244			77,159				220,884			213,634
Total retained loans	$	163,391		$	162,338		$	164,248		$	167,166			$	360,251		$	342,968			$	687,890		$	672,472
% of investment-grade to total retained loans	70.39		%	74.17		%	41.39		%	43.44		%		78.84		%	77.50		%		67.89		%	68.23		%
% of total criticized to total retained loans	6.73			4.74			7.77			8.32				0.62			0.58				3.78			3.51
% of criticized nonaccrual to total retained loans	0.60			0.25			1.06			0.73				0.22			0.21				0.51			0.35

(a) Includes loans to SPEs, financial institutions, personal investment companies and trusts, individuals and individual entities (predominantly Global Private Bank clients within AWM and J.P. Morgan Wealth Management within CCB), states and political subdivisions, as well as loans to nonprofits. As of September 30, 2024 and December 31, 2023, predominantly consisted of $ 110.7 billion and $ 106.9 billion, respectively, to individuals and individual entities; $ 98.4 billion and $ 87.5 billion, respectively, to financial institutions; and $ 91.3 billion and $ 91.2 billion, respectively, to SPEs. Refer to Note 14 of JPMorgan Chase’s 2023 Form 10-K for more information on SPEs.


	Secured by real estate
(in millions)	September 30, 2024
	Term loans by origination year												Revolving loans
	2024		2023		2022		2021		2020		Prior to 2020		Within the revolving period		Converted to term loans		Total
Loans by risk ratings
Investment-grade	$	6,541	$	10,199	$	26,053	$	23,430	$	15,870	$	31,522	$	1,400	$	—	$	115,015
Noninvestment-grade	3,500		5,049		14,562		8,866		3,679		11,260		1,459		1		48,376
Total retained loans	$	10,041	$	15,248	$	40,615	$	32,296	$	19,549	$	42,782	$	2,859	$	1	$	163,391
Gross charge-offs	$	—	$	18	$	37	$	—	$	33	$	51	$	—	$	—	$	139


	Secured by real estate
(in millions)	December 31, 2023
	Term loans by origination year												Revolving loans
	2023		2022		2021		2020		2019		Prior to 2019		Within the revolving period		Converted to term loans		Total
Loans by risk ratings
Investment-grade	$	10,687	$	28,874	$	25,784	$	16,820	$	15,677	$	21,108	$	1,455	$	—	$	120,405
Noninvestment-grade	4,477		12,579		7,839		3,840		3,987		7,918		1,291		2		41,933
Total retained loans	$	15,164	$	41,453	$	33,623	$	20,660	$	19,664	$	29,026	$	2,746	$	2	$	162,338
Gross charge-offs	$	20	$	48	$	22	$	—	$	23	$	78	$	—	$	1	$	192

148


	Commercial and industrial
(in millions)	September 30, 2024
	Term loans by origination year												Revolving loans
	2024		2023		2022		2021		2020		Prior to 2020		Within the revolving period		Converted to term loans		Total
Loans by risk ratings
Investment-grade	$	9,200	$	6,762	$	7,165	$	3,066	$	1,362	$	1,480	$	38,948	$	1	$	67,984
Noninvestment-grade	15,595		12,733		12,467		6,776		895		1,240		46,491		67		96,264
Total retained loans	$	24,795	$	19,495	$	19,632	$	9,842	$	2,257	$	2,720	$	85,439	$	68	$	164,248
Gross charge-offs	$	19	$	4	$	116	$	24	$	1	$	5	$	190	$	3	$	362


	Commercial and industrial
(in millions)	December 31, 2023
	Term loans by origination year												Revolving loans
	2023		2022		2021		2020		2019		Prior to 2019		Within the revolving period		Converted to term loans		Total
Loans by risk ratings
Investment-grade	$	14,875	$	10,642	$	4,276	$	2,291	$	1,030	$	1,115	$	38,394	$	1	$	72,624
Noninvestment-grade	18,890		16,444		9,299		1,989		1,144		1,006		45,696		74		94,542
Total retained loans	$	33,765	$	27,086	$	13,575	$	4,280	$	2,174	$	2,121	$	84,090	$	75	$	167,166
Gross charge-offs	$	25	$	8	$	110	$	55	$	2	$	12	$	259	$	8	$	479


	Other (a)
(in millions)	September 30, 2024
	Term loans by origination year												Revolving loans
	2024		2023		2022		2021		2020		Prior to 2020		Within the revolving period		Converted to term loans		Total
Loans by risk ratings
Investment-grade	$	25,069	$	21,517	$	15,270	$	7,455	$	9,325	$	7,838	$	195,968	$	1,565	$	284,007
Noninvestment-grade	10,098		7,120		5,658		4,196		1,742		2,302		44,890		238		76,244
Total retained loans	$	35,167	$	28,637	$	20,928	$	11,651	$	11,067	$	10,140	$	240,858	$	1,803	$	360,251
Gross charge-offs	$	—	$	38	$	2	$	26	$	41	$	50	$	1	$	—	$	158


	Other (a)
(in millions)	December 31, 2023
	Term loans by origination year												Revolving loans
	2023		2022		2021		2020		2019		Prior to 2019		Within the revolving period		Converted to term loans		Total
Loans by risk ratings
Investment-grade	$	38,338	$	18,034	$	10,033	$	10,099	$	3,721	$	6,662	$	176,728	$	2,194	$	265,809
Noninvestment-grade	14,054		8,092		6,169		2,172		811		2,001		43,801		59		77,159
Total retained loans	$	52,392	$	26,126	$	16,202	$	12,271	$	4,532	$	8,663	$	220,529	$	2,253	$	342,968
Gross charge-offs	$	5	$	298	$	8	$	8	$	—	$	8	$	13	$	—	$	340

149

The following table presents additional information on retained loans secured by real estate, which consists of loans secured wholly or substantially by a lien or liens on real property at origination.


(in millions, except ratios)	Multifamily						Other commercial						Total retained loans secured by real estate
	Sep 30, 2024			Dec 31, 2023			Sep 30, 2024			Dec 31, 2023			Sep 30, 2024			Dec 31, 2023
Retained loans secured by real estate	$	101,744		$	100,725		$	61,647		$	61,613		$	163,391		$	162,338
Criticized	4,589			3,596			6,404			4,096			10,993			7,692
% of criticized to total retained loans secured by real estate	4.51		%	3.57		%	10.39		%	6.65		%	6.73		%	4.74		%
Criticized nonaccrual	$	205		$	76		$	769		$	325		$	974		$	401
% of criticized nonaccrual loans to total retained loans secured by real estate	0.20		%	0.08		%	1.25		%	0.53		%	0.60		%	0.25		%

Geographic distribution and delinquency

The following table provides information on the geographic distribution and delinquency for retained wholesale loans.


	Secured by real estate				Commercial and industrial				Other				Total retained loans
(in millions)	Sep 30, 2024		Dec 31, 2023		Sep 30, 2024		Dec 31, 2023		Sep 30, 2024		Dec 31, 2023		Sep 30, 2024		Dec 31, 2023
Loans by geographic distribution (a)
Total U.S.	$	160,217	$	159,499	$	125,103	$	127,638	$	274,350	$	262,499	$	559,670	$	549,636
Total non-U.S.	3,174		2,839		39,145		39,528		85,901		80,469		128,220		122,836
Total retained loans	$	163,391	$	162,338	$	164,248	$	167,166	$	360,251	$	342,968	$	687,890	$	672,472
Loan delinquency
Current and less than 30 days past due and still accruing	$	161,784	$	161,314	$	161,815	$	164,899	$	357,947	$	341,128	$	681,546	$	667,341
30–89 days past due and still accruing	392		473		635		884		1,382		1,090		2,409		2,447
90 or more days past due and still accruing (b)	241		150		65		162		112		26		418		338
Criticized nonaccrual	974		401		1,733		1,221		810		724		3,517		2,346
Total retained loans	$	163,391	$	162,338	$	164,248	$	167,166	$	360,251	$	342,968	$	687,890	$	672,472

(a) The U.S. and non-U.S. distribution is determined based predominantly on the domicile of the borrower.

(b) Represents loans that are considered well-collateralized and therefore still accruing interest.

Nonaccrual loans

The following table provides information on retained wholesale nonaccrual loans.


(in millions)	Secured by real estate				Commercial and industrial				Other				Total retained loans
	Sep 30, 2024		Dec 31, 2023		Sep 30, 2024		Dec 31, 2023		Sep 30, 2024		Dec 31, 2023		Sep 30, 2024		Dec 31, 2023
Nonaccrual loans
With an allowance	$	128	$	129	$	1,317	$	776	$	477	$	492	$	1,922	$	1,397
Without an allowance (a)	846		272		416		445		333		232		1,595		949
Total nonaccrual loans (b)	$	974	$	401	$	1,733	$	1,221	$	810	$	724	$	3,517	$	2,346

(a) When the discounted cash flows or collateral value equals or exceeds the amortized cost of the loan, the loan does not require an allowance. This typically occurs when the loans have been partially charged off and/or there have been interest payments received and applied to the loan balance.

(b) Interest income on nonaccrual loans recognized on a cash basis was not material for the three and nine months ended September 30, 2024 and 2023.

150

Loan modifications

The Firm grants certain modifications of wholesale loans to borrowers experiencing financial difficulty.

Financial effects of FDMs

The following tables provide information by loan class about modifications considered FDMs during the three and nine months ended September 30, 2024 and 2023.


	Secured by real estate
	Three months ended September 30, 2024					Nine months ended September 30, 2024
(in millions, except ratios)	Amortized cost basis		% of loan modifications to total retained Secured by real estate loans		Financial effect of loan modifications	Amortized cost basis		% of loan modifications to total retained Secured by real estate loans		Financial effect of loan modifications
Single modifications
Term extension	$	267	0.16	%	Extended loans by a weighted-average of 14 months	$	271	0.17	%	Extended loans by a weighted-average of 14 months

Multiple modifications
Other-than-insignificant payment deferral and interest rate reduction	—		—			47		0.03		Provided payment deferrals with delayed amounts recaptured at maturity and reduced weighted-average contractual interest by 162 bps
Other (a)	4		—		NM	9		0.01		NM
Total	$	271				$	327

(a) Includes loans with a single modification.


	Secured by real estate
	Three months ended September 30, 2023					Nine months ended September 30, 2023
(in millions, except ratios)	Amortized cost basis		% of loan modifications to total retained Secured by real estate loans		Financial effect of loan modifications	Amortized cost basis		% of loan modifications to total retained Secured by real estate loans		Financial effect of loan modifications
Single modifications
Term extension	$	60	0.04	%	Extended loans by a weighted-average of 14 months	$	112	0.07	%	Extended loans by a weighted-average of 13 months





Other (a)	—		—			13		—		NM
Total	$	60				$	125

(a) Includes loans with both single and multiple modifications.


	Commercial and industrial
	Three months ended September 30, 2024					Nine months ended September 30, 2024
(in millions, except ratios)	Amortized cost basis		% of loan modifications to total retained Commercial and industrial loans		Financial effect of loan modifications	Amortized cost basis		% of loan modifications to total retained Commercial and industrial loans		Financial effect of loan modifications
Single modifications
Term extension	$	443	0.27	%	Extended loans by a weighted-average of 15 months	$	880	0.54	%	Extended loans by a weighted-average of 17 months
Other-than-insignificant payment deferral	215		0.13		Provided payment deferrals with delayed amounts primarily re-amortized over the remaining tenor	315		0.19		Provided payment deferrals with delayed amounts primarily re-amortized over the remaining tenor

Multiple modifications
Other-than-insignificant payment deferral and term extension	1		—		Provided payment deferrals with delayed amounts primarily recaptured at maturity and extended loans by a weighted-average of 23 months	127		0.08		Provided payment deferrals with delayed amounts primarily recaptured at the end of the deferral period and extended loans by a weighted-average of 22 months


Other (a)	5		—		NM	26		0.02		NM
Total	$	664				$	1,348

(a) Includes loans with both single and multiple modifications.

151


	Commercial and industrial
	Three months ended September 30, 2023					Nine months ended September 30, 2023
(in millions, except ratios)	Amortized cost basis		% of loan modifications to total retained Commercial and industrial loans		Financial effect of loan modifications	Amortized cost basis		% of loan modifications to total retained Commercial and industrial loans		Financial effect of loan modifications
Single modifications
Term extension	$	372	0.22	%	Extended loans by a weighted-average of 21 months	$	669	0.40	%	Extended loans by a weighted-average of 19 months
Other-than-insignificant payment deferral	309		0.19		Provided payment deferrals with delayed amounts primarily re-amortized over the remaining tenor	310		0.19		Provided payment deferrals with delayed amounts primarily re-amortized over the remaining tenor
Multiple modifications
Other-than-insignificant payment deferral and term extension	32		0.02		Provided payment deferrals with delayed amounts primarily recaptured at maturity and extended loans by a weighted-average of 6 months	32		0.02		Provided payment deferrals with delayed amounts primarily recaptured at maturity and extended loans by a weighted-average of 6 months



Other (a)	2		—		NM	17		0.01		NM
Total	$	715				$	1,028

(a) Includes loans with multiple modifications.


	Other
	Three months ended September 30, 2024					Nine months ended September 30, 2024
(in millions, except ratios)	Amortized cost basis		% of loan modifications to total retained Other loans		Financial effect of loan modifications	Amortized cost basis		% of loan modifications to total retained Other loans		Financial effect of loan modifications
Single modifications
Term extension	$	260	0.07	%	Extended loans by a weighted-average of 30 months	$	282	0.08	%	Extended loans by a weighted-average of 29 months



Other (a)	—		—			6		—		NM
Total	$	260				$	288

(a) Includes loans with both single and multiple modifications.


	Other
	Three months ended September 30, 2023					Nine months ended September 30, 2023
(in millions, except ratios)	Amortized cost basis		% of loan modifications to total retained Other loans		Financial effect of loan modifications	Amortized cost basis		% of loan modifications to total retained Other loans		Financial effect of loan modifications
Single modifications
Term extension	$	100	0.03	%	Extended loans by a weighted-average of 27 months	$	100	0.03	%	Extended loans by a weighted-average of 30 months

Multiple modifications
Interest rate reduction and term extension	495		0.14		Reduced weighted-average contractual interest by 1,708 bps and extended loans by a weighted-average of 7 months	495		0.14		Reduced weighted-average contractual interest by 1,708 bps and extended loans by a weighted-average of 7 months
Other-than-insignificant payment deferral and term extension	—		—			233		0.07		Provided payment deferrals with delayed amounts primarily recaptured at the end of the deferral period and extended loans by a weighted-average of 144 months
Other (a)	—		—			9		—		NM
Total	$	595				$	837

(a) Includes loans with single modification.

152

Payment status of FDMs

The following table provides information on the payment status of FDMs during the twelve months ended September 30, 2024 and the nine months ended September 30, 2023.


	Amortized cost basis
	Twelve months ended September 30, 2024						Nine months ended September 30, 2023
(in millions)	Secured by real estate		Commercial and industrial		Other		Secured by real estate		Commercial and industrial		Other
Current and less than 30 days past due and still accruing	$	281	$	1,077	$	367	$	117	$	703	$	248
30-89 days past due and still accruing	1		21		9		—		—		28
90 or more days past due and still accruing	—		4		—		—		10		—
Criticized nonaccrual	64		507		167		8		315		561
Total	$	346	$	1,609	$	543	$	125	$	1,028	$	837

Defaults of FDMs

The following table provides information by loan class about FDMs that defaulted in the three and nine months ended September 30, 2024 that were reported as FDMs in the twelve months prior to the default, and FDMs that defaulted in the three and nine months ended September 30, 2023 that were reported as FDMs on or after January 1, 2023, the date that the Firm adopted the changes to the TDR accounting guidance.


	Amortized cost basis
	Three months ended September 30, 2024						Nine months ended September 30, 2024
(in millions)	Secured by real estate		Commercial and industrial		Other		Secured by real estate		Commercial and industrial		Other
Term extension	$	1	$	80	$	10	$	1	$	88	$	12
Other-than-insignificant payment deferral	—		123		—		—		124		—

Interest rate reduction and term extension	—		—		—		—		1		—
Total	$	1	$	203	$	10	$	1	$	213	$	12


	Amortized cost basis
	Three months ended September 30, 2023						Nine months ended September 30, 2023
(in millions)	Secured by real estate		Commercial and industrial		Other		Secured by real estate		Commercial and industrial		Other
Term extension	$	—	$	11	$	32	$	1	$	18	$	32
Interest rate reduction and term extension	—		—		—		1		—		—
Total	$	—	$	11	$	32	$	2	$	18	$	32

As of September 30, 2024 and December 31, 2023, additional unfunded commitments on modified loans to borrowers experiencing financial difficulty were $ 1.2 billion and $ 1.8 billion , respectively, in Commercial and industrial, and $ 75 million and $ 4 million , respectively, in Other loan class. There were no additional commitments to borrowers experiencing financial difficulty whose loans have been modified as FDMs in Secured by real estate for both periods.

153

Note 12 – Allowance for credit losses

The Firm's allowance for credit losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's financial assets measured at amortized cost and certain off-balance sheet lending-related commitments.

Refer to Note 13 of JPMorgan Chase's 2023 Form 10-K for a detailed discussion of the allowance for credit losses and the related accounting policies.

154

Allowance for credit losses and related information

The table below summarizes information about the allowances for credit losses and includes a breakdown of loans and lending-related commitments by impairment methodology. Refer to Note 10 of JPMorgan Chase’s 2023 Form 10-K and Note 9 of this Form 10-Q for further information on the allowance for credit losses on investment securities.


	2024								2023
Nine months ended September 30, (in millions)	Consumer, excluding credit card		Credit card		Wholesale		Total			Consumer, excluding credit card		Credit card		Wholesale		Total

Beginning balance at January 1,	$	1,856	$	12,450	$	8,114	$	22,420		$	2,040	$	11,200	$	6,486	$	19,726
Cumulative effect of a change in accounting principle (a)	NA		NA		NA		NA			( 489 )		( 100 )		2		( 587 )
Gross charge-offs	971		6,044		659		7,674			809		3,852		435		5,096
Gross recoveries collected	( 490 )		( 762 )		( 148 )		( 1,400 )			( 388 )		( 579 )		( 84 )		( 1,051 )
Net charge-offs/(recoveries)	481		5,282		511		6,274			421		3,273		351		4,045
Provision for loan losses	360		6,932		506		7,798			723		4,073		2,047		6,843
Other	—		—		5		5			1		—		8		9
Ending balance at September 30,	$	1,735	$	14,100	$	8,114	$	23,949		$	1,854	$	11,900	$	8,192	$	21,946
Allowance for lending-related commitments
Beginning balance at January 1,	$	75	$	—	$	1,899	$	1,974		$	76	$	—	$	2,306	$	2,382
Provision for lending-related commitments	6		—		162		168			5		—		( 313 )		( 308 )
Other	—		—		—		—			—		—		1		1
Ending balance at September 30,	$	81	$	—	$	2,061	$	2,142		$	81	$	—	$	1,994	$	2,075
Total allowance for investment securities	NA		NA		NA		175			NA		NA		NA		117
Total allowance for credit losses (b)	$	1,816	$	14,100	$	10,175	$	26,266		$	1,935	$	11,900	$	10,186	$	24,138
Allowance for loan losses by impairment methodology
Asset-specific (c)	$	( 756 )	$	—	$	499	$	( 257 )		$	( 942 )	$	—	$	732	$	( 210 )
Portfolio-based	2,491		14,100		7,615		24,206			2,796		11,900		7,460		22,156
Total allowance for loan losses	$	1,735	$	14,100	$	8,114	$	23,949		$	1,854	$	11,900	$	8,192	$	21,946

Loans by impairment methodology
Asset-specific (c)	$	2,784	$	—	$	3,510	$	6,294		$	3,321	$	—	$	2,402	$	5,723
Portfolio-based	375,154		219,542		684,380		1,279,076			393,733		196,935		669,550		1,260,218
Total retained loans	$	377,938	$	219,542	$	687,890	$	1,285,370		$	397,054	$	196,935	$	671,952	$	1,265,941
Collateral-dependent loans
Net charge-offs	$	1	$	—	$	150	$	151		$	4	$	—	$	127	$	131
Loans measured at fair value of collateral less cost to sell	2,805		—		1,524		4,329			3,384		—		1,074		4,458
Allowance for lending-related commitments by impairment methodology
Asset-specific	$	—	$	—	$	93	$	93		$	—	$	—	$	61	$	61
Portfolio-based	81		—		1,968		2,049			81		—		1,933		2,014
Total allowance for lending-related commitments (d)	$	81	$	—	$	2,061	$	2,142		$	81	$	—	$	1,994	$	2,075
Lending-related commitments by impairment methodology
Asset-specific	$	—	$	—	$	619	$	619		$	—	$	—	$	387	$	387
Portfolio-based (e)	26,764		—		514,313		541,077			30,245		—		514,937		545,182
Total lending-related commitments	$	26,764	$	—	$	514,932	$	541,696		$	30,245	$	—	$	515,324	$	545,569

(a) Represents the impact to the allowance for loan losses upon the adoption of the Financial Instruments - Credit Losses: Troubled Debt Restructurings accounting guidance. Refer to Note 1 of JPMorgan Chase's 2023 Form 10-K for further information.

(b) At September 30, 2024 and 2023, in addition to the allowance for credit losses in the table above, the Firm also had an allowance for credit losses of $ 277 million and $ 17 million, respectively, associated with certain accounts receivable in CIB.

(c) Includes collateral-dependent loans, including those for which foreclosure is deemed probable, and nonaccrual risk-rated loans.

(d) The allowance for lending-related commitments is reported in accounts payable and other liabilities on the Consolidated balance sheets.

(e) At September 30, 2024 and 2023, lending-related commitments excluded $ 18.6 billion and $ 18.1 billion, respectively, for the consumer, excluding credit card portfolio segment; $ 989.6 billion and $ 898.9 billion, respectively, for the credit card portfolio segment; and $ 26.6 billion and $ 16.2 billion, respectively, for the wholesale portfolio segment, which were not subject to the allowance for lending-related commitments.

155

Discussion of changes in the allowance

The allowance for credit losses as of September 30, 2024 was $ 26.5 billion , reflecting a net addition of $ 1.8 billion from December 31, 2023.

The net addition to the allowance for credit losses included:

• $ 1.5 billion in consumer , reflecting:

– a $ 1.7 billion net addition in Card Services, due to loan growth, reflecting higher revolving balances, including the seasoning of newer vintages, and changes in certain macroeconomic variables,

partially offset by

– a $ 125 million net reduction in Home Lending in the first quarter of 2024, and

• $ 196 million in wholesale , reflecting:

– net downgrade activity, primarily in Real Estate, and the impact of incorporating the First Republic portfolio into the Firm’s modeled credit loss estimates in the second quarter of 2024,

partially offset by

– changes in certain macroeconomic variables and the impact of changes in the loan and lending-related commitment portfolios .

The following table presents the Firm’s central case assumptions for the periods presented:


	Central case assumptions at September 30, 2024
	4Q24		2Q25		4Q25
U.S. unemployment rate (a)	4.5	%	4.6	%	4.4	%
YoY growth in U.S. real GDP (b)	1.6	%	1.6	%	1.9	%

	Central case assumptions at December 31, 2023
	2Q24		4Q24		2Q25
U.S. unemployment rate (a)	4.1	%	4.4	%	4.1	%
YoY growth in U.S. real GDP (b)	1.8	%	0.7	%	1.0	%

(a) Reflects quarterly average of forecasted U.S. unemployment rate.

(b) The year over year growth in U.S. real GDP in the forecast horizon of the central scenario is calculated as the percentage change in U.S. real GDP levels from the prior year.

Subsequent changes to this forecast and related estimates will be reflected in the provision for credit losses in future periods.

Refer to Note 13 and Note 10 of JPMorgan Chase’s 2023 Form 10-K for a description of the policies, methodologies and judgments used to determine the Firm’s allowance for credit losses on loans, lending-related commitments, and investment securities.

Refer to Note 11 for additional information on the consumer and wholesale credit portfolios.

Refer to Critical Accounting Estimates Used by the Firm on pages 84-86 for further information on the allowance for credit losses and related management judgments.

156

Note 13 – Variable interest entities

Refer to Note 1 and Note 14 of JPMorgan Chase’s 2023 Form 10-K for a further description of the Firm's accounting policies regarding consolidation of and involvement with VIEs.

The following table summarizes the most significant types of Firm-sponsored VIEs by business segment. The Firm considers a “Firm-sponsored” VIE to include any entity where: (1) JPMorgan Chase is the primary beneficiary of the structure; (2) the VIE is used by JPMorgan Chase to securitize Firm assets; (3) the VIE issues financial instruments with the JPMorgan Chase name; or (4) the entity is a JPMorgan Chase–administered asset-backed commercial paper conduit.


Line of Business	Transaction Type	Activity	Form 10-Q page references
CCB	Credit card securitization trusts	Securitization of originated credit card receivables	157
	Mortgage securitization trusts	Servicing and securitization of both originated and purchased residential mortgages	157–159
CIB	Mortgage and other securitization trusts	Securitization of both originated and purchased residential and commercial mortgages, and other consumer loans	157–159
	Multi-seller conduits	Assisting clients in accessing the financial markets in a cost-efficient manner and structuring transactions to meet investor needs	159
	Municipal bond vehicles	Financing of municipal bond investments	159

In addition, CIB also invests in and provides financing, lending-related services and other services to VIEs sponsored by third parties. Refer to pages 160–161 of this Note for more information on the VIEs sponsored by third parties.

Significant Firm-sponsored VIEs

Credit card securitizations

As a result of the Firm’s continuing involvement, the Firm is considered to be the primary beneficiary of its Firm-sponsored credit card securitization trust, the Chase Issuance Trust.

Firm-sponsored mortgage and other securitization trusts

The Firm securitizes (or has securitized) originated and purchased residential mortgages, commercial mortgages and other consumer loans primarily in its CCB and CIB businesses. Depending on the particular transaction, as well as the respective business involved, the Firm may act as the servicer of the loans and/or retain certain beneficial interests in the securitization trusts.

157

The following tables present the total unpaid principal amount of assets held in Firm-sponsored private-label securitization entities, including those in which the Firm has continuing involvement, and those that are consolidated by the Firm. Continuing involvement includes servicing the loans, holding senior interests or subordinated interests (including amounts required to be held pursuant to credit risk retention rules), recourse or guarantee arrangements,

and derivative contracts. In certain instances, the Firm’s only continuing involvement is servicing the loans. The Firm’s maximum loss exposure from retained and purchased interests is the carrying value of these interests. Refer to page 163 of this Note for information on the securitization-related loan delinquencies and liquidation losses.


	Principal amount outstanding						JPMorgan Chase interest in securitized assets in nonconsolidated VIEs (c)(d)(e)
September 30, 2024 (in millions)	Total assets held by securitization VIEs		Assets held in consolidated securitization VIEs		Assets held in nonconsolidated securitization VIEs with continuing involvement		Trading assets		Investment securities		Other financial assets		Total interests held by JPMorgan Chase
Securitization-related (a)
Residential mortgage:
Prime/Alt-A and option ARMs	$	68,246	$	627	$	48,312	$	576	$	1,827	$	617	$	3,020
Subprime	8,583		—		1,438		26		21		—		47
Commercial and other (b)	180,589		—		120,205		664		5,820		1,593		8,077
Total	$	257,418	$	627	$	169,955	$	1,266	$	7,668	$	2,210	$	11,144


	Principal amount outstanding						JPMorgan Chase interest in securitized assets in nonconsolidated VIEs (c)(d)(e)
December 31, 2023 (in millions)	Total assets held by securitization VIEs		Assets held in consolidated securitization VIEs		Assets held in nonconsolidated securitization VIEs with continuing involvement		Trading assets		Investment securities		Other financial assets		Total interests held by JPMorgan Chase
Securitization-related (a)
Residential mortgage:
Prime/Alt-A and option ARMs	$	58,570	$	675	$	39,319	$	595	$	1,981	$	60	$	2,636
Subprime	8,881		—		1,312		3		—		—		3
Commercial and other (b)	168,042		—		120,262		831		5,638		1,354		7,823
Total	$	235,493	$	675	$	160,893	$	1,429	$	7,619	$	1,414	$	10,462

(a) Excludes U.S. GSEs and government agency securitizations and re-securitizations, which are not Firm-sponsored.

(b) Consists of securities backed by commercial real estate loans and non-mortgage-related consumer receivables.

(c) Excludes the following: retained servicing; securities retained from loan sales and securitization activity related to U.S. GSEs and government agencies; interest rate and foreign exchange derivatives primarily used to manage interest rate and foreign exchange risks of securitization entities; senior securities of $ 113 million and $ 52 million at September 30, 2024 and December 31, 2023, respectively, and subordinated securities of $ 69 million and $ 38 million at September 30, 2024 and December 31, 2023, respectively, which the Firm purchased in connection with CIB’s secondary market-making activities.

(d) Includes interests held in re-securitization transactions.

(e) As of September 30, 2024 and December 31, 2023, 72 % and 77 %, respectively, of the Firm’s retained securitization interests, which are predominantly carried at fair value and include amounts required to be held pursuant to credit risk retention rules, were risk-rated “A” or better, on an S&P-equivalent basis. The retained interests in prime residential mortgages consisted of $ 2.8 billion and $ 2.5 billion of investment-grade retained interests at September 30, 2024 and December 31, 2023, respectively, and $ 172 million and $ 88 million of noninvestment-grade retained interests at September 30, 2024 and December 31, 2023, respectively. The retained interests in commercial and other securitization trusts consisted of $ 6.1 billion of investment-grade retained interests at both September 30, 2024 and December 31, 2023, and $ 1.9 billion and $ 1.7 billion of noninvestment-grade retained interests at September 30, 2024 and December 31, 2023, respectively.

158

Residential mortgage

The Firm securitizes residential mortgage loans originated by CCB, as well as residential mortgage loans purchased from third parties by either CCB or CIB.

Commercial mortgages and other consumer securitizations

CIB originates and securitizes commercial mortgage loans, and engages in underwriting and trading activities involving the securities issued by securitization trusts.

Re-securitizations

The following table presents the principal amount of securities transferred to re-securitization VIEs.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2024		2023		2024		2023
Transfers of securities to VIEs
U.S. GSEs and government agencies	$	12,353	$	4,521	$	33,531	$	14,188

The Firm did no t transfer any private label securities to re-securitization VIEs during the three and nine months ended September 30, 2024 and 2023, respectively and retained interests in any such Firm-sponsored VIEs as of September 30, 2024 and December 31, 2023 were not material.

The following table presents information on the Firm's interests in nonconsolidated re-securitization VIEs.


	Nonconsolidated re-securitization VIEs
(in millions)	September 30, 2024		December 31, 2023
U.S. GSEs and government agencies
Interest in VIEs	$	5,361	$	3,371

As of September 30, 2024 and December 31, 2023, the Firm did not consolidate any U.S. GSE and government agency re-securitization VIEs or any Firm-sponsored private-label re-securitization VIEs.

Multi-seller conduits

In the normal course of business, JPMorgan Chase makes markets in and invests in commercial paper issued by the Firm-administered multi-seller conduits. The Firm held $ 2.6 billion and $ 9.8 billion of the commercial paper issued by the Firm-administered multi-seller conduits at September 30, 2024 and December 31, 2023, respectively, which have been eliminated in consolidation. The Firm’s investments reflect the Firm’s funding needs and capacity and were not driven by market illiquidity. Other than the amounts required to be held pursuant to credit risk retention rules, the Firm is not obligated under any agreement to purchase the commercial paper issued by the Firm-administered multi-seller conduits.

Deal-specific liquidity facilities, program-wide liquidity and credit enhancement provided by the Firm have been eliminated in consolidation. The Firm or the Firm-administered multi-seller conduits provide lending-related commitments to certain clients of the Firm-administered multi-seller conduits. The unfunded commitments were $ 12.6 billion and $ 10.8 billion at September 30, 2024 and December 31, 2023, respectively, and are reported as off-balance sheet lending-related commitments in other unfunded commitments to extend credit. Refer to Note 22 for more information on off-balance sheet lending-related commitments.

Municipal bond vehicles

Municipal bond vehicles or tender option bond (“TOB”) trusts allow institutions to finance their municipal bond investments at short-term rates. TOB transactions are known as customer TOB trusts and non-customer TOB trusts. Customer TOB trusts are sponsored by a third party.

The Firm serves as sponsor for all non-customer TOB transactions.

159

Consolidated VIE assets and liabilities

The following table presents information on assets and liabilities related to VIEs consolidated by the Firm as of September 30, 2024 and December 31, 2023.


	Assets									Liabilities
September 30, 2024 (in millions)	Trading assets		Loans			Other (c)		Total assets (d)		Beneficial interests in VIE assets (e)		Other (f)		Total liabilities
VIE program type
Firm-sponsored credit card trusts	$	—	$	12,868		$	165	$	13,033	$	5,361	$	10	$	5,371
Firm-administered multi-seller conduits	3		19,683			144		19,830		17,173		30		17,203
Municipal bond vehicles	2,935		—			24		2,959		3,012		16		3,028
Mortgage securitization entities (a)	—		646			6		652		117		50		167
Other	505		1,831		(b)	308		2,644		31		315		346
Total	$	3,443	$	35,028		$	647	$	39,118	$	25,694	$	421	$	26,115

	Assets									Liabilities
December 31, 2023 (in millions)	Trading assets		Loans			Other (c)		Total assets (d)		Beneficial interests in VIE assets (e)		Other (f)		Total liabilities
VIE program type
Firm-sponsored credit card trusts	$	—	$	9,460		$	117	$	9,577	$	2,998	$	6	$	3,004
Firm-administered multi-seller conduits	1		27,372			194		27,567		17,781		30		17,811
Municipal bond vehicles	2,056		—			22		2,078		2,116		11		2,127
Mortgage securitization entities (a)	—		693			8		701		125		57		182
Other	113		86			250		449		—		159		159
Total	$	2,170	$	37,611		$	591	$	40,372	$	23,020	$	263	$	23,283

(a) Includes residential mortgage securitizations.

(b) Primarily includes consumer loans in CIB.

(d) The assets of the consolidated VIEs included in the program types above are used to settle the liabilities of those entities. The assets and liabilities include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation.

(e) The interest-bearing beneficial interest liabilities issued by consolidated VIEs are classified on the Consolidated balance sheets as “Beneficial interests issued by consolidated VIEs”. The holders of these beneficial interests generally do not have recourse to the general credit of JPMorgan Chase. Included in beneficial interests in VIE assets are long-term beneficial interests of $ 5.5 billion and $ 3.1 billion at September 30, 2024 and December 31, 2023, respectively.

(f) Includes liabilities classified as accounts payable and other liabilities on the Consolidated balance sheets.

VIEs sponsored by third parties

The Firm enters into transactions with VIEs structured by other parties. These include, for example, acting as a derivative counterparty, liquidity provider, investor, underwriter, placement agent, remarketing agent, trustee or custodian. These transactions are conducted at arm’s-length, and individual credit decisions are based on the analysis of the specific VIE, taking into consideration the quality of the underlying assets. Where the Firm does not have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, or a variable interest that could potentially be significant, the Firm generally does not consolidate the VIE, but it records and reports these positions on its Consolidated balance sheets in the same manner it would record and report positions in respect of any other third-party transaction.

Tax credit vehicles

The Firm holds investments in unconsolidated tax credit vehicles, which are limited partnerships and similar entities that own and operate affordable housing, alternative energy, and other projects. These entities are primarily considered VIEs. A third party is typically the general partner or managing member and has control over the significant activities of the tax credit vehicles, and

accordingly the Firm does not consolidate tax credit vehicles. The Firm generally invests in these partnerships as a limited partner and earns a return primarily through the receipt of tax credits allocated to the projects. The maximum loss exposure, represented by equity investments and funding commitments, was $ 34.9 billion and $ 35.1 billion at September 30, 2024 and December 31, 2023, of which $ 15.0 billion and $ 14.7 billion was unfunded at September 30, 2024 and December 31, 2023, respectively. The Firm assesses each project and to reduce the risk of loss, may withhold varying amounts of its capital investment until the project qualifies for tax credits. Refer to Note 25 of JPMorgan Chase’s 2023 Form 10-K for further information on affordable housing tax credits and Note 22 of this Form 10-Q for more information on off-balance sheet lending-related commitments.

Effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance which expanded the types of tax-oriented investments, beyond affordable housing tax credit investments, that the Firm can elect on a program by program basis, to be accounted for using the proportional amortization method. Refer to Note 1 for further information.

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The proportional amortization method requires the cost of eligible investments, within an elected program, be amortized in proportion to the tax benefits received with the resulting amortization reported directly in income tax expense, which aligns with the associated tax credits and other tax benefits. Investments must meet certain criteria to be eligible, including that substantially all of the return is from income tax credits and other income tax benefits.

In addition, under this method deferred taxes are generally not recorded as the investment is now amortized in proportion to the income tax credits and other income tax benefits received. Delayed equity contributions that are unconditional and legally binding or conditional and probable of occurring are recorded in other liabilities with a corresponding increase in the carrying value of the investment. The guidance also requires a reevaluation of eligible investments when significant modifications or events occur that result in a change in the nature of the investment or a change in the Firm's relationship with the underlying project. During the period, there were no significant modifications or events that resulted in a change in the nature of an eligible investment or a change in the Firm's relationship with the underlying project.

The following table provides information on tax-oriented investments for which the Firm elected to apply the proportional amortization method.


As of or for the period ended, (in millions)	Alternative energy and affordable housing programs (d)
	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Programs for which the Firm elected proportional amortization:
Carrying value (a)	$	31,778	$	13,800	$	31,778	$	13,800
Tax credits and other tax benefits (b)	1,280		532		4,067		1,478
Investments that qualify to be accounted for using proportional amortization:
Amortization losses recognized as a component of income tax expense	( 1,006 )		( 417 )		( 3,157 )		( 1,161 )
Non-income-tax-related gains and other returns received that are recognized outside of income tax expense (c)	28		—		96		( 1 )

(a) Recorded in Other assets on the Consolidated balance sheets. Excludes programs to which the Firm does not apply the proportional amortization method, such as historic tax credit and new market tax credit programs.

(b) Reflected in Income tax expense on the Consolidated statements of income and Operating activities on the Consolidated statements of cash flows.

(c) Recorded in Other income on the Consolidated statements of income and Operating activities on the Consolidated statements of cash flows.

(d) As of December 31, 2023, the carrying value of eligible affordable housing investments was $ 14.6 billion. Refer to Note 25 of JPMorgan Chase’s 2023 Form 10-K for further information on affordable housing tax credits.

Customer municipal bond vehicles (TOB trusts)

The Firm may provide various services to customer TOB trusts, including remarketing agent, liquidity or tender option provider. In certain customer TOB transactions, the Firm, as liquidity provider, has entered into a reimbursement agreement with the Residual holder.

In those transactions, upon the termination of the vehicle, the Firm has recourse to the third-party Residual holders for any shortfall. The Firm does not have any intent to protect Residual holders from potential losses on any of the underlying municipal bonds. The Firm does not consolidate customer TOB trusts, since the Firm does not have the power to make decisions that significantly impact the economic performance of the municipal bond vehicle.

The Firm’s maximum exposure as a liquidity provider to customer TOB trusts at September 30, 2024 and December 31, 2023 was $ 5.4 billion and $ 5.1 billion, respectively. The fair value of assets held by such VIEs at September 30, 2024 and December 31, 2023 was $ 7.8 billion and $ 7.3 billion, respectively.

161

Loan securitizations

The Firm has securitized and sold a variety of loans, including residential mortgages, credit card receivables, commercial mortgages and other consumer loans.

Securitization activity

The following table provides information related to the Firm’s securitization activities for the three and nine months ended September 30, 2024 and 2023, related to assets held in Firm-sponsored securitization entities that were not consolidated by the Firm, and where sale accounting was achieved at the time of the securitization.


	Three months ended September 30,								Nine months ended September 30,
	2024				2023				2024				2023
(in millions)	Residential mortgage (d)		Commercial and other (e)		Residential mortgage (d)		Commercial and other (e)		Residential mortgage (d)		Commercial and other (e)		Residential mortgage (d)		Commercial and other (e)
Principal securitized	$	5,032	$	4,816	$	2,721	$	2,737	$	14,426	$	12,059	$	6,010	$	3,113
All cash flows during the period: (a)
Proceeds received from loan sales as financial instruments (b)(c)	$	5,035	$	4,646	$	2,585	$	2,726	$	14,176	$	11,754	$	5,738	$	3,106
Servicing fees collected	15		12		6		2		27		23		18		3
Cash flows received on interests	100		209		89		126		262		504		249		304

(a) Excludes re-securitization transactions.

(b) Primarily includes Level 2 assets.

(d) Represents prime mortgages. Excludes loan securitization activity related to U.S. GSEs and government agencies.

(e) Includes commercial mortgage and auto loans.

Loans and excess MSRs sold to U.S. government-sponsored enterprises and loans in securitization transactions pursuant to Ginnie Mae guidelines

In addition to the amounts reported in the securitization activity tables above, the Firm, in the normal course of business, sells originated and purchased mortgage loans and certain originated excess MSRs on a nonrecourse basis, predominantly to U.S. GSEs. These loans and excess MSRs are sold primarily for the purpose of securitization by the U.S. GSEs, who provide certain guarantee provisions (e.g., credit enhancement of the loans). The Firm also sells loans into securitization transactions pursuant to Ginnie Mae guidelines; these loans are typically insured or guaranteed by another U.S. government agency. The Firm does not consolidate the securitization vehicles underlying these transactions as it is not the primary beneficiary. For a limited number of loan sales, the Firm is obligated to share a portion of the credit risk associated with the sold loans with the purchaser. Refer to Note 22 of this Form 10-Q for additional information about the Firm’s loan sales- and securitization-related indemnifications and Note 14 for additional information about the impact of the Firm’s sale of certain excess MSRs.

The following table summarizes the activities related to loans sold to the U.S. GSEs, and loans in securitization transactions pursuant to Ginnie Mae guidelines.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2024		2023		2024		2023
Carrying value of loans sold	$	7,132	$	5,582	$	18,298	$	14,603
Proceeds received from loan sales as cash	385		119		751		159
Proceeds from loan sales as securities (a)(b)	6,695		5,397		17,386		14,279
Total proceeds received from loan sales (c)	$	7,080	$	5,516	$	18,137	$	14,438
Gains/(losses) on loan sales (d)(e)	$	—	$	—	$	—	$	—

(a) Includes securities from U.S. GSEs and Ginnie Mae that are generally sold shortly after receipt or retained as part of the Firm’s investment securities portfolio.

(b) Included in level 2 assets.

(d) Gains/(losses) on loan sales include the value of MSRs.

(e) The carrying value of the loans accounted for at fair value approximated the proceeds received upon loan sale.

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Options to repurchase delinquent loans

In addition to the Firm’s obligation to repurchase certain loans due to material breaches of representations and warranties as discussed in Note 22, the Firm also has the option to repurchase delinquent loans that it services for Ginnie Mae loan pools, as well as for other U.S. government agencies under certain arrangements. The Firm typically elects to repurchase delinquent loans from Ginnie Mae loan pools as it continues to service them and/or manage the foreclosure process in accordance with the applicable requirements, and such loans continue to be insured or guaranteed. When the Firm’s repurchase option becomes exercisable, such loans must be reported on the Consolidated balance sheets as a loan with a corresponding liability. Refer to Note 11 for additional information.

The following table presents loans the Firm repurchased or had an option to repurchase, real estate owned, and foreclosed government-guaranteed residential mortgage loans recognized on the Firm’s Consolidated balance sheets as of September 30, 2024 and December 31, 2023. Substantially all of these loans and real estate are insured or guaranteed by U.S. government agencies.


(in millions)	September 30, 2024		December 31, 2023
Loans repurchased or option to repurchase (a)	$	715	$	597
Real estate owned	7		8
Foreclosed government-guaranteed residential mortgage loans (b)	7		22

(a) Primarily all of these amounts relate to loans that have been repurchased from Ginnie Mae loan pools.

(b) Relates to voluntary repurchases of loans, which are included in accrued interest and accounts receivable.

Loan delinquencies and liquidation losses

The table below includes information about components of and delinquencies related to nonconsolidated securitized financial assets held in Firm-sponsored private-label securitization entities, in which the Firm has continuing involvement as of September 30, 2024 and December 31, 2023. For loans sold or securitized where servicing is the Firm’s only form of continuing involvement, the Firm generally experiences a loss only if the Firm was required to repurchase a delinquent loan or foreclosed asset due to a breach in representations and warranties associated with its loan sale or servicing contracts.


									Net liquidation losses/(recoveries)
	Securitized assets				90 days past due				Three months ended September 30,				Nine months ended September 30,
(in millions)	September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023		2024		2023		2024		2023
Securitized loans
Residential mortgage:
Prime / Alt-A & option ARMs	$	48,312	$	39,319	$	491	$	440	$	2	$	2	$	9	$	12
Subprime	1,438		1,312		105		131		1		1		2		5
Commercial and other	120,205		120,262		1,337		2,874		14		40		33		59
Total loans securitized	$	169,955	$	160,893	$	1,933	$	3,445	$	17	$	43	$	44	$	76

163

Note 14 – Goodwill, mortgage servicing rights, and other intangible assets

Refer to Note 15 of JPMorgan Chase’s 2023 Form 10-K for a discussion of the accounting policies related to goodwill, mortgage servicing rights, and other intangible assets.

Goodwill

Goodwill is recorded upon completion of a business combination as the difference between the purchase price and the fair value of the net assets acquired, and can be adjusted up to one year from the acquisition date as additional information pertaining to facts and circumstances that existed as of the acquisition date is obtained about the fair value of assets acquired and liabilities assumed.

The following table presents goodwill attributed to the reportable business segments and Corporate.


(in millions)	September 30, 2024		December 31, 2023
Consumer & Community Banking	$	32,116	$	32,116
Commercial & Investment Bank	11,259		11,251
Asset & Wealth Management	8,596		8,582
Corporate	740		685
Total goodwill	$	52,711	$	52,634

The following table presents changes in the carrying amount of goodwill.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2024		2023		2024		2023
Balance at beginning of period	$	52,620	$	52,380	$	52,634	$	51,662
Changes during the period from:
Business combinations (a)	—		166		29		853
Other (b)	91		( 54 )		48		( 23 )
Balance at September 30,	$	52,711	$	52,492	$	52,711	$	52,492

(a) For the nine months ended September 30, 2024, includes estimated goodwill associated with the acquisition of LayerOne Financial in CIB in the first quarter. For the three months ended September 30, 2023, represents an adjustment to goodwill related to the acquisition of CIFM in AWM. For the nine months ended September 30, 2023, represents estimated goodwill associated with the acquisition of Aumni Inc. in the second quarter, predominantly in CIB, and the acquisition of the remaining 51 % interest in CIFM in AWM in the first quarter.

(b) Primarily foreign currency adjustments.

Goodwill impairment testing

Goodwill is tested for impairment during the fourth quarter of each fiscal year, or more often if events or circumstances, such as adverse changes in the business climate, indicate that there may be an impairment. Refer to Note 15 of JPMorgan Chase’s 2023 Form 10-K for a further discussion of the Firm’s goodwill impairment testing.

Unanticipated declines in business performance, increases in credit losses, increases in capital requirements, as well as deterioration in economic or market conditions, adverse regulatory or legislative changes or increases in the estimated market cost of equity, could cause the estimated fair values of the Firm’s reporting units to decline in the future, which could result in a material impairment charge to earnings in a future period related to some portion of the associated goodwill.

As of September 30, 2024, the Firm reviewed current economic conditions, estimated market cost of equity, as well as actual business results and projections of business performance. Based on such reviews, the Firm has concluded that goodwill was not impaired as of September 30, 2024, or December 31, 2023, no r was goodwill written off due to impairment during the nine months ended September 30, 2024 or 2023.

164

Mortgage servicing rights

MSRs represent the fair value of expected future cash flows for performing servicing activities for others. The fair value considers estimated future servicing fees and ancillary revenue, offset by estimated costs to service the loans, and generally declines over time as net servicing cash flows are received, effectively amortizing the MSR asset against contractual servicing and ancillary fee income. MSRs are either purchased from third parties or recognized upon sale or securitization of mortgage loans if servicing is retained. Refer to Notes 2 and 15 of JPMorgan Chase’s 2023 Form 10-K for a further description of the MSR asset, interest rate risk management, and the valuation of MSRs.

The following table summarizes MSR activity for the three and nine months ended September 30, 2024 and 2023.


	As of or for the three months ended September 30,					As of or for the nine months ended September 30,
(in millions, except where otherwise noted)	2024		2023			2024			2023
Fair value at beginning of period	$	8,847	$	8,229		$	8,522		$	7,973
MSR activity:
Originations of MSRs	75		81			228			191
Purchase of MSRs (a)	282		569			607			1,036
Disposition of MSRs	2		( 101 )		(e)	( 25 )		(e)	( 191 )		(e)
Net additions/(dispositions)	359		549			810			1,036
Changes due to collection/realization of expected cash flows	( 272 )		( 265 )			( 795 )			( 760 )
Changes in valuation due to inputs and assumptions:
Changes due to market interest rates and other (b)	( 251 )		555			134			816
Changes in valuation due to other inputs and assumptions:
Projected cash flows (e.g., cost to service)	95		( 26 )			102			( 24 )
Discount rates	14		14			14			14
Prepayment model changes and other (c)	( 39 )		53			( 34 )			54
Total changes in valuation due to other inputs and assumptions	70		41			82			44
Total changes in valuation due to inputs and assumptions	( 181 )		596			216			860
Fair value at September 30,	$	8,753	$	9,109		$	8,753		$	9,109
Changes in unrealized gains/(losses) included in income related to MSRs held at September 30,	$	( 181 )	$	596		$	216		$	860
Contractual service fees, late fees and other ancillary fees included in income	396		409			1,190			1,185
Third-party mortgage loans serviced at September 30, (in billions)	658		639			658			639
Servicer advances, net of an allowance for uncollectible amounts, at September 30 (d)	501		557			501			557

(a) Includes purchase price adjustments associated with MSRs purchased in the prior quarter, primarily as a result of loans that prepaid within 90 days of settlement, allowing the Firm to recover the purchase price.

(b) Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments.

(d) Represents amounts the Firm pays as the servicer (e.g., scheduled principal and interest, taxes and insurance), which will generally be reimbursed within a short period of time after the advance from future cash flows from the trust or the underlying loans. The Firm’s credit risk associated with these servicer advances is minimal because reimbursement of the advances is typically senior to all cash payments to investors. In addition, the Firm maintains the right to stop payment to investors if the collateral is insufficient to cover the advance. However, certain of these servicer advances may not be recoverable if they were not made in accordance with applicable rules and agreements.

(e) Includes excess MSRs transferred to agency-sponsored trusts in exchange for stripped mortgage-backed securities (“SMBS”). In each transaction, a portion of the SMBS was acquired by third parties at the transaction date; the Firm acquired the remaining balance of those SMBS as trading securities.

165

The following table presents the components of mortgage fees and related income (including the impact of MSR risk management activities) for the three and nine months ended September 30, 2024 and 2023.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2024		2023		2024		2023
CCB mortgage fees and related income
Production revenue	$	154	$	162	$	441	$	339

Net mortgage servicing revenue:
Operating revenue:
Loan servicing revenue	409		409		1,226		1,211
Changes in MSR asset fair value due to collection/realization of expected cash flows	( 273 )		( 265 )		( 795 )		( 760 )
Total operating revenue	136		144		431		451
Risk management:
Changes in MSR asset fair value due to market interest rates and other (a)	( 251 )		555		134		816
Other changes in MSR asset fair value due to other inputs and assumptions in model (b)	70		41		82		44
Changes in derivative fair value and other	281		( 485 )		( 78 )		( 736 )
Total risk management	100		111		138		124
Total net mortgage servicing revenue	236		255		569		575
Total CCB mortgage fees and related income	390		417		1,010		914
All other	12		( 3 )		15		( 1 )
Mortgage fees and related income	$	402	$	414	$	1,025	$	913

(a) Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments.

(b) Represents the aggregate impact of changes in model inputs and assumptions such as projected cash flows (e.g., cost to service), discount rates and changes in prepayments other than those attributable to changes in market interest rates (e.g., changes in prepayments due to changes in home prices).

Changes in fair value based on variations in assumptions generally cannot be easily extrapolated, because the relationship of the change in the assumptions to the change in fair value are often highly interrelated and may not be linear. In the following table, the effect that a change in a particular assumption may have on the fair value is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which would either magnify or counteract the impact of the initial change.

The table below outlines the key economic assumptions used to determine the fair value of the Firm’s MSRs at September 30, 2024 and December 31, 2023, and outlines the sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below.


(in millions, except rates)	Sep 30, 2024			Dec 31, 2023
Weighted-average prepayment speed assumption (constant prepayment rate)	6.62		%	6.29		%
Impact on fair value of 10% adverse change	$	( 216 )		$	( 206 )
Impact on fair value of 20% adverse change	( 420 )			( 401 )
Weighted-average option adjusted spread (a)	6.20		%	6.10		%
Impact on fair value of a 100 basis point adverse change	$	( 376 )		$	( 369 )
Impact on fair value of a 200 basis point adverse change	( 721 )			( 709 )

(a) Includes the impact of operational risk and regulatory capital.

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Other intangible assets

The Firm’s finite-lived and indefinite-lived other intangible assets are initially recorded at their fair value primarily upon completion of a business combination. Finite-lived intangible assets, including core deposit intangibles, customer relationship intangibles, and certain other intangible assets, are amortized over their useful lives, estimated based on the expected future economic benefits. The Firm’s intangible assets with indefinite lives, such as asset management contracts, are not subject to amortization and are assessed periodically for impairment.

As of September 30, 2024 and December 31, 2023, other intangible assets consisted of finite-lived intangible assets of $ 1.8 billion and $ 2.0 billion, respectively, as well as indefinite-lived intangible assets, which are not subject to amortization, of $ 1.2 billion at both periods.

167

Note 15 – Deposits

Refer to Note 17 of JPMorgan Chase’s 2023 Form 10-K for further information on deposits.

As of September 30, 2024 and December 31, 2023, noninterest-bearing and interest-bearing deposits were as follows:


(in millions)	September 30, 2024		December 31, 2023
U.S. offices
Noninterest-bearing (included $ 47,974 and $ 75,393 at fair value) (a)	$	611,334	$	643,748
Interest-bearing (included $ 747 and $ 573 at fair value) (a)	1,326,489		1,303,100
Total deposits in U.S. offices	1,937,823		1,946,848
Non-U.S. offices
Noninterest-bearing (included $ 2,272 and $ 1,737 at fair value) (a)	31,607		23,097
Interest-bearing (included $ 291 and $ 681 at fair value) (a)	461,342		430,743
Total deposits in non-U.S. offices	492,949		453,840
Total deposits	$	2,430,772	$	2,400,688

(a) Includes structured notes classified as deposits for which the fair value option has been elected. Refer to Note 3 for further discussion.

As of September 30, 2024 and December 31, 2023, time deposits in denominations that met or exceeded the insured limit were as follows:


(in millions)	September 30, 2024		December 31, 2023
U.S. offices	$	157,672	$	132,654
Non-U.S. offices (a)	96,915		90,187
Total	$	254,587	$	222,841

(a) Represents all time deposits in non-U.S. offices as these deposits typically exceed the insured limit.

As of September 30, 2024, the remaining maturities of interest-bearing time deposits in each of the 12-month periods ending September 30 were as follows:


September 30, (in millions)
	U.S.		Non-U.S.		Total
2025	$	236,165	$	93,643	$	329,808
2026	679		125		804
2027	448		7		455
2028	120		19		139
2029	497		726		1,223
After 5 years	150		123		273
Total	$	238,059	$	94,643	$	332,702

Note 16 – Leases

Refer to Note 18 of JPMorgan Chase’s 2023 Form 10-K for a further discussion on leases.

Firm as lessee

At September 30, 2024, JPMorgan Chase and its subsidiaries were obligated under a number of noncancellable leases, predominantly operating leases for premises and equipment used primarily for business purposes.

Operating lease liabilities and right-of-use (“ROU”) assets are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term.

The carrying values of the Firm’s operating leases were as follows:


(in millions)	September 30, 2024		December 31, 2023
Right-of-use assets	$	8,430	$	8,431
Lease liabilities	8,841		8,833

The Firm’s net rental expense was $ 553 million and $ 538 million for the three months ended September 30, 2024 and 2023 and $ 1.7 billion and $ 1.5 billion for the nine months ended September 30, 2024 and 2023, respectively.

Firm as lessor

The Firm’s lease financings are predominantly auto operating leases, and are included in other assets on the Firm’s Consolidated balance sheets.

The following table presents the Firm’s operating lease income, included within other income , and the related depreciation expense, included within technology, communications and equipment expense, on the Consolidated statements of income.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2024		2023		2024		2023
Operating lease income	$	706	$	695	$	2,067	$	2,166
Depreciation expense	394		468		1,268		1,344

168

Note 17 – Preferred stock

Refer to Note 21 of JPMorgan Chase’s 2023 Form 10-K for a further discussion on preferred stock.

The following is a summary of JPMorgan Chase’s non-cumulative preferred stock outstanding as of September 30, 2024 and December 31, 2023, and the quarterly dividend declarations for the three and nine months ended September 30, 2024 and 2023.


	Shares (a)		Carrying value (in millions)					Contractual rate in effect at September 30, 2024		Earliest redemption date (b)	Floating annualized rate (c)	Dividend declared per share
	September 30, 2024	December 31, 2023	September 30, 2024		December 31, 2023		Issue date					Three months ended September 30,				Nine months ended September 30,
												2024		2023		2024	2023
Fixed-rate:



Series DD	169,625	169,625	$	1,696	$	1,696	9/21/2018	5.750	%	12/1/2023	NA	$	143.75	$	143.75	$ 431.25	$ 431.25
Series EE	185,000	185,000	1,850		1,850		1/24/2019	6.000		3/1/2024	NA	150.00		150.00		450.00	450.00
Series GG	90,000	90,000	900		900		11/7/2019	4.750		12/1/2024	NA	118.75		118.75		356.25	356.25
Series JJ	150,000	150,000	1,500		1,500		3/17/2021	4.550		6/1/2026	NA	113.75		113.75		341.25	341.25
Series LL	185,000	185,000	1,850		1,850		5/20/2021	4.625		6/1/2026	NA	115.63		115.63		346.89	346.89
Series MM	200,000	200,000	2,000		2,000		7/29/2021	4.200		9/1/2026	NA	105.00		105.00		315.00	315.00

Fixed-to-floating rate:

Series Q	—	150,000	—		1,500		4/23/2013	—		5/1/2023	SOFR + 3.25	—		227.02		220.45	574.25	(d)
Series R	—	150,000	—		1,500		7/29/2013	—		8/1/2023	SOFR + 3.30	—		228.30		221.70	528.30	(e)
Series S	—	200,000	—		2,000		1/22/2014	—		2/1/2024	SOFR + 3.78	—		168.75		233.70	506.25	(f)
Series U	—	100,000	—		1,000		3/10/2014	—		4/30/2024	SOFR + 3.33	—		153.13		153.13	459.38

Series X	160,000	160,000	1,600		1,600		9/23/2014	6.100		10/1/2024	SOFR + 3.33	152.50		152.50		457.50	457.50

Series CC	125,750	125,750	1,258		1,258		10/20/2017	SOFR + 2.58		11/1/2022	SOFR + 2.58	206.73		209.90		619.18	594.05
Series FF	—	225,000	—		2,250		7/31/2019	—		8/1/2024	SOFR + 3.38	—		125.00		250.00	375.00
Series HH	300,000	300,000	3,000		3,000		1/23/2020	4.600		2/1/2025	SOFR + 3.125	115.00		115.00		345.00	345.00
Series II	150,000	150,000	1,500		1,500		2/24/2020	4.000		4/1/2025	SOFR + 2.745	100.00		100.00		300.00	300.00
Series KK	200,000	200,000	2,000		2,000		5/12/2021	3.650		6/1/2026	CMT + 2.85	91.25		91.25		273.75	273.75
Series NN	250,000	NA	2,496		NA		3/12/2024	6.875		6/1/2029	CMT + 2.737	171.88		NA		322.75	NA	(g)
Total preferred stock	2,165,375	2,740,375	$	21,650	$	27,404

(a) Represented by depositary shares.

(b) Each series of fixed-to-floating rate preferred stock converts to a floating rate at the earliest redemption date.

(c) Effective June 30, 2023, CME Term SOFR became the replacement reference rate for fixed-to-floating rate preferred stock issued by the Firm that formerly referenced U.S. dollar LIBOR. References in the table to “SOFR” mean a floating annualized rate equal to three-month term SOFR (plus a spread adjustment of 0.26% per annum) plus the spreads noted. The reference to “CMT” means a floating annualized rate equal to the five-year Constant Maturity Treasury (“CMT”) rate plus the spread noted.

(d) The dividend rate for Series Q preferred stock became floating and payable quarterly starting on May 1, 2023; prior to which the dividend rate was fixed at 5.15 % or $ 257.50 per share payable semiannually. The dividend rate for each quarterly dividend period commencing on August 1, 2023 is three-month term SOFR (plus a spread adjustment of 0.26% per annum) plus the spread of 3.25 %.

(e) The dividend rate for Series R preferred stock became floating and payable quarterly starting on August 1, 2023; prior to which the dividend rate was fixed at 6.00 % or $ 300.00 per share payable semiannually. The dividend rate for each quarterly dividend period commencing on August 1, 2023 is three-month term SOFR (plus a spread adjustment of 0.26% per annum) plus the spread of 3.30 %.

(f) The dividend rate for Series S preferred stock became floating and payable quarterly starting on February 1, 2024; prior to which the dividend rate was fixed at 6.75 % or $ 337.50 per share payable semiannually. The dividend rate for each quarterly dividend period commencing on February 1, 2024 is three-month term SOFR (plus a spread adjustment of 0.26% per annum) plus the spread of 3.78 %.

(g) The initial dividend declared is prorated based on the number of days outstanding for the period. Dividends were declared quarterly thereafter at the contractual rate.

Each series of preferred stock has a liquidation value and redemption price per share of $ 10,000 , plus accrued but unpaid dividends. The aggregate liquidation value was $ 21.8 billion at September 30, 2024.

On March 12, 2024, the Firm issued $ 2.5 billion of fixed-rate reset non-cumulative preferred stock, Series NN.

Redemptions

On October 1, 2024, the Firm redeemed all $ 1.6 billion of its fixed-to-floating rate non-cumulative preferred stock, Series X.

On August 1, 2024, the Firm redeemed all $ 2.3 billion of its fixed-to-floating rate non-cumulative preferred stock, Series FF.

On May 1, 2024, the Firm redeemed all $ 5.0 billion of its fixed-to-floating rate non-cumulative preferred stock, Series Q, Series R and Series S.

On April 30, 2024, the Firm redeemed all $ 1.0 billion of its fixed-to-floating rate non-cumulative preferred stock, Series U.

169

Note 18 – Earnings per share

Refer to Note 23 of JPMorgan Chase’s 2023 Form 10-K for a discussion of the computation of basic and diluted earnings per share (“EPS”). The following table presents the calculation of basic and diluted EPS for the three and nine months ended September 30, 2024 and 2023.


(in millions, except per share amounts)	Three months ended September 30,				Nine months ended September 30,
	2024		2023		2024		2023
Basic earnings per share
Net income	$	12,898	$	13,151	$	44,466	$	40,245
Less: Preferred stock dividends	286		386		1,000		1,115
Net income applicable to common equity	12,612		12,765		43,466		39,130
Less: Dividends and undistributed earnings allocated to participating securities	75		80		267		241
Net income applicable to common stockholders	$	12,537	$	12,685	$	43,199	$	38,889

Total weighted-average basic shares outstanding	2,860.6		2,927.5		2,886.2		2,946.6
Net income per share	$	4.38	$	4.33	$	14.97	$	13.20

Diluted earnings per share
Net income applicable to common stockholders	$	12,537	$	12,685	$	43,199	$	38,889
Total weighted-average basic shares outstanding	2,860.6		2,927.5		2,886.2		2,946.6
Add: Dilutive impact of unvested PSUs, nondividend-earning RSUs and SARs	5.3		4.6		5.0		4.4
Total weighted-average diluted shares outstanding	2,865.9		2,932.1		2,891.2		2,951.0
Net income per share	$	4.37	$	4.33	$	14.94	$	13.18

170

Note 19 – Accumulated other comprehensive income/(loss)

AOCI includes the after-tax change in unrealized gains and losses on investment securities, foreign currency translation adjustments (including the impact of related derivatives), fair value changes of excluded components on fair value hedges, cash flow hedging activities, net gain/(loss) related to the Firm’s defined benefit pension and OPEB plans, and fair value option-elected liabilities arising from changes in the Firm’s own credit risk (DVA).


As of or for the three months ended September 30, 2024 (in millions)	Unrealized gains/(losses) on investment securities				Translation adjustments, net of hedges			Fair value hedges		Cash flow hedges			Defined benefit pension and OPEB plans			DVA on fair value option elected liabilities			Accumulated other comprehensive income/(loss)

Balance at July 1, 2024		$	( 3,494 )			$	( 1,576 )	$	( 147 )		$	( 4,843 )		$	( 1,055 )		$	( 223 )		$	( 11,338 )
Net change		2,297				389		( 20 )			2,265			( 28 )			( 349 )			4,554
Balance at September 30, 2024		$	( 1,197 )	(a)		$	( 1,187 )	$	( 167 )		$	( 2,578 )		$	( 1,083 )		$	( 572 )		$	( 6,784 )

As of or for the three months ended September 30, 2023 (in millions)	Unrealized gains/(losses) on investment securities				Translation adjustments, net of hedges			Fair value hedges		Cash flow hedges			Defined benefit pension and OPEB plans			DVA on fair value option elected liabilities			Accumulated other comprehensive income/(loss)

Balance at July 1, 2023		$	( 6,155 )			$	( 1,278 )	$	( 43 )		$	( 5,355 )		$	( 1,512 )		$	53		$	( 14,290 )
Net change		( 1,950 )				( 340 )		( 5 )			( 583 )			( 21 )			85			( 2,814 )
Balance at September 30, 2023		$	( 8,105 )	(a)		$	( 1,618 )	$	( 48 )		$	( 5,938 )		$	( 1,533 )		$	138		$	( 17,104 )

As of or for the nine months ended September 30, 2024 (in millions)	Unrealized gains/(losses) on investment securities				Translation adjustments, net of hedges			Fair value hedges		Cash flow hedges			Defined benefit pension and OPEB plans			DVA on fair value option elected liabilities			Accumulated other comprehensive income/(loss)

Balance at January 1, 2024		$	( 3,743 )			$	( 1,216 )	$	( 134 )		$	( 3,932 )		$	( 1,078 )		$	( 340 )		$	( 10,443 )




Net change		2,546				29		( 33 )			1,354			( 5 )			( 232 )			3,659
Balance at September 30, 2024		$	( 1,197 )	(a)		$	( 1,187 )	$	( 167 )		$	( 2,578 )		$	( 1,083 )		$	( 572 )		$	( 6,784 )

As of or for the nine months ended September 30, 2023 (in millions)	Unrealized gains/(losses) on investment securities				Translation adjustments, net of hedges			Fair value hedges		Cash flow hedges			Defined benefit pension and OPEB plans			DVA on fair value option elected liabilities			Accumulated other comprehensive income/(loss)

Balance at January 1, 2023		$	( 9,124 )			$	( 1,545 )	$	( 33 )		$	( 5,656 )		$	( 1,451 )		$	468		$	( 17,341 )




Net change		1,019				( 73 )		( 15 )			( 282 )			( 82 )			( 330 )			237
Balance at September 30, 2023		$	( 8,105 )	(a)		$	( 1,618 )	$	( 48 )		$	( 5,938 )		$	( 1,533 )		$	138		$	( 17,104 )

(a) As of September 30, 2024 and 2023 included after-tax net unamortized unrealized gains/(losses) of $( 661 ) million and $( 1.0 ) billion related to AFS securities that have been transferred to HTM, respectively. As of September 30, 2023 included after-tax net unamortized unrealized gains/(losses) of $( 29 ) million related to HTM securities that have been transferred to AFS as permitted by the new hedge accounting guidance adopted on January 1, 2023. Refer to Note 9 for further information.

171

The following table presents the pre-tax and after-tax changes in the components of OCI.


	2024						2023
Three months ended September 30, (in millions)	Pre-tax		Tax effect		After-tax		Pre-tax		Tax effect		After-tax
Unrealized gains/(losses) on investment securities:
Net unrealized gains/(losses) arising during the period	$	3,014	$	( 730 )	$	2,284	$	( 3,234 )	$	775	$	( 2,459 )
Reclassification adjustment for realized (gains)/losses included in net income (a)	16		( 3 )		13		669		( 160 )		509
Net change	3,030		( 733 )		2,297		( 2,565 )		615		( 1,950 )
Translation adjustments (b) :
Translation	2,411		( 109 )		2,302		( 1,608 )		18		( 1,590 )
Hedges	( 2,523 )		610		( 1,913 )		1,647		( 397 )		1,250
Net change	( 112 )		501		389		39		( 379 )		( 340 )
Fair value hedges, net change (c)	( 27 )		7		( 20 )		( 7 )		2		( 5 )
Cash flow hedges:
Net unrealized gains/(losses) arising during the period	2,313		( 559 )		1,754		( 1,209 )		290		( 919 )
Reclassification adjustment for realized (gains)/losses included in net income (d)	673		( 162 )		511		443		( 107 )		336
Net change	2,986		( 721 )		2,265		( 766 )		183		( 583 )
Defined benefit pension and OPEB plans, net change	( 36 )		8		( 28 )		( 26 )		5		( 21 )
DVA on fair value option elected liabilities, net change	( 460 )		111		( 349 )		111		( 26 )		85
Total other comprehensive income/(loss)	$	5,381	$	( 827 )	$	4,554	$	( 3,214 )	$	400	$	( 2,814 )

	2024						2023
Nine months ended September 30, (in millions)	Pre-tax		Tax effect		After-tax		Pre-tax		Tax effect		After-tax
Unrealized gains/(losses) on investment securities:
Net unrealized gains/(losses) arising during the period	$	2,428	$	( 587 )	$	1,841	$	( 1,097 )	$	264	$	( 833 )
Reclassification adjustment for realized (gains)/losses included in net income (a)	929		( 224 )		705		2,437		( 585 )		1,852
Net change	3,357		( 811 )		2,546		1,340		( 321 )		1,019
Translation adjustments (b) :
Translation	117		9		126		( 509 )		( 13 )		( 522 )
Hedges	( 129 )		32		( 97 )		596		( 147 )		449
Net change	( 12 )		41		29		87		( 160 )		( 73 )
Fair value hedges, net change (c)	( 43 )		10		( 33 )		( 20 )		5		( 15 )
Cash flow hedges:
Net unrealized gains/(losses) arising during the period	( 132 )		32		( 100 )		( 1,761 )		422		( 1,339 )
Reclassification adjustment for realized (gains)/losses included in net income (d)	1,917		( 463 )		1,454		1,391		( 334 )		1,057
Net change	1,785		( 431 )		1,354		( 370 )		88		( 282 )
Defined benefit pension and OPEB plans, net change	( 2 )		( 3 )		( 5 )		( 105 )		23		( 82 )
DVA on fair value option elected liabilities, net change	( 302 )		70		( 232 )		( 436 )		106		( 330 )
Total other comprehensive income/(loss)	$	4,783	$	( 1,124 )	$	3,659	$	496	$	( 259 )	$	237

(a) The pre-tax amount is reported in Investment securities gains/(losses) in the Consolidated statements of income.

(b) Reclassifications of pre-tax realized gains/(losses) on translation adjustments and related hedges are reported in other income/expense in the Consolidated statements of income. During the three months ended September 30, 2024, the Firm reclassified a net pre-tax loss of $( 1 ) million to other income/expense, of which $ 36 million related to net investment hedges. The net amounts reclassified during the nine months ended September 30, 2024 and three months ended September 30, 2023 were not material. During the nine months ended September 30, 2023, the Firm reclassified a net pre-tax loss of $( 4 ) million to other income/expense predominantly related to the acquisition of CIFM of which $( 38 ) million related to net investment hedges.

(c) Represents changes in fair value of cross-currency swaps attributable to changes in cross-currency basis spreads, which are excluded from the assessment of hedge effectiveness and recorded in other comprehensive income. The initial cost of cross-currency basis spreads is recognized in earnings as part of the accrual of interest on the cross-currency swaps.

(d) The pre-tax amounts are primarily recorded in noninterest revenue, net interest income and compensation expense in the Consolidated statements of income.

172

Note 20 – Restricted cash and other restricted

assets

Refer to Note 26 of JPMorgan Chase’s 2023 Form 10-K for a detailed discussion of the Firm’s restricted cash and other restricted assets.

Certain of the Firm’s cash and other assets are restricted as to withdrawal or usage. These restrictions are imposed by various regulatory authorities based on the particular activities of the Firm’s subsidiaries.

The Firm is also subject to rules and regulations established by other U.S. and non-U.S. regulators. As part of its compliance with the respective regulatory requirements, the Firm’s broker-dealer activities are subject to certain restrictions on cash and other assets.

The following table presents the components of the Firm’s restricted cash:


(in billions)	September 30, 2024		December 31, 2023
Segregated for the benefit of securities and cleared derivative customers	$	15.4	$	10.3
Cash reserves at non-U.S. central banks and held for other general purposes	9.7		9.3
Total restricted cash (a)	$	25.1	$	19.6

(a) Comprises $ 23.6 billion and $ 18.2 billion in deposits with banks, and $ 1.5 billion and $ 1.4 billion in cash and due from banks on the Consolidated balance sheets as of September 30, 2024 and December 31, 2023, respectively.

Also, as of September 30, 2024 and December 31, 2023, the Firm had the following other restricted assets:

• Cash and securities pledged with clearing organizations for the benefit of customers of $ 39.8 billion and $ 40.5 billion, respectively.

• Securities with a fair value of $ 20.9 billion and $ 20.5 billion, respectively, were also restricted in relation to customer activity.

173

Note 21 – Regulatory capital

Refer to Note 27 of JPMorgan Chase’s 2023 Form 10-K for a detailed discussion on regulatory capital.

The Federal Reserve establishes capital requirements, including well-capitalized standards, for the Firm as a consolidated financial holding company. The OCC establishes similar minimum capital requirements and standards for the Firm’s principal insured depository institution ("IDI") subsidiary, JPMorgan Chase Bank, N.A.

Under the risk-based capital and leverage-based guidelines of the Federal Reserve, JPMorgan Chase is required to maintain minimum ratios for CET1 capital, Tier 1 capital, Total capital, Tier 1 leverage and the SLR. Failure to meet these minimum requirements could cause the Federal Reserve to take action. JPMorgan Chase Bank, N.A. is also subject to these capital requirements established by its primary regulators.

The following table presents the risk-based regulatory capital ratio requirements and well-capitalized ratios to which the Firm and JPMorgan Chase Bank, N.A. were subject as of September 30, 2024 and December 31, 2023.


	Standardized capital ratio requirements				Advanced capital ratio requirements				Well-capitalized ratios
	BHC (a)(b)		IDI (c)		BHC (a)(b)		IDI (c)		BHC (d)		IDI (e)
Risk-based capital ratios
CET1 capital	11.9	%	7.0	%	11.5	%	7.0	%	NA		6.5	%
Tier 1 capital	13.4		8.5		13.0		8.5		6.0	%	8.0
Total capital	15.4		10.5		15.0		10.5		10.0		10.0

Note: The table above is as defined by the regulations issued by the Federal Reserve, OCC and FDIC and to which the Firm and JPMorgan Chase Bank, N.A. are subject.

(a) Represents the regulatory capital ratio requirements applicable to the Firm. The CET1, Tier 1 and Total capital ratio requirements each include a respective minimum requirement plus a GSIB surcharge of 4.5 % as calculated under Method 2; plus a 2.9 % SCB for Basel III Standardized ratios and a fixed 2.5 % capital conservation buffer for Basel III Advanced ratios. The countercyclical buffer is currently set to 0 % by the federal banking agencies.

(b) For the period ended December 31, 2023, the CET1, Tier 1, and Total capital ratio requirements under Basel III Standardized applicable to the Firm were 11.4 %, 12.9 %, and 14.9 %, respectively; the Basel III Advanced CET1, Tier 1, and Total capital ratio requirements applicable to the Firm were 11.0 %, 12.5 %, and 14.5 %, respectively.

(c) Represents requirements for JPMorgan Chase Bank, N.A. The CET1, Tier 1 and Total capital ratio requirements include a fixed capital conservation buffer requirement of 2.5 % that is applicable to JPMorgan Chase Bank, N.A. JPMorgan Chase Bank, N.A. is not subject to the GSIB surcharge.

(d) Represents requirements for bank holding companies pursuant to regulations issued by the Federal Reserve.

(e) Represents requirements for JPMorgan Chase Bank, N.A. pursuant to regulations issued under the FDIC Improvement Act.

The following table presents the leverage-based regulatory capital ratio requirements and well-capitalized ratios to which the Firm and JPMorgan Chase Bank, N.A. were subject as of September 30, 2024 and December 31, 2023.


	Capital ratio requirements (a)				Well-capitalized ratios
	BHC		IDI		BHC (b)	IDI
Leverage-based capital ratios
Tier 1 leverage	4.0	%	4.0	%	NA	5.0	%
SLR	5.0		6.0		NA	6.0

Note: The table above is as defined by the regulations issued by the Federal Reserve, OCC and FDIC and to which the Firm and JPMorgan Chase Bank, N.A. are subject.

(a) Represents minimum SLR requirement of 3.0 %, as well as supplementary leverage buffer requirements of 2.0 % and 3.0 % for BHC and JPMorgan Chase Bank, N.A., respectively.

(b) The Federal Reserve's regulations do not establish well-capitalized thresholds for these measures for BHCs.

CECL Regulatory Capital Transition

Beginning January 1, 2022, the $ 2.9 billion CECL capital benefit, provided by the Federal Reserve in response to the COVID-19 pandemic, is being phased out at 25% per year over a three-year period. As of September 30, 2024 and December 31, 2023, the Firm's CET1 capital reflected the remaining benefit of $ 720 million and $ 1.4 billion, respectively, associated with the CECL capital transition provisions.

Similarly, as of January 1, 2024, the Firm has phased out 75% of the other CECL capital transition provisions which impacted Tier 2 capital, adjusted average assets, total leverage exposure and RWA, as applicable.

Refer to Note 27 of JPMorgan Chase’s 2023 Form 10-K for further information on CECL capital transition provisions.

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The following tables present risk-based capital metrics under both the Basel III Standardized and Basel III Advanced approaches and leverage-based capital metrics for JPMorgan Chase and JPMorgan Chase Bank, N.A. As of September 30, 2024 and December 31, 2023, JPMorgan Chase and JPMorgan Chase Bank, N.A. were well-capitalized and met all capital requirements to which each was subject.


September 30, 2024 (in millions, except ratios)	Basel III Standardized						Basel III Advanced
	JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.			JPMorgan Chase & Co.				JPMorgan Chase Bank, N.A.
Risk-based capital metrics: (a)
CET1 capital	$	272,964		$	278,980		$	272,964			$	278,980
Tier 1 capital	292,333			278,985			292,333				278,985
Total capital	324,585			299,439			310,764			(b)	285,715			(b)


Risk-weighted assets	1,782,722			1,724,917			1,762,991			(b)	1,602,273			(b)



CET1 capital ratio	15.3		%	16.2		%	15.5		%		17.4		%
Tier 1 capital ratio	16.4			16.2			16.6				17.4
Total capital ratio	18.2			17.4			17.6				17.8


December 31, 2023 (in millions, except ratios)	Basel III Standardized						Basel III Advanced
	JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.			JPMorgan Chase & Co.				JPMorgan Chase Bank, N.A.
Risk-based capital metrics: (a)
CET1 capital	$	250,585		$	262,030		$	250,585			$	262,030
Tier 1 capital	277,306			262,032			277,306				262,032
Total capital	308,497			281,308			295,417			(b)	268,392			(b)


Risk-weighted assets	1,671,995			1,621,789			1,669,156			(b)	1,526,952			(b)



CET1 capital ratio	15.0		%	16.2		%	15.0		%		17.2		%
Tier 1 capital ratio	16.6			16.2			16.6				17.2
Total capital ratio	18.5			17.3			17.7				17.6

(a) The capital metrics reflect the CECL capital transition provisions.

(b) Includes the impacts of certain assets associated with First Republic to which the Standardized approach has been applied as permitted by the transition provisions in the U.S. capital rules.


Three months ended (in millions, except ratios)	September 30, 2024						December 31, 2023
	JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.			JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.
Leverage-based capital metrics: (a)
Adjusted average assets (b)	$	4,122,332		$	3,471,044		$	3,831,200		$	3,337,842
Tier 1 leverage ratio	7.1		%	8.0		%	7.2		%	7.9		%
Total leverage exposure	$	4,893,662		$	4,239,056		$	4,540,465		$	4,038,739
SLR	6.0		%	6.6		%	6.1		%	6.5		%

(a) The capital metrics reflect the CECL capital transition provisions.

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Note 22 – Off–balance sheet lending-related

financial instruments, guarantees, and other

commitments

JPMorgan Chase provides lending-related financial instruments (e.g., commitments and guarantees) to address the financing needs of its customers and clients. The contractual amount of these financial instruments represents the maximum possible credit risk to the Firm should the customer or client draw upon the commitment or the Firm be required to fulfill its obligation under the guarantee, and should the customer or client subsequently fail to perform according to the terms of the contract. Most of these commitments and guarantees have historically been refinanced, extended, cancelled, or expired without being drawn or a default occurring. As a result, the total contractual amount of these instruments is not, in the Firm’s view, representative of its expected future credit exposure or funding requirements. Refer to Note 28 of JPMorgan Chase’s 2023 Form 10-K for a further discussion of lending-related commitments and guarantees, and the Firm’s related accounting policies.

To provide for expected credit losses in wholesale and certain consumer lending-related commitments, an allowance for credit losses on lending-related commitments is maintained. Refer to Note 12 for further information regarding the allowance for credit losses on lending-related commitments.

The following table summarizes the contractual amounts and carrying values of off-balance sheet lending-related financial instruments, guarantees and other commitments at September 30, 2024 and December 31, 2023. The amounts in the table below for credit card, home equity and certain scored business banking lending-related commitments represent the total available credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit for these products will be utilized at the same time. The Firm can reduce or cancel credit card and certain scored business banking lines of credit by providing the borrower notice or, in some cases as permitted by law, without notice. In addition, the Firm typically closes credit card lines when the borrower is 60 days or more past due. The Firm may reduce or close HELOCs when there are significant decreases in the value of the underlying property, or when there has been a demonstrable decline in the creditworthiness of the borrower.

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Off–balance sheet lending-related financial instruments, guarantees and other commitments
	Contractual amount												Carrying value (h)(i)
	September 30, 2024										Dec 31, 2023			Sep 30, 2024			Dec 31, 2023
By remaining maturity (in millions)	Expires in 1 year or less		Expires after 1 year through 3 years		Expires after 3 years through 5 years		Expires after 5 years		Total		Total
Lending-related
Consumer, excluding credit card:
Residential Real Estate (a)	$	10,843	$	7,347	$	5,046	$	8,204	$	31,440	$	30,125		$	563	(j)	$	678	(j)
Auto and other	10,261		18		—		3,603		13,882		15,278			55		(j)	148		(j)
Total consumer, excluding credit card	21,104		7,365		5,046		11,807		45,322		45,403			618			826
Credit card (b)	989,594		—		—		—		989,594		915,658			—			—
Total consumer (c)	1,010,698		7,365		5,046		11,807		1,034,916		961,061			618			826
Wholesale:
Other unfunded commitments to extend credit (d)	107,885		202,960		172,960		24,492		508,297		503,526			2,695		(j)	2,797		(j)
Standby letters of credit and other financial guarantees (d)	15,995		9,386		3,367		477		29,225		28,872			484			479
Other letters of credit (d)	3,596		305		36		101		4,038		4,388			38			37
Total wholesale (c)	127,476		212,651		176,363		25,070		541,560		536,786			3,217			3,313
Total lending-related	$	1,138,174	$	220,016	$	181,409	$	36,877	$	1,576,476	$	1,497,847		$	3,835		$	4,139
Other guarantees and commitments
Securities lending indemnification agreements and guarantees (e)	$	334,224	$	—	$	—	$	—	$	334,224	$	283,664		$	—		$	—
Derivatives qualifying as guarantees	1,554		327		10,311		40,957		53,149		54,562			67			89
Unsettled resale and securities borrowed agreements	153,695		267		—		—		153,962		95,106			2			—
Unsettled repurchase and securities loaned agreements	94,694		568		—		—		95,262		60,724			( 3 )			—
Loan sale and securitization-related indemnifications:
Mortgage repurchase liability	NA		NA		NA		NA		NA		NA			45			76
Loans sold with recourse	NA		NA		NA		NA		961		803			21			24
Exchange & clearing house guarantees and commitments (f)	268,646		—		—		—		268,646		265,887			—			—
Other guarantees and commitments (g)	10,837		742		267		833		12,679		15,074			29			38

(a) Includes certain commitments to purchase loans from correspondents.

(b) Also includes commercial card lending-related commitments primarily in CIB.

(d) As of September 30, 2024 and December 31, 2023, reflected the contractual amount net of risk participations totaling $ 94 million and $ 88 million, respectively, for other unfunded commitments to extend credit; $ 9.6 billion and $ 8.2 billion, respectively, for standby letters of credit and other financial guarantees; $ 548 million and $ 589 million, respectively, for other letters of credit. In regulatory filings with the Federal Reserve these commitments are shown gross of risk participations.

(e) As of September 30, 2024 and December 31, 2023, collateral held by the Firm in support of securities lending indemnification agreements was $ 355.7 billion and $ 300.3 billion, respectively. Securities lending collateral primarily consists of cash, G7 government securities, and securities issued by U.S. GSEs and government agencies.

(f) As of September 30, 2024 and December 31, 2023, includes guarantees to the Fixed Income Clearing Corporation under the sponsored member repo program and commitments and guarantees associated with the Firm’s membership in certain clearing houses.

(g) As of September 30, 2024 and December 31, 2023, primarily includes unfunded commitments to purchase secondary market loans, other equity investment commitments, and unfunded commitments related to certain tax-oriented equity investments, and reflects the impact of adopting updates to the Accounting for Investments in Tax Credit Structures guidance effective January 1, 2024.

(h) For lending-related products, the carrying value includes the allowance for lending-related commitments and the guarantee liability; for derivative-related products, and lending-related commitments for which the fair value option was elected, the carrying value represents the fair value.

(i) For lending-related commitments, the carrying value also includes fees and any purchase discounts or premiums that are deferred and recognized in accounts payable and other liabilities on the Consolidated balance sheets. Deferred amounts for revolving commitments and commitments not expected to fund, are amortized to lending- and deposit-related fees on a straight line basis over the commitment period. For all other commitments the deferred amounts remain deferred until the commitment funds or is sold.

(j) As of September 30, 2024 and December 31, 2023, includes fair value adjustments associated with First Republic for residential real estate lending-related commitments totaling $ 505 million and $ 630 million, respectively, for auto and other lending-related commitments totaling $ 55 million and $ 148 million, respectively, and for other unfunded commitments to extend credit totaling $ 769 million and $ 1.1 billion, respectively. Refer to Note 26 for additional information.

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Other unfunded commitments to extend credit

Other unfunded commitments to extend credit generally consist of commitments for working capital and general corporate purposes, extensions of credit to support commercial paper facilities and bond financings in the event that those obligations cannot be remarketed to new investors, as well as committed liquidity facilities to clearing organizations. The Firm also issues commitments under multipurpose facilities which could be drawn upon in several forms, including the issuance of a standby letter of credit.

Standby letters of credit and other financial guarantees

Standby letters of credit and other financial guarantees are conditional lending commitments issued by the Firm to guarantee the performance of a client or customer to a third party under certain arrangements, such as commercial paper facilities, bond financings, acquisition financings, trade financings and similar transactions.

The following table summarizes the contractual amount and carrying value of standby letters of credit and other financial guarantees and other letters of credit arrangements as of September 30, 2024 and December 31, 2023.

Standby letters of credit, other financial guarantees and other letters of credit


	September 30, 2024				December 31, 2023
(in millions)	Standby letters of credit and other financial guarantees		Other letters of credit		Standby letters of credit and other financial guarantees		Other letters of credit
Investment-grade (a)	$	20,602	$	3,128	$	19,694	$	3,552
Noninvestment-grade (a)	8,623		910		9,178		836
Total contractual amount	$	29,225	$	4,038	$	28,872	$	4,388

Allowance for lending-related commitments	$	102	$	38	$	110	$	37
Guarantee liability	382		—		369		—
Total carrying value	$	484	$	38	$	479	$	37
Commitments with collateral	$	16,305	$	384	$	16,861	$	539

(a) The ratings scale is based on the Firm’s internal risk ratings. Refer to Note 11 for further information on internal risk ratings.

Derivatives qualifying as guarantees

The Firm transacts in certain derivative contracts that have the characteristics of a guarantee under U.S. GAAP. Refer to Note 28 of JPMorgan Chase’s 2023 Form 10-K for further information on these derivatives.

The following table summarizes the derivatives qualifying as guarantees as of September 30, 2024 and December 31, 2023.


(in millions)	September 30, 2024		December 31, 2023

Notional amounts
Derivative guarantees	$	53,149	$	54,562
Stable value contracts with contractually limited exposure	32,548		32,488
Maximum exposure of stable value contracts with contractually limited exposure	1,660		1,652

Fair value
Derivative payables	67		89

In addition to derivative contracts that meet the characteristics of a guarantee, the Firm is both a purchaser and seller of credit protection in the credit derivatives market. Refer to Note 4 for a further discussion of credit derivatives.

Loan sales- and securitization-related indemnifications

In connection with the Firm’s mortgage loan sale and securitization activities with U.S. GSEs the Firm has made representations and warranties that the loans sold meet certain requirements, and that may require the Firm to repurchase mortgage loans and/or indemnify the loan purchaser if such representations and warranties are breached by the Firm.

The liability related to repurchase demands associated with private label securitizations is separately evaluated by the Firm in establishing its litigation reserves. Refer to Note 24 of this Form 10-Q and Note 30 of JPMorgan Chase’s 2023 Form 10-K for additional information regarding litigation.

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Merchant charge-backs

Under the rules of payment networks, in its role as a merchant acquirer, the Firm's Merchant Services business in CIB Payments, retains a contingent liability for disputed processed credit and debit card transactions that result in a charge-back to the merchant. If a dispute is resolved in the cardholder’s favor, the Firm will (through the cardholder’s issuing bank) credit or refund the amount to the cardholder and will charge back the transaction to the merchant. If the Firm is unable to collect the amount from the merchant, the Firm will bear the loss for the amount credited or refunded to the cardholder. The Firm mitigates this risk by withholding future settlements, retaining cash reserve accounts or obtaining other collateral. In addition, the Firm recognizes a valuation allowance that covers the payment or performance risk related to charge-backs.

Sponsored member repo program

The Firm acts as a sponsoring member to clear eligible overnight and term resale and repurchase agreements through the Government Securities Division of the Fixed Income Clearing Corporation (“FICC”) on behalf of clients that become sponsored members under the FICC’s rules. The Firm also guarantees to the FICC the prompt and full payment and performance of its sponsored member clients’ respective obligations under the FICC’s rules. The Firm minimizes its liability under these guarantees by obtaining a security interest in the cash or high-quality securities collateral that the clients place with the clearing house; therefore, the Firm expects the risk of loss to be remote. The Firm’s maximum possible exposure, without taking into consideration the associated collateral, is included in the Exchange & clearing house guarantees and commitments line on page 177. Refer to Note 11 of JPMorgan Chase’s 2023 Form 10-K for additional information on credit risk mitigation practices on resale agreements and the types of collateral pledged under repurchase agreements.

Guarantees of subsidiaries

The Parent Company has guaranteed certain long-term debt and structured notes of its subsidiaries, including JPMorgan Chase Financial Company LLC (“JPMFC”), a 100 %-owned finance subsidiary. All securities issued by JPMFC are fully and unconditionally guaranteed by the Parent Company and no other subsidiary of the Parent Company guarantees these securities. These guarantees, which rank pari passu with the Firm’s unsecured and unsubordinated indebtedness, are not included in the table on page 177 of this Note. Refer to Note 20 of JPMorgan Chase’s 2023 Form 10-K for additional information.

Note 23 – Pledged assets and collateral

Refer to Note 29 of JPMorgan Chase’s 2023 Form 10-K for a discussion of the Firm’s pledged assets and collateral.

Pledged assets

The Firm pledges financial assets that it owns to maintain potential borrowing capacity at discount windows with Federal Reserve banks, various other central banks and FHLBs. Additionally, the Firm pledges assets for other purposes, including to collateralize repurchase and other securities financing agreements, to cover short sales and to collateralize derivative contracts and deposits. Certain of these pledged assets may be sold or repledged or otherwise used by the secured parties and are parenthetically identified on the Consolidated balance sheets as assets pledged.

The following table presents the Firm’s pledged assets.


(in billions)	September 30, 2024		December 31, 2023
Assets that may be sold or repledged or otherwise used by secured parties	$	181.5	$	145.0
Assets that may not be sold or repledged or otherwise used by secured parties	307.9		244.2
Assets pledged at Federal Reserve banks and FHLBs	692.5		675.6
Total pledged assets	$	1,181.9	$	1,064.8

Total pledged assets do not include assets of consolidated VIEs; these assets are used to settle the liabilities of those entities. Refer to Note 13 for additional information on assets and liabilities of consolidated VIEs. Refer to Note 10 for additional information on the Firm’s securities financing activities. Refer to Note 20 of JPMorgan Chase’s 2023 Form 10-K for additional information on the Firm’s long-term debt.

Collateral

The Firm accepts financial assets as collateral that it is permitted to sell or repledge, deliver or otherwise use. This collateral is generally obtained under resale and other securities financing agreements, prime brokerage-related held-for-investment customer receivables and derivative contracts. Collateral is generally used under repurchase and other securities financing agreements, to cover short sales and to collateralize derivative contracts and deposits.

The following table presents the fair value of collateral accepted.


(in billions)	September 30, 2024		December 31, 2023
Collateral permitted to be sold or repledged, delivered, or otherwise used	$	1,664.3	$	1,303.9
Collateral sold, repledged, delivered or otherwise used	1,274.2		982.8

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Note 24 – Litigation

Contingencies

As of September 30, 2024, the Firm and its subsidiaries and affiliates are defendants or respondents in numerous evolving legal proceedings, including private proceedings, public proceedings, government investigations, regulatory enforcement matters, and the matters described below. The litigations range from individual actions involving a single plaintiff to class action lawsuits with potentially millions of class members. Investigations and regulatory enforcement matters involve both formal and informal proceedings, by both governmental agencies and self-regulatory organizations. These legal proceedings are at varying stages of adjudication, arbitration or investigation, and involve each of the Firm’s lines of business and several geographies and a wide variety of claims (including common law tort and contract claims and statutory antitrust, securities and consumer protection claims), some of which present novel legal theories.

The Firm believes the estimate of the aggregate range of reasonably possible losses, in excess of reserves established, for its legal proceedings is from $ 0 to approximately $ 1.7 billion at September 30, 2024. This estimated aggregate range of reasonably possible losses was based upon information available as of that date for those proceedings in which the Firm believes that an estimate of reasonably possible loss can be made. For certain matters, the Firm does not believe that such an estimate can be made, as of that date. The Firm’s estimate of the aggregate range of reasonably possible losses involves significant judgment, given:

• the number, variety and varying stages of the proceedings, including the fact that many are in preliminary stages,

• the existence in many such proceedings of multiple defendants, including the Firm, whose share of liability (if any) has yet to be determined,

• the numerous yet-unresolved issues in many of the proceedings, including issues regarding class certification and the scope of many of the claims, and

• the uncertainty of the various potential outcomes of such proceedings, including where the Firm has made assumptions concerning future rulings by the court or other adjudicator, or about the behavior or incentives of adverse parties or regulatory authorities, and those assumptions prove to be incorrect.

In addition, the outcome of a particular proceeding may be a result which the Firm did not take into account in its estimate because the Firm had deemed the likelihood of that outcome to be remote. Accordingly, the Firm’s estimate of the aggregate range of reasonably possible losses will change from time to time, and actual losses may vary significantly.

Set forth below are descriptions of the Firm’s material legal proceedings.

1MDB Litigation . J.P. Morgan (Suisse) SA was named as a defendant in a civil litigation filed in May 2021 in Malaysia by 1Malaysia Development Berhad (“1MDB”), a Malaysian state-owned and controlled investment fund. The claim alleges “dishonest assistance” against J.P. Morgan (Suisse) SA in relation to payments of $ 300 million and $ 500 million, from 2009 and 2010, respectively, received from 1MDB and paid into an account at J.P. Morgan (Suisse) SA held by 1MDB PetroSaudi Limited, a joint venture company between 1MDB and PetroSaudi Holdings (Cayman) Limited. In March 2024, the Court upheld the Firm's challenge to the validity of service and the Malaysian Court’s jurisdiction to hear the claim. That decision has been appealed by 1MDB. In August 2023, the Court denied an application by 1MDB to discontinue its claim with permission to re-file a new claim in the future. That decision was appealed by both 1MDB and the Firm, and an appeals court is scheduled to hear both appeals in December 2024. In its appeal, the Firm seeks to prevent any claim from continuing.

In addition, in November 2023, the Federal Office of the Attorney General (OAG) in Switzerland notified J.P. Morgan (Suisse) SA that it is conducting an investigation into possible criminal liability in connection with transactions arising from J.P. Morgan (Suisse) SA’s relationship with the 1MDB PetroSaudi joint venture and its related persons for the period September 2009 through August 2015. The OAG investigation is ongoing.

Amrapali . India’s Enforcement Directorate (“ED”) is investigating J.P. Morgan India Private Limited in connection with investments made in 2010 and 2012 by two offshore funds formerly managed by JPMorgan Chase entities into residential housing projects developed by the Amrapali Group (“Amrapali”) relating to delays in delivering or failure to deliver residential units. In August 2021, the ED issued an order fining J.P. Morgan India Private Limited approximately $ 31.5 million, and the Firm is appealing that order. Relatedly, in July 2019, the Supreme Court of India issued an order making preliminary findings that Amrapali and other parties, including unspecified JPMorgan Chase entities and the offshore funds that had invested in the projects, violated certain criminal currency control and money laundering provisions, and ordered the ED to conduct a further inquiry. The Firm is responding to and cooperating with the inquiry.

Foreign Exchange Investigations and Litigation. The Firm previously reported settlements with certain government authorities relating to its foreign exchange (“FX”) sales and trading activities and controls related to those activities. Among those resolutions, in May 2015, the Firm pleaded guilty to a single violation of federal antitrust law. The Department of Labor ("DOL") granted the Firm exemptions

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that permit the Firm and its affiliates to continue to rely on the Qualified Professional Asset Manager exemption under the Employee Retirement Income Security Act (“ERISA”) through the ten-year disqualification period following the antitrust plea. The only remaining FX-related governmental inquiry is a South Africa Competition Commission matter which is currently pending before the South Africa Competition Tribunal.

With respect to civil litigation matters, some FX-related individual and putative class actions filed outside the U.S., including in the U.K., Israel, the Netherlands, Brazil and Australia remain. In July 2023, the U.K. Court of Appeal overturned the Competition Appeal Tribunal's earlier denial of a request for class certification on an opt-out basis. In Israel, a settlement in principle has been reached on the putative class action, which remains subject to court approval.

Government Inquiries Related to the Zelle Network . The Firm is responding to inquiries from the Consumer Financial Protection Bureau (CFPB) regarding the transfers of funds through the Zelle Network. In connection with this, the CFPB Staff has informed the Firm that it is authorized to pursue a resolution of the inquiries or file an enforcement action. The Firm is evaluating next steps, including litigation.

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

In September 2018, the parties settled the class action seeking monetary relief, with the defendants collectively contributing approximately $ 6.2 billion. The settlement has been approved by the United States District Court for the Eastern District of New York and affirmed on appeal. Based on the percentage of merchants that opted out of the settlement, $ 700 million has been returned to the defendants from the settlement escrow. A separate class action seeking injunctive relief continues, and in September 2021, the District Court granted plaintiffs’ motion for class certification in part, and denied the motion in part. In June 2024, the District Court denied preliminary approval of a settlement of the injunctive class action in which Visa and Mastercard agreed to certain changes to their respective network rules and system-wide reductions in interchange rates for U.S.-based merchants. The parties are considering next steps.

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

LIBOR and Other Benchmark Rate Investigations and Litigation . JPMorgan Chase has responded to inquiries from various governmental agencies and entities around the world relating primarily to the British Bankers Association’s (“BBA”) London Interbank Offered Rate (“LIBOR”) for various currencies and the European Banking Federation’s Euro Interbank Offered Rate (“EURIBOR”). The Swiss Competition Commission’s investigation relating to EURIBOR, to which the Firm and one other bank remain subject, continues. The Firm appealed a December 2016 decision by the European Commission against the Firm and other banks finding an infringement of European antitrust rules relating to EURIBOR. In December 2023, the European General Court annulled the fine imposed by the European Commission, but exercised its discretion to re-impose a fine in an identical amount. In March 2024, the Firm filed an appeal of this decision with the Court of Justice of the European Union.

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

Russian Litigation. The Firm is obligated to comply with international sanctions laws, which mandate the blocking of certain assets. These laws apply when assets associated with individuals, companies, products or services are within the scope of the sanctions. The Firm has faced actual and threatened litigation in Russia seeking payments that the Firm cannot make under, and is contractually excused from paying as a result of, relevant sanctions laws. In claims involving the Firm and claims filed against other financial institutions, Russian courts have disregarded the parties’ contractual agreements concerning forum selection and did not recognize foreign sanctions laws as a basis for not making payment. Russian courts have entered judgment against the Firm in five claims, including one for $ 439 million. The total amount of the judgments exceeds the total amount of available assets that the Firm holds in Russia. One judgment in the amount of $ 14 million was executed in July 2024 against assets held onshore by the Firm in Russia. The Firm continues to appeal the Russian

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courts' decisions, and judgments may not be executed while on appeal. Russian courts have also ordered interim freezes of Firm assets in Russia (including, among other things, funds in bank accounts, securities, shares in authorized capital, and certain trademarks, of the named defendants) pending a determination of certain underlying claims against the Firm. The Firm has challenged the freeze orders in the Russian courts and, in one claim, also in a New York federal court action, in response to which a Russian court then issued an order instructing the Firm to discontinue that New York action. If further claims are enforced despite the actions taken by the Firm to challenge the claims and orders and to seek the proper application of law, the Firm’s assets in Russia could be seized in full, and certain client assets could also be seized, or the Firm could be prevented from complying with its obligations.

SEC Inquiries . The Firm is responding to requests from the SEC regarding aspects of certain advisory programs within J.P. Morgan Securities LLC, including aggregation of accounts for billing, discounting advisory fees, and selecting portfolio managers. Separately, the Firm is responding to requests from the SEC in connection with the timing of the Firm’s liquidation of shares distributed in-kind to certain investment vehicles that invest in third-party managed private funds. The Firm continues to cooperate and is currently engaged in advanced resolution discussions with the SEC with respect to most matters. There is no assurance that such discussions will result in resolutions.

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

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

Certain of these shareholder suits relate to historical trading practices by former employees in the precious metals and U.S. treasuries markets and related conduct which were the subject of the Firm’s resolutions with the DOJ, CFTC and SEC in September 2020, and fiduciary activities that were separately the subject of a resolution between JPMorgan Chase Bank, N.A. and the OCC in November 2020. One of these shareholder derivative suits was filed in the Supreme Court of the State of New York in May 2022, asserting breach of fiduciary duty and unjust enrichment claims relating to the historical trading practices and related conduct and fiduciary activities which were the subject of the resolutions described above. In

December 2022, the court granted defendants’ motion to dismiss this action in full, and in July 2023, the plaintiff filed an appeal, which remains pending.

A second shareholder derivative action relating to the historical trading practices and related conduct was filed in the United States District Court for the Eastern District of New York in December 2022. Defendants have moved to dismiss the complaint.

Trading Venues Investigations . The Firm responded to government inquiries regarding its processes to inventory trading venues and confirm the completeness of certain data fed to trade surveillance platforms. The Firm self-identified that certain trading and order data through the CIB was not feeding into its trade surveillance platforms. The Firm entered into resolutions with the OCC and the Board of Governors of the FRB in March 2024 and with the Commodity Futures Trading Commission in May 2024. The resolutions required the Firm to, among other things, pay aggregate civil penalties of $ 450 million, which the Firm has paid, and to complete the Firm’s ongoing remediation. The Firm also engaged an independent compliance consultant, which completed an assessment of the Firm's trade surveillance program as required by the resolutions. The Firm does not expect any disruption of service to clients as a result of these resolutions.

* * *

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

The Firm has established reserves for several hundred of its currently outstanding legal proceedings. In accordance with the provisions of U.S. GAAP for contingencies, the Firm accrues for a litigation-related liability when it is probable that such a liability has been incurred and the amount of the loss can be reasonably estimated. The Firm evaluates its outstanding legal proceedings each quarter to assess its litigation reserves, and makes adjustments in such reserves, upward or downward, as appropriate, based on management’s best judgment after consultation with counsel. The Firm’s legal expense was $ 259 million and $ 665 million for the three months ended September 30, 2024 and 2023, respectively. There is no assurance that the Firm’s litigation reserves will not need to be adjusted in the future.

In view of the inherent difficulty of predicting the outcome of legal proceedings, particularly where the claimants seek very large or indeterminate damages, or where the matters present novel legal theories, involve a large number of parties or are in early stages of discovery, the Firm cannot state with confidence what will be the eventual outcomes of the currently pending matters, the timing of their ultimate

182

resolution or the eventual losses, fines, penalties or consequences related to those matters. JPMorgan Chase believes, based upon its current knowledge and after consultation with counsel, consideration of the material legal proceedings described above and after taking into account its current litigation reserves and its estimated aggregate range of possible losses, that the other legal proceedings currently pending against it should not have a material adverse effect on the Firm’s consolidated financial condition. The Firm notes, however, that in light of the uncertainties involved in such proceedings, there is no assurance that the ultimate resolution of these matters will not significantly exceed the reserves it has currently accrued or that a matter will not have material reputational consequences. As a result, the outcome of a particular matter may be material to JPMorgan Chase’s operating results for a particular period, depending on, among other factors, the size of the loss or liability imposed and the level of JPMorgan Chase’s income for that period.

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Note 25 – Business segments

Refer to Note 32 of JPMorgan Chase’s 2023 Form 10-K for a further discussion of JPMorgan Chase’s business segments.

Segment results

The following table provides a summary of the Firm’s segment results as of or for the three and nine months ended September 30, 2024 and 2023, on a managed basis. The Firm’s definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm (and each of the reportable business segments) on an FTE basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. Refer to Note 32 of JPMorgan Chase’s 2023 Form 10-K for additional information on the Firm’s managed basis.

Capital allocation

The amount of capital assigned to each business segment is referred to as equity. 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. Refer to Note 32 of JPMorgan Chase’s 2023 Form 10-K for additional information on capital allocation.


Segment results and reconciliation (a)
As of or for the three months ended September 30, (in millions, except ratios)	Consumer & Community Banking						Commercial & Investment Bank						Asset & Wealth Management
	2024			2023			2024			2023			2024			2023
Noninterest revenue	$	4,214		$	3,982		$	11,622		$	10,842		$	3,799		$	3,431
Net interest income	13,577			14,380			5,393			4,919			1,640			1,574
Total net revenue	17,791			18,362			17,015			15,761			5,439			5,005
Provision for credit losses	2,795			1,446			316			( 95 )			4			( 13 )
Noninterest expense	9,586			9,105			8,751			8,818			3,639			3,138
Income/(loss) before income tax expense/(benefit)	5,410			7,811			7,948			7,038			1,796			1,880
Income tax expense/(benefit)	1,364			1,916			2,257			2,011			445			463
Net income/(loss)	$	4,046		$	5,895		$	5,691		$	5,027		$	1,351		$	1,417
Average equity	$	54,500		$	55,500		$	132,000		$	138,000		$	15,500		$	17,000
Total assets	633,038			626,196			2,047,022			1,746,598			253,750			249,866
ROE	29		%	41		%	17		%	14		%	34		%	32		%
Overhead ratio	54			50			51			56			67			63


As of or for the three months ended September 30, (in millions, except ratios)	Corporate				Reconciling Items (a)				Total
	2024		2023		2024		2023		2024			2023
Noninterest revenue	$	155	$	( 425 )	$	( 541 )	$	( 682 )	$	19,249		$	17,148
Net interest income	2,915		1,983		( 120 )		( 130 )		23,405			22,726
Total net revenue	3,070		1,558		( 661 )		( 812 )		42,654			39,874
Provision for credit losses	( 4 )		46		—		—		3,111			1,384
Noninterest expense	589		696		—		—		22,565			21,757
Income/(loss) before income tax expense/(benefit)	2,485		816		( 661 )		( 812 )		16,978			16,733
Income tax expense/(benefit)	675		4		( 661 )		( 812 )		4,080			3,582
Net income/(loss)	$	1,810	$	812	$	—	$	—	$	12,898		$	13,151
Average equity	$	119,894	$	74,298	$	—	$	—	$	321,894		$	284,798
Total assets	1,276,238		1,275,673		NA		NA		4,210,048			3,898,333
ROE	NM		NM		NM		NM		16		%	18		%
Overhead ratio	NM		NM		NM		NM		53			55

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

184


Segment results and reconciliation (a)
As of or for the nine months ended September 30, (in millions, except ratios)	Consumer & Community Banking						Commercial & Investment Bank						Asset & Wealth Management
	2024			2023			2024			2023			2024			2023
Noninterest revenue	$	12,155		$	11,148		$	36,527		$	34,783		$	10,946		$	10,122
Net interest income	40,990			40,903			15,989			14,596			4,854			4,610
Total net revenue	53,145			52,051			52,516			49,379			15,800			14,732
Provision for credit losses	7,351			4,710			701			1,515			( 33 )			160
Noninterest expense	28,308			25,483			26,641			25,803			10,642			9,392
Income/(loss) before income tax expense/(benefit)	17,486			21,858			25,174			22,061			5,191			5,180
Income tax expense/(benefit)	4,399			5,414			6,964			5,966			1,287			1,170
Net income/(loss)	$	13,087		$	16,444		$	18,210		$	16,095		$	3,904		$	4,010
Average equity	$	54,500		$	53,962		$	132,000		$	137,341		$	15,500		$	16,560
Total assets	633,038			626,196			2,047,022			1,746,598			253,750			249,866
ROE	31		%	40		%	18		%	15		%	33		%	32		%
Overhead ratio	53			49			51			52			67			64


As of or for the nine months ended September 30, (in millions, except ratios)	Corporate					Reconciling Items (a)				Total
	2024			2023		2024		2023		2024				2023
Noninterest revenue	$	7,638	(b)	$	800	$	( 1,711 )	$	( 2,539 )	$	65,555		(b)	$	54,314
Net interest income	7,756			5,461		( 356 )		( 354 )		69,233				65,216
Total net revenue	15,394			6,261		( 2,067 )		( 2,893 )		134,788				119,530
Provision for credit losses	28			173		—		—		8,047				6,558
Noninterest expense	3,444		(c)	2,008		—		—		69,035			(c)	62,686
Income/(loss) before income tax expense/(benefit)	11,922			4,080		( 2,067 )		( 2,893 )		57,706				50,286
Income tax expense/(benefit)	2,657			384		( 2,067 )		( 2,893 )		13,240				10,041
Net income/(loss)	$	9,265		$	3,696	$	—	$	—	$	44,466			$	40,245
Average equity	$	108,353		$	70,147	$	—	$	—	$	310,353			$	278,010
Total assets	1,276,238			1,275,673		NA		NA		4,210,048				3,898,333
ROE	NM			NM		NM		NM		19		%		19		%
Overhead ratio	NM			NM		NM		NM		51				52

(b) Included a $ 7.9 billion net gain related to Visa shares recorded in the second quarter of 2024. Refer to Notes 2 and 5 for additional information.

(c) Included a $ 1.0 billion contribution of Visa shares to the JPMorgan Chase Foundation recorded in the second quarter of 2024. Refer to Note 5 for additional information.

185

Note 26 – Business combinations

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

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

The First Republic acquisition resulted in a preliminary estimated bargain purchase gain of $ 2.7 billion. The final bargain purchase gain of $ 2.9 billion reflects adjustments made during the one-year measurement period, as permitted by U.S. GAAP, to finalize management's fair value estimates for the assets acquired and liabilities assumed, including an increase of $ 103 million for the nine months ended September 30, 2024. Certain matters related to the final settlement remain outstanding between the Firm and the FDIC. Any subsequent adjustments will not impact the final bargain purchase gain and will be reflected in Other income.

Refer to Note 34 of JPMorgan Chase’s 2023 Form 10-K for further information on the First Republic acquisition.

186

The computation of the purchase price, the fair values of the assets acquired and liabilities assumed as part of the First Republic acquisition and the related bargain purchase gain are presented below, and reflects adjustments made during the measurement period to the acquisition-date fair value of the net assets acquired.


	Fair value purchase price allocation as of May 1, 2023
(in millions)
Purchase price consideration
Amounts paid/due to the FDIC, net of cash acquired (a)	$	13,555
Purchase Money Note (at fair value) (b)	48,848
Settlement of First Republic deposit and other related party transactions (c)	5,447
Contingent consideration - Shared-loss agreements	15
Purchase price consideration	$	67,865

Assets
Securities	$	30,285
Loans	153,242
Core deposit and customer relationship intangibles	1,455
Indemnification assets - Shared-loss agreements	675
Accounts receivable and other assets (d)	6,740
Total assets acquired	$	192,397

Liabilities
Deposits	$	87,572
FHLB advances	27,919
Lending-related commitments	2,614
Accounts payable and other liabilities (d)	2,792
Deferred tax liabilities	757
Total liabilities assumed	$	121,654

Fair value of net assets acquired	$	70,743
Gain on acquisition, after income taxes	$	2,878

(a) Net of cash acquired of $ 680 million, and including disputed amounts.

(b) As part of the consideration paid, JPMorgan Chase issued a five-year , $ 50 billion secured note to the FDIC (the "Purchase Money Note").

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

(d) Other assets include $ 1.2 billion in tax-oriented investments and $ 683 million of lease right-of-use assets. Other liabilities include the related tax-oriented investment liabilities of $ 669 million and lease liabilities of $ 748 million. Refer to Note 14 and Note 18 of JPMorgan Chase's 2023 Form 10-K for additional information.

Refer to JPMorgan Chase’s 2023 Form 10-K for a discussion of the Firm’s accounting policies and valuation methodologies for securities, loans, core deposits and customer relationship intangibles, shared-loss agreements and the related indemnification assets, deposits, Purchase Money Note, FHLB advances and lending-related commitments.

Loans

The following table presents the unpaid principal balance ("UPB") and fair values of the loans acquired as of May 1, 2023, and reflects adjustments made during the measurement period to the acquisition-date fair value of the loans acquired.



	May 1, 2023
(in millions)	UPB		Fair value
Residential real estate	$	106,240	$	92,053
Auto and other	3,093		2,030
Total consumer	109,333		94,083
Secured by real estate	37,117		33,602
Commercial & industrial	4,332		3,932
Other	23,499		21,625
Total wholesale	64,948		59,159
Total loans	$	174,281	$	153,242

187

Unaudited pro forma condensed combined financial information

The following table presents certain unaudited pro forma financial information for the three and nine months ended September 30, 2023 as if the First Republic acquisition had occurred on January 1, 2022, including recognition of the estimated bargain purchase gain of $ 2.8 billion and the provision for credit losses of $ 1.2 billion. Additional adjustments include the interest on the Purchase Money Note and the impact of amortizing and accreting certain estimated fair value adjustments related to intangible assets, loans and lending-related commitments.

The Firm expects to achieve operating cost savings and other business synergies resulting from the acquisition that are not reflected in the pro forma amounts. The pro forma information is not necessarily indicative of the historical results of operations had the acquisition occurred on January 1, 2022, nor is it indicative of the results of operations in future periods.


	Three months ended September 30,			Nine months ended September 30,
(in millions)		2023		2023
Noninterest revenue		$	16,820	$	51,480
Net interest income		22,726		66,808
Net income		12,902		39,500

188

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of JPMorgan Chase & Co.:

Results of Review of Interim Financial Statements

We have reviewed the accompanying consolidated balance sheet of JPMorgan Chase & Co. and its subsidiaries (the “Firm”) as of September 30, 2024, and the related consolidated statements of income, comprehensive income and changes in stockholders’ equity for the three-month and nine-month periods ended September 30, 2024 and 2023 and the consolidated statements of cash flows for the nine-month periods ended September 30, 2024 and 2023, including the related notes (collectively referred to as the “interim financial statements”). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial statements for them to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of the Firm as of December 31, 2023, and the related consolidated statements of income, comprehensive income, changes in stockholders’ equity and of cash flows for the year then ended (not presented herein), and in our report dated February 16, 2024, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet information as of December 31, 2023, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

These interim financial statements are the responsibility of the Firm’s management. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Firm in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

October 30, 2024

PricewaterhouseCoopers LLP, 300 Madison Avenue, New York, NY 10017

189


JPMorgan Chase & Co.
Consolidated average balance sheets, interest and rates (unaudited)
(Taxable-equivalent interest and rates; in millions, except rates)

	Three months ended September 30, 2024							Three months ended September 30, 2023
	Average balance		Interest (f)		Rate (annualized)			Average balance		Interest (f)		Rate (annualized)
Assets
Deposits with banks	$	464,704	$	5,366	4.59	%		$	456,954	$	5,270	4.58	%
Federal funds sold and securities purchased under resale agreements	404,174		5,226		5.14			309,848		3,951		5.06
Securities borrowed	217,716		2,478		4.53			188,279		2,085		4.39
Trading assets – debt instruments	496,176		5,625		4.51			383,576		4,177		4.32
Taxable securities	595,772		5,849		3.91			575,028		4,513		3.11
Nontaxable securities (a)	27,063		346		5.09			31,565		421		5.29
Total investment securities	622,835		6,195		3.96		(g)	606,593		4,934		3.23		(g)
Loans	1,325,440		23,569		7.07			1,306,322		22,367		6.79
All other interest-earning assets (b)(c)	90,721		2,077		9.11			80,156		1,902		9.42
Total interest-earning assets	3,621,766		50,536		5.55			3,331,728		44,686		5.32
Allowance for loan losses	(22,946)							(21,972)
Cash and due from banks	22,323							24,232
Trading assets – equity and other instruments	217,790							173,998
Trading assets – derivative receivables	54,575							66,972
Goodwill, MSRs and other intangible Assets	64,185							64,675
All other noninterest-earning assets	219,315							200,144
Total assets	$	4,177,008						$	3,839,777
Liabilities
Interest-bearing deposits	$	1,749,353	$	12,914	2.94	%		$	1,694,758	$	10,796	2.53	%
Federal funds purchased and securities loaned or sold under repurchase agreements	425,795		5,733		5.36			254,105		3,523		5.50
Short-term borrowings	40,234		542		5.38			37,837		512		5.38
Trading liabilities – debt and all other interest-bearing liabilities (d)(e)	329,850		2,632		3.17			288,007		2,463		3.39
Beneficial interests issued by consolidated VIEs	26,556		352		5.27			21,890		297		5.38
Long-term debt	347,910		4,838		5.53			315,267		4,239		5.33
Total interest-bearing liabilities	2,919,698		27,011		3.68			2,611,864		21,830		3.32
Noninterest-bearing deposits	633,957							660,983
Trading liabilities – equity and other instruments (e)	32,739							29,508
Trading liabilities – derivative payables	39,936							46,754
All other liabilities, including the allowance for lending-related commitments	206,376							178,466
Total liabilities	3,832,706							3,527,575
Stockholders’ equity
Preferred stock	22,408							27,404
Common stockholders’ equity	321,894							284,798
Total stockholders’ equity	344,302							312,202
Total liabilities and stockholders’ equity	$	4,177,008						$	3,839,777
Interest rate spread					1.87	%						2.00	%
Net interest income and net yield on interest-earning assets			$	23,525	2.58					$	22,856	2.72

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

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

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

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

(e) The combined balance of trading liabilities – debt and equity instruments was $200.8 billion and $153.4 billion for the three months ended September 30, 2024 and 2023, respectively.

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

(g) The annualized rate for securities based on amortized cost was 3.95% and 3.18% for the three months ended September 30, 2024 and 2023, respectively, and does not give effect to changes in fair value that are reflected in AOCI.

190


JPMorgan Chase & Co.
Consolidated average balance sheets, interest and rates (unaudited)
(Taxable-equivalent interest and rates; in millions, except rates)

	Nine months ended September 30, 2024							Nine months ended September 30, 2023
	Average balance		Interest (f)		Rate (annualized)			Average balance		Interest (f)		Rate (annualized)
Assets
Deposits with banks	$	504,043	$	17,811	4.72	%		$	485,700	$	15,278	4.21	%
Federal funds sold and securities purchased under resale agreements	366,464		14,262		5.20			316,520		10,849		4.58
Securities borrowed	202,103		6,821		4.51			190,822		5,667		3.97
Trading assets – debt instruments	457,351		15,233		4.45			377,829		11,862		4.20
Taxable securities	566,353		15,844		3.74			583,463		12,674		2.90
Nontaxable securities (a)	28,060		1,071		5.10			29,879		1,119		5.01
Total investment securities	594,413		16,915		3.80		(g)	613,342		13,793		3.01		(g)
Loans	1,316,733		69,454		7.05			1,225,375		60,472		6.60
All other interest-earning assets (b)(c)	84,912		6,227		9.80			88,255		5,637		8.54
Total interest-earning assets	3,526,019		146,723		5.56			3,297,843		123,558		5.01
Allowance for loan losses	(22,530)							(20,395)
Cash and due from banks	22,694							25,165
Trading assets – equity and other instruments	210,013							165,292
Trading assets – derivative receivables	56,455							64,955
Goodwill, MSRs and other intangible Assets	64,346							62,701
All other noninterest-earning assets	215,748							205,295
Total assets	$	4,072,745						$	3,800,856
Liabilities
Interest-bearing deposits	$	1,732,844	$	37,569	2.90	%		$	1,693,588	$	28,024	2.21	%
Federal funds purchased and securities loaned or sold under repurchase agreements	365,604		14,810		5.41			256,717		9,727		5.07
Short-term borrowings	39,003		1,579		5.41			37,308		1,361		4.88
Trading liabilities – debt and all other interest-bearing liabilities (d)(e)	317,229		7,872		3.31			286,324		6,807		3.18
Beneficial interests issued by consolidated VIEs	26,728		1,068		5.34			17,137		641		5.00
Long-term debt	343,628		14,236		5.53			286,522		11,428		5.33
Total interest-bearing liabilities	2,825,036		77,134		3.65			2,577,596		57,988		3.01
Noninterest-bearing deposits	643,608							661,086
Trading liabilities – equity and other instruments (e)	30,613							29,262
Trading liabilities – derivative payables	39,120							47,672
All other liabilities, including the allowance for lending-related commitments	198,617							179,826
Total liabilities	3,736,994							3,495,442
Stockholders’ equity
Preferred stock	25,398							27,404
Common stockholders’ equity	310,353							278,010
Total stockholders’ equity	335,751							305,414
Total liabilities and stockholders’ equity	$	4,072,745						$	3,800,856
Interest rate spread					1.91	%						2.00	%
Net interest income and net yield on interest-earning assets			$	69,589	2.64					$	65,570	2.66

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

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

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

(e) The combined balance of trading liabilities – debt and equity instruments was $189.1 billion and $150.2 billion for the nine months ended September 30, 2024 and 2023, respectively.

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

(g) The annualized rate for securities based on amortized cost was 3.77% and 2.96% for the nine months ended September 30, 2024 and 2023, respectively, and does not give effect to changes in fair value that are reflected in AOCI.

191

GLOSSARY OF TERMS AND ACRONYMS

2023 Form 10-K: Annual report on Form 10-K for year ended December 31, 2023, filed with the U.S. Securities and Exchange Commission.

ABS : Asset-backed securities

Active foreclosures: Loans referred to foreclosure where formal foreclosure proceedings are ongoing. Includes both judicial and non-judicial states.

AFS: Available-for-sale

Allowance for loan losses to total retained loans: represents period-end allowance for loan losses divided by retained loans.

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

AOCI : Accumulated other comprehensive income/(loss)

ARM(s) : Adjustable rate mortgage(s)

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

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

AWM: Asset & Wealth Management

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

BHC: Bank holding company

BWM : Banking & Wealth Management

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

CCAR: Comprehensive Capital Analysis and Review

CCB: Consumer & Community Banking

CCP: Central Counterparty

CDS : Credit default swaps

CECL: Current Expected Credit Losses

CEO: Chief Executive Officer

CET1 capital : Common equity Tier 1 capital

CFO: Chief Financial Officer

CFTC : Commodity Futures Trading Commission

CIB: Commercial & Investment Bank

CIO: Chief Investment Office

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

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

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

CLTV : Combined loan-to-value

CMT: Constant Maturity Treasury

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

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

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

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

CRR: Capital Requirements Regulation

CVA: Credit valuation adjustment

DVA: Debit valuation adjustment

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EC : European Commission

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

Eligible LTD: Long-term debt satisfying certain eligibility criteria

Embedded derivatives: are implicit or explicit terms or features of a financial instrument that affect some or all of the cash flows or the value of the instrument in a manner similar to a derivative. An instrument containing such terms or features is referred to as a “hybrid.” The component of the hybrid that is the non-derivative instrument is referred to as the “host.” For example, callable debt is a hybrid instrument that contains a plain vanilla debt instrument (i.e., the host) and an embedded option that allows the issuer to redeem the debt issue at a specified date for a specified amount (i.e., the embedded derivative). However, a floating rate instrument is not a hybrid composed of a fixed-rate instrument and an interest rate swap.

EPS: Earnings per share

ERISA: Employee Retirement Income Security Act of 1974

ESG: Environmental, Social and Governance

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

EU: European Union

Expense categories:

• Volume- and/or revenue-related expenses generally correlate with changes in the related business/transaction volume or revenue. Examples of volume- and revenue-related expenses include commissions and incentive compensation, depreciation expense related to operating lease assets, and brokerage expense related to equities trading transaction volume.

• Investments include expenses associated with supporting medium- to longer-term strategic plans of the Firm. Examples of investments include initiatives in technology (including related compensation), marketing, and compensation for new bankers and client advisors.

• Structural expenses are those associated with the day-to-day cost of running the bank and are expenses not covered by the above two categories. Examples of structural expenses include employee salaries and benefits, as well as noncompensation costs such as real estate and all other expenses.

Fannie Mae : Federal National Mortgage Association

FASB : Financial Accounting Standards Board

FCA : Financial Conduct Authority

FDIC : Federal Deposit Insurance Corporation

FDM: "Financial difficulty modification" applies to loan modifications effective January 1, 2023, and is deemed to occur when the Firm modifies specific terms of the original loan agreement. The following types of modifications are

considered FDMs: principal forgiveness, interest rate reduction, other-than-insignificant payment deferral, term extension or a combination of these modifications.

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

FFIEC: Federal Financial Institutions Examination Council

FHA : Federal Housing Administration

FHLB : Federal Home Loan Bank

FICO score: A measure of consumer credit risk based on information in consumer credit reports produced by Fair Isaac Corporation. Because certain aged data is excluded from credit reports based on rules in the Fair Credit Reporting Act, FICO scores may not reflect all historical information about a consumer.

FICC: Fixed Income Clearing Corporation

FINRA: Financial Industry Regulatory Authority

Firm: JPMorgan Chase & Co.

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

Freddie Mac: Federal Home Loan Mortgage Corporation

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

FTE: Fully taxable-equivalent

FVA: Funding valuation adjustment

FX : Foreign exchange

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

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

Ginnie Mae : Government National Mortgage Association

GSIB: Global systemically important banks

HELOC : Home equity line of credit

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

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

HQLA: High-quality liquid assets

HTM : Held-to-maturity

IBOR: Interbank Offered Rate

IDI : Insured depository institutions

IHC: JPMorgan Chase Holdings LLC, an intermediate holding company

Investment-grade : An indication of credit quality based on

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JPMorgan Chase’s internal risk assessment system. “Investment grade” generally represents a risk profile similar to a rating of a “BBB-”/“Baa3” or better, as defined by independent rating agencies.

IPO: Initial Public Offering

IR: Interest rate

ISDA : International Swaps and Derivatives Association

JPMorgan Chase: JPMorgan Chase & Co.

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

JPMorgan Chase Foundation or Foundation: a not-for-profit organization that makes contributions for charitable and educational purposes.

J.P. Morgan Securities: J.P. Morgan Securities LLC

JPMSE: J.P. Morgan SE

LCR: Liquidity coverage ratio

LIBOR : London Interbank Offered Rate

LLC : Limited Liability Company

LOB : Line of business

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

Origination date LTV ratio

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

Current estimated LTV ratio

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

Combined LTV ratio

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

Macro businesses: the macro businesses include Rates, Currencies and Emerging Markets, Fixed Income Financing and Commodities in CIB's Fixed Income Markets.

Managed basis: A non-GAAP presentation of Firmwide financial results that includes reclassifications to present revenue on a fully taxable-equivalent basis. Management also uses this financial measure at the segment level, because it believes this provides information to enable

investors to understand the underlying operational performance and trends of the particular business segment and facilitates a comparison of the business segment with the performance of competitors.

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

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

MBS: Mortgage-backed securities

MD&A: Management’s discussion and analysis

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

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

MEV: Macroeconomic variable

Moody’s : Moody’s Investor Services

Mortgage product types :

Alt-A

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

Option ARMs

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

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converts the loan to a variable-rate fully amortizing loan upon meeting specified loan balance and anniversary date triggers.

Prime

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

Subprime

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

MREL : Minimum requirements for own funds and eligible liabilities

MSR : Mortgage servicing rights

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

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

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

Net interchange income includes the following components:

• Interchange income: Fees earned by credit and debit card issuers on sales transactions.

• Rewards costs: The cost to the Firm for points earned by cardholders enrolled in credit card rewards programs generally tied to sales transactions.

• Partner payments: Payments to co-brand credit card partners based on the cost of loyalty program rewards earned by cardholders on credit card transactions.

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

NFA: National Futures Association

NM : Not meaningful

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

maintained on nonaccrual status.

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

NSFR: Net Stable Funding Ratio

OCC : Office of the Comptroller of the Currency

OCI : Other comprehensive income/(loss)

OPEB : Other postretirement employee benefit

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

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

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

Parent Company: JPMorgan Chase & Co.

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

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

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

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

PPP: Paycheck Protection Program under the Small Business Association (“SBA”)

PRA: Prudential Regulation Authority

Preferred stock dividends: reflects dividends declared and deemed dividends upon redemption of preferred stock

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

Principal transactions revenue : Principal transactions revenue is driven by many factors, including the bid-offer spread, which is the difference between the price at which the Firm is willing to buy a financial or other instrument and the price at which the Firm is willing to sell that instrument. It also consists of realized (as a result of closing out or termination of transactions, or interim cash payments) and unrealized (as a result of changes in valuation) gains and losses on financial and other instruments (including those accounted for under the fair value option) primarily used in client-driven market-making activities and on private equity investments. In connection with its client-driven market-making activities, the Firm transacts in debt and equity instruments, derivatives and commodities (including physical commodities inventories and financial instruments that reference commodities). Principal transactions revenue also includes certain realized and unrealized gains and losses related to hedge accounting and specified risk-management activities, including: (a) certain derivatives designated in qualifying hedge accounting relationships (primarily fair value hedges of commodity and foreign exchange risk), (b) certain derivatives used for specific risk management purposes, primarily to mitigate credit risk and foreign exchange risk, and (c) other derivatives.

PSU(s) : Performance share units

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

REO: Real estate owned

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

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

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

RHS : Rural Housing Service of the U.S. Department of Agriculture

ROE: Return on equity

ROTCE: Return on tangible common equity

ROU assets: Right-of-use assets

RSU(s) : Restricted stock units

RWA : “Risk-weighted assets”: Basel III establishes two comprehensive approaches for calculating RWA (a Standardized approach and an Advanced approach) which

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

S&P : Standard and Poors

SA-CCR: Standardized Approach for Counterparty Credit Risk

SAR as it pertains to Hong Kong: Special Administrative Region

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

SCB : Stress capital buffer

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

SEC : U.S. Securities and Exchange Commission

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

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

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

Single-name : Single reference-entities

SLR : Supplementary leverage ratio

SMBS: Stripped Mortgage-Backed Securities

SOFR: Secured Overnight Financing Rate

SPEs : Special purpose entities

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

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

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throughout the life of the note based on non-traditional indexes or non-traditional uses of traditional interest rates or indexes.

Suspended foreclosures: Loans referred to foreclosure where formal foreclosure proceedings have started but are currently on hold, which could be due to bankruptcy or loss mitigation. Includes both judicial and non-judicial states.

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

TBVPS: Tangible book value per share

TCE: Tangible common equity

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

TLAC: Total Loss Absorbing Capacity

U.K. : United Kingdom

U.S. : United States of America

U.S. GAAP : Accounting principles generally accepted in the United States of America.

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

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

U.S. Treasury : U.S. Department of the Treasury

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

VA : U.S. Department of Veterans Affairs

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

VIEs : Variable interest entities

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

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LINE OF BUSINESS METRICS

CONSUMER & COMMUNITY BANKING (“CCB”)

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

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

Home Lending Production and Home Lending Servicing revenue comprises the following:

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

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

Mortgage origination channels comprise the following:

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

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

Card Services: is a business that primarily issues credit cards to consumers and small businesses.

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

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

Commercial & Investment Bank (“CIB”)

Definition of selected CIB revenue:

Investment Banking: Includes investment banking fees as well as other revenues associated with investment banking activities and services including advising on corporate strategy and structure, and capital-raising in equity and debt markets.

Payments: reflects revenue from cash management solutions, including services that enable clients to manage payments globally across liquidity and account solutions, commerce solutions, clearing, trade and working capital.

Lending: includes revenue from a variety of financing alternatives, which includes on a secured basis.

Other: includes tax-equivalent adjustments generated from Community Development Banking and activity derived from principal transactions.

Fixed Income Markets: primarily includes revenue related to market-making and lending across global fixed income markets, including foreign exchange, interest rate, credit and commodities markets.

Equity Markets: primarily includes revenue related to market-making and lending across global equity markets, including cash, derivative and prime brokerage products.

Securities Services: revenues are primarily generated from net interest income, asset based fees, and transaction based fees. Our core product offering is organized into four key areas: custody, fund services, liquidity and trading services, and data solutions. These services are marketed primarily to institutional investors.

Description of certain business metrics:

Assets under custody (“AUC”): represents activities associated with the safekeeping and servicing of assets on which Securities Services earns fees.

Investment banking fees: represents advisory, equity underwriting, bond underwriting and loan syndication fees.

Description of CIB client coverage segment for Banking and Payments revenue:

Global Corporate Banking & Global Investment Banking: provides banking products and services generally to large corporations, financial institutions and merchants.

Commercial Banking: provides banking products and services generally to middle market clients, including start-ups, small and mid-sized companies, local governments, municipalities, and nonprofits, as well as to commercial real estate clients.

Other: includes amounts related to credit protection purchased against certain retained loans and lending-related commitments in Lending, the impact of equity investments in Payments and revenues not aligned with a primary client coverage segment.

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ASSET & WEALTH MANAGEMENT (“AWM”)

Assets under management (“AUM”): represent assets managed by AWM on behalf of its Private Banking, Global Institutional and Global Funds clients. Includes “Committed capital not Called.”

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

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

Alternative assets: The following types of assets constitute alternative investments – hedge funds, currency, real estate, private equity and other investment funds designed to focus on nontraditional strategies.

AWM’s lines of business consist of the following:

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

Global Private Bank: provides retirement products and services, brokerage, custody, trusts and estates, loans, mortgages, deposits and investment management to high net worth clients.

AWM’s client segments consist of the following:

Private Banking: clients include high- and ultra-high-net-worth individuals, families, money managers and business owners.

Global Institutional: clients include both corporate and public institutions, endowments, foundations, nonprofit organizations and governments worldwide.

Global Funds: clients include financial intermediaries and individual investors.

Asset Management has two high-level measures of its overall fund performance:

Percentage of active mutual fund and active ETF assets under management in funds rated 4- or 5-star : Mutual fund rating services rank funds based on their risk-adjusted performance over various periods. A 5-star rating is the best rating and represents the top 10% of industry-wide ranked funds. A 4-star rating represents the next 22.5% of industry-wide ranked funds. A 3-star rating represents the next 35% of industry-wide ranked funds. A 2-star rating represents the next 22.5% of industry-wide ranked funds. A 1-star rating is the worst rating and represents the bottom 10% of industry-wide ranked funds. An overall Morningstar rating is derived from a weighted average of the performance associated with a fund’s three-, five- and ten- year (if applicable) Morningstar Rating metrics. For U.S.-domiciled funds, separate star ratings are provided at the individual share class level. The Nomura “star rating” is based on three-year risk-adjusted performance only. Funds with fewer than three years of history are not rated and hence excluded from these rankings. All ratings, the

assigned peer categories and the asset values used to derive these rankings are sourced from the applicable fund rating provider. Where applicable, the fund rating providers redenominate asset values into U.S. dollars. The percentage of AUM is based on star ratings at the share class level for U.S.-domiciled funds, and at a “primary share class” level to represent the star rating of all other funds, except for Japan, for which Nomura provides ratings at the fund level. The performance data may have been different if all share classes had been included. Past performance is not indicative of future results.

Percentage of active mutual fund and active ETF assets under management in funds ranked in the 1st or 2nd quartile (one, three, and five years): All quartile rankings, the assigned peer categories and the asset values used to derive these rankings are sourced from the fund rating providers. Quartile rankings are based on the net-of-fee absolute return of each fund. Where applicable, the fund rating providers redenominate asset values into U.S. dollars. The percentage of AUM is based on fund performance and associated peer rankings at the share class level for U.S.-domiciled funds, at a “primary share class” level to represent the quartile ranking for U.K., Luxembourg and Hong Kong funds and at the fund level for all other funds. The performance data may have been different if all share classes had been included. Past performance is not indicative of future results.

“ Primary share class ” means the C share class for European funds and Acc share class for Hong Kong and Taiwan funds. If these share classes are not available, the oldest share class is used as the primary share class.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Refer to the Market Risk Management section of Management’s discussion and analysis and pages 135–143 of JPMorgan Chase’s 2023 Form 10-K for a discussion of the quantitative and qualitative disclosures about market risk.

Item 4. Controls and Procedures.

As of the end of the period covered by this report, an evaluation was carried out under the supervision and with the participation of the Firm’s management, including its Chairman and Chief Executive Officer and its Chief Financial Officer, of the effectiveness of its disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934). Based on that evaluation, the Chairman and Chief Executive Officer and the Chief Financial Officer concluded that these disclosure controls and procedures were effective. Refer to Exhibits 31.1 and 31.2 for the Certifications furnished by the Chairman and Chief Executive Officer and Chief Financial Officer, respectively.

The Firm is committed to maintaining high standards of internal control over financial reporting. Nevertheless, because of its inherent limitations, internal control over financial reporting may not prevent or detect all misstatements. Deficiencies or lapses in internal controls may occur from time to time, and there can be no assurance that any such deficiencies will not result in significant deficiencies or material weaknesses in internal control in the future and collateral consequences therefrom. Refer to “Management’s report on internal control over financial reporting” on page 162 of JPMorgan Chase’s 2023 Form 10-K for further information. There was no change in the Firm’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934) that occurred during the three months ended September 30, 2024, that has materially affected, or is reasonably likely to materially affect, the Firm’s internal control over financial reporting.

Part II – Other Information

Item 1. Legal Proceedings.

Refer to the discussion of the Firm’s material legal proceedings in Note 24 of this Form 10-Q for information that updates the disclosures set forth under Part I, Item 3: Legal Proceedings, in JPMorgan Chase’s 2023 Form 10-K.

Item 1A. Risk Factors.

Refer to Part I, Item 1A: Risk Factors on pages 9-33 of JPMorgan Chase’s 2023 Form 10-K and Forward-Looking Statements on page 88 of this Form 10-Q for a discussion of certain risk factors affecting the Firm.

Supervision and regulation

Refer to the Supervision and regulation section on pages 4–8 of JPMorgan Chase’s 2023 Form 10-K for information on Supervision and Regulation.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Repurchases under the common share repurchase program

Refer to Capital Risk Management on pages 44-49 of this Form 10-Q and pages 91-101 of JPMorgan Chase’s 2023 Form 10-K for information regarding repurchases under the Firm’s common share repurchase program.

200

Shares repurchased pursuant to the common share repurchase program during the nine months ended September 30, 2024 were as follows:


Nine months ended September 30, 2024	Total number of shares of common stock repurchased	Average price paid per share of common stock (a)		Aggregate purchase price of common stock repurchases (in millions) (a)		Dollar value of remaining authorized repurchase (in millions) (a)



First quarter	15,869,936	$	179.50	$	2,849	$	16,886




Second quarter	27,019,730	$	196.83	$	5,318	$	11,568	(b)
July	5,348,998	210.33		1,125		28,875
August	16,568,428	208.70		3,458		25,417
September	8,426,507	210.96		1,778		23,639		(c)
Third quarter	30,343,933	209.61		6,361		23,639		(c)
Year-to-date	73,233,599	$	198.37	$	14,528	$	23,639	(c)

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

(b) The $11.6 billion under the prior Board authorization was canceled when the $30 billion repurchase program was authorized by the Board of Directors effective July 1, 2024.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

Trading arrangements

The following table provides information concerning Rule 10b5-1 trading arrangements (as defined in Item 408 of Regulation S-K under the Securities Exchange Act of 1934) adopted in the third quarter of 2024, by any director or officer who is subject to the filing requirements of Section 16 of the Securities Exchange Act of 1934 ("Section 16 Director or Officer"). These trading arrangements are intended to satisfy the affirmative defense of Rule 10b5-1(c). Certain of the Firm's Section 16 Directors or Officers may participate in employee stock purchase plans, 401(k) plans or dividend reinvestment plans of the Firm that have been designed to comply with Rule 10b5-1(c). No non-Rule 10b5-1 trading arrangements (as defined in Item 408 of Regulation S-K under the Securities Exchange Act of 1934) were adopted by any Section 16 Director or Officer during the third quarter of 2024. Additionally, no Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were terminated by any Section 16 Director or Officer in the third quarter of 2024.

Name

Title

Adoption date

Duration (b)

Aggregate number of shares to be sold (c)

Ashley Bacon

Chief Risk Officer

August 7, 2024

August 7, 2024 – March 31, 2025

50% of the net issued shares received as a result of RSUs vesting on January 13, 2025

Mary Erdoes

CEO, AWM

August 1, 2024

August 1, 2024 – March 31, 2025

50% of the net issued shares received as a result of RSUs vesting on January 13, 2025

Stacey Friedman

General Counsel

August 6, 2024

August 6, 2024 – March 31, 2025

50% of the net issued shares received as a result of RSUs vesting on January 13, 2025

Marianne Lake (a)

CEO, CCB

July 31, 2024

July 31, 2024 – March 31, 2025

50% of the net issued shares received as a result of RSUs vesting on January 13, 2025

(a) Transaction by trust of which Ms. Lake has either a direct or indirect pecuniary interest.

(b) Sales under the trading arrangement will not commence until completion of the required cooling off period under Rule 10b5-1. Subject to compliance with Rule 10b5-1, duration could cease earlier than the final date shown above to the extent that the aggregate number of shares to be sold under the trading arrangement have been sold.

(c) The aggregate number of shares to be sold pursuant to each trading agreement is dependent on the terms and conditions of, and taxes on, the applicable RSUs, and therefore, is indeterminable at this time.

201

Item 6. Exhibits.


Exhibit No.						Description of Exhibit

15						Letter re: Unaudited Interim Financial Information. (a)

22						Subsidiary Guarantors and Issuers of Guaranteed Securities . (a)

31.1						Certification. (a)

31.2						Certification. (a)

32						Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (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. (c)
101.SCH						XBRL Taxonomy Extension Schema Document. (a)
101.CAL						XBRL Taxonomy Extension Calculation Linkbase Document. (a)
101.DEF						XBRL Taxonomy Extension Definition Linkbase Document. (a)
101.LAB						XBRL Taxonomy Extension Label Linkbase Document. (a)
101.PRE						XBRL Taxonomy Extension Presentation Linkbase Document. (a)
104						Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101).

(a) Filed herewith.

(b) 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.

(c) Pursuant to Rule 405 of Regulation S-T, includes the following financial information included in the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024, formatted in XBRL (eXtensible Business Reporting Language) interactive data files: (i) the Consolidated statements of income (unaudited) for the three and nine months ended September 30, 2024 and 2023, (ii) the Consolidated statements of comprehensive income (unaudited) for the three and nine months ended September 30, 2024 and 2023, (iii) the Consolidated balance sheets (unaudited) as of September 30, 2024 and December 31, 2023, (iv) the Consolidated statements of changes in stockholders’ equity (unaudited) for the three and nine months ended September 30, 2024 and 2023, (v) the Consolidated statements of cash flows (unaudited) for the nine months ended September 30, 2024 and 2023, and (vi) the Notes to Consolidated Financial Statements (unaudited).

202

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


JPMorgan Chase & Co.
(Registrant)


By:			/s/ Elena Korablina
			Elena Korablina
			Managing Director and Firmwide Controller
			(Principal Accounting Officer)


Date:			October 30, 2024

203

TABLE OF CONTENTS

Note 26 For Additional Information on The First Republic Acquisition Note 1 Basis Of Presentation Note 2 Fair Value Measurement Note 3 Fair Value Option Note 4 Derivative Instruments Note 5 Noninterest Revenue and Noninterest Expense Note 6 Interest Income and Interest Expense Note 7 Pension and Other Postretirement Employee Benefit Plans Note 8 Employee Share-based Incentives Note 9 Investment Securities Note 10 Securities Financing Activities Note 11 Loans Note 12 Allowance For Credit Losses Note 13 Variable Interest Entities Note 14 Goodwill, Mortgage Servicing Rights, and Other Intangible Assets Note 15 Deposits Note 16 Leases Note 17 Preferred Stock Note 18 Earnings Per Share Note 19 Accumulated Other Comprehensive Income/(loss)Note 20 Restricted Cash and Other Restricted Note 21 Regulatory Capital Note 22 Off Balance Sheet Lending-related Note 23 Pledged Assets and Collateral Note 24 Litigation Note 25 Business Segments Note 26 Business Combinations Item 3. Quantitative and Qualitative Disclosures About Market Risk Item 4. Controls and Procedures Part II Other Information Item 1. Legal Proceedings Item 1A. Risk Factors Item 2. Unregistered Sales Of Equity Securities and Use Of Proceeds Item 3. Defaults Upon Senior Securities Item 4. Mine Safety Disclosures Item 5. Other Information Item 6. Exhibits

Exhibits

15 Letter re: Unaudited Interim Financial Information.(a) 22 Subsidiary Guarantors and Issuers of Guaranteed Securities.(a) 31.1 Certification.(a) 31.2 Certification.(a) 32 Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.(b)

Customer name	Ticker
American Express Company	AXP
Bank of America Corporation	BAC
Capital One Financial Corporation	COF
Citigroup Inc.	C
Granite Construction Incorporated	GVA
MGIC Investment Corporation	MTG
Mr. Cooper Group Inc.	COOP

Supplier name	Ticker
Visa Inc.	V
Mastercard Incorporated	MA
Bank of America Corporation	BAC
Citigroup Inc.	C
Canaan Inc.	CAN
Adobe Inc.	ADBE
Cisco Systems, Inc.	CSCO
Oracle Corporation	ORCL
International Business Machines Corporation	IBM

JPM 10-Q Quarter ended Sept. 30, 2024

Exhibits